This article first appeared on GuruFocus .
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Revenue:$166 million in Q1 2026.
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Order Intake:$179 million in Q1 2026.
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Gross Margin:73% in Q1 2026.
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Adjusted EBITDA Margin:44% in Q1 2026.
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Cash Flow Conversion:82% in Q1 2026.
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Order Backlog:$571 million at the end of Q1 2026.
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Net Debt:Decreased to $136 million at the end of Q1 2026.
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Net Debt Ratio:0.5 times at the end of Q1 2026.
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Robots Deployed:Almost 90,000 robots across nearly 2,000 installations.
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New Customers:25 new customers added in Q1 2026, totaling more than 1,300.
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Warning! GuruFocus has detected 2 Warning Sign with STU:1IG.
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Release Date: April 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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AutoStore Holdings Ltd ( STU:1IG ) reported a strong start to the year with revenue of $166 million and an order intake of $179 million.
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The company maintained a high gross margin of 73% and an adjusted EBITDA margin of 44%, showcasing strong profitability.
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AutoStore's cash flow conversion was 82%, highlighting the cash-generating nature of its business model.
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The company launched new AI capabilities and a software platform, enhancing its product offering and increasing its addressable market.
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AutoStore's strategic focus on building deeper relationships with customers resulted in 55% of revenue coming from existing customers and the addition of 25 new customers in Q1.
Negative Points
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Rising aluminum prices are expected to impact gross margins, although the company has diversified its supplier base to mitigate this.
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Geopolitical uncertainties, such as the conflict in the Middle East, pose potential risks to supply chain management and demand.
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The company faces ongoing input cost pressures, including energy costs, which could weigh on margins throughout the year.
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Despite strong performance, there is no immediate decision on capital allocation strategies like share buybacks, which some investors may have anticipated.
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The recurring revenue portion remains relatively small, with early to mid-teens percentage of total revenue, indicating room for growth in this area.
Q & A Highlights
Q: Can you quantify the impact of rising aluminum prices on gross margins, and are you considering raising prices for customers? Also, how is the Middle East conflict affecting demand or supply chain management? A: Paul Harrison, CFO: We are seeing a significant increase in aluminum costs, which will affect our gross profit for the year. However, we've diversified our supplier base since the Russian-Ukraine situation, allowing us to mitigate some impacts. We expect our gross margin to remain above 70%. Regarding the Middle East, we have a small business there, and there's been no significant disruption to orders. Mats Vikse, CEO: We've learned from past experiences and have taken actions to limit the impact on customers. We don't currently see a need to pass costs onto customers, but we have tools to do so if necessary. The Middle East conflict highlights the need for robust supply chains.
Q: Can you provide an update on the share of recurring revenue and how new product launches affect this? A: Paul Harrison, CFO: Recurring revenue is in the early to mid-teens percentage of our revenue base, with about half from software and AutoStore-as-a-Service. Mats Vikse, CEO: Our new product launches, especially in software and AI, are designed to increase recurring revenue. The Essentials Package is standard for new sites, and we're seeing strong uptake of additional software applications from both new and existing customers.
Q: What is driving the success in North America, and how is AutoStore-as-a-Service performing? A: Mats Vikse, CEO: We've reallocated resources to North America due to strong growth opportunities. We're seeing momentum with existing clients expanding and new logo acquisitions. The competitive environment is stable, and our win rates are strong. Paul Harrison, CFO: AutoStore-as-a-Service remains a feature of our business, with a $5 million deal concluded in Q1 in Europe. It appeals to certain verticals, and we continue to have interesting conversations with potential customers.
Q: How are tariffs affecting your business in North America, and are customers seeking more flexibility and scalability? A: Mats Vikse, CEO: Tariffs are not limiting conversion, and customers have adjusted to operating with them. Flexibility and scalability are key features of our solution, allowing customers to start small and scale over time. This approach is increasingly important given market uncertainties.
Q: How does AI enhance your value proposition, and are you developing AI capabilities in-house or through partnerships? A: Mats Vikse, CEO: AI is applied across our portfolio, enhancing efficiency and providing insights. We're seeing performance improvements in high-throughput sites and better predictability with CubeAnalytics. We develop proprietary models in-house but also partner with companies like Databricks to enhance our capabilities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
