Techstep (TECH) Q3 2026 earnings summary

Executive summary

• Q3 revenue and net gross profit declined amid the BCM divestment, legacy Telecom Expense discontinuation, customer churn and delayed healthcare deliveries; adjusted EBITA returned to positive territory QoQ.

• Priorities shifted toward recurring gross profit and cash, supported by cost reductions, a leaner organisation and shared operating platforms.

• Commercial opportunities include Sweden’s largest contract to date, Samsung Knox Premium MSP status and a German software project, with delivery and conversion to recurring gross profit still key.

Financial highlights

• Q3 revenue was NOK 168.957m, down 7% YoY excluding the divested business and down 24% on a reported basis.

• Net gross profit was NOK 53.421m, down 13% excluding the divested business and down 34% on a reported basis; margin was 31.6% versus 33.7%.

• Adjusted EBITA was NOK 2.109m versus NOK 5.405m YoY and improved NOK 15m QoQ from -NOK 12.9m; operating costs fell NOK 4.9m YoY.

• Net loss was NOK 151.421m, including NOK 137.1m non-cash goodwill impairment; amortisation was NOK 8.0m versus NOK 17.5m YoY.

• Adjusted EBITDA was NOK 24.148m; operating cash flow was -NOK 20.0m after DaaS investment.

Outlook and guidance

• Annualised operating cost-base target is NOK 218m, with close to full Improvement Programme effect expected by April 2027; September costs reached the target run-rate, partly aided by vacation effects and temporarily lower costs.

• Q4 priorities are to grow gross profit from existing customers, selectively win profitable new work and lower costs; progress measures include delivery, recurring gross profit and cash.

• Partner-channel ambition is ~40% of gross profit by 2029, a directional target rather than financial guidance, subject to execution, partner adoption and market development.

• Healthcare rollout under the Sykehuspartner agreement is delayed but expected to gain momentum; timing, retention and long sales and delivery cycles remain execution risks.