Subgen AI (MAGNA) Q2 2026 earnings summary

Executive summary

• Secured a 58% majority stake in Substrate Al, enhancing control and future growth prospects.

• Received EUR 39 million investment in Substrate Al from private investors and the Spanish government to fund expansion.

• Strategic priorities are the growth of Substrate Al and the acquisition/development of Link Securities.

• Revenue grew 6.1% year-over-year in EUR for H1 2026, despite challenging macroeconomic and geopolitical conditions.

Financial highlights

• Net sales for H1 2026 at constant exchange rates: SEK 113 million (EUR 10 million), up 6.1% year-over-year.

• Q2 2026 net sales: SEK 62 million (EUR 5.7 million), down 5.6% from Q2 2025 due to a strong prior-year quarter.

• H1 2026 EBITDA: SEK -11 million (EUR -1.0 million), impacted by non-recurring acquisition costs.

• Adjusted H1 2026 EBITDA (excluding non-recurring costs): SEK -5.1 million (EUR -0.5 million).

• H1 2026 operating loss: SEK -26 million (EUR -2.4 million).

• H1 2026 net loss after tax: SEK -44 million (EUR -4.1 million).

• Gross margin improved to 84.2% in H1 2026 from 78.3% in H1 2025.

Outlook and guidance

• Substrate Al is positioned for accelerated growth with new funding and strategic focus.

• Continued investments in technology, infrastructure, and personnel to support expansion.

• Macroeconomic and geopolitical uncertainties, including the Iran war, may impact future performance.