Security solutions firm Verisure hits record Q3 margin on lower interest charges
Security solutions firm Verisure hits record Q3 margin on lower interest charges
Overview
Europe-based security solutions provider's Q3 revenue rose 10.5% yr/yr, driven by customer growth
Q3 adjusted EBIT rose 13.9% yr/yr, with margin reaching a record 27.7%
Company posted positive free cash flow for fourth straight quarter, aided by lower financing costs
Outlook
Verisure expects 2026 full-year ARR growth of 9.0% to 9.5% (cc, exc. Mexico)
Company forecasts 2026 Adjusted EBIT margin around 26.5%
Free cash flow for 2026 expected at around €200 mln
Result Drivers
CUSTOMER PORTFOLIO GROWTH - Co said 9% yr/yr increase in customer portfolio was a key driver of revenue growth
ARPU INCREASE - Co said 3% yr/yr rise in average revenue per user contributed to higher revenue, with discounting described as well controlled
COST CONTROL - Co said tight cost control and lower interest charges supported margin expansion and higher adjusted net income
Company press release: ID:nWkrQG2X9
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue |
| EUR 1.03 bln |
|
Q3 Adjusted EBITDA |
| EUR 488.60 mln |
|
Q3 Adjusted EBIT |
| EUR 285.10 mln |
|
Q3 Adjusted EBIT Margin |
| 27.70% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Verisure PLC is €15.20, about 44.8% above its November 2 closing price of €10.50
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)