Banqup Group reported a first-half 2026 loss as restructuring and transformation costs offset revenue growth, sending shares down 6.28% on Thursday.
The company posted total revenue of €26.5 million for the six months ended June 30, with recurring digital revenue accounting for €21.1 million, or 79.6% of the total. Subscription revenue climbed 42.3% year-over-year to €10.4 million, while annual recurring revenue rose 12.1% to €48.2 million. Adjusted EBITDA remained negative at €6.1 million, impacted by €1.4 million in non-recurring costs tied to restructuring and transformation efforts.
Operating cash flow was negative at €6.4 million, though partially offset by €0.4 million in positive working capital adjustments. Cash from investing activities totaled €3.3 million, driven by divestments and escrow releases, including €11.4 million from the sale of its Baltic business in March 2026 and funds from a released escrow account linked to 21grams. Financing activities generated a net outflow of €0.7 million after debt repayments and new funding, including €10.8 million in loan and leasing repayments offset by €10.7 million collected via an €8 million shareholder loan and €2 million from BNP Paribas Bank.
Available cash stood at €5.0 million at the end of June, down from €8.6 million at year-end 2025. Net financial debt increased to €46.1 million, comprising a €32.7 million senior facility from Francisco Partners, €3.8 million in bank borrowings, and an €8 million shareholder loan with accrued interest of €8.3 million. Capital expenditures for the period reached €8.1 million.
Operating expenses, excluding non-recurring items, rose 4.8% year-over-year. The workforce totaled 632 full-time equivalents at the end of June, including 527 indirect staff across R&D, G&A, and sales and marketing.
Banqup’s shares fell 6.28%, or $0.13, to $1.94, extending a six-month decline of 48% and a one-year drop of 51%. The stock remains roughly 54.2% below its 52-week high of $4.24 and 13.8% above its low of $1.44. Analyst price targets range from $3.50 to $4.90, implying potential upside of 55% to 117%.
Management emphasized disciplined financial management amid structural shifts in its core markets. Koen De Brabander, CEO and CFO, noted that the company’s three business units—documents, payments, and consulting—require distinct technical expertise and operational approaches. "We should be disciplined and even more disciplined in our financial management, in our cost structure, cost efficiency, and in our capital management," he said.
The company is reorganizing around its three core divisions and a B2G operation in the Balkans. Its payments unit secured QTSP certification in June, described as a first in Europe. Jan Druppel, lead of the documents division, highlighted the company’s focus on automating workflows via an API-first platform, while Anouk Arendt, payments division lead, underscored ongoing investments in trust and identity infrastructure.
