Comments from the CEO: A year of stabilization and a stronger position
CEO Per Wallentin gives his comments on Knowit’s Annual Report for 2025.
Per Wallentin, Chief Executive Officer and President
The year 2025 has been one where patience and focused work have borne fruit. The market has remained characterized by uncertainty, but we have seen a clear improvement in our own operations. As we summarize the year, we find ourselves on more solid ground than in many years. It is mainly our largest business area, Solutions, that has driven the development, but at the end of the year, we saw a positive development in all four business areas. With a focus on capacity utilization, competence, and close client dialogues, we have taken steps forward, month by month.
The positive direction became particularly clear during the second half of the year. Utilization increased steadily, a result of our signing several new strategic client deals. The organization also became more cost-effective. These aspects have jointly resulted in a noticeable improvement in profitability.
The market for IP-driven product- and platform-based solutions is growing quickly, not least as AI is gaining grater impact. To seize on this development, the Company has decided to establish a new business area, Products, with the goal of speeding up growth and further strengthening its position in the area. Knowit has long been working on several in-house developed solutions that create clear client value, strong loyalty, and recurring revenue, and by gathering these in a dedicated business area, we create better conditions for continued innovation and improved financial development.
As of the first quarter 2026, Knowit will be reporting in five business areas, increasing transparency and giving the Group greater opportunities to steer resources to where they will have the greatest benefit in the long term.
AI as a driver of the transition
The technical development continues to change conditions for companies, authorities, and society. The AI technology has matured quickly and in 2025 got a more central role in the development and innovation of organizations. Tasks that formerly required extensive models and long development cycles can now be automated and performed with high precision. This frees up time and resources to create more complex and resilient solutions that can resist security threats and comply with increased legal requirements and regulations.
Utilization increased steadily, a result of our signing several new strategic client deals. The organization also became more cost-effective. The aspects have jointly resulted in a noticeable improvement in profitability.
The development is fast, but AI is still relatively unknown ground for many organizations. Learning is step-wise and maturity varies dramatically. This creates a greater need than ever for a partner that can guide both organizations at the frontlines of AI usage and those that are at the beginning of their journey. Knowit’s task is to transform the possibilities of technology into real value, regardless of where the client is. AI is now an integrated part of our assignments, from analyses and platforms to digital services.
Our teams have helped clients lower costs, shorten lead times, and meet new requirements from users and citizens. The development has been clear in several segments, from industry and energy to finance, retail, and public administration. At the same time, the technology enables solutions that were not formerly possible, with new business models, smarter decision support, and more accessible services.
With the client in focus
The work of strengthening our client offer has continued at full strength. Despite some hesitance on the market, the willingness to invest has been high in some areas where we are strong, in particular modernization of platforms, data-driven development, and security solutions. Here, we have taken a clearer position as demand has stabilized.
Defense remains an important area for Knowit. The need for modernization and digital security is large and long-term. Together with the Swedish Armed Forces, the Swedish Defence Materiel Administration, and international partners, we have performed projects to increase skills and create safety. During the year, we have also strengthened our position through the acquisition of Milso, which add specialist competence in military leadership support. The acquisition gives us both breadth and depth and makes us better equipped to meet the increasing demands that characterize the sector.
Simultaneously, we have seen a positive development in the public sector. Stable demand and long relationships with authorities, municipalities, and regions have been an important foundation. Several new framework agreements have been signed during the year, and for agreements signed in previous years, activity has increased. We participate in assignments spanning from modernization of operation-critical systems to development of services that heighten service levels, security, and efficiency. Our long-term presence means that we understand the clients’ operations and can contributed with solutions that providereal value.
Defense remains an important area for Knowit. The need for modernization and digital security is large and long-term.
During the year, we have also strengthened our position in the finance sector through the acquisition of Insicon, a company with in-house developed platforms for the insurance sector. The acquisition broadens our offer and provides us with a stronger foundation in a segment in the middle of an extensive digital transition.
People, competence, and sustainable development
Our employees have been crucial for this year's development. Changes always test culture, but commitment has been strong and professionalism obvious. Our teams have developed their competence, taken responsibility for our clients, and ensured that we are better equipped now that the market is gradually improving. Being an attractive employer remains a strategic priority. We must offer an environment where people want to work, grow, and stay, because that is the foundation for both quality and innovation.
Sustainability is an equally central part of our operations. Our clients ask for solutions that merge technical development with environmental responsibility, security, and long-term societal benefits. The role of digitalization in the transition has become even clearer and we have taken part in driving that development. For us, a sustainable operation is about uniting sound results with wise choices and a strong set of values.
As we look ahead, we do so with greater clarity than a year- ago. This year’s developments show that we are moving in the right direction. We have a more effective organization, a stronger market position, and a growing demand in our core areas. This provides good conditions for 2026.
I want to express my warm gratitude to our clients and partners for their continued confidence. I also want to thank all the employees for your work and the resilience youhave shown. Together, we are taking the next step, with the ambition of creating value, driving development forward, and contributing to a more sustainable and digital society.
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Annika Billberg
Investor Relations
Christina Johansson
Head of Communications