Siltanen interviewed Modulight CEO Seppo Orsila regarding Q4 
Topics:
00:00 Introduction
00:13 Highlights of the end of the year and the full year 2025
01:13 Revenue from the PPT business model
03:47 Successes and challenges of Visudyne treatment
06:29 Local manufacturing in the United States
07:56 Impact of geopolitics on production
10:48 Outlook and focus areas for the current year
12:55 Successes and challenges of the past strategy period
Here is the release regarding the results:
Key highlights in October–December 2025
- Projects in the R&D pipeline progressed – PPT is in use in 80 hospitals, and patient recruitment for clinical trials has progressed slightly faster than expected
- Free cash flow from operations was -538 (-2,513) thousand euros, improving by 79%
- Revenue was 1,736 (1,431) thousand euros
- EBITDA was 641 (-1,023) thousand euros
- EBITDA margin (EBITDA-%) was 37.0 (-71.5) % of revenue
- Operating result (EBIT) was -787 (-2,204) thousand euros
- Operating margin (EBIT-%) was -45.4 (-154.0) % of revenue
- Earnings per share was -0.02 (-0.02) euros
Key highlights in 2025
- Total number of R&D projects at the end of the year was 33 (30)
- Revenue was 7,069 (4,095) thousand euros
- EBITDA was -168 (-4,836) thousand euros
- EBITDA margin (EBITDA-%) was -2.4 (-118.1) % of revenue
- Operating result (EBIT) was -4,648 (-8,337) thousand euros
- Operating margin (EBIT-%) was -65.8 (-203.6) % of revenue
- Earnings per share was -0.11 (-0.15) euros
- The company’s Board of Directors proposes that no dividend be paid for the 2025 financial year
Outlook for 2026
Most of Modulight’s customer projects are various types of early-stage development projects. Modulight’s own products are sold in these projects. In line with its strategy, Modulight is also transitioning from payments based on equipment deliveries to a new payment model based on treatment sessions (PPT business model). The progress of individual projects is difficult to predict, and macroeconomic and geopolitical uncertainty continue to affect market development. For these reasons, forecasting revenue is challenging, and Modulight does not provide guidance for revenue or profitability for 2026.Seppo Orsila, CEO
Revenue and profitability continued to improve in line with the strategy. The acceleration in customer activity that began in the summer continued until the turn of the year, and the events in January, which are traditionally important to us, were exceptionally successful. Cancer and eye treatments are progressing well, and more opportunities for our products have also been found in other high-value applications. A few of our customers have moved into small-scale production, and the “ramp-up” is progressing, albeit slowly. EBITDA developed in the right direction during the year, reaching 37% in the fourth quarter. We consider the development of EBITDA to be good, even though the level is not yet satisfactory.Revenue in the fourth quarter was 1.7 million euros, which is 21% more than in the corresponding period of 2024. Full-year revenue grew by 73% compared to the previous year. The diversification of the customer portfolio, as well as the progress and increase in the number of projects, supported this development. I am pleased that our business has now grown for 5 consecutive quarters. At the same time, we achieved the highest annual percentage growth in our history and significantly improved our profitability.
Our own production facility is an increasingly important competitive factor in the current world situation. This is reflected in a positive momentum both in discussions with pharmaceutical companies and in negotiations for other customer relationships based on high-value applications. Our technology and unique production capabilities located in Europe have clearly led our customers to trust us in their development choices for future products. Most of our projects are such that the customer effectively commits to us long-term as their sole technology partner. The United States remains the company’s main focus, and our operations there are developing strongly. We have continued to develop local manufacturing. We see opportunities especially in flow cytometry, microscopy, the semiconductor industry, quantum technology, and the defense industry. In all of these, we have globally significant companies as customers.
Our EBITDA rose to 37% during the quarter and improved by 163%, amounting to 0.6 (-1.0) million euros. Correspondingly, the operating result improved by 64%, amounting to -0.8 (-2.2) million euros. Looking at the figures for both this quarter and the full year, it can be observed that revenue growth has improved the result. We have analyzed the profitability of our more mature products and found that the gross margin is developing in the right direction. This is, on one hand, a testament to the efficiency of our investments, but on the other hand, it also confirms our understanding of the business’s scalability. Profitability has also been significantly improved by the increased synergy between different customer accounts and products, as the same platforms are used in an increasing number of customer accounts, and the amount of required configuration is decreasing and becoming more streamlined.
During Q3, we noted that the PPT business now generates more from certain products than what the old business model would generate even if we resold the entire installed base of equipment every year. The positive development continued in Q4, and as a result, our PPT revenue ended up with strong triple-digit annual growth compared to 2024. In absolute terms, our PPT revenue exceeded one million euros in 2025. This is another new milestone in the development of our new business model, although still a small figure in absolute terms. More significant than the numbers in the PPT area, however, are the signals of several of our customers’ willingness to transition to our technology, the scaling plans of existing customers, and the partially faster-than-expected development of clinical trials compared to a year ago.
The goal of our projects is the commercialization of our own products. Our R&D pipeline grew to 33 projects. The amount of positive customer feedback has continued to grow, and we have also gained new business opportunities after customers recommended us to other companies. There are now 80 treatment points in the PPT business, and we are approaching the milestone of 1,000 treated eye patients this year.
The goal of our 2023–2025 strategy period was a return to strong and profitable growth. The record 73% revenue growth in 2025 can be considered a success, but in terms of profitability, we are not at the targeted level, although we have progressed in the right direction. Our growth strategy is headed in the right direction, but we still need a little more time. We have streamlined our operations and paid special attention to the sufficiency of our cash reserves.
Our goal is to continue positive development in 2026. The company has earlier today announced an updated strategy and financial targets.
Here are the robot’s comments:
And the release regarding the strategy update
Modulight is updating its strategy and long-term financial targets, which extend to the end of the 2027 financial year. The company reiterates its financial targets regarding revenue and EBITDA, aiming for strong annual revenue growth and a return to strong profitability. In addition, the goal is to achieve positive cash flow by the end of the strategy period. The company’s dividend policy remains unchanged.