Shares in Innoscripta SE fell nearly 9% on Tuesday after the German R&D tax credit specialist reported a short-term revenue delay linked to a major internal software migration, despite posting a 43% rise in first-half revenue.
The Munich-based company, which operates under the ticker 1INN, closed at €74.90, down €7.50 from Monday’s close of €82.40. The decline follows the release of its Q2 2026 update and earnings call transcript, which highlighted the impact of a first-quarter migration to its Clusterix system on proposal submissions.
Innoscripta reported H1 2026 revenue of €63 million, up from €44 million in the same period last year, while EBIT rose 49% to €36.4 million. Gross profit matched revenue at €63 million. The company reaffirmed its full-year 2026 guidance of €140 million in revenue and €80 million in EBIT, despite the migration-related delay.
Management attributed the software migration to the need to support national market operations and improve long-term efficiency. CEO Michael Hohenester stated that the delay, which affected proposal submissions for about 1.5 months, would not alter the company’s growth trajectory or impact deferred revenue recognition.
Sales and marketing spending increased to €12.4 million from €8.9 million in H1 2025, while R&D expenditure rose to €4 million from €3.1 million. General and administrative costs climbed to €11 million, consistent with historical levels of 17% to 18% of revenue. Cash collections exceeded 108% of invoiced amounts.
The company’s German customer base stands at 2,900 clients, with a churn rate below 2%. Innoscripta has captured approximately 10% of Germany’s R&D workforce and secured 31% of non-SME large enterprises receiving first BSFZ approvals in 2025. Standard payment terms remain 180 days post-BSFZ approval, with 66% due upon positive approval and the remainder within six months, supported by a factoring provider.
Innoscripta has expanded into France, the U.S., and the U.K., though management expects no meaningful revenue contribution from these markets in 2026. The company aims to generate €1 million in revenue per new market within 12 months, targeting break-even at a single-digit million euro level. Initial U.S. customers are primarily German firms with American subsidiaries.
Hohenester emphasized the company’s focus on quality over price in international expansion, noting that the German R&D tax credit market is valued at €1.2 billion, while France, the U.K., and the U.S. markets are significantly larger at €7 billion, €9 billion, and $34 billion, respectively.
