Vertiseit (VERT) Q1 2026 earnings summary

Executive summary

• Annual Recurring Revenue (ARR) reached 341 MSEK at the end of Q1 2026, up 24% year-over-year, surpassing financial targets and driven by strong new sales and a SaaS-led model.

• Profitability per share increased by 27% year-over-year, with adjusted EBITDA rising to 27.3 MSEK (16.6% margin), and gross margin improving to 69.5% from 63.2%.

• SaaS revenue exceeded 50% of total revenue, supporting long-term margin expansion and reflecting a strategic shift.

• Strong international pipeline, high M&A activity, and outbound initiatives, including major industry fairs and new retail media partnerships, reported.

• Net income was 1.7 MSEK, down from 5.6 MSEK year-over-year.

Financial highlights

• Net revenue for Q1 was 164.6 MSEK, a 3.5% decline year-over-year, with SaaS revenue rising to 85.6 MSEK and SaaS gross margin at 84%.

• System sales declined 20% year-over-year, attributed to more revenue routed through partners, while consulting revenue dropped by SEK 1 million, mainly due to reduced automotive sector spending.

• Free cash flow for the quarter was 25.3 MSEK, up from 12.6 MSEK year-over-year.

• Systems margin reached 31%, above the typical 26–30% range.

• Available liquidity at quarter-end was 68.4 MSEK, down from 133.3 MSEK a year earlier.

Outlook and guidance

• Focus remains on sustainable ARR growth, improved profitability, and cash flow, with a goal to complete at least two acquisitions in 2026.

• Long-term targets include ARR exceeding 1,000 MSEK and a cash EBITDA margin above 35% by 2032.

• Expect consulting to recover slightly but not fully in the next quarter.

• Cash flow expected to follow profitability trends going forward.