Software firm Lemonsoft Q3 net sales edge up on SaaS growth

Overview

• Finland ERP software firm's Q3 net sales rose 1.5% yr/yr, driven by SaaS growth and acquisitions

• Adjusted EBIT for Q3 was nearly flat compared to last year

• Q3 profit dropped sharply, impacted by recent corporate transactions

Outlook

• Lemonsoft expects 2026 net sales to increase by -1% to 5% versus 2025

• Company forecasts 2026 adjusted EBIT at 23-29% of net sales

• Company expects customer churn to remain high for the rest of 2026 due to earlier terminations

Result Drivers

• SAAS GROWTH - SaaS income rose 8.2% and made up a larger share of net sales

• ACQUISITION IMPACT - Jakamo Oy acquisition contributed to net sales growth

• INCOME MIX SHIFT - Sale of Finvoicer Group led to lower transaction and consulting income

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Lemonsoft Oyj is €5.20, about 7% above its November 4 closing price of €4.86

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Nov 5 - Finland's Sitowise Q3 net sales riseon Infra and Buildings growth; does not give forecast

• Nov 5 - Finland's Enersense Q3 revenue rises on power business unit growth

• Nov 4 - Upland Software's Q3 revenue falls due to customer churn

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)