Qt Group (QTCOM) Q1 2026 earnings summary

Executive summary

• Net sales reached EUR 52.7 million in Q1 2026, up 11.6% year-over-year (18.4% at comparable currencies).

• ARR rose to EUR 155.9 million, up 27.7% year-over-year (32.7% at comparable currencies).

• EBITDA margin was 9.6% with EBITDA of EUR 5 million; EBITA fell 40.3% to EUR 5.0 million and EBIT dropped 76.8% to EUR 1.5 million.

• IAR acquisition and its transition from perpetual to subscription licensing is impacting revenue and profitability in the short term.

• Strategic partnerships with Qualcomm and NVIDIA to advance AI-driven solutions; operational reorganization launched targeting EUR 20 million in annual cost savings and up to 200 job reductions.

Financial highlights

• Distribution licenses grew 2.3%; developer licenses and consulting were flat year-over-year; maintenance revenue surged 176.7%.

• Organic ARR growth (excluding IAR) was 11.5% year-over-year.

• Costs increased by 23% year-over-year, with personnel costs up 26% to 1,120 employees, mainly from IAR integration.

• Cash balance at EUR 56 million (down from EUR 80 million last year) due to IAR acquisition; interest-bearing debt at EUR 143.5 million.

• Net profit: EUR 0.4 million, down 92.8% year-over-year; earnings per share: EUR 0.01.

Outlook and guidance

• Full-year guidance unchanged: at least 10% net sales growth and at least 15% operating profit growth at comparable currencies.

• IAR revenue and profitability expected to decline in 2026 due to subscription transition, with double-digit growth anticipated from 2027.

• EUR 20 million cost savings targeted by 2027 through operational reorganization and integration synergies.

• Distribution license sales anticipated to be lower than 2025; reorganization expected to improve efficiency and profitability in H2 2026.

• Expecting improved performance in the U.S. following management and organizational changes.