Westpay (WPAY) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 increased by 11% year-over-year to MSEK 19.8, with recurring revenues up 10% to MSEK 13.7, representing 69% of total sales.

• EBITDA rose 47% to MSEK 3.8, EBIT surged 699% to MSEK 1.5, and net earnings reached MSEK 0.8, reflecting strong operating leverage and cost discipline.

• For H1 2026, net sales grew 8% to MSEK 38.6, recurring revenues increased 10% to MSEK 26.4, and EBITDA improved 38% to MSEK 7.4.

• Operating cash flow for H1 was strong at MSEK 6.7, supporting ongoing SaaS transformation and profitability.

Financial highlights

• Q2 gross profit was MSEK 16.9 (85% gross margin), down from 90% due to higher terminal costs.

• Personnel costs for Q2 were MSEK 9.8, 49% of net sales, reflecting improved efficiency.

• Cash flow from operating activities in Q2 was MSEK -0.6, impacted by working capital changes; total cash flow for Q2 was MSEK -2.7.

• As of June 30, 2026, cash equivalents stood at MSEK 0.5, with an unused overdraft facility of MSEK 4.5.

Outlook and guidance

• Management is confident liquidity and operations are secured for at least the next 12 months.

• Long-term financial goal: 15% average annual ARR growth and at least 10% EBIT margin over 3-5 years.