Qt Group (QTCOM) Q2 2026 earnings summary

Executive summary

• Net sales grew 19.6% year-over-year in Q2 2026 to EUR 61.3 million, with strong ARR growth to EUR 160.4 million and robust performance in medical and defense, while automotive faced regional challenges.

• EBITDA/EBITA margin was 15.1% (EUR 9.3 million), impacted by EUR 4.3 million in one-off restructuring costs and increased personnel expenses.

• Annual recurring revenue (ARR) increased 32.1% year-over-year to EUR 160.4 million, driven by the IAR subscription transition.

• Reorganization measures in Finland and the US are finalized, with ongoing actions in EMEA expected to save at least EUR 20 million annually and impact up to 200 positions globally.

• Strong retention rates in EMEA and Americas, with new customer wins in Aerospace & Defense, Medical, and Consumer Electronics.

Financial highlights

• Q2 2026 net sales: EUR 61.3 million (+19.6%); H1 2026 net sales: EUR 114.0 million (+15.8%).

• EBITDA/EBITA: EUR 9.3 million (15.1% margin); adjusted margin 22.2% excluding one-off costs.

• Earnings per share: EUR 0.09 in Q2 (-64.4% y/y); EUR 0.11 in H1 (-76.5% y/y).

• Operating cash flow for H1 2026: EUR 20.6 million (down from EUR 28.9 million); cash balance EUR 42.4 million.

• Personnel expenses rose 38.2% year-over-year in Q2, with a headcount increase of 119 to 1,035 employees.

Outlook and guidance

• Full-year 2026 net sales expected to grow at least 10% year-over-year at comparable exchange rates, with an operating profit margin (EBITA %) of at least 15%.

• Cost savings of at least EUR 20 million targeted from restructuring, expected to be fully realized in H2.

• Profitability expected to improve significantly in 2025, with EBITDA margin projected above 30%.

• IAR’s transition to SaaS/subscription model to defer revenue recognition and pressure net sales in 2026, but projected to grow from 2027.

• Short-term market uncertainty persists, but long-term growth prospects remain strong, driven by displays, intelligent devices, and AI adoption.