<a id="bm-comp-e8ba986f-85d2-4e54-9bb6-44b5e666d7d9" name="bm-comp-e8ba986f-85d2-4e54-9bb6-44b5e666d7d9" class="BMCustomAnchor"></a><table><tr><td bm-component-id="e8ba986f-85d2-4e54-9bb6-44b5e666d7d9" style="vertical-align: top; width:100.000000%;"><ul><li>Volumes stronger than expected</li><li>Gross margin continues to be steady at ~44%</li><li>DOCS now penetrated >30% of municipalities</li></ul></td></tr></table><a id="bm-comp-0d3e93da-e974-4835-bb4a-cccafc2fca9a" name="bm-comp-0d3e93da-e974-4835-bb4a-cccafc2fca9a" class="BMCustomAnchor"></a><table><tr><td bm-component-id="0d3e93da-e974-4835-bb4a-cccafc2fca9a" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q1'26 details</h3><p>Generic reported Q1'26 sales of SEK 49m, 9% y-o-y growth (+6% vs ABGSCe 46m), driven by higher volumes in the SMS business, which we view positively after a period of customer cost caution. Gross margin came in broadly in line with last year, at 44%, supported by a favourable mix. Adj. EBITA came in at SEK 10m (+4% vs ABGSCe 10m), corresponding to a margin of 21%, fairly in line with our expectations.</p><h3 class="bm-h3">Thoughts</h3><p>DOCS continues to be a success story, and Generic keeps taking market share among Swedish municipalities, having now penetrated over 30% of the market. Beyond this, it is worth noting that the company is likely to continue growing within regions and private companies as well, which we see as promising, broadening its vertical exposure over time and supporting higher gross margins. Generic has also disclosed more information in the report and we appreciate the increased transparency.</p><h3 class="bm-h3">Valuation</h3><p>The company is valued at 10-9x EV/EBIT on our unrevised numbers. Q1 results were affected by costs related to management changes (former CEO and CFO transition), which we expect to largely fade from Q2 onwards. Generic continues to operate with 22 employees, making it one of the highest sales-per-employee companies in the Swedish tech sector.</p><table id="bm-img-f6ce31ad-7eed-4c68-a3b7-79dda25348c1" class="bm-img-table xslt-img-empty xslt-img-include"><tr><td class="xslt-img-caption">Deviation table</td></tr><tr><td><img bm-img-encrypt="f6ce31ad-7eed-4c68-a3b7-79dda25348c1" bm-img-original-height="269" bm-img-original-width="598" bm-img-svg="image:image_upload/96265_0d46b64c-4288-4841-ac66-6d41f1aad4ca.svg" bm-img-width-hint="82.26%" id="bm-id-f6ce31ad-7eed-4c68-a3b7-79dda25348c1" src="https://abgsc.bluematrix.com/images/image_upload/96265_0d46b64c-4288-4841-ac66-6d41f1aad4ca_598.png" svg="/nas/web/clients/abgsc/images/image_upload/96265_0d46b64c-4288-4841-ac66-6d41f1aad4ca.svg" width="598" alt="" title="" /></td></tr><tr><td class="xslt-img-source">Source: ABG Sundal Collier, Company data</td></tr></table></td></tr></table>