Vitec earnings for the third quarter of 2026 showed net sales and EBITA both rising 15%, while organic subscription growth remained more modest. The vertical software group reported revenue of SEK 909 million and EBITA of SEK 272 million on October 23. Transaction-based revenue grew faster than subscriptions, and two acquisitions completed after the quarter added to the group’s expansion.
Key Takeaways
- Sales and EBITA grew at the same rate, leaving the quarterly EBITA margin broadly unchanged.
- Organic subscription revenue growth was 4.1%, while transaction-based revenue increased 23%.
- Two post-quarter acquisitions followed a quieter period for dealmaking.
Table of Contents
- Vitec earnings grow with a changing revenue mix
- Profit growth holds margins broadly steady
- Acquisitions resume with financing capacity available
- Conclusion
Vitec earnings grow with a changing revenue mix
Vitec’s January–September 2026 interim results put third-quarter recurring revenue at SEK 801 million, up 13% from a year earlier. Recurring revenue represented 88% of sales, compared with 90% in the same quarter of 2025.
Subscription revenue increased 11% to SEK 692 million, including 4.1% organic growth. Transaction-based revenue rose 23% to SEK 109 million. Services and other revenue grew a combined 32%, primarily reflecting contributions from acquired businesses Vitec NMG and Vitec Infometric.
The figures show that total sales growth was broader than expansion in the existing subscription base. CEO Olle Backman said customer conversations and activity had improved, but that a better business climate takes time to feed fully into subscription revenue.
| Item | Details |
|---|---|
| January–September net sales | SEK 2,725 million, up 13% year over year |
| January–September recurring revenue | SEK 2,367 million, up 11% |
| January–September EBITA | SEK 787 million, up 14% |
| January–September basic earnings per share | SEK 8.48, up 12% |
| January–September operating cash flow | SEK 1,060 million, compared with SEK 1,000 million |
Profit growth holds margins broadly steady
The EBITA margin edged up to 29.9% from 29.7%. Operating profit increased 16% to SEK 205 million, while cash EBIT rose 13% to SEK 240 million. Cash EBIT’s margin was 26.4%, compared with a rounded 27% a year earlier.
Quarterly operating cash flow increased to SEK 184 million from SEK 157 million. Management said cash flow followed its normal seasonal pattern and was in line with expectations.
Employee numbers were largely unchanged during the quarter despite higher revenue, which management described as evidence of gradually improving productivity. In the earnings discussion, Backman said development efficiency was improving, with absolute spending likely to remain roughly flat rather than fall sharply.
Acquisitions resume with financing capacity available
Vitec completed two acquisitions after September 30, including one add-on transaction. Backman said the flow of acquisition opportunities had increased, but emphasized that quality, culture, strategic fit and valuation requirements remained unchanged.
The group ended September with SEK 1,227.1 million in undrawn credit facilities. Net debt relative to trailing 12-month EBITDA fell to 2.15 times from 2.22 times at the end of June, although it remained above 1.67 times a year earlier, primarily reflecting acquisitions.
A September management restructuring also removed the chief operating officer role. The group’s VPOs now report directly to Backman, while CFO Peter Lidström took on expanded responsibility for coordinating communications, people and IT functions. The changes were intended to bring group management closer to operating businesses.
Conclusion
Vitec enters the final quarter of 2026 with higher earnings, broadly stable EBITA profitability and two completed acquisitions. The next reporting period will show how those additions contribute and whether stronger customer activity translates into faster organic subscription growth.
Read More 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.
