Fabasoft (FAA) Q2 25/26 earnings summary

Executive summary

• Sales revenue increased by 2.6% year-over-year to €43.6m for the first half of FY 2025/2026, driven by recurring revenue growth.

• EBITDA rose 5.0% to €11.1m and EBIT grew 10.4% to €7.3m, despite higher personnel and development costs.

• Net income for the period was €5.1m, up 6.5% year-over-year.

• Cash and cash equivalents increased 22.3% to €29.3m, while equity rose 18.6% to €39.5m.

Financial highlights

• Recurring revenue accounted for €26.1m, with non-recurring revenue at €17.5m in H1 2025/2026.

• Operating margin improved, with EBIT margin at 16.8% and EBITDA margin at 25.5% for the period.

• Cash flow from operating activities dropped sharply to €0.8m from €4.9m year-over-year, mainly due to changes in working capital.

• Basic earnings per share increased 7.3% to €0.44.

Outlook and guidance

• Continued focus on AI-driven product innovation, cloud-native architecture, and SaaS business model.

• Investments planned in R&D, sales, marketing, and talent acquisition to support growth.

• Profitability expected to be impacted by ongoing investments, but strategic priorities remain on long-term growth.