SmartCraft ASA reported a 7.8% year-over-year increase in revenue for Q2 2026, driven by organic growth of 6.0% and a 14% rise in net new annual recurring revenue (ARR) to SEK 10 million. The company’s ARR totaled SEK 514 million, an 8.1% increase from the prior year, with organic ARR growth of 6.8%. Customer count rose by 366 net new accounts to 13,400, while churn improved to 8.1% from 10% a year earlier.
Adjusted EBITDA grew SEK 2.2 million year-over-year to SEK 52.6 million, supported by a 96% recurring revenue mix, up from 95% in Q2 2025. Operating cash generation increased SEK 8 million to SEK 33 million, with cash and liquid reserves totaling SEK 140 million and net interest-bearing assets at SEK 180 million. Gross profit margin remained stable at 52% for the last twelve months, while return on equity stood at 10%.
The company’s SME Construction ARR reached SEK 153 million, up more than 11% year-over-year, contributing SEK 17 million to the overall ARR increase. Enterprise organic growth accelerated to 11.9%, while SME Construction grew 8.7%. Adjusted operating expenses rose 9.8% year-over-year, partly due to a SEK 7.2 million one-time restructuring charge in the Enterprise segment. Management expects annual cost savings of SEK 15 million to be fully realized by 2027.
SmartCraft’s stock last traded at $1.54, down from the previous close of $1.56 and well below its 52-week high of $1.98. InvestingPro data shows a financial health score of 2.76 out of 5, with analyst consensus at 2.25, between Hold and Buy. Price targets range from $1.57 to $2.57, implying an average upside of 39%.
CEO Jeremias Jansson noted that while organic growth of about 7% has been consistent, the company aims for higher rates. He emphasized SmartCraft’s focus on supporting smaller construction and handyman businesses. CFO Tobias Lindquist highlighted the improved quality of earnings, with recurring revenue now accounting for 96% of total revenue, up from 95% a year ago.
