Exasol (EXL) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 revenue was €9.5 million, down from €12.4 million in Q1 2025, mainly due to the absence of a one-time deal and non-recurring revenue items in the prior year.

• Annual Recurring Revenue (ARR) declined 3.5% year-over-year to €37.8 million, but improved from -8.5% in Q4 2025, with reduced churn and retention of larger customers.

• EBITDA for Q1 2026 was €0.4 million, down from €1.3 million in Q1 2025, impacted by higher marketing spend and lower non-recurring revenue.

• Net liquid funds increased to €24.7 million at quarter-end, up from €18.7 million year-over-year, providing significant operational flexibility.

• Guidance for FY2026 is confirmed, with expectations for ARR growth in the second half of the year.

Financial highlights

• FY 2025 audited revenue was €41.8 million, up from €39.6 million in FY 2024; recurring revenue declined to €37.7 million from €39.1 million.

• Non-recurring revenue in FY 2025 was €4.1 million, a significant increase from €0.5 million in FY 2024.

• Gross profit margin for FY 2025 was 92%, down from 100% in FY 2024.

• FY 2025 EBITDA was €4.1 million (9.7% margin), up from €2.0 million (5.1% margin) in FY 2024.

• FY 2025 net income was €3.0 million, up from €0.2 million in FY 2024.

Outlook and guidance

• 2026 guidance confirmed: mid-single-digit percentage ARR growth, EBITDA between €3 million and €4 million, and revenue expected to decline in the mid-single-digit percentage range.

• ARR churn rate expected to drop to approximately 10% for FY 2026, down from over 20% in 2025.

• Foundation laid for ARR growth in the second half of 2026.

• Capital market day scheduled for October 15 to provide a deeper dive into strategy.