Admicom (ADMCM) Q1 2026 earnings summary

Executive summary

• Profitability improved in Q1 2026, with adjusted EBITDA margin rising to 28.1% and adjusted EBITDA up 14.9% year-over-year, despite a challenging Finnish construction market and volatile sales.

• ARR grew 4.7% year-over-year to EUR 37.3 million, though declined 1.5% sequentially due to high churn and a large customer bankruptcy.

• Product penetration increased, with 23% of customers using more than one product, up from 20% in Q4 2025.

• Share buyback programs totaling EUR 2.5 million were completed, with a new EUR 1.5 million tranche commencing in April 2026.

• Change negotiations initiated to accelerate strategy, potentially impacting up to 65 roles and resulting in up to 45 redundancies, aiming for EUR 0.5 million in cost savings in 2026.

Financial highlights

• Adjusted EBITDA margin was 28.1%, up from 25.3% in Q1 2025, and adjusted EBITDA grew 14.9% year-over-year.

• Total revenue rose 3.8% year-over-year to EUR 9.6 million, with recurring revenue up 5.5% to EUR 9.3 million, representing 96.5% of total revenue.

• Adjusted EBIT increased 20.2% year-over-year to EUR 1.5 million, or 15.3% of revenue.

• Net profit for Q1 was EUR 0.93 million, up 37.3% year-over-year; EPS EUR 0.19, up 37.4%.

• Cash flow from operating activities was EUR 2.5 million, and equity ratio improved to 84.8%.

Outlook and guidance

• 2026 guidance unchanged: ARR growth 6–12%, total revenue growth 5–10%, adjusted EBITDA margin 31–36%.

• High end of growth guidance now seen as unlikely without rapid market recovery or M&A.

• Transition to a new billing model expected to reduce annual adjustment fees by EUR 500,000–900,000 in 2026.

• Focus on international expansion and upsell opportunities to offset domestic market weakness.

• Market expectations for Finland lowered to 1.5% growth in 2026, with residential construction expected to remain weak into 2027.