Wiit (WIIT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached €41.4 million, up 0.7% year-over-year, with 90.9% from recurring sources, providing high visibility and predictability.

• Adjusted EBITDA grew 9.0% to €17.2 million, with margin improving to 41.6% from 38.4% in Q1 2025, reflecting operational efficiencies and process optimization.

• Adjusted EBIT increased 21.1% to €9.4 million, margin rising to 22.7% from 18.9% year-over-year.

• Adjusted net profit was €4.1 million, stable compared to €4.3 million in Q1 2025, as higher financial expenses offset operating gains.

Financial highlights

• Annual Recurring Revenue (ARR) rose 0.9% to €34.4 million, representing 90.9% of total revenue.

• Adjusted net debt decreased to €137.2 million from €156.2 million at year-end 2025.

• EBITDA margin improved by 320 basis points to 41.6%; EBIT margin rose to 22.7% (+380bps YoY).

• Net leverage at 2.3x, well below the 4x covenant threshold.

• Cash and cash equivalents at €55.2 million as of March 31, 2026.

Outlook and guidance

• Cloud services market expansion and increased SaaS, PaaS, and IaaS adoption continue to drive growth.

• Ongoing M&A scouting and due diligence on two strategic targets, with focus on unlocking value from German data centers via potential sale-and-lease-back transactions.

• EBIT margin expected to improve further in coming quarters due to economies of scale and reduced amortization.

• Organic growth in Italy projected at 10-11% for the year, excluding Broadcom effects.

• Broadcom-related pipeline could significantly boost growth in 2027-2028, with contracts expiring by June 2027.