Swedish legal data provider Karnov Group AB (KARNO) reported a 12.9% rise in its share price to SEK 81.00 on Tuesday after announcing the launch of an AI-driven workflow solution across its markets in late June 2026. The stock closed at SEK 72.30 on Monday, with the gain reflecting investor optimism over the company’s latest AI integration and improved profitability metrics.
For the second quarter of 2026, Karnov posted total net sales of SEK 619 million, representing a 2.4% organic growth rate. Adjusted EBITA rose to SEK 153 million, lifting the adjusted EBITA margin to 25% from 23% in the prior-year period. The company also repurchased shares worth SEK 159 million during the quarter, while its net debt to adjusted EBITDA leverage stood at 2.0 times at quarter-end.
Regional performance showed divergence, with Region North (Scandinavia) generating SEK 310 million in net sales and an adjusted EBITA margin of 50%, up from SEK 155 million a year earlier. Online legal sales in the region grew 11%, excluding the Schultz integration, while overall organic growth reached 5%. Region South (France and Spain) reported SEK 309 million in net sales, with an adjusted EBITA margin of 11%, though Spain’s margin reached 18%, exceeding its medium-term target of 16%.
The company’s AI strategy centers on a three-layer product structure: a core legal database, an AI interaction layer launched in September 2024, and the newly deployed workflow solution. Karnov estimates the AI layer delivers at least a 30% uplift in value, while the workflow solution, rolled out at the end of June, is projected to generate a 50% uplift over the AI layer and double the annual subscription value compared with the base legal database price.
Karnov’s user base has expanded from 60,000 to over 400,000 over the past seven years, supported by an increase in legal experts authoring content from 1,500 to more than 7,000. More than 75% of net sales now derive from market-leading positions. The company also noted that nearly 50% of Swedish Supreme Court decisions in 2025 referenced Karnov’s content.
Cost-saving initiatives remain on track for completion by the end of 2026, with capital expenditures expected to hold steady at 6% to 8% of net sales. Adjusted free cash flow was negative SEK 14 million for the quarter, while items affecting comparability totaled SEK 31 million, primarily due to restructuring and integration costs.
Goldman Sachs has been appointed by the Board to evaluate strategic options, including a potential sale, though no decisions have been finalized.
