Itera (ITERA) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was NOK 223 million, down 4% reported and 1% in constant currency, reflecting flat development year-over-year.

• Gross profit grew by 1% in constant currency, with Cloud and Application Services delivering 11% gross profit growth.

• EBIT margin was 7.5%, impacted by a NOK 3 million bad debt provision; adjusted EBIT margin was 8.8%.

• Operational improvement program initiated in 2025 is delivering margin benefits, with a 1.6–1.8 percentage point uplift expected from Q2 2026.

• AI-driven transformation is central to growth, expanding customer engagement and productivity.

Financial highlights

• Revenue: NOK 223 million, -4% reported, -1% constant currency year-over-year.

• Gross profit: +1% in constant currency; gross margin improved to 94.0%.

• EBIT: NOK 16.7 million; EBIT margin 7.5% (8.8% adjusted for bad debt provision).

• EBITDA margin was 11.0%, down 1.5 points year-over-year.

• Operational cash flow (rolling 12 months): NOK 41 million; Q1 cash flow impacted by working capital effects.

Outlook and guidance

• Margin uplift of 1.6–1.8 percentage points expected from Q2 2026 due to operational improvements.

• Anticipates increased demand for AI-related projects and positive ROI from new initiatives.

• Market conditions in the Nordics remain cautious but show early signs of improvement.

• Cash flow expected to normalize in coming quarters after temporary Q1 dip.

• Focus on balancing short-term profitability with long-term value creation.