Trifork Group (TRIFOR) Q1 2026 earnings summary

Executive summary

• Achieved 8% organic growth and 27% adjusted EBITDA growth year-over-year in Q1 2026, driven by a product-led strategy, cost control, and strong public sector wins.

• Product business now represents 45% of total revenue, up from 40% last year, with public sector revenue also at 45% and a 78% public tender win rate.

• Strategic focus on digital health, financial services, public, aviation, and energy sectors, with new leadership and international expansion in Germany and Canada.

• Significant new contracts include a 4-year deal with Denmark's National Agency for IT and Learning and digital health contracts in Germany and Canada.

• Strategic review of Labs portfolio ongoing, with discussions about structured exit opportunities.

Financial highlights

• Q1 2026 revenue was EUR 56.1M, down 2.4% year-over-year due to hardware sales phasing, but organic growth excluding hardware was 8.3%.

• Adjusted EBITDA margin improved to 15.5%, up 3.6 percentage points year-over-year, with adjusted EBITDA at EUR 8.7M.

• Product segment delivered a 27% margin and 28% organic revenue growth (excluding hardware), with 135% year-over-year EBITDA growth.

• Services segment grew 1% organically, with a 14% margin and a 5% decline in EBITDA year-over-year.

• Q1 cash conversion was 89%, with slower conversion due to delayed payment on a large deal and EUR 3.5M CapEx buildup for sovereign data centers.

Outlook and guidance

• Full-year 2026 guidance maintained: revenue EUR 230–240M, organic growth 7–11%, and adjusted EBITDA EUR 35–40M (15–17% margin, 16–33% growth).

• Margins expected to improve as AI-related pricing models are implemented and product scale increases.

• Hardware sales expected to remain at least at 2025 levels.

• Strategic review of Labs portfolio ongoing, with conclusions expected in the first half of the year.