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technology companies face potential cost pressures and operational
disruptions, Xplora remains resilient, with a diversified business model and a
solid financial position.
The majority of Xplora’s sales are concentrated in Europe and the Nordics,
where the company’s award-winning children’s smartwatches have their strongest
market presence. Device sales in the US represented a small portion of the
total revenue in 2024. Recurring service revenues – including SIM
connectivity and subscriptions – are not subject to import tariffs, shielding
a significant part of the company’s business model from direct impact. The
recently acquired Doro AB does not report revenues in the US market and is
therefore not affected by the new tariffs.
Xplora sources its products from Asia, with purchases settled in USD, while
most revenues are earned in EUR and NOK/SEK. Following the tariff
announcement, the USD has weakened against these currencies – a development
that currently results in improved gross margins.
A large share of the company’s income stems from subscription-based services,
providing a resilient and recurring revenue stream. This model supports both
stability and flexibility during periods of market uncertainty. Potential
increases in hardware costs can be distributed across a 24-month subscription
period, resulting in limited monthly impact for end users while maintaining
strong lifetime value (LTV) and profitability.
To ensure financial flexibility in a potentially more volatile economic
environment, Xplora has taken proactive steps. Last week, the company
announced a new long-term loan facility of EUR 82 million with Nordea.
Together with the combined cash holdings of Xplora and Doro AB, which totaled
almost NOK 500 million at year-end 2024, the company holds a solid liquidity
buffer.
“In uncertain times, Xplora stands strong. With a diversified revenue model,
low exposure to US tariffs, and a solid financial foundation, we are
well-positioned to continue our growth and deliver long-term value to our
shareholders,” says Sten Kirkbak, CEO of Xplora Technologies.
For further information please contact:
Sten Kirkbak, CEO, +47 92203710, sten.kirkbak@xplora.com
Knut Stålen, CFO, +47 92043458, knut.stalen@xplora.com
About Xplora Technologies AS:
Xplora is a platform and services company and an industry leader in the market
for children’s smartwatches. Xplora was founded to give children a safe
onboarding to the digital life and a better balance between screen time and
physical activity. Xplora’s vision is to enable children around the world to
experience how their everyday activities can create value and make a positive
change in the world. The company is headquartered in Norway with operations in
leading European markets. Xplora is listed on Euronext Growth under the ticker
symbol XPLRA.
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