Overview
Nordic software provider's Q4 comparable revenue rose 1.1% yr/yr
Profitability fell short of expectations despite revenue growth
Company initiated change negotiations to improve profitability
Outlook
Solteq expects comparable revenue to remain stable in 2026
Company projects clear improvement in comparable operating result for 2026
Solteq anticipates EUR 2.1 mln annual savings from workforce adjustments
Result Drivers
UTILITIES GROWTH - Revenue growth in the Utilities segment contributed positively to Q4 results, with an increase of EUR 0.5 mln from the previous year
RETAIL & COMMERCE CHALLENGES - Performance in the Retail & Commerce segment was below expectations due to cautious customer demand and project delays
COST SAVINGS INITIATIVE - Co initiated change negotiations to streamline operations, aiming for annual savings of EUR 2.1 mln
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
EUR 12.10 mln
Q4 EPS
-EUR 0.01
Q4 Adjusted EBITDA
EUR 800,000
Q4 Adjusted EBIT
EUR 500,000
Q4 EBIT
EUR 300,000
Q4 EBITDA
EUR 600,000
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Solteq Oyj is €0.44, about 7.8% above its February 11 closing price of €0.41
The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 186 three months ago
Press Release: ID:nWkr4trSyV
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)