Otovo (OTOVO) Q3 2026 earnings summary

Executive summary

• Strategic shift from European Newbuild installations toward Field Services, Recurring Services and upgrades; services generated over two thirds of Q3 revenue, and the US became the largest contributor.

• Q3 revenue was $9.7m and adjusted EBITDA was -$3.2m; adjusted EBITDA turned positive in September 2026.

• Revenue was NOK 91.6m, down 39% YoY; gross profit rose 40% to NOK 56.8m and gross margin reached 62%.

• 2027 targets are ~$120m revenue and ~$36m adjusted EBITDA, at ~30% margin.

• October service activity reached 4,049 work orders at $760 average revenue per order and estimated 52% gross margin.

Financial highlights

• Q3 revenue was $9.7m, down 3% QoQ; Field Services revenue rose 70% to $5.6m, while Newbuild revenue fell 44% to $3.4m.

• Gross profit was NOK 56.8m, up 40% YoY; gross margin increased to 62% from 27%, while materials costs fell 69% to NOK 35.5m.

• Adjusted OPEX was $5.6m, down 26% QoQ and 45% YoY; adjusted EBITDA was -$3.2m, improving $1.2m QoQ and $2.9m YoY.

• Adjusted EBITDA was NOK -30.5m versus NOK -57.6m; reported EBITDA was -$9.1m after $5.9m in add-backs, including $2.4m dual-listing costs.

• Net loss was NOK 184.5m versus NOK 115.4m, including a NOK 50.0m EDEA impairment and NOK 27.5m non-cash net exchange loss; operating loss was NOK 105.2m.

Outlook and guidance

• 2027 Field Services targets are 14,200 monthly work orders at $700 per order and 50% gross margin, implying $119.28m revenue and $59.64m gross profit.

• 2027 adjusted EBITDA range is $33.84m–$38.64m, with ~$36m midpoint and ~30% margin; adjusted SG&A is targeted at $1.75m–$2.15m monthly.

• Year-end 2026 technician capacity target is ~300; management estimated 325–375 technicians would support 14,200 monthly work orders.

• Management expects operating cash flow to follow adjusted EBITDA through 2027 as technician volumes grow and one-time costs fall away.

• September 2026 was adjusted-EBITDA positive; 2026 progress was expected from service and membership growth, lower costs to serve, Endurance integration and cost measures.