This article first appeared on GuruFocus .
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Revenue Growth:Increased 54.6% to a record high of 28.9 million compared to 18.7 million last year.
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Gross Margin:Decreased to 46.1% from 48.6% last year.
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EBITDA:Record EBITDA of 4.5 million, up from 2.6 million last year.
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EBITDA Margin:Improved to 15.5% from 13.7% last year.
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EBIT Margin:Improved to 12.5% from 9.8% last year.
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Operating Cash Flow:Positive 0.9 million compared to negative 0.5 million last year.
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Employee Benefit Expenses:Increased 29% to 6.7 million from 5.2 million.
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Operating Expenses:Total operating expenses in relation to revenue improved to 31% from 35% last year.
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Equity Ratio:Decreased to 42% from 53% a year ago.
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Cash Position:Ended at 2.1 million compared to 3.1 million last year.
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Inventory:Increased to 21.3 million from 16.8 million last year.
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Trade Receivables:Increased to a record high of 26.4 million from 19.8 million last year.
Release Date: July 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Smartoptics Group ASA ( SMOPF ) reported a significant revenue increase of 54.6% year-over-year, reaching a record high.
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The company experienced strong growth in EMEA with a 112% increase and in the Americas with a 36% increase, driven primarily by Business Area Solutions.
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Smartoptics Group ASA ( SMOPF ) achieved a record EBITDA of $4.5 million, up from $2.6 million the previous year.
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The company has successfully moved all production facilities into one location, demonstrating high operational capability.
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Smartoptics Group ASA ( SMOPF ) is expanding its addressable market by moving into the long-haul market, which is expected to drive future growth.
Negative Points
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The gross margin decreased to 46.1% from 48.6% last year, attributed to a specific customer project.
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The equity ratio decreased to 42% from 53% a year ago, mainly due to the recognition of the new Stockholm office lease.
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Cash reserves decreased to $2.1 million from $3.1 million last year, despite available credit facilities.
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The company faced a temporary shutdown in deliveries for a few weeks, impacting revenue potential for the quarter.
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Smartoptics Group ASA ( SMOPF ) is entering an investment phase, which may impact short-term profitability as they focus on revenue growth.
Q & A Highlights
Q: Can you clarify the impact of the initial weeks of Q2 on revenue, and does this imply that future quarters could see revenues in the $30 million range? A: Our growth will not be limited by our own capabilities in the second half of the year. Production is fully operational, and we delivered about half of our revenue in the last month of the quarter. The remaining risk is component shortages, but our suppliers are currently delivering better than expected. While we don't provide near-term quarterly guidance, the revenue could have been higher if not for the initial weeks' transition.
Q: What gives you confidence in achieving long-term revenue targets, especially for 2027 and beyond? A: The pipeline of projects is significantly larger than in the past, with close customer dialogues for projects materializing in 2027 and beyond. Our large account strategy is yielding bigger opportunities, and our nimble market position allows us to deliver quickly, unlike some larger competitors who have filled their order books.
Q: With the recent increase in FTEs to 160, is this the new target for the year, or will hiring continue at this pace? A: The 160 FTEs figure is slightly inflated due to the production move, with about 10 people to be removed in the second half. The hiring pace is not as dramatic as it seems.
Q: How do you see the new addressable market impacting your revenue, and what is the current revenue contribution from these segments? A: While we don't have precise visibility in our ERP systems, the revenue from new segments is gradually growing. We are still reporting all numbers into the metro regional segment, but it's fair to assume meaningful revenues in these new segments already.
Q: Can you provide more details on the new breakthrough customer and the timeline for reaching $300 to $400 million in revenue? A: The new customer is a large US tier two with long-term potential. Regarding revenue targets, using our aspiration of 25% growth, we could reach $300 to $400 million by 2031, potentially earlier with faster growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
