Modelon (MODEL) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 was MSEK 15.3, down 25% year-over-year; ARR declined 12% to MSEK 47.2.

• Adjusted EBIT improved to MSEK -7.2 from -8.3, reflecting cost efficiencies.

• Cash flow from operations was negative at MSEK -2.0, compared to positive MSEK 3.0 last year.

• Strategic focus on product-led growth and AI integration, with new customer wins in energy and home appliances sectors.

Financial highlights

• Software revenue was MSEK 12.0, down 21% year-over-year; service revenue fell 38% to MSEK 3.3.

• Operating expenses decreased to MSEK 23.7 from 29.6, including non-recurring items of MSEK 0.5.

• Net loss after tax was MSEK -7.8, an improvement from MSEK -9.0.

• Cash balance at quarter-end was MSEK 39.8, down from MSEK 64.1 a year earlier.

• Earnings per share before dilution was SEK -0.43, compared to SEK -0.52.

Outlook and guidance

• Management expects a return to growth in the second half of 2026, supported by a growing sales pipeline.

• Cost structure improvements position the company for positive cash flow and operating profit mid- to long-term.

• Long-term targets: ARR growth above 20%, operating profit margin above 20%, and positive free cash flow from 2026.