Textstep returns to adjusted operating profit of NOK 2.1 million in third quarter
Key Facts
Textstep reported on November 11, 2026, adjusted earnings before interest, taxes, depreciation and amortization of NOK 2.1 million in the third quarter, after a loss of NOK 12.9 million in the previous quarter. The return to profitability was on a quarterly basis, while the result fell NOK 9 million year on year. The CEO said delayed project implementation and lower net gross profit continued to pressure profitability and liquidity, prompting the company to undertake a financial restructuring. Total revenue was NOK 169 million, down 24% from the corresponding period a year earlier. The results reflect an improvement in operating profitability compared with the second quarter, alongside continued year-on-year activity declines.
Net gross profit was NOK 53.4 million, down 34% year on year. The decline narrowed to 13% excluding the business the company divested, according to its announcement. Textstep attributed pressure on gross profit to the discontinuation of critical mobility activities, the termination of a legacy telecom expense management solution, and delays in delivering healthcare services. The company said net gross profit fell NOK 28 million compared with the corresponding period. At the same time, employee and other operating costs declined by NOK 18 million, largely offsetting the impact of lower net gross profit on adjusted operating profitability.
Despite the quarterly improvement, total revenue fell 24% to NOK 169 million. Net gross profit also fell 34% to NOK 53.4 million, or 13% excluding the divested business. The figures show that reducing the cost base did not prevent year-on-year declines in operating metrics. The annual fall in net gross profit was NOK 28 million, while savings in employee and other operating costs were limited to NOK 18 million. The impact of declining activity therefore remained greater than the savings recorded, despite adjusted EBITDA moving into positive territory compared with the previous quarter.
The company linked liquidity pressure to its financial restructuring and to conditions following the sale of its critical mobility business. It said most of the sale proceeds in the first quarter were used to repay loans, leaving limited financial headroom. It added that market demand was below expectations, adding to the pressure. The CEO said delayed project implementation and lower net gross profit continued to weigh on profitability and liquidity. The company said these factors had prompted its financial restructuring, alongside measures to improve performance and reduce costs.
Textstep announced that a rights issue had been completed after the quarter, raising total proceeds of NOK 100 million. The financing follows the company’s statement that loan repayments using most of the proceeds from the business sale in the first quarter had limited its financial headroom. The improvement program aims to reduce headcount from around 190 to 160 during 2027. The program includes improving commercial execution and margin management, and reducing operating costs. The company said the first steps in the program were beginning to deliver results, while profitability and liquidity remained under pressure.
On contracts, the company won its largest single contract to date in Sweden, to provide sovereign endpoint management services to an organization it describes as one of the country’s largest public-sector employers. The initial contract term is 3 years. After the quarter ended, Textstep agreed terms and an initial commitment for a project in Germany focused on its proprietary software. The project began in early November, while the remaining details of the final agreement were still being completed. The company lists the Swedish contract and German project among commercial developments after the quarter, while their conversion into revenue and improved margins depends on project execution.
The third-quarter results come during a transformation phase that the company previously said had taken longer than expected. In its third-quarter 2025 report, CEO Morten Meyer said results were below expectations because the transformation had taken longer, with work on efficiency and cost reductions continuing. In its fourth-quarter 2025 report, the company said cost-base reductions and organizational restructuring had been implemented by year-end. It also reported at the time that its two scalable software platforms had grown 23% year on year in that quarter. It had also indicated that the sale of its critical mobility unit would reduce annual net gross profit by around NOK 80 million and annual recurring revenue by around NOK 60 to 65 million.
Management was scheduled to present the third-quarter results and hold a question-and-answer session on November 11 at 08:00 Central European Time. The fourth-quarter 2026 report is scheduled for release on February 19, 2027. The next results will follow completion of the NOK 100 million rights issue and the start of the German project in early November. The plan to reduce headcount to 160 during 2027 also sets an operating course that extends into next year. Revenue, net gross profit and adjusted profitability will remain key areas to watch in the next report, alongside progress on the financial restructuring.