Mips AB
OTC:MPZAF
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Mips AB
Mips AB, a Swedish company that stands at the intersection of innovation and safety, has carved out a unique niche in the helmet industry by focusing on brain protection. Born from the collaborative efforts of scientists and entrepreneurs, Mips was established to address a critical flaw in traditional helmet designs: their limited ability to protect against rotational motion during impacts. Recognizing that the human brain is particularly vulnerable to angled impacts, Mips developed a proprietary low-friction layer technology known as the Multi-directional Impact Protection System (MIPS). This layer allows the head to move slightly inside the helmet during a crash, thereby reducing rotational motion that could lead to brain injuries. Mips doesn't manufacture helmets themselves but instead licenses its technology to prominent helmet brands across various sports, including cycling, skiing, and motorcycling, allowing them to integrate the MIPS system into their own products.
In the business landscape, Mips has firmly planted itself as a B2B entity, making its money primarily through licensing agreements with helmet manufacturers. Its revenue model is built on charging these companies a fee for incorporating the MIPS technology into their helmet designs. This symbiotic relationship allows Mips to focus on further research and development, continuously refining their technology to enhance safety standards while the manufacturers benefit from offering a science-backed safety feature that differentiates their products in the market. In turn, this has driven Mips' robust financial growth, as the demand for enhanced safety features in helmets continues to rise, supported by increasing consumer awareness and regulatory movements advocating for improved protective gear standards. Mips’ dynamic journey underscores the company's commitment not only to advancing safety but also to strategically leveraging partnerships to proliferate their innovative solution globally.
Mips AB, a Swedish company that stands at the intersection of innovation and safety, has carved out a unique niche in the helmet industry by focusing on brain protection. Born from the collaborative efforts of scientists and entrepreneurs, Mips was established to address a critical flaw in traditional helmet designs: their limited ability to protect against rotational motion during impacts. Recognizing that the human brain is particularly vulnerable to angled impacts, Mips developed a proprietary low-friction layer technology known as the Multi-directional Impact Protection System (MIPS). This layer allows the head to move slightly inside the helmet during a crash, thereby reducing rotational motion that could lead to brain injuries. Mips doesn't manufacture helmets themselves but instead licenses its technology to prominent helmet brands across various sports, including cycling, skiing, and motorcycling, allowing them to integrate the MIPS system into their own products.
In the business landscape, Mips has firmly planted itself as a B2B entity, making its money primarily through licensing agreements with helmet manufacturers. Its revenue model is built on charging these companies a fee for incorporating the MIPS technology into their helmet designs. This symbiotic relationship allows Mips to focus on further research and development, continuously refining their technology to enhance safety standards while the manufacturers benefit from offering a science-backed safety feature that differentiates their products in the market. In turn, this has driven Mips' robust financial growth, as the demand for enhanced safety features in helmets continues to rise, supported by increasing consumer awareness and regulatory movements advocating for improved protective gear standards. Mips’ dynamic journey underscores the company's commitment not only to advancing safety but also to strategically leveraging partnerships to proliferate their innovative solution globally.
Organic Growth: Mips delivered 19% organic growth in Q3 and 22% year-to-date, with strong momentum in all categories despite difficult market conditions.
European Surge: Europe posted 73% growth in Q3, marking the fourth straight quarter above 50% growth, while Europe’s sales now make up 40% of the company’s total.
Profitability Context: Reported EBIT margin fell to 32.6% due to legal costs and currency headwinds, but would have been 42.1% excluding legal costs—on track toward the long-term 50% target.
Tariff Impact: Uncertainty from U.S. tariffs continues to weigh on the outlook, especially in the Safety category, though management expects this to be temporary.
Strong Cash Position: The company maintains SEK 280 million in cash with no debt, and generated SEK 41 million in operating cash flow in Q3.
Market Share Gains: Mips is gaining market share, particularly in the U.S., by achieving organic volume growth in a shrinking addressable market.
Legal Costs Outlook: Legal expenses are expected to remain at Q3 levels in Q4 but should decline in early 2026 as the dispute enters a less active phase.
Long-Term Confidence: Management reiterated no change to its long-term financial targets or growth ambitions, seeing current headwinds as temporary.
