F-Secure (FSC1V) Q2 2026 earnings summary

Executive summary

• Currency-neutral revenue grew between 9.9% and 10% in Q2 2026, driven by Embedded Security and Tier 1 partner wins, including Verizon and NTT DOCOMO.

• Largest-ever partnership signed with Verizon, guaranteeing $15 million (EUR 13 million) minimum annual revenue; expanded partnership with NTT DOCOMO.

• New AI-native security initiatives launched, including Project Halo, F-Secure Trust, and AI-powered scam/deepfake protection.

• Profitability declined due to planned investments, but aligned with management expectations.

• Project Halo set for US launch at end of Q3 2026; public launch of scam protection product planned for September 2026.

Financial highlights

• Q2 2026 reported revenue: EUR 39.8 million (+8.0% YoY); currency-neutral growth of 9.9–10%.

• H1 2026 revenue: EUR 76.2 million (+3.0% YoY); first half currency-neutral growth: 6.0%.

• Adjusted EBITA Q2: EUR 11.0 million (27.7–28% margin, down from 32.2% YoY); midterm target remains ~40% at EUR 200 million revenue.

• Embedded Security revenue grew nearly 80% YoY in Q2; Security Suite revenue declined moderately.

• Gross margin Q2: 83.9% (down from 84.8% YoY); highest euro value since independence.

Outlook and guidance

• 2026 currency-neutral revenue growth expected at 7–12%; adjusted EBITA guidance: EUR 44–50 million.

• Growth to be led by Embedded Security and Tier 1 partners; direct channel revenue expected to decline.

• Gross margin anticipated to be slightly lower than 2025 due to Embedded Security mix.

• Capex to remain at or slightly above 2025 levels for product and infrastructure development.

• No further significant OpEx increases anticipated; cost base considered sufficient for current and near-future growth.