Interim Report, January – March 2026

Net sales were essentially flat year over year at SEK 60.9 million versus SEK 60.8 million, while software revenue rose 3% to SEK 56.8 million from SEK 54.7 million. Recurring revenue increased 3% to SEK 55.3 million and represented 91% of net sales, up from 88%. Foreign exchange effects weighed on net sales by SEK 5.9 million, offsetting underlying growth.

Analysis

This print is a quiet but important signal that the business is becoming less transactional and more annuity-like: recurring revenue is now doing most of the heavy lifting, which should compress earnings volatility and improve visibility into the next two quarters. The FX drag is the key second-order issue — if reported sales are flat despite underlying software growth, the market may be understating the true operating momentum in local currency and over-penalizing the headline. That creates a setup where any stabilization in the currency can produce an outsized step-up in reported growth without any change in demand.

The competitive read-through is that this company is likely holding share in a relatively sticky installed-base market while weaker peers remain exposed to one-off license or implementation revenue. A 91% recurring mix also raises the bar for competitors that still need to spend heavily to win new logos; the winner is the vendor with the lowest churn and best upsell, not the fastest top-line grower. In that kind of model, the market often misprices the inflection because it looks slow until margin leverage kicks in.

The main risk is that FX remains a multi-quarter headwind and masks the operating story long enough to keep valuation compressed. Near term, the stock can still drift if investors focus on reported stagnation; over 6-12 months, the catalyst is a rerating once currency normalization reveals the underlying recurring base. The contrarian view is that the market may be too anchored to headline revenue and not paying for the quality of the mix shift — if so, this is a setup for multiple expansion rather than a pure growth re-acceleration trade.

Key Decisions for Investors

• Go long the stock on any post-earnings weakness if the market is extrapolating flat reported sales; target a 6-12 month rerating from mix improvement rather than immediate top-line acceleration.
• If liquid and borrowable, pair long this name vs. a lower-recurring-revenue software peer to isolate the quality-of-revenue premium; expect the spread to widen as investors reward predictability over headline growth.
• Use FX stabilization as the catalyst trigger: add on signs of SEK weakness abating over the next 1-2 quarters, since reported growth can inflect without incremental demand change.
• For more convex exposure, buy 3-6 month calls or call spreads into the next print; the payoff is asymmetric if the market re-rates recurring revenue quality before revenue growth re-accelerates.