Sinch (SINCH) Q3 2026 earnings summary

Executive summary

• Organic net sales grew 5% to SEK 7,085m and gross profit grew 4% to SEK 2,450m, led by the Americas; adjusted EBITDA rose 5% to SEK 967m at a 13.7% margin.

• Free cash flow was SEK 787m, LTM cash conversion was 75%, and net debt / adjusted EBITDA was 1.7x.

• AI-enabled communications, RCS and voice API capabilities advanced alongside developer tools and partner integrations.

Financial highlights

• Q3 net sales were SEK 7,085m; organic growth was 5%, with a 2% FX tailwind on reported sales.

• Organic gross profit growth was 4%; gross margin was 34.6% versus 34.8% a year earlier.

• EBIT was SEK 333m and profit for the period was SEK 196m, versus a SEK 10m loss a year earlier.

• Q3 free cash flow rose to SEK 787m from SEK 244m, mainly on higher operating cash flow.

• 9M net sales were SEK 20,443m, up 4% organically; adjusted EBITDA was SEK 2,647m, up 6% organically.

Outlook and guidance

• Targets for year-end 2027 are 7–9% YoY organic growth in net sales and gross profit, a 12–14% adjusted EBITDA margin, and net debt below 2.5x adjusted EBITDA R12M.

• Near-term growth priorities include the U.S. and email; EMEA and APAC improvements may take a quarter or two to appear in results.

• Strategic priorities include winning fast-growing and AI-native customers, improving retention, and expanding conversational channels, orchestration, intelligence, and trust and safety products.

• AI communications are expected to contribute low-single-digit growth next year; investment in growth is prioritized over further margin expansion.

• TDM-to-IP migration could add a couple of percentage points of gross margin over the next two to three quarters; LTM cash conversion guidance is 40–50%.