Tecnotree Reports Stable Revenue and Strong Profitability in Q1 2026 and Maintains Full-Year Guidance

ESPOO, Finland--(BUSINESS WIRE)--Tecnotree, a global digital platform and services provider for AI-enabled 5G and cloud-native technologies, today announced its financial results for the first quarter of 2026, demonstrating stable revenue, strong profitability, and a robust order backlog despite geopolitical uncertainties across global markets.

Key Financial Highlights – Q1 2026

• Revenue of EUR 16.8 million (16.9), revenue in constant currency EUR 17.1 million, +1.0% YoY.
• EBIT of EUR 4.6 million (4.5), +1.8% YoY.
• EBIT margin of 27.4% (26.9%), +50 basis points YoY.
• Foreign exchange (FX) gains EUR 1.0 million (-1.4).
• Net income EUR 2.1 million (1.5), +36.5% YoY.
• Free cash flow (FCF) EUR 0.2 million (1.0).
• Earnings per share (EPS) EUR 0.1 (0.1).
• Order book at the end of the period EUR 105.4 million (70.3), +50.0% YoY.

The first quarter of 2026 reflects stable revenue supported by disciplined execution across key customer programs and a strong order backlog. The company remained profitable during the period, with free cash flow reflecting temporary collection delays in certain regions amid the current geopolitical environment.

Revenue for the quarter was EUR 16.8 million. The revenue mix reflects the execution phase of large-scale delivery programs, particularly across MEA and APAC markets, with delivery revenues representing a higher share. The operating environment during the quarter was characterized by increased uncertainty, which impacted customer investment timing and delayed certain decision cycles.

Operating performance remained strong, with EBIT of EUR 4.6 million and an EBIT margin of 27.4%, reflecting consistent operational discipline and platform scalability. Profitability in the quarter was also supported by favorable foreign exchange movements.

Cash flow in the quarter was impacted by challenges in collections in certain regions due to the prevailing environment, leading to a buildup of receivables and an increase in Days Sales Outstanding (DSO).

Tecnotree continued to enhance its platform capabilities during the quarter, advancing its AI-enabled value chain to enhance customer experience and unlock new revenue opportunities through embedded AI across its digital BSS stack. The company also maintained its focus on increasing efficiency across internal functions and customer operations, particularly through AI-driven operations, including reporting and process automation, as well as preventive and corrective maintenance capabilities.

Padma Ravichander, CEO of Tecnotree, said:

“Our performance in the first quarter reflects the strength of our execution and the resilience of our business model. We continue to see strong demand across our markets, supported by a robust order backlog and sustained customer engagement. Our focus on AI-led innovation and operational efficiency is enabling us to deliver consistent value to our customers while strengthening our long-term growth trajectory.”

During the quarter, Tecnotree received multiple industry recognitions, including awards at the Asia Telecom Awards 2025 for AI Initiative of the Year and Digital Initiative of the Year in the MVNE/MVNO category, as well as the CX Catalyst Award for Impact at The Fast Mode Awards 2025.

The order book remained strong at EUR 105.4 million, driven by new orders in Africa and Latin America, reflecting continued demand for Tecnotree’s products and solutions. Backed by a strong backlog, disciplined execution, and continued platform innovation, the company remains well positioned for sustained growth. Management confirms that the company’s financial performance remains on track, and full-year guidance is maintained across all key metrics.