Karnov Group (KAR) investor relations material

Executive summary

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

• Launched a new AI-driven workflow solution across all markets, expanding the product suite and receiving strong customer adoption.

• France underperformed due to weak non-core offline and legal training sales, while Spain showed accelerating growth from new AI products.

• Customer satisfaction and retention remain high, with a user base exceeding 400,000 and a specialist network of over 7,000.

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

Financial highlights

• Q2 net sales reached SEK 619 million, with organic growth of 2.4% and adjusted EBITA of SEK 153 million (margin 25%).

• Adjusted free cash flow was SEK -14 million, impacted by higher CapEx and share buybacks.

• SEK 159 million allocated to share repurchases in Q2.

• EBIT for Q2 was SEK 70 million, profit for the period SEK 38 million, and EPS after dilution SEK 0.37.

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

Outlook and guidance

• Continued focus on upselling AI and workflow solutions to existing and new customers, with margin improvement expected from operational leverage and cost-saving programs.

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

• French offline training business expected to remain weak for a few quarters, with AI solutions driving growth.

• No formal financial forecasts provided; management notes momentum entering H2 2026 and ongoing evaluation of strategic options.