Exsitec (EXS) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong profitability, with adjusted EBITDA/EBITA of SEK 49 million and a margin up to 21%, the highest since Q2 2024, driven by recurring software revenue growth.

• Organic growth was 1% for the quarter, with recurring software revenue up 17% year-over-year on an LTM basis.

• Order intake from new customers increased by 38%, reflecting robust demand and sales momentum, with the highest Q1 order intake to date.

• The business model is diversified across software subscriptions, professional services, and support, with no single customer accounting for more than 1% of revenue.

• Divestment of Zedcom AB/infrastructure segment completed in Q1 2026, streamlining focus on core digitalization and ERP areas.

Financial highlights

• Net sales for Q1 2026 were SEK 238 million, slightly down year-over-year, but up 1% organically after adjusting for divestments.

• Adjusted EBITDA/EBITA rose 7% year-over-year to SEK 49 million, with margin improvement to 20.5%-21%.

• Recurring software revenue reached SEK 232 million LTM, up 17% year-over-year, with 2/3 of this growth organic.

• Earnings per share rose 21% to SEK 2.44 from SEK 2.03 year-over-year.

• Cash and cash equivalents at period end were SEK 86 million, up from SEK 46 million year-over-year.

Outlook and guidance

• Market conditions remain cautious but show signs of improvement, especially in Sweden, with shorter sales cycles and higher lead quality.

• M&A remains a strategic priority, with increased market activity and ongoing evaluation of opportunities.

• Financial goals include at least 15% annual growth in net sales and EBITDA/EBITA per share, net debt below 2x EBITDA, and a dividend payout of 20%-40% of profit after tax.

• Strategic focus on accelerating BNXT, scaling Microsoft partnership, and increasing organic growth.

• Management sees good opportunities for further business development and growth acceleration.