Verisure Group (VSURE) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered financial performance ahead of expectations, with double-digit growth in revenue, ARR, and EBIT, expanding margins, and positive free cash flow for the second consecutive quarter.

• Customer portfolio grew 9.7% year-over-year to nearly 6.3 million, maintaining global leadership by portfolio size.

• Integration of Mexico contributed to ARR and portfolio growth, and major rebranding initiatives in Spain and Portugal are progressing well.

• Continued innovation with AI-driven product launches, including Guardian in France and Seniors Protección in Spain, expanding the addressable market.

• Board changes included new appointments and departures, supporting ongoing transformation.

Financial highlights

• Revenue increased 10.8% year-over-year to €1,019.3m, surpassing €1 billion for the first time.

• ARR reached €3,533m, up 12.2% year-over-year, with a 2% contribution from the Mexico acquisition.

• Adjusted EBIT grew 19.3% year-over-year to €277m, with margin expansion to 27.2%.

• Adjusted EBITDA was €472.3m, margin 46.3%, up 81–82 basis points year-over-year.

• Free cash flow was €39.1m, a significant improvement from negative €56.2m in Q1 2025.

Outlook and guidance

• 2026 guidance reaffirmed: ARR growth around 10% (excluding Mexico), adjusted EBIT margin above 26%, and positive free cash flow.

• Interim dividend expected in H2 2026, with a payout ratio of 30%-40% of H1 adjusted net income.

• Medium-term guidance: ARR growth around 10% annually, revenue growth up to 100 bps below ARR, and progressive EBIT margin development to 30% over the long term.