Itera (ITERA) Q3 2026 earnings summary

Executive summary

• Q3 was a transition quarter after project completions and talent renewal; revenue fell 3% in constant currency, while EBIT margin improved to 4.0% from 3.8%.

• Priorities include raising utilisation, converting AI-driven demand into larger billable engagements, deepening strategic accounts and growing recurring revenue while improving efficiency and cash generation.

Financial highlights

• Q3 operating revenue was NOK 183.2m, down 7% reported and 3% in constant currency; gross profit was NOK 169.5m, down 7%.

• Q3 adjusted EBITDA was NOK 15.1m; adjusted EBIT was NOK 7.3m, with a 4.0% margin versus 4.3% on an adjusted basis and 3.8% reported in Q3 2025.

• 9M revenue was NOK 616.3m, down 2% reported and up 1% in constant currency; 9M adjusted EBITDA rose 11% to NOK 65.1m and adjusted EBIT rose 20% to NOK 41.4m.

• Q3 net income rose 42% to NOK 5.1m; EPS was NOK 0.06 versus NOK 0.04. 9M net income was NOK 20.5m and EPS was NOK 0.25 versus NOK 0.24.

• Operating expenses fell 8%; stronger NOK accounted for ~4 percentage points of the reported revenue decline.

Outlook and guidance

• Utilisation is expected to improve gradually in Q4 as new talent is deployed, with fuller impact expected in 2027; capability renewal will weigh on near-term utilisation.

• Priorities include converting pipeline into billable work, growing key accounts and utilisation, and scaling AI-enabled and reusable delivery platforms.

• Focus areas include recurring Cloud & Application Services revenue, product- and outcome-based offerings, cost discipline, operational efficiency and cash conversion.

• Several agentic AI-related contracts are expected within six to 12 months, though signing timing remains uncertain; larger opportunities are developing for 2027.