Qt Group (QTCOM) Q1 2026 earnings summary

Executive summary

• Net sales reached EUR 52.7 million in Q1 2026, up 11.6% year-over-year (18.4% at comparable currencies).

• ARR increased to EUR 155.9 million, up 32.7% at comparable currencies.

• EBITDA/EBITA margin was 9.6% with EBITDA/EBITA of EUR 5 million, down from 17.9% year-over-year.

• IAR acquisition and transition from perpetual to subscription licensing is impacting short-term revenue and profitability.

• Strategic partnerships with Qualcomm and NVIDIA are advancing AI-driven solutions and expanding AI investments across the product portfolio.

Financial highlights

• Net profit was EUR 0.4 million, down 92.8% year-over-year; EPS at EUR 0.01.

• Personnel expenses rose 25.8% to 1,120 employees, mainly from IAR integration.

• Maintenance revenue nearly tripled, mainly due to IAR's higher maintenance share.

• Cash and cash equivalents at EUR 56.4 million, down from EUR 80.6 million last year.

• Interest-bearing debt at EUR 143.5 million, with EUR 135.3 million as bank loan.

Outlook and guidance

• Full-year 2026 guidance unchanged: at least 10% net sales growth and at least 15% operating profit margin at comparable currencies.

• IAR revenue and profitability expected to decline in 2026 due to subscription transition, with double-digit growth anticipated from 2027.

• EUR 20 million cost savings targeted by 2027 through operational reorganization, including up to 200 job reductions.

• Reorganization expected to improve efficiency and profitability in H2 2026.

• Market environment remains challenging and uncertain in the short term.