Sinch (SINCH) Q2 2026 earnings summary

Executive summary

• Organic revenue grew 6% year-over-year in Q2 2026, led by strong performance in the Americas and API products, while APAC and EMEA faced headwinds or stabilized.

• Americas contributed two-thirds of group gross profit, growing 9% organically, with API products (Messaging and Email) showing mid-teens growth.

• Adjusted EBITDA margin was 12.5%, with strong cash conversion at 61% LTM and solid profitability.

• Commercial momentum remains strong, with sizable new deals, expanded partnerships, and increased cross-sales, especially in the Americas.

• Company recognized as a leader by Gartner, IDC, and Adobe; CEO transition announced with Jonas Dahlberg as acting CEO.

Financial highlights

• Net sales for Q2 2026 reached SEK 6,866m, up 6% organically year-over-year; negative currency impact of 2%.

• Gross profit for Q2 2026 was SEK 2,300m (up 2% organically), with a gross margin of 33–33.5%.

• Adjusted EBITDA for Q2 2026 was SEK 858m (up 4% organically), margin 12.5% (down from 13.1%).

• Free cash flow for Q2 2026 was SEK 751m, with rolling 12-month cash conversion at 61%.

• Net debt/adjusted EBITDA reduced to 1.9x as of Q2 2026.

Outlook and guidance

• Second half of 2026 expected to show stronger organic revenue and gross profit growth than the first half.

• Americas anticipated to remain the main growth engine; flat or slightly positive development in EMEA and APAC should suffice to meet next year's guidance.

• Continued focus on reinvesting G&A savings into growth functions, maintaining adjusted EBITDA margin within 12–14% target range.

• Financial targets for 2027: organic net sales and gross profit growth of 7–9% YoY, adjusted EBITDA margin of 12–14%, net debt below 2.5x adjusted EBITDA.

• Digital services expected to remain resilient despite ongoing geopolitical and macroeconomic uncertainty.