Vusion (SRBEF) (H1 2026) Earnings Call Highlights: 30% Organic Growth, Record Margins, and a ...

Negative Points

• Full-year 2026 revenue guidance is impacted by approximately 50 million in foreign exchange headwinds and 100 million in tariff changes, reducing adjusted revenue to 1.60-1.68 billion.

• The reversal of Walmart down payments in H1 2026 led to a 241 million decrease in net cash, with further reversal of 119 million expected in H2, impacting cash flow.

• Adjusted EBITDA margin improvement is expected to slow in H2 2026, with full-year guidance of over 100 basis points increase, below the 240 basis points achieved in H1.

• The completion of the Walmart EdgeSense rollout in the US may create a revenue cliff in 2027, requiring new projects and solutions to compensate.

• There is potential risk of slippage in the 1 billion order intake target for H2 2026, which could delay revenue recognition into 2027.

Q & A Highlights

Q: Can you help us understand the 2027 targets, particularly given that the Walmart rollout pulled forward revenue from 2028-2029 into 2025-2026, creating a growth cliff? A: CEO Thierry Gadou explained that the original Vision 27 plan assumed a 5-7 year Walmart deployment, not the accelerated 50% growth seen last year. He remains confident in the $2.2 billion sales and $650 million VAS targets for 2027, noting the VAS target is "even beatable." He emphasized that Walmart represents only ~7% of the total global market, with overall penetration at ~20% and expected to reach 50%. Multiple growth streamsnew solutions, new geographies, new logos, and existing customer expansionwill compensate for the revenue pull-forward.

Q: You mentioned 200,000 Captana AI cameras are now deployed versus the 150,000 target. Does this give you confidence that VAS growth could exceed the ~30% currently expected for the full year? A: CEO Thierry Gadou clarified the difference is between flows and stockthe 200,000 represents the total installed fleet, while some of the 150,000 targeted for this year are still under deployment. He expressed strong excitement about computer vision as "the next big unlock in retail," noting the fifth-generation technology is being finalized with large-scale pilots underway. He stated computer vision will be a big driver of growth next year for both VAS and top-line revenue.

Q: On the margin guidanceH1 adjusted EBITDA margin was up 2.4 points year-on-year, but the full-year guidance is only more than 100 basis points improvement. Should we expect margin improvement to slow in H2? A: Deputy CEO and Deputy CFO Thierry Lemaitre explained that the VCM rate is not expected to significantly increase in H2 versus H1. On the OpEx side, the OpEx-to-sales ratio used to improve in H2 versus H1 in past years due to strong revenue growth between halves, but this year significant sequential revenue growth is not anticipated. Therefore, the OpEx-to-sales ratio should show only limited improvement, and the company does not feel the need to change its EBITDA margin guidance.

Q: Regarding the EUR1 billion order intake target for H2, is there risk of slippage into 2027? And what portion of that order intake comes from new solutions like computer vision? A: CEO Thierry Gadou expressed confidence in the EUR1 billion H2 order intake target, noting a significant pipeline in both Europe and the Americas. He acknowledged potential timing slippage of a few weeks or a month on individual contracts but said this would not affect the ability to deliver the 2027 targets. He revealed that new solutions represent above 30% of the short-term pipeline, which is significant given VAS currently represents only 15-20% of revenuesignaling strong future diversification.

Q: How do you prepare for the phase after the Walmart EdgeSense rollout completes in 2026? Should we expect any cost adjustments if bookings don't materialize as expected? A: CEO Thierry Gadou stated the company is not in a "preventive restructuring" mindset given the strong market potential. He emphasized that store modernization is becoming increasingly central to retailer strategies worldwide, and Vusion is embodying this transformation. He noted the company has demonstrated cost adjustment capabilities during past downturns like COVID, but with a Vision 30 plan coming in November and strong structural growth potential, focusing on restructuring would be misguided. He highlighted revenue per employee has nearly tripled over 15 years, demonstrating careful financial management.

Q: Can you share more color on the shopper-facing solutionswhen a shopper looks for products in-store, are you being paid by the retailer for that? A: CEO Thierry Gadou confirmed the shopper product-finding and shop-to-light features are already at over 1 million uses per week and growing fast. He explained these cloud platform activities create differentiation and drive cloud revenues. The usage of these features drives revenue, differentiation, and premiumization of the company, while also diversifying revenue streams away from hardware ESL dependency. He noted shoppers are excited by these features, as visible on social media, and retailers increasingly want platforms that can deliver such capabilities.

Q: Regarding the new full-color ePaper solutions you've been working on with key clients, when do you see traction coming for this product line? A: CEO Thierry Gadou said full-color ePaper is getting better and closer to retail-grade robustness and scalability. He emphasized ePaper will be central to the digitization of retail media because it reduces energy costs and allows many more touch points throughout the store without needing power everywhere. He expects this solution to scale in 2027, noting a few contracts have already been signed and are waiting for rollout in Europe, with US expansion also coming.

Q: How much time elapsed between the first Walmart pilot and the closing of the big contract in 2023? Has the decision-making process accelerated among US prospects since then? A: CEO Thierry Gadou estimated approximately four years from initial discussions around 2019 to the 2023 contract. He noted these are long-lasting relationshipssome customers have been driving significant revenues for over 20 years. Regarding acceleration, he confirmed the decision-making process has sped up, with conversations now occurring at CXO and CEO levels. Retailers are watching Walmart's impressive results and feeling pressure on operational KPIs, recognizing store digitization as a strategic transformation imperative, not just an economic one.

Q: Can you disclose anything about the Captana computer vision pilot with Walmart? A: CEO Thierry Gadou declined to disclose details, stating it would be inappropriate to comment on a decision that resides entirely with the customer. However, he noted the pilot is at a significant scale and performing very well. He described it as a sophisticated fifth-generation product representing a leapfrog in capability. He also mentioned there is significant demand for this product, with several large retailers about to start pilots. He reiterated computer vision will be a fantastic growth stream, as retailers need "an eye on the shelf everywhere" enabled by AI.

Q: Regarding R&D investment for the new computer vision solution, should we expect a step-up in CapEx during H2, or was H1 broadly the run rate for the full year? A: Deputy CEO and Deputy CFO Thierry Lemaitre stated that R&D CapEx should increase in H2 versus H1, but only to a limited extent. Investors should not expect

For the complete transcript of the earnings call, please refer to the full earnings call transcript .