This article first appeared on GuruFocus.
Release Date: November 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Surgical Science Sweden AB (SUSRF) achieved an all-time high in total sales of SEK 264 million for Q3 2025, despite a negative currency impact.
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The company experienced a 14% growth compared to the same quarter last year, and a 19% growth when adjusted for currency effects.
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The educational products business unit stabilized and showed an 8% growth compared to the same quarter in 2024, with a 26% increase from the previous quarter.
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Industry OEM sales increased by 20%, with development revenue up by 131% compared to the same quarter in 2024.
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Surgical Science Sweden AB (SUSRF) secured a potentially largest single deal in its history within the medical device simulation segment, indicating strong future revenue potential.
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The gross margin declined to 65% from 69% last year, affected by strong simulator sales relative to license revenue and currency effects.
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Sales in the Americas grew by only 9%, which was below expectations due to extended sales cycles in a tougher budgetary climate for hospitals.
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Sales in the US for comparable units decreased, with the market showing signs of activity but still disappointing for Q3.
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The UK market faced sluggishness due to funding allocation issues from the National Health Service, negatively impacting sales.
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Intelligent Ultrasound, acquired by Surgical Science Sweden AB (SUSRF), continued to be loss-making, contributing to an operating loss of SEK 11 million for the quarter.
Q: Should we expect any impact from recent regulatory announcements in the robotic space on Q4 license sales? A: Yes, we will see an impact from these other robotics customers already in Q4 of this year. This aligns with what was stated in the CEO letter in the quarterly report. – CEO Tom Engl
Q: Given the increase in costs and the adjusted EBIT margin target for next year, how do you expect costs to develop? A: Profitability is a key focus, and we are implementing various activities to improve gross margin and manage costs cautiously. This includes price increases and cost reduction initiatives, particularly following the acquisition of Intelligent Ultrasound. We aim to grow the ultrasound business with good margins to enhance profitability. – CEO Tom Engl
Q: Can you provide more details on the potential largest single deal in the company’s history within medical device simulation? A: Unfortunately, due to commitments towards the customer, we cannot elaborate on the deal size. However, simulation is becoming a critical tool for medical device companies, and we are becoming a preferred supplier for simulation solutions. This deal involves development revenue and initial simulator sales, with potential for high volumes as the product rolls out globally. – CEO Tom Engl