Carasent (CARA) Q1 2026 earnings summary

Executive summary

• Achieved 16% year-over-year ARR growth, reaching SEK 360 million, with highly recurring revenues above 95% and net revenue retention of 111%.

• EBITDA margin improved to 20% from 16% year-over-year, with EBITDA at SEK 18.3 million.

• Focus remains on scaling ARR, maintaining tight cost control, and driving profitability through efficient resource use.

• First paying customers onboarded to Webcur in Germany, with strong traction and over 100 new users for Medsum, the AI-powered ambient scribe.

• Consulting revenues declined 50% year-over-year, impacting overall growth.

Financial highlights

• Revenues reached SEK 90.4 million in Q1 2026, up 6% year-over-year, with organic growth at 7% at constant currency.

• Subscription-based revenue grew 12% to SEK 72.4 million; transaction-based revenue up 11% to SEK 14.0 million.

• Gross profit margin stable at 85%, with gross profit at SEK 76.5 million.

• Free cash flow margin was 36%, with free cash flow at SEK 33.0 million.

• EBIT improved to SEK 1.6 million from SEK -1.8 million; profit after tax was SEK 2.9 million, reversing a prior loss.

Outlook and guidance

• Expect consulting revenues to recover in Q2 but not reach last year's peak levels.

• Nordics expected to drive growth in 2026, while Germany will focus on establishing Webcur and building references.

• Long-term optimism for AI-driven product enhancements and UI rebuild, with financial impact expected beyond 2026.