F-Secure (FSC1V) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 12.2% reported and 12.4% currency neutral to €40.5m, driven by Embedded Security; adjusted EBITA rose to €13.6m as planned investment lowered the margin to 33.6%.

• A Tier 1 partner intends not to renew an agreement ending March 2027; its 2025 revenue was ~€16m. The contract contributes normally through March 2027, leaving 2026 guidance unchanged.

Financial highlights

• Q3 gross margin was €34.3m, or 84.8% of revenue, versus €30.2m and 83.9% a year earlier; improved revenue and cost-of-revenue efficiency supported the increase.

• Q3 EBIT was €7.3m versus €9.7m, and net income was €3.9m versus €6.2m; the €2.1m asset impairment weighed on EBIT. EPS was €0.02 versus €0.04.

• 9M revenue rose 6.0% reported and 8.1% currency neutral to €116.6m; adjusted EBITA was €36.2m, down from €38.3m, with margin at 31.0% versus 34.8%.

• 9M net income was €11.3m versus €17.2m, and EPS was €0.06 versus €0.10; EBIT declined to €20.0m from €27.3m.

• 9M operating cash flow fell 29.7% to €22.5m; higher receivables increased working capital, with most delayed Q2 collections recovered in Q3.

Outlook and guidance

• 2026 currency-neutral revenue growth guidance is 8–11%, revised from 7–12%; adjusted EBITA guidance is €46–50m, revised from €44–50m.

• Partner business, especially Embedded Security and new Tier 1 services, is expected to drive growth; Direct revenue is expected to decline as paid customer acquisition remains paused.

• 2026 gross margin is expected slightly below 2025’s 84.7% due to Embedded Security mix; capex is expected at a similar or slightly higher level than in 2025.

• Medium-term targets include high-single-digit CAGR growth, adjusted EBITA margin approaching 40% at €200m revenue, and net debt/adjusted EBITDA below 2.5x, excluding temporary acquisition effects.

• The Tier 1 non-renewal indication could make 2027 revenue weaker than previously anticipated; 2026 outlook and medium-term targets remain unchanged.