Karnov Group (KAR) Q1 2026 earnings summary

Executive summary

• Organic growth reached 3% in Q1 2026, driven by strong online sales and AI-based solutions, especially in Region North and LIS businesses.

• Adjusted EBITDA/EBITA margin improved to 29% from 26% year-over-year, reflecting operational leverage and cost control.

• Nearly 10% of shares were repurchased during the quarter, with SEK 665 million allocated and board seeking AGM approval to continue buybacks.

• Customer satisfaction and retention remained high, with increased adoption of AI-supported solutions and positive initial feedback on new AI products in France and Spain.

• Free cash flow improved to SEK 264 million, supporting capital structure optimization.

Financial highlights

• Net sales were SEK 628 million in Q1, with organic growth of 3.2% and organic online sales growth of 5%.

• Adjusted EBITDA/EBITA reached SEK 180 million, margin 29% (up from 26%), and adjusted free cash flow was SEK 264 million.

• Leverage ratio improved to 1.8x EBITDA (LTM), down from 2.4x.

• Currency effects were -3.6%, and acquired growth was -6.2% due to divestments.

• Online sales accounted for 87% of total net sales.

Outlook and guidance

• Launch of content-driven workflow solutions and new AI products planned for summer 2026 to enhance customer value.

• Board targets medium-term organic annual growth of 4–6% and long-term adjusted EBITA margin above 30%.

• Continued focus on AI-supported services, digital transformation, and cost efficiency.