Revenio Group Corp. (HEL: REG1V) reported a sharp fall in second-quarter profit as costs tied to its Visionix acquisition weighed on results, even as revenue more than doubled on a comparable-currency basis.
Net sales rose 48.1% to EUR 39.3 million from EUR 26.5 million a year earlier, with currency-adjusted growth reaching 50.7%. Operating profit, however, fell 60.9% to EUR 2.4 million from EUR 6.1 million, dragged down by approximately EUR 3.4 million in non-recurring acquisition expenses. Adjusted EBIT came in at EUR 5.8 million, or 14.6% of sales, versus EUR 6.6 million, or 24.7% of sales, in the prior-year quarter.
Gross margin contracted sharply to 64.7% from 72.6%, a drop of 7.9 percentage points. Management attributed roughly two percentage points of the decline to Visionix's lower-margin business profile, with the remainder stemming from legacy Revenio margin compression driven by increased tariffs and higher electronic component unit costs.
Cash flow from operations turned negative at minus EUR 2.4 million, compared with a positive EUR 6.7 million a year earlier, as integration payments and working capital increases weighed on liquidity.
For the first half of 2026, net sales totalled EUR 66.6 million, up 26.6% from EUR 52.6 million, with currency-adjusted growth at 28.8%. Operating profit was EUR 4.8 million, down 62.4%, affected by approximately EUR 6.9 million in acquisition-related non-recurring costs. Adjusted operating profit fell 11.6% to EUR 11.7 million with margins compressing to 17.5% from 25.1%. Cash flow from operations for the period was a negative EUR 5.8 million.
The Visionix acquisition, which closed in May 2026 with results consolidated from early June, left Revenio's balance sheet significantly more leveraged. Net debt stood at EUR 237.9 million at end-June, equity ratio dropped to 31.2% from 80.2% a year earlier, and net gearing surged to roughly 160% from 6%. Net debt to adjusted EBITDA rose to 5.3x. The company held EUR 17.8 million in cash and had EUR 20 million in revolving credit facility utilisation for general corporate purposes.
Revenio announced plans for an EUR 80 million post-completion rights issue in mid-to-late H2 2026, intended to bring the net debt-to-adjusted EBITDA ratio down to approximately 3.0x. William Demant Invest A/S, the largest shareholder with 22.83% ownership, and select sellers representing roughly 30.92% of post-completion shares have irrevocably committed to subscribe pro rata.
On a strategic note, management said the addressable market had expanded 2.5 times to over EUR 2.5 billion, now encompassing optometry, optical retail and ophthalmology. Pro forma 2025 sales would have been EUR 252.5 million with adjusted EBITDA of EUR 45.0 million. The company is targeting more than EUR 20 million in EBITDA uplift through synergies by end of 2029 alongside a 25% EBITDA margin target during 2028–2029, having already secured EUR 5 million in annual EBITDA run-rate savings, representing approximately 25% progress toward the target.
Full-year 2026 guidance estimates currency-adjusted net sales between EUR 190 million and EUR 205 million, with EBITA excluding non-recurring items expected to remain at a "satisfactory level."
In product developments, U.S.-based iHealthScreen obtained FDA clearance for its iPredict-DRTM artificial intelligence software, which automatically identifies diabetic retinopathy screening requirements using images captured by Revenio's iCare DRSplus fundus imaging system. In August, Revenio also established a strategic partnership and minority investment with EyeCheq to integrate the DRSplus device into EyeCheq stations.
