It seems the worm crawled out of the apple before the story even began.
Is this going to be a bit like Orthex back in the day, where people got in at a high price and soon it’s just languishing at half the IPO price?
Will it turn out a bit like Orthex did, where you get in at a high price and it soon languishes at half the listing price?
It fits the narrative, as the main focus here was on the share sale and the private equity investor’s exit. The small offering was a bit of a sleight of hand, as the company didn’t really even need the funds. On top of that, the IPO mess left a bad taste.
Framery’s listing was all about the private equity investor and founders exiting. There was no other reason for it, such as a need for capital. The peak years are behind them, back when the company had no competitors and the market was new and hot. Now the market is saturated with pods and there are competitors on every continent. A couple of years ago, the company was already running at a loss. Now the last bits of value have been squeezed out, and the founders and shareholders are selling off their holdings. What remains is a declining furniture factory. The company’s earnings already collapsed in Q4/2025, with earnings at just 4 cents per share. With a P/E of 10, the share’s fair value at this level is 1.60 euros.
Let’s hope the company succeeds in surprising shareholders in the future. However, there have also been disturbing triggers from the beginning: pre-IPO selling was exceptionally high, the moat?, the IPO attempted to hype up the facilities’ exceptional features that would be difficult for others to achieve (insulation materials, ventilation, smart features…), the refusal of Inderes analysis, management has left the forums?, and currency headwinds.
“A growth company that distributes 90% of its earnings as dividends”
If this didn’t scare you at the time of the IPO, then now the harvest is being reaped. This was an exit for the founders and early-stage investors, wrapped in beautiful packaging and promises that likely won’t be fulfilled.
Framery raised 20 million euros in its IPO.
Now, a couple of months later, the company is distributing 18.24 million euros as a dividend (79,148,831 shares x 23 cents dividend).
The IPO was a pure cash-out, and even the funds collected from the public are being funneled into the pockets of the major owners. Once the shareholders are able to sell their remaining shares during this year, the game is over. Hopefully, the share price stays up for a few more months for the cashing out.
With these numbers, Framery won’t become a dividend stock. At a share price of 7 euros, the dividend yield is a “staggering” 3.2%, which is in the range of a risk-free fixed-term deposit. The dividend to be paid out is practically the entire cash reserve (19.7 million euros) as of 31.12.2025. So, emptying the coffers; there doesn’t seem to be any sensible need for investment (real growth companies spend their money on investments, i.e., growth).
There is no growth in sight; if there were, the company would surely pump it up by reporting news to drive the share price higher. It is indeed an office furniture company, as someone wrote above. Everyone can think for themselves how much the office furniture market will grow, using whatever variables they like. This is definitely not a growth business, even in theory, that could scale many times over. Competition is extremely fierce, margins are shrinking, and it’s a highly cyclical business.
The current share value is absurd. I simply don’t understand how anyone agrees to buy or own the stock at this price. At best, this is a boom-time office luxury product with a very limited market.
If this were truly a growth company, some larger corporation or investor would have bought it, and it wouldn’t be floating around on the small Helsinki Stock Exchange.
The company’s revenue has been treading water at this level for the last 4 years. So much for growth.
There are plenty of stories, and money is changing hands from the uninformed to the players. In a few years, people will be wondering again how it all turned out like this. You should go to the company’s website and read the financial statements. You can understand a lot from the numbers.
Revenue grew by 37% last year, so I wouldn’t exactly talk about standing still. Most companies on the Helsinki Stock Exchange can only dream of such a thing. Over a four-year period, the growth is indeed more modest, that is true. How the revenue develops in 2026 is, of course, what’s more interesting here.
There really isn’t a great need for investment, as was stated in connection with the IPO. The current subcontractor network and Framery’s own logistics setup can push the goods out to the world; there’s no need to build new factories. In R&D, monthly-salaried staff are already hired; it’s not sensible to keep hiring more employees there indefinitely and inflate the company’s costs. An extensive dealer network maintains showrooms around the world, so Framery doesn’t need to build 1,000 stores worldwide themselves and hire 5,000 people with shocking salary costs. The current arrangement is certainly better since the company itself doesn’t have massive fixed costs (like, for example, Sotka/Asko had huge rent liabilities and salary costs; they couldn’t survive them when revenue didn’t grow as expected).
Let’s see how the company’s story progresses in the next 2-3 years. There are a lot of smart people on the list of largest shareholders. They could all be wrong, of course; nobody knows anything about the future for sure. Vaaka Partners continues as the largest owner; they will surely do everything they can so that the share price is north of 10 euros later when it’s time to exit. There is certainly plenty of risk in this stock as well.
Revenue is stalling—it’s not growing. Revenue has been practically stagnant since 2022. The 2025 listing year, which has all possible tricks thrown in, mostly raises eyebrows. Growth companies grow significantly year after year. In Framery’s case, 2025 is more of an anomaly compared to recent years; you can’t statistically call it a growth company. Is it a coincidence that Q4/2025 sales already collapsed? In the absence of 2026 guidance, the latest quarter is the best estimate, so things look weak.
As you said, there are no investment needs. For growth companies, money practically all goes into investments, i.e., growth. Where does a furniture factory like this intend to get growth from without investments? The current factory and network are what they are. If growth were in sight, all the money would be put there; now, the listing proceeds are just being distributed as dividends, practically into the main owners’ pockets. Growth never happens without investments, e.g., in marketing, sales organization growth, capacity expansion, radical investments in development, etc. This also looks weak.
It’s not worth waiting 2–3 years to see how it progresses. The fact is that the largest shareholders will sell as soon as their lock-up period expires, i.e., during this year. Especially Vaaka will certainly not continue as an owner; as a private equity investor, they specifically need to exit their fund and sell these holdings as soon as they can. That’s what this listing was made for. This listing itself is the weakest part of the whole story: there was no other justification for it than the current owners’ exit. Does the company get better when the founders and the biggest operational owners leave and are replaced by retail bank funds, average Joes, etc.?
We agree that it’s an extremely risky stock that you can’t touch anywhere near these prices. What is the rationale for owning such a company? There is no growth or a sensible dividend machine. Of course, if you want to finance the exit of the founders and the private equity investor, then go ahead.
I’ll say it again: you should go to the company’s website, read the full financial statements, and look at the numbers. By reading the numbers, you get past opinions and explanations. Always use common sense in these matters, and you’ll go far.
This is leaning more towards a technical question, but why on earth does watching the webcast recording redirect the viewer to register at framery.events.inderes.com? You end up in the same place via Framery’s investor pages as well. Has there been some sort of mistake here? I haven’t experienced this with other companies, so I was surprised that the recording can’t be accessed directly.
Profit for the financial year was €20.376M. Market cap €554M. The 2025 P/E ratio at the current price is 27.2. There were one-off costs from the listing, of course, so the actual figure is a bit lower. Quite expensive for a declining operating profit. Not interested in owning it despite the price drop. Better deals can be found in the market.
That report was certainly a disappointment and not quite in line with the talk at the time of the listing. I’m not saying the company couldn’t improve in the future, and it certainly needs to happen now.
Revenue in 2021 was 93 million euros
Revenue in 2022 was 152 million euros
Revenue in 2025 was 222 million euros
Did you notice that the key figures table you linked only includes the revenue for the first 9 months of 2025, not the full financial year (the table was prepared sometime in the fall and hasn’t been updated yet). So the revenue has indeed grown over the 4 years. Of course, there was a strong growth spurt in 2025, which should ideally continue. There is risk involved.
Regarding investments:
Therefore, investments should be viewed as a combination of Framery’s income statement and balance sheet + the retailers’ income statement and balance sheet. This isn’t possible, which is why one must be careful when drawing conclusions. You can’t directly say that the business is not being invested in just because it doesn’t show up in Framery’s financial statements.
Among the new owners are retail funds, but also Proprius Partners and other investors who are by default more critical.
There is risk; the share price could indeed swing almost anywhere from here, for example in the 5–15 euro range, depending on sales volumes in the coming years.
Valid criticism, but the product itself is solid, and I don’t consider it a luxury item. On the contrary, for the modern office, Framery’s products are excellent and the best on the market. They are also necessary in the age of Teams. Of course, these aren’t replaced very often, so new markets need to be found.
There is also a competitor to Framery called Module Solutions. Behind Module Solutions is Muotolevy, a company founded in the 1970s specializing in lifecycle services for facades and partition wall systems, from which the Module Solutions unit was acquired as an independent company. Based on their website, their pods also appear to be “premium” office pods.
You missed 2 years.
Revenue has been
Last year was a spike—you can’t call it a growth curve if it has been treading water in previous years.
You can give whatever kind of speech you want about investments, but the fact is that companies that are growing put all their money into growth and don’t pay it out as dividends.
It is also a fact that the private equity investor who built this, as well as the founders, will sell as soon as they can. The fund’s investors are demanding returns, and the founders have been waiting for a payday for years with everything tied up in this.
Agreed that there is Risk. If the hope is for the share price to rise, then there should be hundreds of percent of growth—everyone can judge for themselves whether that is realistic. There is plenty of justification for the downside. The numbers are unambiguous.
You are bearish and there may be grounds for that, but:
It’s okay to be bearish, but perhaps a little calming down would be in order.
Framery’s board and management would surely love to hear exactly which investment they should now pour, for example, 20 million euros per year into from the company’s coffers. The prerequisite is that the investment must yield a minimum of 10-15% every year (10% is usually the minimum hurdle rate for investments). Framery’s board probably reviews these options in every meeting. Simply saying “put all the money into paid Google ads” likely won’t suffice.
Previously, the company has stated that this is a capital-light business. Therefore, the need for investment is small now that the current production machinery is built almost to completion, the R&D unit is a good size, sales personnel are already out in the world, and the dealer network is solid. Capacity is not yet in full use with the current sales volume. So, if something is missing, feel free to say. Hopefully, the answer isn’t acquisitions, the vast majority of which fail.
Puuilo is a good example of a capital-light growth company. Almost the entire result is paid out as dividends to shareholders every year, with steady, controlled growth all the time. The share price says something about the successful strategy.
A contrasting example would be Sitowise; they expanded into Sweden with acquisitions at full throttle, putting all their money there. Now news came that 40 million of the shareholders’ money went up in smoke due to write-downs. Based on current information, they bought an underperforming business at an inflated price. Anyone can look at the share price if they dare. The board implemented an aggressive growth company strategy by the book.
There are examples across the board, both successful and unsuccessful.
Of course, it would have been nicer to buy Framery at the IPO price of 5 euros. At the current share price, there is a lot to prove.
The last 3 years have been at the same revenue level. It’s just been sawing back and forth.
To justify the current valuation of 7 euros per share, a revenue increase of hundreds of percent is required, unless the idea is to own a company that yields a comfortable 2% dividend, like a savings account.
When you put the narrative into numbers, you realize the difficulty. You lose money on wishful thinking alone.
Until the next figures are out, nothing remains but opinions. Some look at the numbers, while others have hopes one way or the other.
My main message is that this IPO looks like a pure cash grab at an outrageous price, and no one has presented any justification for future growth.
We are talking about the same thing – it’s not a sensible investment. At the current share price, the business would have to grow at an insane pace. The last quarter’s figures plummeted, and that is the latest and best forecast for the outlook.
Until the next numbers are released, there is nothing left but opinions. Some look at the numbers, while others have hopes in one direction or another.
My main message is that this IPO looks like a pure cash grab at an outrageous price, and no one has presented any justification for future growth.
It depends on the perspective, of course. From the perspective of the founders and other previous owners, it’s a brilliant exit. For the lead manager of the offering, it might undermine the credibility of future IPOs, while the mood of those who bought in the offering or after is probably a bit bleaker. Was the prospectus overly optimistic (which shouldn’t come as a surprise), or has there been some change in the market since then?
