Solocal Group (LOCAL) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue declined 8.9% year-over-year to €149.5 million, with all product lines down, but Q2 2026 revenue increased 2% sequentially from Q1 2026, signaling early recovery.

• EBITDA increased to €30.0 million, with margin rising to 20.1% (+3.2 pts year-over-year).

• Net income surged to €15.7 million from €5.5 million, driven by improved operating performance and a positive tax adjustment.

• Order backlog grew 7.5% to €264.7 million since end-2025, supporting future revenue visibility.

• Strategic focus on AI integration, product innovation, and customer win-back initiatives, including the acquisition of Artur’In and launch of Solocal+.

Financial highlights

• Revenue: €149.5 million (–8.9% year-over-year; –9.6% like-for-like); Q2 2026 revenue: €75.5 million (–6.9% year-over-year; +2% sequentially from Q1 2026).

• EBITDA: €30.0 million (20.1% margin), up from €27.7 million (16.9% margin) in H1 2025.

• Net income: €15.7 million (+187.2% year-over-year).

• Free cash flow: –€0.8 million, down from €14.0 million in H1 2025.

• Gross cash: €76.6 million; net cash: €11.6 million at 30 June 2026; net cash position: €49.7 million as of June 30, 2026.

Outlook and guidance

• Full-year 2026 targets confirmed; expects Q4 2026 revenue growth versus Q4 2025, including external growth.

• Aims for continued EBITDA margin improvement, targeting around 20%.

• Monitoring opportunities for targeted acquisitions and continued focus on profitability.