Techstep ASA reported a 12% year-over-year increase in revenue to NOK 228.8 million for the second quarter of 2026, yet losses deepened as adjusted EBITA swung to a negative NOK 12.9 million from a positive NOK 0.4 million a year earlier. The Oslo-based company, which provides managed mobility services and hybrid workforce solutions, outlined its turnaround strategy during a presentation on August 20, 2026, while its share price traded at $1.62, down 1.82% on the day and near its 52-week low of $1.60.
Device sales surged 22% to NOK 176.4 million, but net gross profit fell 25% to NOK 52 million, driving the net gross profit margin down 11 percentage points to 22.7%. Own software revenue declined 35% to NOK 15.7 million, while adjusted annual recurring revenue edged up 1% to NOK 244 million after adjusting for a terminated contract. Advisory and services revenue rose 6% to NOK 36.7 million, though net gross profit in this segment dropped 21%.
Cash position weakened to NOK 4.6 million from NOK 21.6 million a year earlier, with operating cash flow turning negative at NOK 6.0 million compared to a positive NOK 53.9 million in Q2 2025. Net cash flow from operations, including device-as-a-service investments, was negative NOK 16.1 million, reversing from a positive NOK 39.5 million a year prior. Total assets declined to NOK 910 million from NOK 1.14 billion, while equity fell to NOK 412 million from NOK 548.3 million.
Techstep has implemented a restructuring program aimed at reducing its annualized cost base to NOK 218 million by the end of 2026, a 15% decrease from the May 2026 baseline of NOK 238 million and a 30% reduction from the 2025 level of NOK 312 million. The company plans to cut its workforce to approximately 160 full-time employees by the fourth quarter of 2026, down from 260 at year-end 2025 and 190 in the first quarter of 2026. New bank financing of NOK 75 million was secured in May, with net interest-bearing debt at NOK 82.6 million.
The company operates in four countries, manages 3 million devices for hybrid and frontline workers, and serves over 2,000 enterprise and public sector customers. A potential contract with Generalitat de Catalunya through Vodafone could involve up to 80,000 devices. Techstep’s CFO, Håvard Haukdal, noted that while revenue grew, "the quality of the earnings remains below the level that we need to deliver." CEO Morten Meier emphasized the company’s focus on maintaining core competencies while improving efficiency through standardization and automation.
