ZetaDisplay (ZETA) Q1 2026 earnings summary

Executive summary

• Net sales declined 11.1% year-over-year to SEK 141.9 million, mainly due to lower volumes from a global customer restructuring and adverse currency effects.

• EBITDA before restructuring costs rose 22% to SEK 15.5 million, reflecting improved operational efficiency.

• Recurring revenue decreased 4.0% to SEK 62.8 million, but remained stable on a constant currency basis and now represents 44.3% of net sales.

• Commercial momentum continued with significant post-quarter contract wins, including major agreements with Vy Group and Coop Norway.

• Strengthened strategic partnerships, notably with LG Electronics, expanding the reach of Engage Suite software.

Financial highlights

• Gross margin improved to 59.0% from 56.4% year-over-year, driven by a higher share of recurring revenue.

• Adjusted EBITDA was SEK 17.6 million (margin 12.4%), down from SEK 22.0 million (margin 13.8%) in Q1 2025.

• Operating profit after restructuring costs was SEK -4.0 million (margin -2.9%), compared to SEK -4.9 million (-3.1%) last year.

• Net loss after tax widened to SEK -21.4 million from SEK -15.8 million, mainly due to higher interest expenses.

• Cash flow from operating activities was SEK -12.7 million, impacted by higher supplier payments and timing effects.

Outlook and guidance

• Positive momentum expected in the second half of 2026, with a strong enterprise pipeline and several large-scale deployments entering rollout phases.

• Continued focus on growing recurring revenue and long-term partnerships in retail media and digital out-of-home sectors.