Fabasoft (FAA) Q3 25/26 earnings summary

Executive summary

• Revenue for the first nine months increased slightly by 0.9% year-over-year to €65.998 million, with recurring revenues rising 10.6% and now comprising 61% of total revenue.

• Operating income (EBIT) and EBITDA declined by 8.9% and 5.1% respectively, reflecting higher investments in Fabasphere, sales, marketing, and personnel.

• Net income for the period was €7.95 million, down 2.7% year-over-year; basic EPS decreased to €0.69.

• Cash and cash equivalents rose 37.6% to €34.18 million, while equity increased 12.7% to €39.68 million.

Financial highlights

• Third quarter revenue was €22.36 million, down from €22.85 million in the prior year quarter.

• Third quarter EBIT and EBITDA were €3.07 million and €5.18 million, both lower year-over-year.

• Cash flows from operating activities for the nine months were €10.46 million, a 16.2% decrease year-over-year.

• The equity ratio improved to 41.2% from 40.0% a year earlier.

Outlook and guidance

• The company continues to prioritize investments in product innovation, AI capabilities, sales, marketing, and talent acquisition, which will weigh on short-term profitability.

• Focus remains on cloud-native, SaaS-based solutions and flexible operating models to meet evolving customer and regulatory demands.

• Strategic investments in international partner infrastructure and SAP S/4HANA transition are underway to support future growth.