STENOCARE A/S (“STENOCARE” or the “Company”) published its Q4 2025 report on February 26. The following are some key points that we have chosen to highlight in connection with the report:
- The growth trend continued
- Strong development in Denmark
- Acquisition of CannGros is expected to strengthen growth and profitability significantly
- Reaches positive EBITDA for the third consecutive quarter
Sales growth of 107% Y-Y
The net sales during Q4-25 amounted to DKK 2.6m (1.3), corresponding to a 107% growth Y-Y and 36% growth Q-Q. The final quarter of the year therefore was another strong quarter for STENOCARE, and full-year sales growth for 2025 amounted to 215%, with net sales reaching DKK 7.0m (2.2). The growth is assumed to primarily be attributable to continued strong development in Denmark, where an increasing number of doctors are prescribing STENOCARE’s expanding product portfolio to patients. Moreover, the Company’s innovative Astrum 10-10 oil, a differentiated product with improved, uniform, and faster uptake in the bloodstream, has been available to patients in three countries since Q1-25: Germany, Australia, and Norway. We believe that some of the sales growth during H2-25 is attributable to the product, however it is not yet assumed to have contributed significantly to sales growth in 2025 as the introduction of new products on the European medical cannabis market typically takes time.
Nevertheless, we see the Astrum 10-10 oil as a key growth driver in the coming years, given its unique characteristics. We therefore expect a gradual increase in sales over the coming periods, which, together with the strong momentum in Denmark, provides favorable conditions for continued organic growth in 2026. Additionally, the acquisition of CannGros is expected to generate DKK 4-6m in sales during 2026, further contributing to the expected growth in the upcoming year.
Third Consecutive Quarter of Positive EBITDA result
STENOCARE continued to operate with good cost control as a result of the STENOCARE 3.0 strategy, exiting the Danish cultivation facility and focusing on being a distributor of medical cannabis. The operating expenses amounted to DKK 2.6m (3.3), corresponding to a decrease of 21% compared to the same quarter last year. The decreasing cost base and strong sales growth resulted in positive EBITDA for the third consecutive quarter.
Throughout 2025, STENOCARE has decreased the Company’s cost base through the updated strategy, while growing sales strongly, resulting in a significant improvement of the result. For 2026, the trend is expected to continue as the acquisition of CannGros is included in STENOCARE’s product portfolio, expected to contribute with sales of DKK 4-6m while expected to have limited effect on the Company’s operational cost base, resulting in a strong contribution on profitability. However, we anticipate operating costs to rise in 2026, mainly because cost of goods sold is reported within other external expenses and is therefore expected to increase in tandem with sales growth. Nevertheless, as STENOCARE is expected to have all the operational resources and logistical infrastructure to handle the CannGros sales, we expect significantly improved profitability in 2026 as a result of the acquisition.
Below is a summary of our estimates for the fourth quarter in comparison to the Q4 results.
Cash Flow was Affected by Working Capital
The cash flow from operating activities amounted to DKK -2.9m, which was negatively impacted by changes in working capital of DKK -3.6m. This is an effect of STENOCARE increasing the accounts receivables during the quarter, which is a natural effect, which is a natural consequence of strong growth. Additionally, the trade payables decreased, further increasing working capital’s negative effect on the cash flow during the quarter. We see this as a timing effect and expect that working capital has improved the cash flow after year-end through payment of account receivables from customers and/or increased trade payables.
Additionally, it should be mentioned that Q4’s cash flow was affected positively by DKK 0.9m in income taxes received, which we view as non-recurring. Moreover, STENOCARE has a convertible debt, originally amounting to DKK 2.8m (DKK 2.0m at the end of Q4-25), which will be repaid in equal monthly instalments over 18 months from July 2025, corresponding to approximately DKK 0.16m per month, which affected STENOCARE’s cash flow by DKK -0.4m. All in all, the Company’s cash flow amounted to DKK -3.7m, primarily an effect of the negative effect of working capital. At the end of the quarter, the cash position amounted to DKK 0.8m.
As mentioned, we do anticipate that the cash position has been strengthened after the end of Q4, in addition, we do expect the acquisition of CannGros will strengthen STENOCARE’s profitability significantly, which is why we expect a positive cash flow in the coming quarters and therefore believe that STENOCARE can manage the cash position without additional external capital. However, Q4-25 proves that continued growth could come at a cost in terms of increased working capital, which means the Company needs to monitor its payment terms carefully. However, should there be need of additional capital, it is expected to be limited and could likely be managed through, for example, raising a new loan, as the Company remains debt-free apart from the mentioned convertible debt instrument.
Acquisition of CannGros is Expected to Strengthen Growth and Profitability
During Q4-25, on November 17th, STENOCARE announced that the Company has entered into a share purchase agreement with DanCann Pharma to acquire 100% of the shares in CannGros ApS. Through the acquisition, the Company now enters the flower segment within medical cannabis, where CannGros has been the leading supplier of Bedrocan medical cannabis flower products in Denmark since 2018, whereby STENOCARE becomes the market leading medical cannabis supplier in Denmark.
STENOCARE will integrate CannGros’ five approved products into its Danish portfolio and operate under two distinct product brands: STENOCARE for oil-based formulations and CannGros for dried flower-based alternatives. The flower category complements STENOCARE’s existing oil-based products, offering fast onset and shorter duration of effect, while the oil formulations provide a slower onset but longer-lasting relief. Additionally, the acquisition expands STENOCARE’s portfolio from four to nine products without requiring new regulatory approvals from the Danish Medicines Agency, thereby accelerating time-to-market within a growing treatment category.
With projected annual revenue of DKK 4–6m from CannGros and the recurring demand associated with its well-established brand, prescriber relationships, and loyal patient base, the acquisition is anticipated to support STENOCARE’s earnings and cash flow development. Analyst Group expects cost synergies, as STENOCARE should be able to integrate the CannGros products into its current operating platform without materially increasing its cost base. The Company already has manufacturing and logistics infrastructure in place that is expected to accommodate the expanded product range. Given that STENOCARE has reached EBITDA break-even in recent quarters and considering the expected synergies from the transaction, Analyst Group assesses that the Company is well positioned to meet its 2026 break-even target, with good potential to deliver results exceeding this level.
Enters Strategic Partnership in France with Ambition to Become First Mover on the French Market
On February 11th, STENOCARE announced that the Company has entered a strategic partnership with Institut des Cannabinoïdes Médicaux Français (“ICMF”) to enter the French market. The partnership is intended to position STENOCARE as a first mover in the French medical cannabis market, which is expected to transition to permanent legalization in 2026. As part of this initiative, STENOCARE and ICMF have submitted a complete regulatory application for STENOCARE’s ASTRUM 10-10 oil to the French medical authorities, within the national framework for assessing medical cannabis products for potential reimbursement.
The French market has operated within a tightly controlled national pilot program for medical cannabis, which has involved more than 3,000 patients, with expectations that the program will transition to permanent legalization in 2026. Analyst Group views the French market as highly interesting, especially given its size, hence potential addressable patients. Through the partnership with ICMF, STENOCARE positions itself as a first mover in France by submitting a complete regulatory dossier for ASTRUM 10-10 within the national process assessing medical cannabis products for potential reimbursement ahead of permanent legalization. We see several advantages in STENOCARE potentially acting as a first mover in the market. Early adoption by physicians is expected to support strong brand recognition and product loyalty before additional competitors enter, which in turn could enable STENOCARE to establish a strong market position from the outset.
Despite the progress, the French medical cannabis market remains at an early stage, and several steps must be completed before STENOCARE’s products can be prescribed to patients. Nevertheless, we see large potential for STENOCARE on the French market in the longer term, given the size of the market, potential first-mover advantage and competitive advantages of the ASTRUM 10-10 oil.
In conclusion, STENOCARE delivered another strong quarter in Q4-25, with net sales increasing by 107% Y-Y and full-year growth reaching 215%, primarily driven by continued strong momentum in Denmark and gradual traction for the Astrum 10-10 oil. The Company achieved positive EBITDA for the third consecutive quarter, supported by solid cost control under the STENOCARE 3.0 strategy and a leaner operating structure. While cash flow was negatively impacted by working capital effects related to rapid growth, this is viewed largely as a timing effect. The acquisition of CannGros is expected to significantly strengthen both growth and profitability in 2026, adding DKK 4–6m in projected revenue with limited incremental costs and positioning STENOCARE as the market leader in Denmark across both oil and flower segments. Overall, STENOCARE appears well positioned for continued growth, improved profitability, and strengthening strategic positioning across key European markets in 2026.
We will return with an updated equity research report of STENOCARE.
