Pexip (PEXIP) Q1 2026 earnings summary

Executive summary

• Revenue grew 30% year-over-year to $40.7 million in Q1 2026, with ARR up 17% to $135 million, driven by strong performance in Secure & Custom and Connected Spaces segments.

• EBITDA margin expanded to 46% for Q1 2026, with adjusted EBITDA of $18.7 million and free cash flow reaching $19.8 million.

• Secure & Custom led growth, especially in Europe, with major wins in government, defense, healthcare, and enterprise sectors.

• Cash and money market funds totaled $81 million at quarter-end, with no material interest-bearing debt.

• Dividend of $45 million was distributed in April, significantly reducing the cash position post-Q1.

Financial highlights

• Consolidated revenue for Q1 2026 was $40.7 million (+30% y-o-y); ARR reached $135 million (+17% y-o-y).

• EBITDA (excluding other gains/losses) was $18.7 million (46% margin), up from $10.1 million (32% margin) y-o-y.

• Free cash flow for Q1 2026 was $20 million, up 7% year-over-year; LTM free cash flow was $32 million.

• Gross margin remained high at 92% LTM.

• Net profit after tax was $13.1 million, up from $5.9 million y-o-y.

Outlook and guidance

• Q2 2026 ARR guidance is $137–141 million, reflecting a robust pipeline and timing uncertainty for large deals.

• Long-term ambition is to consistently deliver above Rule of 40 performance; last 12 months achieved 47%.

• No plans for dramatic increases in OpEx or CapEx; selective investments in talent and competence will continue.