Arribatec Group (ARR) Q1 2026 earnings summary

Executive summary

• Achieved sixth consecutive quarter of year-over-year revenue growth, with Q1 2026 revenue up 4.1% to NOK 152.4 million, and LTM revenue at NOK 584.8 million, up 12.5%.

• Recurring revenue increased 4.1% to NOK 69 million, now representing 45% of total revenue.

• Adjusted EBITDA/EBITA rose 85% year-over-year to NOK 13.5 million, with margin at 8.9% (adjusted for non-recurring items).

• Strategic focus on scaling, cloud repositioning, and the launch of the Nexus AI-powered delivery platform to enhance scalability and security.

• Cash position at quarter-end was NOK 91.4 million, supported by strong operating cash flow and no interest-bearing debt.

Financial highlights

• Revenue: NOK 152.4 million in Q1, up 4.1% year-over-year; LTM revenue NOK 584.8 million, up 12.5%.

• Recurring revenue: NOK 69 million, 45% of total, up 4.1% year-over-year.

• Adjusted EBITDA/EBITA: NOK 13.5 million (margin 8.9%), up from NOK 7.3 million, an 85% improvement year-over-year.

• Operating cash flow: NOK 35.9 million, more than triple Q1 2025's NOK 10.7 million.

• Cash position: NOK 91.4 million at quarter-end, up NOK 17.6 million from start of quarter.

Outlook and guidance

• Business Services expected to continue scaling with strong pipeline and secured projects for 2026.

• EA & BPM positioned for growth with solid profitability and focus on expanding advisory services in regulated sectors.

• Cloud segment expected to improve profitability as restructuring concludes and demand for sovereign cloud and AI-enabled infrastructure grows.

• Generative AI and sovereign cloud are key growth drivers across all business areas.

• Hiring to remain modest and targeted, focused on technical and growth areas.