Fabasoft (FAA) Q1 25/26 earnings summary

Executive summary

• Revenue increased 3.7% year-over-year to €21.2m, driven by recurring revenues and ongoing digital transformation initiatives.

• EBIT rose 41.1% to €2.4m and EBITDA grew 16.4% to €4.3m, reflecting operational efficiency and investment in cloud-native technologies.

• Net income for the period was €1.7m, up 43.5% compared to the same quarter last year.

• Workforce expanded slightly to 499 employees, supporting growth and innovation.

Financial highlights

• Sales revenue: €21.2m (up 3.7% year-over-year); recurring revenue accounted for €12.7m.

• EBIT: €2.4m (up 41.1% year-over-year); EBITDA: €4.3m (up 16.4%).

• Net income: €1.7m (up 43.5% year-over-year); EPS: €0.15 (up 36.4%).

• Cash and cash equivalents: €32.3m (up 38.3% year-over-year); equity at period end: €37.3m (up 19.5%).

• Cash flow from operating activities was negative at -€0.5m, compared to €0.1m in the prior year.

Outlook and guidance

• Focus remains on AI-driven, cloud-native solutions, with continued investment in R&D and expansion of data center capacity.

• Profitability expected to be impacted by growth investments in product innovation, marketing, and talent acquisition.

• Flexible operating models (public, private, government, hyperscaler cloud) to meet diverse customer needs, especially in regulated sectors.

• Ongoing transition to SAP S/4HANA Public Cloud and SAP SuccessFactors to support scalable growth.