Vitec Software (VIT) Q2 2026 earnings summary

Executive summary

• Serves 27,500 B2B customers across 49 business units in 13 countries, with sales in over 60 countries and pro forma sales of SEK 3.7 billion, 85% of which is recurring revenue.

• Net sales for January–June 2026 reached SEK 1,816 million, up 12% year-over-year, with recurring revenues at SEK 1,566 million, up 10%.

• Operating profit for the period was SEK 379 million, a 15% increase compared to the same period last year.

• Focuses on acquiring established, profitable vertical software companies with proprietary IP and recurring revenue models, nurturing them for market leadership.

• Active internal knowledge sharing and AI-driven innovation across business units, with AI applications enhancing both internal efficiency and customer offerings.

Financial highlights

• Q2 2026 net sales were SEK 935 million, up 15% year-over-year; recurring share of net sales was 86%.

• EBITA for Q2 2026 was SEK 271 million, up 15%, with a margin of 29%.

• Cash EBIT grew 18% year-over-year in Q2, with a 1 percentage point margin improvement.

• Basic EPS for Q2 was SEK 2.98 (up 13%); for H1, SEK 5.47 (up 16%).

• Cash flow from operating activities for H1 was SEK 876 million.

Outlook and guidance

• Signs of improving business climate, especially in healthcare, public sector, PropTech, and real estate agent sectors, though revenue impact is expected to lag due to implementation cycles.

• Pro forma recurring revenue growth expected to normalize to 5%-6% as pricing tailwinds subside.

• Cautiously optimistic on M&A activity, with more dialogues and potential deals ahead, maintaining disciplined valuation multiples.

• Organization expected to handle increased demand with flat employee and cost development.

• The company is well-prepared for future acquisitions, supported by strong cash flow and unused credit facilities.