Kudelski Group, the Swiss digital security specialist, reported a narrowed first-half loss in 2026, citing improved profitability from restructuring measures implemented in recent years.
Total revenue fell 1.5% year-over-year to $171.8 million, driven by mixed performance across its three segments. Core Digital Security, the largest division, grew 0.7% to $104.7 million—the first year-over-year increase in five years. The Internet of Things (IoT) segment, the smallest, rose 5.1% to $20.3 million on expanded partnerships. Cybersecurity sales declined 8.9% to $45.1 million.
The company reduced its earnings before interest, taxes, depreciation and amortization (EBITDA) loss to $11.5 million from $19.1 million in the prior-year period. Core Digital Security was the sole segment to post a positive EBITDA, while the other two divisions narrowed their losses. Net loss for the half-year totaled $20.3 million, down from $32.9 million a year earlier.
Management attributed the improved results to measures taken over the past years, signaling continued progress toward profitability. For the second half of 2026, Kudelski expects higher revenue than in H1, supported by seasonal trends in Core Digital Security and projected double-digit growth in IoT. Cybersecurity revenue is anticipated to decline further, while Core Digital Security targets a positive low-double-digit EBITDA similar to last year’s level. The IoT segment is expected to reduce its loss, and the company aims for break-even free cash flow in H2.
Overall, Kudelski forecasts a material improvement in profitability for the second half of the year.
