Generic - Scaling efficiently for margin improvement

• Continued margin expansion driven by DOCS
• EBIT estimates raised by 2-3% for '26e-'27e on scaling potential
• Trading at 13x EV/EBIT, ~20% below its historical median

Growing SaaS contribution

Generic reported a slightly better Q3, with sales of SEK 45m, up 5% y-o-y. Gross margins remained robust at 45%, representing a 15% y-o-y increase. DOCS continues to grow, and has now penetrated ~24% of Swedish municipalities. We see this as positive, as there remains room for further penetration and the potential to reach adjacent customer segments. We believe this will continue to support gross margin improvements, as SaaS products will potentially increase as a share of total sales. SMS continues to be sensitive in volumes, but we expect a seasonal uplift in Q4 driven by Black Friday and Christmas-related activity. Overall, Generic is reallocating personnel and increasing internal responsibility, which we see as positive for sharpening its focus on three key areas: 1) sales executions, 2) its technical platform, and 3) security.

We raise estimates on an improved outlook

We raise sales by 1% for '26e-'27e, as we continue to see a slight improvement in sales. We also raise EBIT by 2-3% for the same period, as we expect the company to further benefit from operating leverage and the continued scaling of its platform.

Positive momentum in RCS

Generic is currently trading at 13x EV/EBIT, which is ~20% below its historical median. RCS is gaining traction in the US with rising volumes. Apple is expected to launch in the Nordics next year, which could serve as an important catalyst. Generic is already seeing rising customer interest, which we believe indicates strong potential going forward. We think this development will continue to strengthen the company's profitability over time.