Synexo Group (SYNEXO) Q1 2026 earnings summary

Executive summary

• Achieved 76% year-over-year ARR growth on a pro forma, organic basis, with live ARR reaching SEK 6.03m and strong upsell and market share gains.

• Backlog increased by 70%, with signed ARR at SEK 10.2m, providing strong forward revenue visibility and a significant portion expected to go live in the next twelve months.

• Gross margin improved to 66% in Q1 2026, up from 57% in Q4 2025, reflecting operational scaling and efficiency gains, with a target of >70% by 2026.

• Norwegian subsidiaries delivered positive EBITDA (SEK 46k), but total Group EBITDA was negative (SEK -597k) due to parent costs and non-recurring relisting expenses.

• The Group remains debt-free with SEK 1.4m in cash and an equity ratio of approximately 92% at period end.

Financial highlights

• Q1'26 ARR grew 20% quarter-over-quarter (109% annualized), driven by 76% new logos and 33% net upsell, partially offset by 9% churn.

• Pro forma revenue increased to SEK 1.3m in Q1 2026 from SEK 0.8m in Q1 2025, a 50% year-over-year increase.

• Gross profit rose to SEK 846k, with gross margin up to 66% from 62% year-over-year.

• Cash-EBITDA remained negative in Q1'26 but is expected to turn positive in Q2'26 as backlog converts.

• No interest-bearing debt and SEK 1.4m cash position at quarter-end.

Outlook and guidance

• Targeting live ARR of SEK 12m (>100% organic growth) in 2026, with 48% already secured through signed contracts.

• Total signed ARR targeted to exceed SEK 18m by year-end 2026.

• Gross margin expected to surpass 70%, with no planned increase in overhead costs.

• Cash-EBITDA projected to be positive from Q2'26 onward; management expects Group-level profitability by end of Q2 2026 as overheads are scaled.

• Medium-term guidance: >20% average organic annual growth and continued margin expansion.