InCoax Networks (INCOAX) Q1 2026 earnings summary

Executive summary

• Transitioned from development to commercial execution, with key launches and initial installations in North America and Germany, strengthening commercial positioning.

• Launched first product in Nokia's Gigabit Connect platform, enabling global Tier 1 channel access and validating technology for broader market reach.

• Achieved strategic breakthrough in Germany with Deutsche GigaNetz for in-building fiber extension, opening a major European market.

• Reduced cost base by over 40% and restructured management to focus on commercial execution, aiming for cash flow break-even at SEK 20–25 million in quarterly revenue.

Financial highlights

• Net sales for Q1 2026 were SEK 1.6 million, down 94% year-over-year; gross margin rose to 91% from 64%.

• Operating profit (EBITA) was SEK -11.0 million, and profit after tax was SEK -14.6 million; EPS was SEK -0.11.

• Cash flow for the quarter was SEK -4.6 million, with cash and cash equivalents at SEK 4.1 million at period end.

• Equity ratio at quarter end was 64%.

Outlook and guidance

• Focus on converting pipeline into orders, increasing installations, and establishing recurring deliveries.

• Expecting visible revenue ramp-up in the second half of 2026, with the goal to reach cash flow break-even within the coming year.