Vertiseit revenue rises 45.4% in third quarter as earnings improve amid cash pressures
Key Facts
Vertiseit reported a 45.4% increase in revenue in the third quarter of 2026, with higher software sales and improved profitability alongside cash burdens linked to the acquisition and integration of Scala. The company said in its January-September results report that quarterly revenue reached 219.2 million Swedish crowns, compared with 150.7 million crowns a year earlier. Software-as-a-service revenue totalled 118.2 million Swedish crowns during the quarter, compared with 80.2 million crowns in the same period a year earlier. The group posted adjusted earnings before interest, taxes, depreciation and amortisation of 55.1 million Swedish crowns in the third quarter, according to the financial report. Those earnings stood at 30.5 million crowns in the corresponding period, with the increase in adjusted operating earnings accompanying higher group and software revenue.
The improvement in profitability extended to the adjusted earnings before interest, taxes, depreciation and amortisation margin, which reached 25.1% in the third quarter, according to Vertiseit's disclosure. The comparable margin was 20.2% in the same period a year earlier, alongside the group's lower revenue base at the time. Quarterly net profit reached 16.7 million Swedish crowns, compared with 10.6 million crowns in the corresponding period, according to the reported results. On liquidity, cash flow from operating activities was negative 23.4 million Swedish crowns, compared with negative 2.7 million crowns in the corresponding period. The company attributed the negative cash flow to a temporary increase in working capital linked to the acquisition and integration of Scala, despite higher earnings during the period.
In its recurring business, Vertiseit ended the third quarter with annual recurring revenue of 464.0 million Swedish crowns, according to its January-September report. The group had reported annual recurring revenue of 440.0 million Swedish crowns at the end of the second quarter of 2026 in its first-half report. Organic growth in annual recurring revenue was 3.5% from the previous quarter at constant exchange rates, according to the third-quarter results disclosure. In the second quarter, the same metric recorded sequential organic growth of 2.9% at constant exchange rates, according to the company's January-June report. Quarterly organic growth in recurring business thus accelerated, alongside an increase in its annual value at the end of the third quarter compared with the end of the previous quarter.
The group's performance follows the consolidation of Scala in its financial statements from 1 June 2026, as Vertiseit announced in its first-half results report. The company said in that report that the Scala acquisition contributed in part to second-quarter sales growth, which included the start of the acquired company's consolidation. In its business organisation, Vertiseit brought the DISE and Scala operations together under the Scala brand, according to a separate statement announcing the brand consolidation. The company outlined the sales channel for these operations in the statement: "Scala will be sold exclusively through selected and certified Scala partners," as part of the announced commercial arrangements. On technology, the group continues to develop the DISE and Scala platforms, with the gradual introduction of Vertiseit's shared technology infrastructure, known as IXM Grid.
In another commercial development, the group's Visual Art subsidiary signed a global framework agreement with Circle K to provide digital in-store solutions, according to a Vertiseit statement. The subsidiary will provide the solutions under the agreement, which links its digital in-store business with the customer on a global scale, according to the announced scope of the contract. The contract takes the form of a framework agreement, with actual orders remaining important in determining the volume of business that may arise from the commercial relationship. Vertiseit explicitly stated in its announcement of the contract: "The framework agreement does not include any volume guarantees," a condition governing the scope of the commercial commitment. The agreement adds to the group's business developments alongside the reorganisation of its software operations under the Scala brand and the continued development of its platforms and shared technology infrastructure.
The global framework agreement with Circle K runs until 31 October 2028, according to the date Vertiseit specified in its contract announcement. Over the longer term, the group has set the end of 2032 as the deadline for its financial targets for annual recurring revenue and cash-based business profitability. The company aims for annual recurring revenue to exceed 1,000 million Swedish crowns by that date, according to its published financial targets page. It also aims for its cash earnings before interest, taxes, depreciation and amortisation margin to exceed 35% by the end of 2032, under the same long-term targets. In parallel, the announced development of the software platforms and the gradual introduction of shared technology infrastructure continue, alongside the exclusive sales model through selected and certified partners.