Hemnet Group (HEM) Q1 2026 earnings summary

Executive summary

• Net sales declined 24.7% year-over-year to SEK 247.2m, mainly due to lower listing volumes and a shift in revenue recognition from the nationwide rollout of 'Sell first, pay later' (SFPL).

• Published listings dropped 30.6% to 28,600, while paid listings were 25,400, with the difference explained by SFPL listings not yet sold.

• ARPL (average revenue per paid listing) grew 12.2% year-over-year to SEK 9,109, driven by higher demand for value-added services and price adjustments.

• EBITDA margin fell to 36.1%, down 11.8 percentage points year-over-year, reflecting lower volumes and reduced fixed cost leverage.

• April showed a strong rebound in listing activity, with new published listings up 34% over the previous four weeks, signaling a market recovery.

Financial highlights

• Net sales for Q1 2026 were SEK 247.2m, down 24.7% year-over-year.

• EBITDA decreased by 43.3% to SEK 89.3m, margin 36.1%.

• Free cash flow (LTM) was SEK 690m, with a cash conversion rate of 99%.

• Net debt stood at SEK 630m–825m, leverage ratio at 0.9x.

• Share buybacks totaled SEK 155m in Q1, with over 1.2 million shares repurchased.

Outlook and guidance

• Management expects deferred revenue from SFPL to be realized in upcoming quarters and improved net sales and profitability as listing volumes recover.

• April marked a clear market pivot with a significant increase in new listings, especially in Stockholm, driven by eased credit restrictions and the SFPL rollout.

• SFPL and new marketing initiatives are anticipated to drive further growth in ARPL and value-added services.

• Fixed OpEx growth for 2026 expected to be between 7% and 14% year-over-year, reflecting continued investment in product, marketing, and sales.

• The company remains cautious due to ongoing geopolitical and macroeconomic uncertainties.