Nepa (NEPA) Q2 2026 earnings summary

Executive summary

• Achieved strong recurring revenue growth in Q2 2026, with ARR up 16.4% year-on-year to SEK 140.9 million and underlying subscription revenue up 14%.

• Net revenue retention improved to 101.0%, with churn declining to 0.7% and three consecutive quarters above 100%.

• Gross margin improved by 3.2 percentage points to 75.9%, supported by better project profitability and supplier strategy.

• Adjusted EBITDA less CapEx improved by SEK 3.5 million year-on-year in Q2, reaching SEK -1.7 million from SEK -5.2 million.

• Net cash flow turned positive at SEK 1.1 million, with a net cash position of SEK 17.3 million at quarter-end.

Financial highlights

• Underlying subscription revenue grew 14.0% year-on-year, while reported subscription revenue declined 4.2% to SEK 34 million due to contract phase-outs.

• Ad hoc revenue from subscribers was SEK 12 million, with ad hoc revenue from other clients at SEK 6.8 million, both showing declines.

• Total net sales were SEK 52.7 million, reflecting underlying growth of 7.8% but a reported decline of 3.8%.

• Adjusted OPEX declined by approximately 6% year-on-year, with operating expenses down 14% and personnel costs down 12.8%.

• Net income improved to SEK -5.5 million from SEK -16.0 million, and EPS improved to SEK -0.70 from SEK -2.03.

Outlook and guidance

• Focus on sustaining recurring growth, maintaining positive ARR momentum, and improving commercial conversion.

• Accelerate rollout of the new tracking platform and integrated AI decision tools, with enhancements to the Trinity platform.

• Ad hoc demand expected to remain volatile due to macroeconomic uncertainty and client spending patterns.

• Hiring plans focus on expanding sales, marketing, data science, and delivery teams to support growth.