Frequently asked questions
Answers to questions frequently raised by investors and analysts about Framery’s business, strategy, financial targets and share. For the latest financial figures, please refer to our most recent financial report.
1. About Framery
What does Framery do?
Framery is a pioneer and global leader in soundproof office pods and smart workplace solutions. Our pods give people in open-plan offices private, acoustically controlled spaces for focused work, video calls and team meetings, without the need for architectural renovation. Framery has delivered more than 130,000 pods to customers in over 100 countries. The company is headquartered in Tampere, Finland.
What products and services does Framery offer?
Framery’s offering consists of three complementary areas:
- Soundproof pods for 1 to 6 person meetings: Framery One Compact™, Framery One™, Framery Four™ and Framery Six™. In 2026, Framery launched the Gradus product family designed for the North American market and a workstation model intended for longer periods of continuous work.
- Smart office solutions: Framery Connect™, Room Sensors, Room Displays and the Framery App, which provide space booking and real-time utilization data.
- Framery Subscribed: a subscription and rental model that lowers the upfront investment for customers and builds recurring revenue for Framery.
What drives demand for Framery’s products?
Demand is driven by hybrid work, open-plan office layouts and the growing use of video meetings. As the office increasingly becomes a place for collaboration, organizations need private, distraction-free spaces within it. Adoption typically starts with a single pod added to an existing layout and later expands to office-wide solutions, often in connection with an office renovation or a new lease. The number of pods per office, per square meter and per employee is growing, and market penetration outside Finland is still at an early stage.
How large is the market, and how far has adoption progressed?
Our working assumption is that in a mature market, pods account for roughly 10% of total office furniture spend, which is the level reached in Finland. On that basis, penetration outside Finland remains low and the market has room to grow several times over. In Finland, the market is mature and we no longer expect significant growth, although growth there has continued longer than we anticipated.
Adoption follows an S-curve, which has an impact on demand fluctuation. We see signs that e.g. the United States is moving from early adoption towards the mainstream phase. This is based on customer segment and industry data, which increasingly shows more traditional industries and new customer names alongside the early adopters.
How do hybrid work and AI affect demand and the number of employees working?
We see these trends as demand drivers. In hybrid models, employees come to the office to meet, collaborate and work in teams, which requires quiet and private spaces. Where AI makes screen-based work more efficient, it tends to increase communication, video calls and team meetings. We see our pods as infrastructure that makes the office a place where people want to be.
How does AI affect the number of employees working in offices?
Across our global key accounts—encompassing roughly 60 leading international corporations in technology, professional services, financial institutions, and life sciences—demand for soundproof pods remains on a steady upward trajectory alongside headcount expansion, despite a moderation in workforce growth at select enterprise clients. Certain accounts maintain double-digit expansion rates in the number of employees. Furthermore, recent market research indicates that artificial intelligence integration in North America is driving net creation of specialized knowledge worker positions.
What is Framery’s strategy?
Framery is expanding its business from soundproof workspaces to comprehensive smart office solutions. The strategy aims for profitable growth through four main pillars:
Best smart pods and office solutions:
- Strengthening the product portfolio and product development regionally (e.g., the Gradus product family in North America) to increase sales and market share.
- Expanding smart office solutions (such as Framery Connect and Room Sensors) to strengthen high-margin recurring revenue (SaaS) and customer retention.
Effortless global availability:
- Achieve growth and better return on capital through tailored go-to-market strategies and a comprehensive dealer network.
- Global expansion of the Framery Subscribed service to maximize predictable recurring cash flow and customer lifetime value (LTV).
2. Business model and sales
How does Framery sell its products?
Framery sells mainly through a selective global network of more than 650 office furniture dealers. In Finland, we also sell directly to end customers. Our own sales team works closely with dealers, architects and designers, commercial real estate agents and the largest end customers in each city. We support architects with training and specification assistance, and our global key accounts share their project pipelines with us. New customers are often reached when they relocate or sign a new office lease.
Where are Framery’s pods manufactured?
Framery operates an asset-light model. Product development, R&D and final assembly are carried out in-house in Tampere, Finland, while components are sourced from a network of more than 120 suppliers. To serve its North American customers, Framery has opened a new assembly facility in Michigan, United States. Operations at the facility started on schedule in the third quarter of 2026. The division of work is based on logistics: components that are heavy and expensive to ship are produced locally in the United States, while technology and ventilation components continue to be supplied from Tampere. Our assembly lines are designed to be easy to scale, and we do not have capacity constraints in production or in the supply chain in any market. Volumes assembled in Tampere are not expected to be materially affected once Michigan reaches full capacity.
How concentrated is Framery’s customer base?
Revenue is broadly diversified across dealers, industries and more than 100 countries. In general, our customer concentration is low: the largest customer typically accounts accounts for approximately 2% of revenue, and the 20 largest customers together for about 20%. In 2025, revenue included exceptionally large deliveries to a single global end customer across all markets. To keep comparisons transparent, Framery reports underlying revenue growth excluding this exceptional single customer volume that impacted 2025. In 2026, the effect of that customer has normalized, and it remains among our largest customers.
How visible is Framery’s future revenue?
Visibility is limited, as a large share of revenue comes from customer projects and some sales come as direct orders that are harder to forecast. The lead time from a first indication of interest to a sale is typically 8–12 months. We monitor leading indicators such as architects’ billing and new contracts, newly signed office leases, project lists from global key accounts, and monthly sales data and sentiment by market. Framery does not publish a short-term outlook. Order intake is typically weighted towards the end of each half-year, but because the timing of deliveries varies, reported revenue is more evenly distributed than order intake.
What is Framery Subscribed, and does rental create residual value risk?
Framery Subscribed lets customers rent pods instead of buying them, which lowers their upfront investment. The model is offered directly and increasingly through our dealer network, and it is currently a small but growing part of revenue. Contracts are structured so that the margin of a sold product is typically earned within about the first three years, and pods retain meaningful value in the second-hand market even after five to seven years.
Rental is already a significant part of new sales in Finland, and dealers have completed their first customer deals in other markets. All recurring-billing revenue is reported on a single line. Subscribed units also explain part of the increase in capital expenditure, as rented pods remain on our balance sheet.
How are pods serviced and maintained?
The maintenance need of a Framery pod is low. Pods under the Subscribed rental model are serviced by Framery, while pods sold through a dealer are in most cases serviced by that dealer. The modular design means that individual components can be replaced or upgraded at any time.
How does Framery manage pricing and cost inflation?
Framery reviews its prices once a year. New price lists take effect at the beginning of the year, in line with the normal pricing cycle in the industry. In periods of exceptional cost inflation, prices can be adjusted more often. The main cost items exposed to inflation are electronic components, aluminum, steel, glass and energy.
List prices vary by market, which gives flexibility to respond to local cost and currency developments.
3. Market and competition
What does the competitive landscape look like?
There are approximately 20–30 pod manufacturers globally, of which only two to three operate on a truly global scale. Framery is the only specialized pod manufacturer that operates globally. The market is fragmented and largely city-based, which makes Framery’s global go-to-market model difficult to replicate.
How does Framery compete against lower-cost entrants?
Framery’s advantage is not only the physical pod but the combination of innovation, premium quality and a digital ecosystem:
- Technology: advanced acoustic soundproofing together with exceptional ventilation engineering are significant technical barriers and central to the user experience.
- Integration: smart office technologies such as Framery Connect, open APIs and usage analytics solve broader customer needs, including space optimization and hybrid work management.
- Scale: our global dealer network, supply chain and logistics allow reliable delivery worldwide at a competitive price-quality ratio, which is difficult for subscale competitors to match.
A frequent question is why a customer would not buy a product that is 80% as good for 25% less. In practice, the two are not comparable in use: a small shortfall in acoustic performance reduces how much the pod is used and materially increases complaints. A pod that stands unused does not solve the customer’s problem.
4. Growth drivers
Where are Framery’s main growth opportunities?
- North America: our primary growth driver, with broad-based demand across industries, an expanding dealer network, local assembly in Michigan and the Gradus product family specifically designed for local needs and taste. Demand varies considerably by region and historically a large share of our sales has come from the coastal areas. Local manufacturing supports attracting new customers and industries across the U.S.
- Europe: increasing penetration in existing markets and growth potential in new, smaller European markets.
- Asia-Pacific: focus on major financial centers and the premium segment, largely serving our global key accounts.
- Smart office and subscriptions: software, sensors and the subscription model expand the offering beyond hardware and build recurring revenue.
How does Framery approach the Asia-Pacific market?
Our focus in Asia-Pacific is on the premium segment and the local offices of Western corporations, which are largely our existing global key accounts. Revenue in the region is typically more volatile than elsewhere because individual large projects carry more weight, apart from Japan, Australia, Singapore and South Korea. Freight costs from Europe to Asia are very modest, and European production does not limit our growth in Asia. The growth potential remains; the market dynamic is simply different from Europe and North America.
Why has Framery established assembly in the United States, and what is the timeline?
Local assembly in Michigan brings Framery closer to its North American customers. The main benefits are:
- Shorter lead times and faster delivery for North American customers.
- Lower exposure to international logistics risks and ocean freight volatility.
- A natural currency hedge, as USD revenue is matched with USD-denominated production costs.
- Protection against changes in trade policy and tariffs.
- Less working capital tied up in goods in transit.
Michigan was chosen for its location, the concentration of the office furniture industry in the region, and labor availability. Customer deliveries have begun in Q3 2026, and production is expected to reach planned full capacity during 2027. Margins for U.S.-assembled products are similar to or better than for products assembled in Tampere. The investment required was very small, in the low single-digit millions of euros, and the site is leased. The investment consists mainly of labor hours, molds and lifting equipment. Because assembly work is outsourced, the addition to our own headcount is small, and the cost shows in rents and purchased services rather than in personnel expenses.
What sets the pace of the ramp-up is not our own capacity but our customers’ purchase cycle. We expect locally assembled products to form a significant share of U.S. sales from the first half of 2027 onwards. The signature line will continue to be sold in the United States alongside locally assembled products.
What is Gradus?
Gradus is a product family developed specifically for the North American market. It was introduced at NeoCon in Chicago in June 2026. Gradus is assembled in our Michigan facility. Showroom seeding and commercial rollout continue in the second half of 2026, and meaningful revenue contribution is expected from the first half of 2027. Functionally Gradus corresponds fully to our signature line; the differences are in design and in local manufacturing.
What is the role of smart office solutions?
Our smart office software, room sensors and APIs address a core customer need: data on how the office space is used. Integrating these solutions with our pods differentiates Framery from competitors, increases customer retention and builds a foundation for recurring subscription revenue over the product lifecycle. The data acquired through our integrated solutions answers questions customers cannot otherwise resolve: whether they have enough space and the right kind of space for how it is used, how demand for capacity is distributed through the day and week, and how many people the premises really accommodate. Cost efficiency and the accuracy of our data are our main advantages in this segment.
Competition in this segment is highly fragmented and consists of small players offering partial solutions. The go-to-market model is still being refined, and we have added sales resources for channel development and pipeline building. This business is still at an early stage.
Does Framery have sufficient production capacity for growth?
Yes. Assembly in Tampere currently runs on a single shift, so capacity can easily be multiplied by adding shifts with limited investment. The Michigan facility adds further capacity for North America. Our assembly lines are straightforward to scale, and neither production nor the supply chain currently limits our growth in any market.
Does Framery consider acquisitions?
Our priority is profitable organic growth. We may evaluate selective, small-scale opportunities, particularly in smart office technology, where acquiring a capability is more efficient than developing it in-house.
5. Financial targets and capital allocation
What are Framery’s financial targets?
The Board of Directors has set the following medium- to long-term (3–5 years) financial targets:
- Growth: average annual organic revenue growth above 10% from the 2025 baseline.
- Profitability: adjusted EBIT margin of 25% in the mid-term.
- Leverage: net debt to adjusted EBITDA below 2.0x.
- Dividend policy: target payout of 70–90% of net profit. Part of the distribution may be executed through share buybacks.
What is the path from the current margin to the 25% target?
The main driver is revenue growth and operational leverage. Our asset-light model means that a large part of incremental revenue flows through to profit, as growth does not require proportional investment in production capacity. Local assembly in the United States supports the same path through lower freight costs, less working capital tied up in transit, and reduced currency and tariff exposure.
Does Framery publish short-term guidance?
No. Framery does not publish a short-term outlook. We report on our progress towards the long-term financial targets in each financial report. We are aware that the absence of short-term guidance places more weight on the qualitative information we provide, and we aim to provide investors with more insight into demand drivers, leading indicators and regional development.
What are adjusted figures?
Adjusted EBITDA and adjusted EBIT exclude items affecting comparability, meaning unusual significant items outside the ordinary course of business. Examples include costs related to the stock exchange listing, non-recurring consulting and legal expenses, and non-recurring tariff expenses and refunds. The full definitions are presented in our financial reports.
What are Framery’s capital allocation priorities?
Our first priority is investing in profitable organic growth, followed by predictable returns to shareholders in line with the dividend policy. Thanks to our asset-light model, the capital needed for growth is low, which allows us to combine growth with a high payout ratio while keeping leverage low.
Does Framery buy back its own shares?
The dividend policy allows part of the distribution to be executed through share buybacks, which can complement dividends and support an efficient capital structure. Any buyback programme is decided by the Board of Directors based on an authorization from the Annual General Meeting and announced through a stock exchange release. On 8 September 2026 Framery launched a share buyback programme of EUR 10 million, with the aim of reducing the company’s capital and enhancing shareholder value. The maximum number of Framery shares that can be repurchased is 1,500,000 shares, corresponding to 1.89 per cent of the total number of issued and outstanding shares in Framery. The repurchased shares will be cancelled quarterly.
Buybacks are part of our capital allocation toolbox that complements the dividend payout. Our dividend policy and growth targets remain unchanged.
How do tariffs and currencies affect Framery?
The United States is a significant market for Framery, and most of our production costs have so far been in euros. Currency movements and U.S. import tariffs therefore affect our results. We manage these effects through pricing and by localizing assembly in Michigan, which matches USD revenue with USD costs and reduces tariff exposure. Non-recurring tariff expenses and refunds are treated as items affecting comparability. In 2026, Framery received refunds of substantially all tariffs it had paid under the U.S. IEEPA legislation.
If tariffs were removed entirely, products manufactured in Finland would become cheaper by the amount of the tariff and products assembled in the United States slightly cheaper, as a share of their components is still shipped from Tampere. Currency effects will diminish as U.S. production scales up, but they will not disappear.
Which key figures should investors follow?
We recommend following organic revenue growth at comparable exchange rates, underlying growth excluding exceptional single-customer volumes, adjusted EBIT margin, operating free cash flow and cash conversion, and leverage. While individual large deliveries can cause fluctuation between periods, these indicators show the development of the core business.
6. Shareholders, governance and sustainability
Who are Framery’s largest shareholders?
A regularly updated list of our largest shareholders is available on our investor website. Framery maintains an active dialogue with its major shareholders but does not comment on the investment decisions of individual shareholders.
When do the lock-up periods from the listing expire?
The lock-up period of Vaaka Partners, our largest shareholder, has expired. The lock-up periods applying to employee shareholders expire in December 2026. Framery does not comment on the intentions of any individual shareholder. Changes in significant holdings are disclosed through flagging notifications in accordance with the Securities Markets Act.
How are Board members nominated?
Framery has a Shareholders’ Nomination Board consisting of representatives of the four largest shareholders, with the Chair of the Board of Directors as an expert member. The Nomination Board prepares proposals to the Annual General Meeting on the number, composition and remuneration of Board members.
How does Framery approach sustainability?
Our products are designed according to circular economy principles, using recyclable steel and aluminum structures and a modular, upgradeable component design. Environmental impacts are verified through Environmental Product Declarations (EPDs), and the active second-hand market for pods extends their lifecycle further. More information is available in the sustainability section of our annual reporting. Pods returned at the end of a Subscribed rental contract are refurbished and resold, which supports both the circular economy and the economics of the rental model.
7. Share and investor relations
Where is Framery’s share listed?
Framery Group Plc’s share is listed on Nasdaq Helsinki under the trading code FRAMERY (ISIN FI4000595756).
When does Framery publish financial information?
Framery reports quarterly: an interim report for January–March, a half-year report, an interim report for January–September, and a financial statements release, followed by the annual report. Publication dates are available in the financial calendar on our investor website.
Does Framery have a silent period?
Yes. Framery observes a silent period of 30 days before the publication of its financial reports. During this time, we do not comment on our financial performance or market outlook, or meet with investors or analysts.
How can I meet Framery or contact Investor Relations?
Framery regularly takes part in investor events, including broker conferences and roadshows as well as retail investor events in Finland. The company hosts investor meetings in person and virtually and arranges tours at its headquarters and factory in Tampere. Upcoming events are listed in the investor calendar on our website.
Investor Relations contact: Kati Kaksonen, Investor Relations Director, kati.kaksonen@framery.com, +358 50 393 1561
Forward-looking statements
This FAQ contains forward-looking statements that are based on management’s current expectations and assumptions. Actual results may differ materially due to changes in market conditions, the economic environment, trade policy, exchange rates and other factors. Framery’s financial reports and stock exchange releases prevail in case of any discrepancy with this FAQ.