Formpipe - Positive margin trend, improved ACV

• Strong margins (19% adj. EBIT margin), improved ACV
• We raise '26e/'27e/'28e EBIT by 20%/6%/5% on lower costs
• Positive margin trajectory to continue

Sequential progress

For the third consecutive quarter, Formpipe (soon to be renamed Lasernet) achieved better-than-expected cost control, driven by several cost-saving measures implemented over the past 12 months. The adj. EBIT margin was 19% (ABGSCe 12%), a significant improvement from 1% in Q1'25 (proforma). Meanwhile, ACV bounced back to SEK 6m (vs. SEK 8m in Q1'25) after a weak Q4 (SEK 2m), chiefly driven by continued momentum in Microsoft Dynamics (63% of ARR), while improved activity with Temenos remains to be seen. The fact that the company has managed to maintain solid sales progress while reducing costs demonstrates that previous cost levels were too high and that its partner-led sales model is effective.

Positive earnings revisions

The cost base is now in much better shape, and we currently see no need for increased investment in the near term. This means that operational leverage should remain high over the coming quarters, leading us to expect an adj. EBIT margin of 14% in 2026. While we make minor adjustments to our sales estimates, we increase '26e/'27e/'28e adj. EBIT by 20%/6%/5% based on lower cost assumptions.

A profitable software company with stable cash flow

The value proposition has changed considerably since the sale of the public business. Today, Formpipe is a global software company with >75% recurring revenue that is growing ~8% organically per year and with prospects for further margin improvements. Also, the cash profile is much more stable throughout the year (previously a significant share of invoicing occurred in Q4). The approved extraordinary dividends following the public sale corresponds to SEK 14/share. Based on the current market cap, the stock is trading at 30x/24x '26e/'27e EV/EBIT.