Smartoptics Group (SMOP) Q1 2026 earnings summary

Executive summary

• Achieved all-time high Q1 revenue of $22.9 million, up 59.6% year-over-year, driven by strong demand, large account strategy, and AI-related data center growth, with record momentum in Americas and EMEA and continued expansion in APAC.

• Book-to-bill ratio remained well above 1, reflecting robust order intake across diverse customer segments and geographies.

• Broad traction across all business areas, with Solutions, Software & Services leading growth.

• Company is investing in innovation and expanding its addressable market, targeting both established and emerging customer segments.

• Market outlook for optical networking is highly positive, with industry growth projected at high single to low double digits over the next five years.

Financial highlights

• Revenue increased 59.6% year-over-year to $22.9 million, with Americas up 77.8%, EMEA up 46.5%, and APAC up 0.6%.

• Gross margin improved to 48.2% from 47.3% last year, in line with full-year guidance.

• EBITDA rose to $2.7 million (11.7% margin), adjusted to 13.7% excluding non-recurring costs.

• EBIT margin was 7.9% (9.9% excluding non-recurring costs), up from 4.1% last year.

• Net profit after tax was $234,000, with basic and diluted EPS of $0.002, up 264.3% year-over-year.

Outlook and guidance

• Long-term targets to be updated in Q2 to reflect a more ambitious and clearer strategy, with tougher internal targets and more KPIs.

• Roadmap targets 13–16% EBIT margin driven by scalability, software leverage, and efficiency, with focus on AI-driven capacity expansion.

• Targeting 2–3x market share growth in relevant segments by 2030.

• Continued investments planned to capture market opportunities, with a focus on expanding product capabilities and customer reach.

• Board proposes NOK 0.60 per share dividend, pending AGM approval.