Kontigo Care (KONT) Q1 2026 earnings summary

Executive summary

• Revenue grew 4.3% year-over-year to 7.4 MSEK, with stable income trends and improved cash flow compared to Q1 2025.

• EBIT turned positive at 0.2 MSEK (3.3% margin) versus -0.6 MSEK (-7.9%) last year, reflecting cost efficiency and structural changes.

• The company is debt-free with a strong cash position, enabling investments in growth without compromising financial discipline.

• Product portfolio streamlined and transition to a capacity-based contract model underway, aiming for longer customer relationships and more stable recurring revenue.

• Organizational restructuring supports international expansion, with Finland as a key growth market.

Financial highlights

• Monthly Recurring Revenue (MRR) at quarter-end was 2.35 MSEK, up 1.7% year-over-year but down 5.0% sequentially.

• Gross margin improved to 87.4% from 84.7% a year ago.

• Free cash flow improved to -1.2 MSEK from -3.3 MSEK in Q1 2025, mainly due to lower investments and a more controlled cost base.

• Net income was 0.2 MSEK (0.01 SEK per share) compared to -0.5 MSEK (-0.02 SEK per share) last year.

• Operating expenses before capitalizations decreased to 7.8 MSEK from 10.0 MSEK, reflecting efficiency measures.

Outlook and guidance

• No formal forecasts provided for the remainder of 2026.

• Management expects structural changes and new contract models to support growth and improved financials for the rest of the year.