Techstep (TECH) Q1 2026 earnings summary

Executive summary

• Completed divestment of Business Critical Mobility (BCM) in Q1 2026, streamlining operations and sharpening focus on core business and scalable growth.

• Implemented decisive cost reductions and organizational right-sizing, reducing FTEs from 260 to 190 by quarter-end.

• Advanced ERP and e-commerce platform rollouts to drive operational efficiency and scalability.

• Achieved significant commercial wins in Spain and Norway, notably with Sykehuspartner and Generalitat de Catalunya, reinforcing pipeline conversion.

• Q1 results impacted by divestment, delayed health sector rollouts, and one-off ERP project costs.

Financial highlights

• Q1 2026 revenue was NOK 219.4 million, down 12% year-over-year due to divestment and discontinued solutions.

• Net gross profit fell 33% year-over-year to NOK 57.8 million; margin declined to 26.4%.

• Adjusted EBITDA was NOK 12.6 million (5.7% margin), down from NOK 31.0 million (12.5%) in Q1 2025.

• Adjusted EBITA was NOK -11.5 million, impacted by one-off restructuring and ERP costs.

• Net loss for the period was NOK 29.1 million, compared to NOK 16.4 million loss in Q1 2025.

Outlook and guidance

• Anticipates strong growth in software and services as digitalization and regulation drive demand.

• Benefits from cost reductions and ERP implementation expected to materialize in coming quarters.

• Pipeline and partnerships for Essentials and Lifecycle platforms developing positively.

• Expectation of recurring revenue growth in 2026, driven by new device onboarding, partner agreements, and expansion in Spain and other markets.

• Anticipate continued operational improvements and positive financial progress over coming quarters.