StrongPoint earnings improved in the third quarter of 2026 as revenue rose 14% from a year earlier to NOK 364 million. EBITDA increased to NOK 18 million from NOK 14 million, while operating cash flow turned negative.

Key Takeaways

  • Nordic revenue grew 20%, helped by sales of StrongPoint’s own solutions and larger scale volumes.
  • Rolling 12-month recurring revenue fell 4%, affected by the loss of a former partner and a temporary reduction in a customer commitment.
  • The company expects to complete its Meijer rollout in the first half of 2027 but does not provide short-term guidance.

StrongPoint earnings and cash flow

The Norwegian retail technology company said higher sales of its own solutions contributed to the improvement in EBITDA, a measure of earnings before interest, tax, depreciation and amortization. International revenue grew 11%, including a 58% increase in Spain on higher electronic shelf label deliveries.

Cash flow from operations was negative NOK 19 million, compared with positive NOK 23 million a year earlier. Chief Financial Officer Marius Drevelin attributed the change principally to working capital movements supporting revenue growth. Net interest-bearing debt rose to NOK 103 million from NOK 57 million in the second quarter, reflecting higher working capital, increased use of a UK factoring arrangement and the joint venture buyout.

Recurring revenue and CashGuard

Recurring revenue over the preceding 12 months fell 4% to NOK 365 million. Drevelin said the decline reflected lower license and service revenue from a former electronic shelf label partner and a temporary reduction in Sainsbury’s order-picking volume commitment. Excluding those effects, other recurring revenue grew 6% year over year.

StrongPoint also acquired the remaining 40% of the CashGuard Connect joint venture from its former partner’s insolvency estate for NOK 8 million. It said the purchase gave it full control, intellectual property, exclusive perpetual global commercialization rights and future distributor royalties.

US rollout and outlook

StrongPoint said its grocery order-picking software had gone live in the first three Meijer stores. The retailer selected the SaaS platform in July, marking StrongPoint’s first large-scale deployment in the United States. The company expects the rollout to be completed in the first half of 2027.

Management said project deliveries can fluctuate from quarter to quarter and reiterated that it does not provide short-term guidance. Its longer-term ambition is healthy revenue growth and an EBITDA margin above 10%.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.