This article first appeared on GuruFocus .
-
Revenue:NOK127 million in the second quarter, representing organic growth of 9% and reported growth of 5%, with headwinds from foreign exchange.
-
EBITDA Margin:25%, up from 19% in the second quarter of last year.
-
EBITDA:NOK32 million in the second quarter, up from NOK23 million in the same period last year.
-
Cash EBITDA:18% versus 9% last year, with CapEx down to around 7%.
-
Recurring Revenue:97% of reported numbers, with software share of recurring revenue at 76%.
-
Segment Revenue Split:Emergency comprises 44% of total income, and Specialised Healthcare comprises 56%.
-
2026 Guidance:Revenue guidance maintained at between NOK500 million and NOK525 million, but likely at the lower end due to FX headwinds.
-
EBITDA Margin Guidance:28% to 32%.
-
CapEx Guidance:Expected to decline from 10% of total sales to 5% of total sales.
-
Saab SAFE Acquisition:Estimated annual revenue base expected to be above SEK100 million, with additional contracts entered into worth SEK60 million.
-
Warning! GuruFocus has detected 2 Warning Sign with STU:6Q1.
-
Is STU:6Q1 fairly valued? Test your thesis with our free DCF calculator.
Release Date: August 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Reported strong Q2 2026 results with revenue of NOK127 million, a 9% organic growth, and an EBITDA margin increase to 25% from 19% year-over-year.
-
High earnings quality with 97% recurring revenue and 76% software share of recurring revenue, ensuring predictable cash flows.
-
The transformative acquisition of Saab Public Safety Solutions is expected to close in Q4 2026, expanding Omda AS ( STU:6Q1 )'s presence in the UK and strengthening its emergency value chain platform.
-
Recent additional contracts worth SEK60 million with Saab SAFE customers are expected to lift the annual revenue base above SEK100 million, exceeding initial expectations.
-
AI adoption is driving efficiency, reducing capitalized development costs (CapEx down to 7% in Q2), and supporting the company's guidance to lower CapEx from 10% to 5% of sales over time.
-
Clear long-term growth strategy with organic growth of 5-10% and inorganic growth of 10-20% annually, supported by a strong pipeline of M&A opportunities.
Negative Points
-
Foreign exchange headwinds negatively impacted reported revenue growth, with organic growth of 9% versus reported growth of 5%, due to a stronger Norwegian krone.
-
The company's guidance for 2026 revenue of NOK500-525 million is likely to be at the lower end due to FX headwinds.
-
The LIMS and Blood Management segment is still in an investment phase, with CapEx near 20% of segment revenue, leading to a thin EBITDA minus CapEx margin.
-
Professional services revenue was weak in Q1 2026, and while it recovered in Q2, the company had to divert senior staff to AI initiatives, impacting short-term service delivery.
-
The company's net debt to EBITDA ratio is targeted around 3x, which may increase temporarily due to the Saab acquisition, potentially limiting financial flexibility.
-
The success ratio on public tenders is not a primary focus, and the company acknowledges it lost a recent tender to a competitor, indicating potential competitive pressures in selective opportunities.
Q & A Highlights
Q: When do you expect capitalized development to be down at 5%? A: Einar Bonnevie (CFO): We have guided a gradual reduction of 1 percentage point per year from 10% last year. This year, we guide on 9%, next year 8%, and so on. In the second quarter, we were actually a little below that trajectory, which is a sure sign of things to come.
Q: Can you please comment on Omda's success ratio on public tenders, given some recent losses and wins? A: Sverre Flatby (CEO): Our primary approach to growth is not winning tenders, but acquiring systems that are part of long-term infrastructure and growing organically through additional sales to current customers. We participate in tenders only when highly relevant, as our systems are typically embedded for decades, making tenders infrequent.
Q: LIMS has run with a very thin EBITDA minus CapEx margin for a long time with CapEx near 20% of segment revenue. Why is that, and what is the normal margin? A: Sverre Flatby (CEO): The business is still in a planned investment phase, particularly due to the multi-year national platform project in Denmark. The ordinary business should perform at least 30% EBITDA and 20% cash EBITDA. Given its history and Nordic leadership, this business has the potential to grow much further in the years to come.
Q: How do you expect the cash position to develop by the end of the year, and do you expect to tap into external financing? A: Einar Bonnevie (CFO): We maintain a profile of being cash-rich at year-end and thinner during Q3 and early Q4. With cash EBITDA improving from 0% to 18% over two years, we do not need external financing for operational purposes. However, larger M&A activities may require external financing, though smaller bolt-ons should be self-financed in the future.
Q: Professional services have grown fast in '25 and '26. How recurring and sustainable is this into 2027, and why can it outgrow recurring revenue? A: Sverre Flatby (CEO): We don't sell professional services through tenders; they are a dependency of our mission-critical platforms. Roughly 90% of this revenue is repeatable from existing customers. The growth should continue in line with our ordinary 5% to 10% growth target. The lumpiness comes from internal projects, like focusing experts on AI development.
Q: Q1 professional services were weak, yet your full-year guidance implies they have to grow a lot through the rest of 2026. How can you bridge that gap? A: Sverre Flatby (CEO): The weak Q1 was a deliberate choice to focus central senior people on setting up our AI platform, as new tools changed our development capabilities. We still have some of that focus, but we expect professional services to be strong in the second half, and we stick to our guidance of NOK500 million to NOK525 million.
Q: Once the Danish LIMS project is complete, does it lift recurring revenue, and shouldn't project-based revenue decline as those projects finish? A: Sverre Flatby (CEO): Yes, the percentage of recurring revenue will increase as customers move to our new platform. However, this is a long-term business with a 50-year history, so we don't worry about quarterly fluctuations. The plan is crystal clear, and the platform will remain critical for decades.
Q: Can you explain how the new Saab acquisition can be used for cross-selling in existing operations and clients? A: Sverre Flatby (CEO): Cross-selling is most relevant within the Emergency value chain. For example, our planning and analytics tools can be sold to new UK regions using the Saab SAFE platform, as they have the same needs. However, we don't aim to sell the larger, complete stacks together; we focus on integrating complementary components that improve the customer's total business.
Q: How large was the FX impact on the 9% organic growth? A: Einar Bonnevie (CFO): The organic growth in constant currency is 9%, while reported growth is 5%, leaving approximately 4% from FX headwinds. This equates to about NOK5 million less in revenue. On the cost side, the impact was approximately NOK3.5 million, meaning EBITDA would have been NOK1.5 million higher in constant currency, with the margin more or less unchanged.
Q: Does AI reduce the need for further FTE growth, and can revenue scale toward the 28% to 32% margin target in '27 without a corresponding increase in FTEs? A: Sverre Flatby (CEO): Yes, to the last question. AI is the main mechanism to ensure we can be more efficient. We stick to our 28% to 32% EBITDA guidance for next year without needing to significantly increase our FTE count. AI is making processes like testing and documentation much more efficient.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
