Wavestone (WAVE) Investor presentation summary

Q1 performance and outlook

• Q1 FY 2026/27 revenue €227.0m, down 2% YoY and 2% organically; no working-day impact.

• Consultant utilization was 71%, vs. 72% at FY 2025/26 year-end; average daily rate was €926, down 1.3% vs. FY 2025/26.

• Revised FY 2026/27 targets: organic growth between -1% and low single-digit; recurring operating margin of 11%-13%, vs. initial targets of low single-digit growth and ~13% margin.

• Underperformance reflected cautious markets and slow client decisions, faster-than-expected budget shifts to AI, and insufficient operational execution.

• AI-related projects reached 22% of Q1 activity vs. 17% in FY 2025/26; growth did not offset declines elsewhere. France grew ~5%, GSA declined ~5%, and US/UK revenue fell sharply.

Operational priorities and acquisitions

• Priorities include tighter execution and performance management, faster resource allocation to promising clients and topics, and improved day-to-day operational steering.

• Accelerating the AI shift through stronger go-to-market activity and redeploying teams toward AI-related work are central to restoring momentum.

• Al Builders, an AI and data strategy consultancy, was acquired for €19.3m enterprise value; 2026 target revenue is €10.3m, adjusted EBITDA margin 15%, and ~50 consultants.

• Sand Cherry was acquired for an initial $35.0m enterprise value, with up to $12.0m additional consideration subject to FY 2026 and FY 2027 performance; 2026 target revenue is $31.5m and adjusted EBITDA margin 15%.

• Sand Cherry expands North America to ~ $120m pro forma revenue and ~370 employees; it has ~130 permanent employees and expertise in telecom, broadband and media, energy and utilities, and life sciences.

FY 2025/26 results and financial position

• FY 2025/26 revenue was €954.3m, up 1% reported and 1% organically; recurring operating profit was €119.9m and recurring operating margin was 12.6%.

• Net income rose 8% to €82.1m, net margin reached 8.6%, and EPS increased 8% to €3.34.

• Free cash flow was €118.9m vs. €63.2m in FY 2024/25; net operating cash flow was €131.8m.

• Net cash was €121.4m at March 31, 2026, compared with €25.6m a year earlier; dividend was €0.50 per share, up 9%.