Stock Markets August 28, 2026 01:56 AM

Tobii posts sharp revenue drop but reports progress on cost cuts and Autosense growth

Second-quarter sales fall 39% year-over-year to SEK 154 million while operating profit and margin improve; company targets positive operating cash flow by 2027

By Marcus Reed
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Swedish eye-tracking specialist Tobii registered a 39% year-over-year decline in second-quarter revenue to SEK 154 million, while underlying growth was 7%. The company delivered an operating profit of SEK 15 million and reported strong gross margins alongside SEK 43 million in cost savings, even as free cash flow remained negative and some product units faced regional demand headwinds.

Tobii posts sharp revenue drop but reports progress on cost cuts and Autosense growth
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Key Points

  • Tobii reported Q2 revenue of SEK 154 million, down 39% year-over-year, with 7% underlying growth.
  • Company achieved an operating profit of SEK 15 million, gross margin of 82%, and realized SEK 43 million in cost savings during the quarter.
  • Autosense sales increased due to a licensing deal with an automotive supplier; Products & Solutions was affected by procurement delays in China, weakness in Japan and extended U.S. contract talks.

Summary of results

Tobii reported second-quarter revenue of SEK 154 million, a 39% decline versus the same period a year earlier, with the company noting 7% underlying growth for the quarter. Tobii posted an operating profit of SEK 15 million, a gross margin of 82%, a loss per share of SEK 0.02 and negative free cash flow of SEK 10 million for the period.


Profitability and cash flow

Despite the steep year-on-year revenue drop, Tobii recorded a positive operating result for the quarter. Gross margin held at a strong 82%. Free cash flow was negative at SEK 10 million and the company reported a loss per share of SEK 0.02.


Cost reduction progress

Tobii said its ongoing cost reduction program produced SEK 43 million in savings during the second quarter. The company plans further cost measures focused on its Autosense division, expecting those moves to lower annual costs by more than SEK 50 million.


Business unit performance

The Autosense division saw net sales increase in the quarter, a development Tobii attributed to a licensing agreement with a major automotive supplier. In contrast, the Products & Solutions division encountered several headwinds: delayed procurement activity in China, weakness in Japan, and protracted contract negotiations in the United States.


Outlook and timetable

Tobii reiterated a target of achieving positive operating cash flow starting in 2027. The company expects demand in China to normalize gradually over time, while noting that regional uncertainty remains a factor.


Implications for markets and supply chains

For market participants and supply-chain observers, the results present a mix of operational improvement through cost savings and margin strength, alongside revenue pressure driven by regional demand dynamics and extended commercial negotiations. The Autosense licensing development signals traction in automotive-related revenue streams, while Products & Solutions performance highlights sensitivity to procurement timing and regional market weakness.


Risks

  • Ongoing regional uncertainty in China could prolong softer demand and affect revenue recovery - impacts technology and electronics markets as well as supply chains tied to procurement timing.
  • Weakness in Japan and extended contract negotiations in the United States pose risks to near-term revenue for Products & Solutions - affects enterprise customers and hardware vendors reliant on contract cycles.
  • Negative free cash flow and the multi-year timetable to achieve positive operating cash flow (targeted from 2027) introduce financial execution risk for investors and counterparties - relevant to creditors, suppliers, and capital providers.

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