Knowit (KNOW) Q1 2026 earnings summary

Executive summary

• CEO announced intention to step down after Q2, with transition to acting CEO from August 2026; leadership change follows a period of challenging market adaptation and efficiency improvements.

• Operational improvements led to increased utilization across all five business areas, with Solutions acting as the main growth engine.

• Restructuring efforts created a stable foundation but incurred SEK 18 million in costs that weighed on EBITA for the quarter.

• Net sales declined by 9.0% year-over-year to SEK 1,449.9 million, with challenging market conditions and increased restructuring costs impacting results.

• The company continues to adapt its competence base and invest in AI-driven and scalable solutions for long-term competitiveness.

Financial highlights

• Net sales for Q1 2026 were SEK 1,449.9 million, a 9.0% decrease year-over-year; adjusted for M&A and FX, the decrease was 4.5%.

• EBITA/EBITDA for the quarter was SEK 83.9 million, down from SEK 104.5 million last year, with margin at 5.8% (6.6% prior year).

• Net income for the quarter was SEK 30.7 million, down from SEK 39.5 million year-over-year.

• Net debt at quarter-end was SEK 339 million, with a net debt/EBITDA ratio of 0.7x, well below the 2x target.

• Cash and cash equivalents increased to SEK 409.8 million as of March 31, 2026.

Outlook and guidance

• Management sees significant potential to improve margins and growth despite ongoing market challenges and persistent uncertainty.

• AI-driven transformation is expected to accelerate digital transformation and create new business opportunities, with conscious short-term trade-offs to position for future growth.

• Net recruitment may turn positive in the second half of 2026, depending on utilization trends.