Observit (OBSE) Q2 2026 earnings summary

Executive summary

• Achieved strong growth in recurring software revenues (ARR), up 22% year-over-year to 26.6 MSEK.

• Total net sales increased to 18.6 MSEK from 14.7 MSEK in Q2 2025, driven by software and higher hardware sales.

• Strategic acquisition of Nordic InSupport expands addressable market to fixed installations and critical infrastructure.

• Secured major contracts in the UK and Netherlands, and launched AI-based damage detection with first paying customer.

Financial highlights

• ARR at quarter-end: 26.6 (21.8) MSEK, +22% year-over-year.

• Net sales: 18.6 (14.7) MSEK in Q2; 32.7 (32.0) MSEK for H1 2026.

• Gross profit: 8.7 (7.9) MSEK; gross margin 46.7% (54.0%).

• EBIT: 1.5 (1.0) MSEK; EBIT margin 8.1% (6.7%).

• Net income: 1.53 (0.91) MSEK; EPS: 0.003 (0.002) SEK.

Outlook and guidance

• Strong underlying market trends in digitalization and AI-based video analytics in public transport.

• Long contract durations (avg. ~10 years) support stable, recurring revenue base.

• International partner strategy continues to deliver new contracts and market expansion.