Link Mobility Group (LINK) Q1 2026 earnings summary

Executive summary

• Reported revenue grew 21% year-over-year to NOK 2,005 million in Q1 2026, driven by acquisitions and stable organic enterprise growth despite declines in Global Messaging.

• Adjusted EBITDA increased 34% year-over-year to NOK 269 million, mainly from acquisitions, while organic adjusted EBITDA declined 6% due to gross profit pressure.

• Gross profit rose 20% year-over-year to NOK 492 million, with organic gross profit down 1% due to isolated customer declines, but OTT channels and CPaaS contributed positively.

• Net retention rate improved to 96%, up 4 percentage points sequentially, reflecting better client retention and new contract momentum despite nine isolated customer declines.

• Strategic focus on higher-margin CPaaS and OTT solutions, with RCS and WhatsApp volumes up over 100% year-over-year.

Financial highlights

• Gross margin was 24.5%, stable year-over-year, with margin expansion in enterprise offset by client mix and lower margin growth.

• Organic enterprise revenue grew 4% year-over-year, led by Central Europe (+8%) and Northern Europe (+5%), while Western Europe declined 2% but improved margins.

• Global Messaging segment revenue fell 12% year-over-year, reducing gross profit by NOK 12 million.

• Adjusted EBITDA margin expanded to 13.2% from 12.0% year-over-year, mainly due to contributions from recent acquisitions.

• Net income from continuing operations was NOK 85 million, more than doubling from NOK 39 million in Q1 2025.

Outlook and guidance

• Management expects gross profit growth to return positive in Q2 and reach mid to high single-digit growth in H2, supported by easier comparables and ramp-up of new contracts.

• Adjusted EBITDA growth expected to outpace gross profit growth as operational leverage increases.

• AI-driven and automation solutions are anticipated to enhance customer value, retention, and scalability.

• CapEx expected to decline by approximately 10% in 2026 compared to 2025.