Smartoptics Revenue Rises 80% to $34.3 Million in Record Quarter
Key Facts
Smartoptics said on October 29 that its revenue in the third quarter of 2026 rose 80% year over year to $34.3 million, in what the company described as the strongest result in its history. Operating profit before interest and taxes (EBIT) climbed 340% to $7.1 million, according to the company’s statement. The EBIT margin rose to 20.6%, up 12 percentage points from the corresponding quarter of 2025. Gross profit margin was 49.5%, matching the level in the same period last year. The results highlight accelerating profitability alongside sales growth, while the official statement did not establish the share-price movement or compare results with analyst expectations.
The quarterly comparison shows revenue continuing to grow from $28.9 million in the second quarter of 2026, when it posted annual growth of 55%, to $34.3 million in the third quarter, with growth accelerating to 80%. Gross profit margin in the second quarter was 46.1%, compared with 48.6% in the same period of 2025, before reaching 49.5% in the third quarter, the level recorded in the corresponding quarter of 2025. In the third quarter of last year, revenue was $19.0 million, up 46.2%, while gross profit margin was 49.5%, compared with 47.4% in the third quarter of 2024. For the full year, the company recorded revenue of $75.3 million in 2025, an increase of 35.6% from $55.5 million in 2024. Annual EBIT was $6.8 million in 2025, compared with $3.3 million the previous year.
Third-quarter growth extended across the company’s three reported regions, with record revenue in each. Revenue in the Americas grew 86% to $20.2 million, while revenue in Europe, the Middle East and Africa rose 72% to $10.6 million. In Asia-Pacific, revenue increased 75% to $3.6 million. The company said revenue from its solutions more than doubled, driven by deliveries to large accounts, while software and services revenue rose 69%. This breakdown indicates that the increase was not confined to one region, alongside the expansion in sales of solutions and services.
Smartoptics linked demand for optical fiber networks to increased investment in artificial intelligence infrastructure, and said bandwidth needs also extend to other uses. These include data center interconnection, network upgrades, broadband services and financial services. Chief Executive Magnus Grenfeldt said, "Revenue is growing faster than the cost base, while we continue to invest in future growth," adding that "the large-account strategy continues to deliver results." The company had attributed its momentum in the third quarter of 2025 to continued investment across customer segments, particularly in data centers, and at the time pointed to orders from major operators and providers in Europe, the Middle East and Africa, and the United States. Smartoptics provides solutions and equipment for open optical networks, serving companies, enterprises, cloud service providers and telecommunications providers.
Grenfeldt said revenue reached about $109 million over the past four quarters, exceeding the $100 million target the company set when it listed in 2021. Smartoptics maintained its medium-term outlook of revenue reaching $300 million to $400 million or more over time. The outlook includes average annual growth of more than 25% starting in 2026, and an EBIT margin above 16% in the second half of the planning period. The CEO said the company had expanded its hardware and software offerings and its addressable market, and strengthened its operations and team, adding that it sees itself as well positioned for the next stage of growth. The company held its third-quarter results presentation on October 29 at 08:00 Central European Time, led by Grenfeldt and Chief Financial Officer Stefan Karlsson, with the presentation available via webcast.