Loyal Solutions (LOYAL) H2 25/26 earnings summary

Executive summary

• Revenue for the fiscal year grew 46% to DKK 57 million (TDKK 57,191), close to or slightly above forecast.

• Annual recurring revenue (ARR) increased 31% to DKK 52 million (TDKK 52,484), mainly from existing client programs.

• EBITDA turned positive at DKK 5 million (TDKK 5,027), a significant turnaround from last year’s negative result.

• Operating profit reached DKK 1.7 million (TDKK 1,785), positive for the first time and above forecast.

• Cash flow turned positive, with a 50% increase in cash balance and all operations now cash flow positive.

Financial highlights

• Revenue rose from DKK 39 million to DKK 57 million year-over-year, a 46% increase.

• ARR grew from DKK 39.9 million to DKK 52.4 million, a 31% increase.

• Net retention rate on existing clients was 123%, placing in the top 5% globally.

• Incremental EBITDA margin was 65%, reflecting strong operating leverage.

• Net income per share improved to DKK 0.19 from DKK -1.06 year-over-year.

Outlook and guidance

• Revenue target for next year is DKK 68 million (TDKK 68,751), a 20% increase.

• ARR is expected to grow by 11–11.5% next year.

• EBITDA is forecasted to increase by DKK 2.8 million, reaching TDKK 7,841.

• Guidance set conservatively due to geopolitical uncertainties.

• Long-term strategy focuses on profitable growth, cash generation, and continued investment in technology and people.