Lime Technologies (LIME) Q1 2026 earnings summary

Executive summary

• Achieved 9% ARR growth and 8% organic revenue growth in Q1 2026, with positive trends in both software and services revenue streams and strengthened position in Germany.

• Adjusted EBITDA/EBITA margin held steady at 25%, with SEK 49.9 million in Q1 and SEK 187.6 million LTM, reflecting 7% EBITDA growth year-over-year.

• AI investments are delivering tangible productivity gains and customer adoption, with 10% of the customer base using new AI offerings.

• Expansion in Germany continues, with five new customers in the utility vertical and the fastest-growing team in the company.

• Growth achieved despite a cautious market environment, with stability returning to consulting and continued software demand.

Financial highlights

• Net sales for Q1 2026 were SEK 203.3 million, up from SEK 199.9 million in Q1 2025, with LTM net sales at SEK 758.8 million.

• Recurring revenue represents 68% of total revenue, reflecting a strong subscription model transition.

• Adjusted EBITA for Q1 2026 was SEK 49.9 million, a 7% increase year-over-year.

• Personnel expenses increased 3% in Q1 and 6% LTM, mainly due to higher headcount and salary indexations.

• Proposed dividend of SEK 4.5 per share, totaling SEK 60 million and 54% of net profit.

Outlook and guidance

• ARR growth and EBITDA/EBITA margin remain below long-term targets (18% and 27%, respectively), but management expects gradual margin expansion over the next 2–4 years.

• Margin expansion expected from higher software share and AI-driven productivity, with slower personnel cost growth.

• Continued focus on international expansion, especially in Germany and Norway's utility verticals.