Lemonsoft (LEMON) Q1 2026 earnings summary

Executive summary

• Net sales declined 1.1% year-over-year to EUR 7.5 million, mainly due to lower consulting and transaction-based revenue, partially offset by 7.0% SaaS growth and the Jakamo acquisition in March 2026.

• SaaS revenue grew 7.0% year-over-year, now representing 79.9% of total sales, supported by Jakamo and price increases.

• Recurring revenue share increased to 88.5% at quarter-end.

• Adjusted EBIT margin improved to 25.8% from 23.1% year-over-year, driven by cost reductions and higher SaaS share.

• Strategic focus on market leadership in manufacturing and wholesale, customer experience, category-defining solutions, and value-driven M&A.

Financial highlights

• Net sales were EUR 7.5 million, down 1.1% year-over-year; SaaS income grew 7.0% and recurring revenue organic growth was 1.0%.

• Gross margin was 85.3%, up from 82.6% in Q4 2025 but down from 86.9% a year ago.

• Adjusted EBIT increased 10.6% to EUR 1.9 million, with adjusted EBITDA up 11.3% to EUR 2.3 million.

• Cash flow from operating activities was EUR 1.6 million.

• Profit for the period was EUR 1.05 million, up 9.4% year-over-year.

Outlook and guidance

• Organic growth expected to improve towards year-end as comparatives weaken and consulting/transaction revenue stabilizes.

• SaaS and recurring revenue share anticipated to increase further as Jakamo is fully integrated.

• Net sales for 2026 expected to increase by 5–13% over 2025, with adjusted EBIT forecasted at 23–29% of net sales.

• Platform cost reductions expected to continue, supporting gross margin improvements.

• Strategic focus on AI-driven product development and LemonOnline ERP expansion.