@Kolothos_Apollonia, for an experienced business grower, you understand business, its financial side, and accounting surprisingly little. Of course, there is very little experience in Finland with companies of Smart Eye’s size that are still maintaining the same growth figures. Growing small sums of money with “growth percentages compared to which Smart Eye’s growth is light stuff” is, of course, its own little game.
”On 11.12.2025, the company announced it had entered the bond market and raised 300 MSEK as a corporate bond. The company announced it would use this to clear more expensive debt. OK. At that time, one could safely think that there would be no share issues and investors could watch the company’s journey toward positive cash flow.
Two months after this, the acquisition of Sightic Analytics for 60 MSEK plus negative cash flow.
Only two months after entering the bond market, every euro is already earmarked for something and repayment is dependent on the DMS order backlog and PowerPoint presentations built in visioning meetings.”
There are so many factual errors in your messages that I don’t know where to start.
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The main purpose of the bond (300 million SEK) was to restructure expensive (up to 18.5%) debt into significantly cheaper debt (STIBOR + 7%), which stabilizes financing costs → meaning cash flow specifically improves and the cash position now has a clear safety margin to reach cash flow positivity without a share issue. Smart Eye has by no means “earmarked 300M SEK for PowerPoint visions in two months,” although I certainly understand the criticism regarding the company’s spending in previous years. In general, the point of such loan arrangements is to keep enough capital on hand, improve terms, and kick the loan forward. Smart Eye is in no hurry or desperate need to pay off a 300M loan if the money isn’t expensive and it can be used wisely to generate more money for the company’s coffers.
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Cash reserves were/are not used for Sightic and Fingerprint Cards license fees; instead, share consideration and share issues were used. This is also positive from a cash management perspective. Rather, as a shareholder myself, I would argue that it would have been better to use cash if the stock is believed to be undervalued right now.
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From a cash flow perspective, one of the most relevant figures is that while revenue grew by 22 million, adjusted cash flow improved by 14 million. Even if revenue continues to grow at the same rate as before – and now it is predicted with good certainty to grow even faster due to legislative effects – the cash flow will start looking very nice if it grows so scalably in relation to revenue.
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If the company generates over 300M SEK in operating cash flow in its first full profitable year in 2027, interest expenses or a few million to cover Sightic’s poor result won’t matter. It’s worth focusing on what’s essential and maintaining an understanding of the proportions of things and sums. This is also understood among Smart Eye’s financiers, where the firm has been analyzed a bit more closely than by you, having decided to offer such a good sum on such good terms.
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To my eye, the Sightic acquisition seems like a strategic and cheap investment when considering its opportunity costs. It closes off options for competitors and buys expertise, operations, and an existing business that would have had to be built anyway. Definitely one of Smart Eye’s best acquisitions.
There’s no need to panic too much while such amateurs share analysis and views filled with factual errors, pretending to be high-level professionals.
In my view, it’s contradictory that specifically an investment case based on Automotive scaling drops this heavily based on an interim report that specifically validates that Automotive scaling is no longer being kicked down the road by another year citing various delays, but is finally happening here and now. Well, others may have their own views – though too often based on the share price – in my own view, following this latest price drop, it is likely one of the best possible timings in terms of risk/reward to buy more Smart Eye.