This article first appeared on GuruFocus .
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Revenue:EUR137 million for Q1 2026, a 3.7% like-for-like growth.
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Organic Growth:6.4% organic growth, adjusted for currency translation and M&A.
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Net Dollar Retention Rate:90%, indicating lower spending from existing customers.
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New Customer Growth:9% increase in new customers.
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Gross Profit Margin:Improved by 2.7%, reaching 41%.
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Adjusted EBITDA:EUR28 million, down EUR1.9 million from the previous year.
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Cash Flow from Operations:EUR45.2 million, significantly up from last year.
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Interest Coverage Ratio:Improved to 4.5x.
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Sales Team Expansion:Increased by 117%.
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iOS Revenue Growth:24% year-on-year increase.
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CapEx:Estimated between EUR74 million to EUR79 million for 2026.
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Cash Position:EUR147.2 million at the end of Q1 2026.
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Leverage Ratio:3.1x, slightly up from 3x at the end of 2025.
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2026 Revenue Guidance:EUR680 million to EUR730 million.
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2026 Adjusted EBITDA Guidance:EUR145 million to EUR175 million.
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Release Date: May 27, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Verve Group SE ( FRA:VRV ) reported a solid organic growth of 6.4% in Q1 2026, indicating a positive trajectory in their business operations.
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The company achieved a significant cash flow from operations, reaching EUR 45.2 million, marking a strong recovery from the previous quarter.
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Gross profit margin improved by 2.7 percentage points year-on-year, reflecting successful cost optimizations and platform unification.
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Verve Group SE expanded its sales team by 117%, indicating a strategic focus on growth and market expansion.
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The company confirmed its full-year 2026 guidance, showing confidence in its strategic direction and market position.
Negative Points
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Net dollar retention rate decreased to 90%, suggesting that existing customers are spending less, possibly due to impacts from recent acquisitions.
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Adjusted EBITDA was down by EUR 2 million compared to the previous year, affected by increased costs from strategic investments.
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Foreign exchange headwinds negatively impacted revenues by 9.6% due to a weaker USD, posing a challenge for the company.
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The company is experiencing pricing pressure in certain market segments, such as connected TV and web, which could affect future profitability.
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The planned strategic investments have led to a temporary drag on profits and margins, with expectations of improvement only in the latter half of the year.
Q & A Highlights
Q: Can you provide insights on the timing and strategy for expanding the new retail media offering to new markets, particularly in the US? A: We built a strong position in Germany within 10 months and are now looking to scale. The US market, where we have a strong mobile presence, is a primary target. We are conducting tests, but it's too early to include results in forecasts. We continue to focus on scaling in Germany while exploring other European markets.
Q: With the guidance reiteration, are the assumptions for market growth and share gains still the same as last quarter? A: Yes, we are maintaining our guidance. While there may be minor changes in details, the overall assumptions remain unchanged. We continue to expect high single-digit market growth and at least 5 percentage points of share gains.
Q: Can you confirm the amount drawn on your receivable securitization facility at the end of 2025 and Q1 2026? A: By the end of Q1 2026, we had drawn nearly the maximum from our EUR100 million facility, with an increase of EUR17.8 million from the end of Q4 2025.
Q: Are there plans to use the cash on hand to buy back bonds at a discount, given the current leverage ratio? A: We have no immediate plans to buy back bonds, although it remains a possibility. The additional bond funding was intended to support investments and provide financial stability in case of market challenges.
Q: What is the expected structural EBITDA margin for the DSP segment once Captify/Acado are fully integrated and sales force investments annualize? A: It's challenging to separate demand and supply EBITDA due to integrated operations. However, we anticipate overall EBITDA margin improvements through cost optimizations and efficiencies, particularly with AI, despite ongoing investments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
