SmartCraft (SMCRT) Q2 2026 earnings summary

Executive summary

• Achieved 8.1% year-over-year growth in annual recurring revenue (ARR), with organic growth at 6.8%, slightly above last year but below internal ambitions.

• Churn improved to 8.1%, down 1.9 percentage points year-over-year.

• Sweden showed strong recovery, especially in SME Construction, while Norway and Finland remained challenging.

• Continued transformation with leadership hires, organizational restructuring, and efficiency measures in Enterprise expected to deliver SEK 15M annual cost savings from 2027, with SEK 7.2M in one-off costs in Q2.

• AI-enabled product releases and workflow automation rolled out, with ongoing investment in technology and efficiency.

Financial highlights

• ARR reached SEK 514M, up 8.1% year-over-year; Q2 revenue was SEK 142.2M, up 7.8% YoY; net new ARR in Q2 was SEK 10M, a 14% increase from last year.

• Adjusted EBITDA for Q2 was SEK 52.6M (margin 37.0%), with adjusted EBITDA - Capex margin at 26.7%.

• Recurring revenue now represents 96% of total revenue.

• Operating cash flow for Q2 was SEK 33.2M, up from SEK 25.3M YoY; cash flow for six months was SEK 105.9M.

• Return on equity (LTM) at 8.9%; profit for the quarter was SEK 24.3M.

Outlook and guidance

• Management aims to further reduce churn, increase upsell, and focus on scalable internal solutions and capital efficiency.

• Medium-term target of 15-20% organic growth, with margin uplift expected from efficiency measures and business scalability.

• No major uplift in demand expected in 2026; Swedish market recovery is fragile, while other markets remain soft.

• M&A and share buybacks remain part of capital allocation strategy.