Vertiseit (VERT) Q1 2026 earnings summary

Executive summary

• ARR reached SEK 341 million, up 24.2% year-over-year at constant exchange rates, exceeding the 20% financial target, with 14% organic growth.

• Profitability increased 27% compared to the same quarter last year, with adjusted EBITDA rising to 27.3 MSEK (16.6% margin), up from 20.5 MSEK (12.0% margin).

• SaaS share of revenue now exceeds 50%, with SaaS revenue for the quarter at 85.6 MSEK, reflecting the ongoing shift to a SaaS-led model.

• Strong demand and high-quality pipeline opportunities reported, with intense outbound activities including major industry fairs and new retail media partnerships.

• Net income was 1.7 MSEK, down from 5.6 MSEK year-over-year.

Financial highlights

• Organic ARR growth annualized at approximately 14% for the quarter, with sequential ARR growth of 3.3%.

• Net revenue decreased by 3.5% to 164.6 MSEK, but SaaS revenue share and gross margin increased.

• System sales down 20% year-over-year, attributed to more revenue routed through partners; systems revenue was 59.7 MSEK with a 31% gross margin.

• Consulting revenue declined by SEK 1 million year-over-year to 19.3 MSEK, mainly due to reduced spending in the automotive sector.

• Free cash flow for the quarter was 25.3 MSEK, up from 12.6 MSEK year-over-year.

Outlook and guidance

• Focus remains on sustainable ARR growth, improved profitability, and cash flow.

• Confident in delivering 2–4 roll-up acquisitions per year, with a goal to complete at least two acquisitions in 2026.

• Long-term targets include ARR exceeding 1,000 MSEK and a cash EBITDA margin above 35% by 2032.

• Expect consulting to recover slightly but not fully in the next quarter.

• Cash flow expected to follow profitability trends going forward.