MotorK Reports Q1 2026 Results with Strong Year-on-Year Profitability Improvement Amid Strategic Transition

LONDON--(BUSINESS WIRE)--Regulatory News:

MotorK PLC (AMS: MTRK) ("MotorK", the "Group" or the "Company"), a leading SaaS provider to the automotive retail industry in the EMEA region, today announced its financial results for the first quarter of 2026 (“Q1 26”), reporting improvement in profitability.

Q1 26 Financial Highlights:

• Committed Annual Recurring Revenue (CARR¹): €33.5M, a 9% decrease compared with €36.8M in Q1 25, reflecting a focus on higher-quality, longer-duration contracts with stronger unit economics.
• Annual Recurring Revenue (ARR²): €29.5M, a 12% decrease compared to €33.4M in the same period last year.
• Revenue: €9.2M, a 11% reduction from €10.8M in Q1 25, impacted by planned legacy churn and extended customer decision cycles.
• Cash EBITDA³: negative €0.5M, improved by 55% year-on-year from negative €1.2M, and Adjusted EBITDA⁴ of €0.9M (+52% YoY vs €0.6M in Q1 25), reflecting strong cost discipline and improving revenue mix.
• Business quality improving: Continued focus on higher-value opportunities and disciplined commercial execution supporting margin expansion.
• Enterprise segment: The Group completed the strategic refocusing on its core product offering, resulting in the exit of €2.3M CARR of low margin and non-core contracts, favoring a more focused, higher-quality revenue base.

Amir Rosentuler, Executive Chairman and Interim CEO, commented: “Q1 reflects the deliberate execution of our strategy in a challenging market environment. While customer decision cycles remained extended, we made clear progress on the priorities that matter most: improving profitability, strengthening the quality of our revenue base, and advancing our AI-driven platform. During the quarter, we continued the migration of retail customers to our next-generation SparK platform and expanded the capabilities of our Customer Data Platform, positioning MotorK to address the growing demand for AI-enabled solutions across the automotive retail ecosystem. As a result, the business is more efficient, more focused, and structurally more profitable than a year ago. We remain on track to achieve Cash EBITDA positivity in FY 2026.”

Continued improvement in profitability

Where the top-line reflects the market conditions, profitability reflects MotorK’s discipline, controls and execution of its strategy. Adjusted EBITDA grew c.52% year-on-year to €0.9 million, and Cash EBITDA improved c.55%, driven by tighter cost discipline, a more focused commercial footprint, and a richer mix as SparK revenue scales.

The January 2026 drawdown of €3 million in growth financing from Atempo, together with the €2.5 million Reserved Capital Increase in April, further reinforce the Group's liquidity as it crosses into monthly Cash EBITDA positive territory in FY 2026.

First quarter performance

MotorK entered 2026 with a clear plan: protect margin in the near term, and invest in the AI-native capabilities where the market is heading. Commercial activity was concentrated on higher-quality engagements with stronger unit economics and longer contract duration. The Group also accelerated the migration of retail customers onto its unified SparK suite and launched its new Customer Data Platform - an AI-powered decision engine that unifies first-party data across advertising, lead generation, CRM, DMS and aftersales.

Reported revenue was €9.2 million and recurring revenue €6.8 million, reflecting slower new-business decisions driven by extended OEM and dealer decision cycles, alongside the planned churn associated with the ongoing migration from legacy products to the SparK platform.

MotorK re-confirms its FY guidance of Cash EBITDA profitability and single digit CARR growth.

Q1 2026 UNAUDITED REVENUES BY PRODUCT AND SERVICES LINE
In k€	Mar-26	Mar-25	y.o.y. change
SaaS platform	7,165	8,005	-10%
Digital Marketing	1,745	2,037	-14%
Other	304	306	-1%
Revenues	9,214	10,348	-11%
Q1 2026 UNAUDITED RECURRING AND NON RECURRING REVENUES
In k€	Mar-26	Mar-25	y.o.y. change
SaaS Recurring	6,755	7,872	-14%
Other recurring	9	259	-97%
Recurring revenues	6,764	8,131	-17%
% Recurring on Revenues	73%	79%	-5%
Contract start-up	410	134	206%
Digital	1,743	1,791	-3%
Other	297	292	2%
Non Recurring revenues	2,450	2,217	11%
Revenues	9,214	10,348	-11%
Q1 2026 UNAUDITED REVENUES BY GEOGRAPHY*
In k€	Mar-26	Mar-25	y.o.y. change
Italy	6,424	6,923	-7%
Spain	737	1,027	-28%
France	1,235	1,360	-9%
Germany	524	495	6%
Benelux	294	543	-46%
Revenues by geography	9,214	10,348	-10.96%

* It represents Revenues broken down by the countries in which the legal entities are established, independently of the geographical location of the customers.

NEXT PUBLICATION: FY2025 ANNUAL REPORT, 30 APRIL 2026

Forward-looking information and disclaimer

This press release may include forward-looking statements. Other than reported financial results and historical information, all statements included in this press release, including, without limitation, those regarding our financial position, business strategy and management plans and objectives for future operations, may be deemed to be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets”, “plans”, “believes”, “expects”, “aims”, “intends”, “anticipates”, “estimates”, “projects”, “will”, “may”, “would”, “could” or “should”, or words or terms of similar substance or the negative thereof, are forward-looking statements. These forward-looking statements are based on our current expectations, projections and key assumptions about future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond MotorK’s ability to control or estimate precisely, such as future market conditions, the behavior of other market participants and the actions of governmental regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and are subject to change without notice. Other than as required by applicable law or the applicable rules of any exchange on which our securities may be traded, we expressly disclaim any obligation or undertaking to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise.

Important information

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ABOUT MOTORK PLC

MotorK (AMS: MTRK) is a leading software as a service (“SaaS”) provider for the automotive retail industry in the EMEA region, with approximately 300 employees and offices in eight countries (Italy, Spain, France, Germany, Belgium, the UK, and Israel). MotorK empowers car manufacturers and dealers to improve their customer experience through a broad suite of fully integrated digital products and services. MotorK provides its customers with an innovative combination of digital solutions, SaaS cloud products and the largest R&D department in the automotive digital sales and marketing industry in Europe. MotorK is a company registered in England and Wales. Registered office: 5th Floor One New Change, London, England, EC4M 9AF - Company Registration: 9259000. For more information: www.motork.io or investors.motork.io.

¹ Committed ARR (“CARR”) includes ARR and Committed Recurring Revenues (“CRR”). CRR refers to signed contracts to be delivered and billed.
² Annual Recurring Revenues (“ARR”) is defined as the yearly subscription value of the customer base at the end of the reporting period.
³ Calculated as Adjusted EBITDA less Change in Contract Assets and R&D capitalisation.
⁴ Calculated as operating profit before interests, taxes, amortisation and depreciation net of exceptional costs.