Interim report Image SystemsJanuary 1 – March 31, 2026

This reads less like a cyclical hiccup and more like a buyer-behavior problem: when end-customers stretch approval cycles, revenue recognition slips faster than bookings, but fixed-cost leverage still works against you. The first-order loser is the legacy project-driven segment exposed to discretionary capex, while the more resilient service/subscription mix is doing what it should: stabilizing backlog quality and reducing earnings volatility. The second-order implication is that competitors with heavier exposure to installed-base recurring revenue should gain share, because procurement teams under budget pressure tend to favor smaller, lower-commitment contracts over bespoke implementations.

The pressure point to watch is cash conversion over the next 1-2 quarters. In this setup, managements often defend EBITDA by cutting spend, but that can worsen the medium-term order funnel if product development or channel support gets trimmed too aggressively. If working capital improves only because shipments are deferred, the market will eventually look through the margin optics and punish any follow-on miss in guidance.

The contrarian view is that this may be closer to a timing issue than a true demand collapse: long decision cycles can create a visible trough in one quarter and then an outsized rebound when purchasing committees clear. That makes the key catalyst not macro headlines, but evidence of backlog conversion and whether the recurring revenue mix can offset continued weakness in project wins. If the service backlog keeps expanding while orders remain soft, the business may be entering a de-risking phase rather than a structural decline.