Nepa (NEPA) Q1 2026 earnings summary

Executive summary

• Achieved three consecutive profitable quarters and completed a major operational transformation, with ARR bookings up 86.3% year-over-year to SEK 8.6 million and underlying ARR at SEK 135.8 million, up 13.9% year-over-year.

• Recurring business and subscription revenue continued to grow, while ad hoc bookings were softer in Q1 due to client caution and macroeconomic/geopolitical uncertainty, but rebounded strongly in April, bringing January–April sales in line with the prior year.

• Net sales declined 9.8% year-over-year due to phased-out contracts and extraordinary churn, but underlying net sales increased 2.3%.

Financial highlights

• Adjusted EBITDA less CapEx improved by SEK 7.2 million year-over-year to SEK 0.5 million (1% margin), with net income improving to -2.9 MSEK from -14.9 MSEK.

• Operating expenses (OpEx) decreased by 21.1% year-over-year, reflecting cost-saving programs and operational efficiency.

• Gross margin remained stable at 76.3%, with improved project margins.

• Operating cash flow was SEK +1.6 million; net cash position at quarter-end was SEK 16.1 million.

• Subscription revenue increased 13.7% underlying, but declined 7.7% on a reported basis to 33.8 MSEK.

Outlook and guidance

• Focus remains on sustaining positive ARR momentum, further margin improvement, and accelerating integrated marketing intelligence and AI capabilities.

• Ad hoc revenues are expected to remain sensitive to macroeconomic and geopolitical factors, but a strong ARR base should provide stability.

• No significant impact from Swedish elections anticipated in Q3/Q4; strongest quarters expected to remain Q3 and Q4.