SmartCraft ASA reported a 7.8% year-over-year increase in revenue for Q2 2026, driven by an 8.1% rise in annual recurring revenue (ARR) to SEK 514 million. Organic growth contributed 6.8%, lifting the total growth rate from 5.2% in Q1 and reversing a 0.2% decline in Q2 2025.
Adjusted EBITDA rose SEK 2.2 million to SEK 52.6 million, while net new ARR totaled SEK 10 million, up 14% from a year earlier. The company’s customer base expanded by 366 net new clients to 13,400, and churn improved to 8.1% from 10% a year prior and 1.9 percentage points sequentially.
Recurring revenue now represents 96% of total revenue, compared with 95% in Q2 2025, reflecting a shift toward more stable income streams. Operating cash generation increased SEK 8 million to SEK 33 million, with cash and liquid reserves at SEK 140 million and net interest-bearing assets at SEK 180 million. Gross profit margin remained at 52% over the last twelve months, while ROE settled between 9% and 10%.
Adjusted operating expenses grew 9.8% year-over-year, partly offset by a SEK 7.2 million restructuring charge in Q2. The initiative is expected to yield SEK 15 million in annual cost savings from 2027. Tax payments fell to SEK 4.5 million from SEK 14.2 million in the prior year.
Sweden’s SME Construction segment led performance, with ARR rising more than 11% to SEK 153 million. The region’s output remains fragile despite a slight decline in bankruptcies. Norway, Finland, and the U.K. lagged due to higher interest rates and weak residential sectors, though HVAC & Plumbing showed modest top-line improvement and strong profitability with ARR growth near 4%.
CEO Jeremias Jansson noted organic growth of about 7% has persisted for several quarters but remains below target. The company is advancing its "One SmartCraft" initiative to unify operations and accelerate growth. CFO Tobias Lindquist highlighted the improved quality of earnings, with recurring revenue now comprising 96% of total revenue.
SmartCraft’s shares traded at $1.54, down from $1.56 at the prior close and below a 52-week high of $1.98. Financial Health scored 2.76 out of 5, with analyst targets ranging from $1.57 to $2.57.
