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F-Secure (FSC1V) investor relations material

F-Secure Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary29 Apr, 2026

Executive summary

  • Currency neutral revenue grew 2.1% year-over-year, but reported revenue declined 2.1% to €36.3M due to FX headwinds.

  • Adjusted EBITA was €11.5M (31.8% margin), down from €13.1M (35.4%) year-over-year.

  • Major Tier 1 partnership with Verizon signed, guaranteeing over $15M annual revenue and driving Embedded Security growth.

  • Organizational changes in global sales and services, including restructuring costs of €1.7M.

  • Positive profit warning issued and full-year 2026 revenue outlook raised.

Financial highlights

  • Partner channel currency neutral growth was 4.6%, with Embedded Security up 29.1% and Security Suite down 0.6%.

  • Gross margin declined to 83.4% (from 85.4% YoY) due to Embedded Security mix.

  • Capex was €4.5M (12.4% of revenue), mainly for SDK, Tier 1 capabilities, and platform development.

  • Operating cash flow was €7.9M (down from €9.7M YoY); cash conversion rate dropped to 50.4%.

  • Net debt reduced to €142.3M (down from €157.1M YoY); leverage ratio 2.8x.

Outlook and guidance

  • 2026 currency neutral revenue growth expected at 7–12%, driven by Verizon and AT&T deals.

  • Adjusted EBITA guidance: €44–50M (2025: €50.3M); gross margin expected slightly lower due to Embedded Security.

  • Capex to remain at or slightly above 2025 levels.

  • Profitability guidance remains broad due to FX, activation rates, and cost uncertainties.

  • Medium-term targets: high single-digit CAGR, EBITA margin approaching 40% at €200M revenue, leverage below 2.5x.

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