Xplora Technologies slid 15.9% in premarket trading after reporting a mixed Q2 2026 update that showed device revenue declining while service subscriptions surged and gross margins expanded.
The Oslo-based company posted H1 2026 revenue of NOK 798 million, roughly flat year-over-year, as a 13% drop in device sales offset a 10% rise in service revenue. Q2 group revenue fell to NOK 422 million from NOK 462 million a year earlier, reflecting weaker device performance despite a 27% increase in subscriptions to 502,000. Gross profit rose to NOK 433 million in the first half, with gross margin improving to 54% in Q2 from 50% in the prior-year period.
EBITDA metrics showed mixed trends. Reported H1 EBITDA increased 11% year-over-year to NOK 76 million, while underlying EBITDA—adjusted for acquisition costs—reached NOK 89 million. EBITDA after capital expenditure rose 50% to NOK 56 million in H1, with Q2 at NOK 38 million compared to NOK 36 million a year earlier. The company maintained a cash balance of NOK 537 million at the end of June.
Management highlighted cost reductions from recent acquisitions, projecting NOK 50 million in direct operational savings from the Doro and emporia deals, with full benefits expected in 2027. Additional savings of roughly EUR 40 million in capital expenditure are anticipated from consolidating 5G development under emporia. Integration costs totaled NOK 12 million in Q2, including NOK 9 million for redundancies tied to 25 job cuts.
Xplora reiterated long-term targets, including reaching 1 million subscriptions by 2029—including 200,000 senior SIM subscriptions—and maintaining a device gross margin of about 40%. New senior-focused services, such as scam protection and health tracking, are slated for commercial launch between late September and early October 2026, with phased retail rollouts in Norway, Switzerland, and Austria.
The stock, which has fallen 37% over the past six months, was trading near its 52-week low of $29 after dropping 15.9% to $30.15 in premarket trading. The decline followed a 16.6% intraday drop as investors weighed weaker device sales against progress in subscriptions and margin improvement.
