Profoto Holding AB (PRFO) AI Stock Analysis

Profoto Holding AB

(Nasdaq OMX AB:PRFO)

Select Model

Rating:50Neutral

Price Target:SEK 7.00▲(12.18% Upside)

Action:reiterated

Date:10/29/26

The overall score is constrained by a significant deterioration in financial performance, most notably the collapse in gross margins and return on equity. Technicals reflect a stock in a longer-term downtrend despite a recent short-term bounce, and the low P/E ratio is not compelling given the earnings quality issues. The primary risk is the company's unproven ability to stabilize revenue and restore margins.

Positive Factors

Ecosystem Repeat DemandThe product ecosystem supports repeat demand beyond the initial lighting-unit sale. Customers may add heads, modifiers, stands, batteries, and upgrades over time, creating multiple revenue opportunities from an installed professional user base without relying on subscription revenue.

Negative Factors

Revenue ContractionThe recent revenue trend signals weakened demand or execution relative to prior growth years. A contraction of this magnitude can reduce operating leverage, limit investment capacity, and make recovery in margins harder if lower sales persist across the next several quarters.

Profoto Holding AB (PRFO) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 261.60M
Dividend Yield: ―
Average Volume (3M): 15.93K
Price to Earnings (P/E): 7.8
Beta (1Y): 0.09
Revenue Growth: -11.01%
EPS Growth: ―
Country: Sweden
Employees: 110
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Furnishings, Fixtures & Appliances

Profoto Holding AB Business Overview & Revenue Model

Company Description

Profoto Holding AB (publ) provides lighting equipment for professional photographers, cinematographers, and studios in Sweden and internationally. The company offers lighting equipment for photography, including on and off camera flashes, monolights,...

How the Company Makes Money

Profoto makes money primarily by selling professional lighting products and related accessories. Its key revenue stream is hardware sales of lighting systems (e.g., studio/location flash units and continuous lights) to professional and prosumer users...

Profoto Holding AB Financial Statement Overview

Summary

Financial performance is weak, driven by a severe revenue decline from SEK 848M to SEK 617M and a gross margin collapse from over 80% to 43.5%. While the balance sheet shows moderate leverage, return on equity has plummeted to 9.1%, and cash flow conversion remains inconsistent with free cash flow declining 19.5% in the TTM period.

Income Statement

35Negative

Balance Sheet

60Neutral

Cash Flow

45Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	582.00M	617.00M	731.00M	787.00M	848.00M	732.00M
Gross Profit	253.00M	482.00M	607.00M	631.00M	619.00M	522.00M
EBITDA	103.00M	106.00M	228.00M	287.00M	321.00M	268.00M
Net Income	33.00M	-23.00M	126.00M	155.00M	194.00M	158.00M
Balance Sheet
Total Assets	798.00M	802.00M	872.00M	799.00M	801.00M	585.00M
Cash, Cash Equivalents and Short-Term Investments	61.00M	48.00M	21.00M	95.00M	150.00M	206.00M
Total Debt	212.00M	230.00M	257.00M	121.00M	121.00M	72.00M
Total Liabilities	422.00M	453.00M	501.00M	403.00M	410.00M	254.00M
Stockholders Equity	376.00M	349.00M	371.00M	396.00M	391.00M	331.00M
Cash Flow
Free Cash Flow	66.00M	51.00M	-36.00M	119.00M	185.00M	210.00M
Operating Cash Flow	94.00M	151.00M	97.00M	211.00M	236.00M	240.00M
Investing Cash Flow	-37.00M	-99.00M	-133.00M	-109.00M	-192.00M	-146.00M
Financing Cash Flow	-59.00M	-23.00M	-38.00M	-155.00M	-97.00M	-135.00M

Profoto Holding AB Technical Analysis

Technical Analysis SentimentNegative

Last Price6.24

Price Trends

50DMA6.97Negative

100DMA7.55Negative

200DMA8.29Negative

Market Momentum

MACD-0.04Negative

RSI48.84Neutral

STOCH45.24Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:PRFO, the sentiment is Negative. The current price of 6.24 is below the 20-day moving average (MA) of 6.37, below the 50-day MA of 6.97, and below the 200-day MA of 8.29, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.84 is Neutral, neither overbought nor oversold. The STOCH value of 45.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:PRFO.

Profoto Holding AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

SE:PRFO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SE:DSNO	59Neutral	SEK 125.19M	-43.97	-2.54%	―	-8.90%	67.39%
SE:PRFO	50Neutral	SEK 261.60M	7.79	9.13%	―	-11.01%	―
SE:DUNI	45Neutral	SEK 3.18B	24.32	3.91%	7.40%	-2.46%	-59.94%
SE:BONG	44Neutral	SEK 138.07M	-1.83	-7.47%	―	-6.42%	-59.66%

* Consumer Cyclical Sector Average

Performance Comparison

SE:PRFO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:PRFO	Profoto Holding AB	6.54	-3.86	-37.12%
SE:DUNI	Duni AB	67.60	-30.94	-31.40%
SE:DSNO	Desenio Group AB	0.13	0.05	60.76%
SE:BONG	Bong AB	0.32	-0.21	-39.32%

Profoto Holding AB Corporate Events

Profoto lifts margins on tariff refund as sales stabilize and debt falls

Oct 20, 2026

Profoto reported third-quarter net sales of SEK 128m, up 7.9% year-on-year, with organic growth of 7.7% and a sharp recovery in profitability as EBITDA surged to SEK 40m and the margin to 30.9%. Earnings were boosted by a SEK 15m refund of U.S. tarif...

Profoto schedules Q3 2026 interim report release and investor webcast

Oct 13, 2026

Profoto will publish its interim report for the third quarter of 2026 on 20 October at 08:00 CEST, followed by a web-casted telephone conference at 09:00 CEST led by CEO Anders Hedebark and CFO Linus Marmstedt. The English-language presentation, incl...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

Profoto Holding AB AI Stock Analysis