Westpay (WPAY) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 7% YoY to MSEK 18.8; recurring revenue grew 14% to MSEK 14.4 and reached 77% of sales.

• ARR reached a record MSEK 57.8, up 14% YoY, with growth accelerating from 10% in each of Q1 and Q2; this is close to the 15% long-term target.

• 9M sales rose 8% and EBITDA rose 20%; recurring growth and cost discipline lifted operating profit, while currency losses weighed on net earnings.

Financial highlights

• Q3 EBITDA was MSEK 4.0 (4.1), EBIT MSEK 1.7 (1.8), net earnings MSEK 0.8 (1.6), and EPS SEK 0.01 (0.02).

• Q3 gross profit was MSEK 16.3 (15.6); gross margin was 87% (89%), reflecting higher terminal landing costs amid a RAM component shortage.

• 9M sales were MSEK 57.4 (53.1); EBITDA MSEK 11.4 (9.5), EBIT MSEK 4.3 (2.3), net earnings MSEK 1.7 (2.4), and EPS SEK 0.02 (0.03).

• 9M recurring revenue rose 11% to MSEK 40.9 and represented 71% (69%) of sales; OPEX was 3% lower YoY, supporting higher EBITDA and EBIT.

• 9M operating cash flow was MSEK 8.5 (7.0); total cash flow was MSEK 0.6 (0.9).

Outlook and guidance

• Long-term goals are average annual ARR growth of 15% and EBIT margin of at least 10% over a 3–5 year horizon.

• Liquidity and continued operations are expected to be secured for at least the next 12 months, following assessment of financing needs by the board and management.