In just 181 days, Spinnova “undertook a full strategic review, navigated major challenges in its partnerships, and updated its roadmap for scaling fiber production and technology sales,” the Finnish fiber firm said to investors on an Aug. 28 earnings call.
While Spinnova gained full ownership of Woodspin and Suzano Finland (for about $2), which included a $5.8 million equivalent capital contribution from Suzano—ensuring no negative cash flow impact on Spinnova in the short term—it’s expected to affect Spinnova’s overall results in 2025 negatively. The impairment loss (around $21.54 million) on Spinnova’s share of Woodspin was recognized in an Aug. 27 statement as impacting the company’s financial results for 2025, as shared the following day.
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“It can be said that the first half of the year was tough, operationally and mentally, with big decisions made,” Spinnova CEO Janne Pornanen penned in the half-year report. “However, the outcomes of these decisions give confidence that we are on the right track, with a realistic plan.”
Revenue in the first half of the year was down 72 percent year-over-year, primarily “due to reduced service sales to the joint venture Woodspin.” Most of the revenue during this period was derived from sales of technology services to the Respin joint venture. Spinnova reported $116,867 for the period, compared with $423,060 in the same period of 2024.
The operating result for the period was a loss of roughly $31.42 million; a 171 percent increase from last year’s loss of $11.57 million. Losses from joint ventures—amounting to $2.08 million (compared to $2.52 million in 2024)—impacted the result as well.
The loss for the period was $30.74 million—up 187 percent from the $10.7 million lost in the same period of the previous year. Consequently, earnings per share (diluted and undiluted) dropped to negative 58 cents. Total investments decreased 71 percent to $1.14 million from $3.97 million in the comparable period. Specifically, joint venture investments were significantly lower at negative $949,485—down 74.2 percent compared to negative $3.68 million in the same period last year.
At the end of June, net cash amounted to $38.92 million, down 28.5 percent compared with $54.46 million last year. The equity ratio decreased by 10.2 percent (from 88 percent to 79 percent). The number of permanent employees dropped 31 percent, from 74 in June 2024 to 51 in June 2025.
Consequently, Spinnova will not give financial guidance for the years 2025 and 2026 due to the strategic changes and increased uncertainty.
“Our strategy for 2025 and 2026 focuses on, among other things, improving the cost-efficiency of the production process, building and implementing an international consortium of companies and advancing the commercialization goals of the leather waste-based fiber of the Respin joint venture owned with Ecco,” Pornanen said. “We will work persistently towards our strategic goals.”
During the call, Spinnova was asked how it plans to ensure financial sufficiency when cash flow is still negative and the business is loss-making.
“The net cash position remains good at $33 million, which is estimated to be sufficient for more than three years with the current operating model at this level of investment,” Spinnova’s marketing and communications coordinator Edith Kankkunen responded. “Negotiations for the consortium are ongoing, at various stages, with more than 10 parties, both domestically and internationally.”
One investor asked why the Suzano joint venture is considered a write-off or impairment. “The Suzano deal clearly increases value in Spinnova’s balance sheet—the value of Spinnova’s assets has not decreased?”
Following the finalization of the transaction, Spinnova wrote down the book value of Woodspin, as required by IFRS, per Kankkunen.
“To simplify: if we acquire half of the assets for one euro, we cannot justify valuing the remaining half at more than that—hence the write-down.”
