Karnov Group (KAR) investor relations material

Executive summary

• Core Online Legal business grew 7% in Q2 2026, with Region North up 11% and Region South up 2%, driven by AI product uplifts and strong performance in Denmark, Sweden, and Spain.

• New AI-driven workflow solution launched across all markets, receiving strong customer adoption and satisfaction.

• France underperformed due to weak non-core offline sales, especially in legal training.

• Board is evaluating strategic options, including potential sale or partnerships, with Goldman Sachs as advisor.

• User base expanded to over 400,000 and specialist network to 7,000+.

Financial highlights

• Net sales in Q2 were SEK 619 million, with organic growth of 2.4% and adjusted EBITA reaching SEK 153 million (margin 25%, up 2 percentage points year-over-year).

• Adjusted free cash flow was SEK -14 million, with higher CapEx and increased operating profit.

• SEK 159 million allocated to share repurchases in Q2.

• Leverage stood at 2.0x adjusted EBITDA LTM, below financial targets.

• Online sales accounted for 90% of total Q2 net sales.

Outlook and guidance

• Continued upselling of AI and workflow solutions expected to drive growth and increase annual subscription value.

• Margin improvement in Spain anticipated to continue; French turnaround depends on recovery in legal training demand.

• Cost-saving programs ahead of plan, to be completed by end of 2026.

• Board reiterates medium-term targets: 4–6% organic sales growth, adjusted EBITA margin >25%, leverage ratio ≤3.0x.

• No specific guidance on future margin levels, but operational leverage expected to support profitability.