SSH Communications Security (SSH1V) Q1 2026 earnings summary

Executive summary

• Net sales declined by 1.6% to EUR 5.3 million in Q1 2026, mainly due to currency effects and lower license sales in APAC and AMERICAS, while EMEA grew 7.5–8% year-over-year, driven by European sovereignty trends.

• PrivX sales grew 19.7–20% year-over-year, establishing it as the main growth engine with strong traction in telecom, finance, government, airports, and high-performance computing sectors.

• EBITDA was EUR -0.6 million, reflecting increased investments in R&D, sales, marketing, and product integration, with expected future payback.

• Organizational restructuring shifted to functional leadership, with new leadership appointments and a competence-led model for sharper focus and flexibility.

• Strategic partnership with Leonardo deepened, with SSH products embedded in their Zero Trust suite and a EUR 20 million investment, plus multiple joint opportunities in the pipeline.

Financial highlights

• Net sales: EUR 5.3 million, down 1.6% year-over-year; EBITDA: EUR -0.6 million; EBIT: EUR -1.4 million.

• Subscription ARR grew 3.5%, and subscription sales rose 3.9% year-over-year; deferred revenues increased to EUR 14 million.

• Cash flow from operations was EUR 2.1 million, up from EUR 0.7 million in Q1 2025; liquid assets reached EUR 22.4 million.

• Equity ratio improved to 79.7% (Q1 2025: 52.1%).

• Invoicing increased by 7% year-over-year.

Outlook and guidance

• Net sales expected to grow for the full year 2026, with positive EBITDA and operating cash flow forecast maintained.

• Cost base from increased investments in development and marketing is expected to continue at current levels.

• Financial guidance for 2026 reiterated.