StrongPoint (STRO) Q1 2026 (Q&A) earnings summary

Executive summary

• Q1 2026 revenue was 342 MNOK, down 1.2% year-over-year, with recurring revenue up 3% to 384 MNOK on a 12-month rolling basis, driven by new service and support contracts despite a reduction from the former ESL partner.

• EBITDA remained stable at 10 MNOK (2.9% margin), matching the prior year, with UK gains offsetting Nordic declines.

• Major customer wins included Iceland Foods (UK), NorgesGruppen (Norway), and multiple AutoStore automation projects in the UK.

• Cost measures targeting non-customer facing roles were initiated to improve profitability.

• Cash flow from operations was -9 MNOK, down from 8 MNOK in Q1 2025.

Financial highlights

• Operating revenue was 342 MNOK, a 1.2% decrease year-over-year.

• Recurring revenue reached 384 MNOK, up 3% year-over-year on a rolling 12-month basis.

• EBITDA was 10 MNOK, unchanged from Q1 2025; EBITDA margin 2.9%.

• CapEx totaled 7 MNOK, with 3 MNOK for CashGuard and 1 MNOK for POS; the remainder was traditional fixed assets.

• Net interest-bearing debt stood at 91 MNOK at the end of Q1 2026, with disposable funds of 68 MNOK.

Outlook and guidance

• Management expects continued improvement in EBITDA and recurring revenue, targeting healthy revenue growth and an EBITDA margin above 10% in the long term.

• The in-store e-grocery picking market is estimated at $1 billion (NOK 10 billion), growing at 10% annually in Western Europe.

• Fluctuations between quarters are expected due to project-based revenue.

• Ambition to expand self-checkout solutions beyond the Baltics, with successful cases in Iceland and plans for further growth in the Nordics, UK, and Spain.

• Strong market characteristics expected for retail technology and digitalization, especially in SaaS e-commerce.