Nepa (NEPA) Q1 2026 earnings summary

Executive summary

• Achieved three consecutive profitable quarters, completing a major operational transformation and returning to positive territory on a rolling 12-month basis.

• ARR bookings surged 86.3% year-over-year to SEK 8.6 million, with underlying ARR at SEK 135.8 million, up 13.9% year-over-year, and NRR exceeding 100%.

• Net sales declined 9.8% to 53.2 MSEK due to phased-out contracts and extraordinary churn, but underlying net sales grew 2.3%.

• Ad hoc project revenue, accounting for 40% of total, was softer due to macroeconomic uncertainty and geopolitical events, but April trading showed a strong rebound, bringing January–April sales in line with the previous year.

• Continued focus on AI-driven efficiency, integrated marketing intelligence, and expanding client engagement across organizational levels.

Financial highlights

• Underlying net sales grew 2.3% in Q1 2026, while reported net sales declined 9.8% due to phased-out low-margin contracts and extraordinary churn.

• Adjusted EBITDA less CapEx improved by SEK 7.2 million year-over-year, reaching SEK 0.5 million (1% margin), up from -6.6 MSEK (-11.2% margin).

• Operating cash flow was SEK +1.6 million; net cash position at quarter-end was SEK 16.1 million.

• Gross margin stable at 76.3% (vs. 76.1% prior year), with improved project margins.

• Net income improved to -2.9 MSEK from -14.9 MSEK; EPS at -0.37 SEK (vs. -1.90 SEK).

Outlook and guidance

• Focus remains on sustaining positive ARR momentum, margin improvement, and accelerating integrated marketing intelligence and AI capabilities.

• Ad hoc revenue expected to remain sensitive to macroeconomic and geopolitical factors, but strong ARR base provides stability.

• Preliminary April data indicates a rebound in ad hoc bookings and a more stable market environment.

• Aim to maintain Net Revenue Retention (NRR) above 100% in 2026, supported by broader client engagement.