Sinch (SINCH) Q2 2026 earnings summary

Executive summary

• Organic revenue grew 6% year-over-year in Q2 2026, led by strong performance in the Americas and API products, while EMEA stabilized and APAC faced headwinds, mainly from India.

• Americas contributed two-thirds of group gross profit, growing 9% organically, with API products delivering mid-teens growth.

• Solid profitability with a 12.5% adjusted EBITDA margin and strong cash conversion at 61% LTM.

• Commercial momentum remains robust, with sizable new deals, expanded partnerships, and increased cross-sales, especially in the Americas.

• CEO transition announced, with Jonas Dahlberg appointed acting CEO; leadership team further strengthened.

Financial highlights

• Net sales for Q2 2026 reached SEK 6,866m, up 6% organically year-over-year; negative currency impact of 2%.

• Gross profit for Q2 2026 was SEK 2,300m (up 2% organically), with a gross margin of 33–33.5%.

• Adjusted EBITDA for Q2 2026 was SEK 858m (up 4% organically), with a margin of 12.5%.

• Free cash flow for Q2 2026 was SEK 751m, with a rolling 12-month cash conversion of 61%.

• Net debt/adjusted EBITDA reduced to 1.9x as of Q2 2026.

Outlook and guidance

• Management expects stronger organic revenue and gross profit growth in the second half of 2026 compared to the first half.

• Americas is expected to remain the primary growth engine, with flat or slightly positive development in EMEA and APAC sufficient to meet next year's guidance.

• No formal forecasts published; company expects continued geopolitical and macroeconomic uncertainty to impact markets in H2 2026.

• Continued focus on cross-sales, targeting fast-growing AI-native customers, and product innovation to drive future growth.

• Financial targets for 2027: organic net sales and gross profit growth of 7–9% YoY, adjusted EBITDA margin of 12–14%, net debt below 2.5x adjusted EBITDA.