Vitec Software Group Interim report January–September 2026

Summary of interim period, July–September 2026

• Net sales SEKm 909 (791), an increase of 15%
• Recurring revenue SEKm 801 (710), an increase of 13%
• EBITA SEKm 272 (235), an increase of 15%
• EBITA margin 30% (30)
• Operating profit SEKm 205 (176), an increase of 16%
• Operating margin 23% (22)
• Cash EBIT SEKm 240 (212), an increase of 13%
• Cash EBIT margin 26% (27)
• Basic earnings per share SEK 3.00 (2.82), an increase of 7%
• Cash flow from operating activities SEKm 184 (157).

Summary of interim period, January–September 2026

• Net sales SEKm 2,725 (2,409), an increase of 13%
• Recurring revenue SEKm 2,367 (2,132), an increase of 11%
• EBITA SEKm 787 (691), an increase of 14%
• EBITA margin 29% (29)
• Operating profit SEKm 584 (506), an increase of 15%
• Operating margin 21% (21)
• Cash EBIT SEKm 671 (589), an increase of 14%
• Cash EBIT margin 25% (24)
• Basic earnings per share SEK 8.48 (7.56), an increase of 12%
• Cash flow from operating activities SEKm 1,060 (1,000)
• Acquisition of Autonet and Infometric.

Stable performance and increased activity
Earnings and cash flow in line with expectations

The third-quarter results were in line with our expectations, with a stable subscription base and continued earnings growth in absolute terms. Net sales increased by 15 percent to SEK 909 million. We continue to see positive signals from our customers, with more customer dialogues and somewhat higher activity. The overall picture is largely coherent, but it takes time for an improved business climate to be fully reflected in our subscription revenue.

Recurring revenue increased by 13 percent to SEK 801 million (710), corresponding to 88 percent (90) of net sales. Subscription-based revenue increased by 11 percent to SEK 692 million (622), of which organic growth amounted to 4.1 percent. Transaction-based revenue increased by 23 percent to SEK 109 million (88). The revenue mix shifted somewhat toward services and other revenue, including project deliveries that incorporate certain hardware components. Services and other revenue increased by a combined 32 percent, primarily due to contributions from the acquired operations Vitec NMG and Vitec Infometric.

EBITA increased by 15 percent to SEK 272 million (235), while the EBITA margin increased from 29.7 percent to 29.9 percent. Operating profit increased by 16 percent to SEK 205 million (176), and the operating margin improved to 22.5 percent from 22.3 percent. Cash EBIT increased by 13 percent to SEK 240 million (212), with a margin of 26.4 percent.

Cash flow followed the normal seasonal pattern for the third quarter and was also in line with our expectations. Leverage, measured as interest-bearing net debt in relation to EBITDA for the last twelve months, decreased to 2.15x from 2.22x at the end of the previous quarter. The increase compared with 1.67x at the corresponding point last year primarily reflects acquisitions completed during the period. In addition to available cash, we had SEK 1,227.1 million in undrawn credit facilities at the end of the quarter. Our financial position continues to provide capacity to invest in product development and pursue carefully selected acquisitions, while maintaining our focus on cash flow and capital discipline.

Cost discipline remains strong. The number of employees was largely unchanged during the quarter, while revenue increased. This demonstrates a gradual improvement in productivity. Our decentralized model enables measures to be implemented close to our customers and based on the specific circumstances of each business unit.

In September, we changed the Group Management structure to bring management closer to the operations and provide more direct support to our business units. Our VPOs now report directly to me and are organized into regional clusters, enabling us to make better use of the knowledge and expertise within each region. As part of the change, the COO role was discontinued. At the same time, CFO Peter Lidström assumed expanded responsibility for coordinating Brand & Communication, People & Culture, and IT. I would also like to extend my sincere thanks to Gert Gustafsson, who served as COO until the change, for his significant contributions during nearly ten years at Vitec.

After the end of the period, we completed two acquisitions, one of which was an add-on acquisition. At the same time, the flow of new acquisition opportunities has increased noticeably. This is positive, but a higher level of activity does not change our requirements regarding quality, culture, strategic fit, and valuation. Our ambition is not to make the most acquisitions, but to make the right acquisitions: companies that we can own and develop for the long term. As we enter the final quarter of the year, we have a solid foundation for doing so.

We believe the value of vertical software is at least as significant as before – and likely greater. The core code is important, but the customer value that is truly difficult to replace is built in the layers around it: deep domain knowledge, business-critical workflows, proprietary data, integrations and partner networks, as well as requirements related to security, regulatory compliance, and traceability. Added to this are the trust and responsibility built through long-standing customer relationships. AI gives us the opportunity both to accelerate and improve the efficiency of development and to create even greater customer value through smarter and more powerful products, while the technology strengthens, rather than replaces, these difficult-to-replicate layers. Our task is therefore to continue creating added value for our customers, operating efficiently, and growing responsibly, both organically and through carefully selected acquisitions. With our strong foundation and collective expertise, we are well equipped to take on that task!

Olle Backman
CEO and President
Vitec Software Group