Vertiseit (OM:VERT B) Q3 Earnings Reignite Profit Growth As Valuation Questions Linger

Vertiseit shares closed at SEK63.0 on 21 October, after a solid run over the past quarter, just as the company dropped its Q3 2026 scorecard. At headline level, the quarter was about one thing. Profitability snapped back, with basic earnings per share at SEK0.50 and adjusted cash earnings supported by a higher software subscription mix.

The short term story is a stock that has already rerated. The longer view is a digital signage platform that just printed 44% annualised recurring revenue growth and is now being priced as if that pace may not last.

Like Vertiseit’s growth profile but uneasy that the share price already reflects a lot of that momentum? Benchmark it against our 190 high quality undervalued stocks, which combines recurring revenue strength with more modest expectations baked into the valuation.

Q3 2026 Earnings Summary

• Total Revenue (Q3 2026 vs Q3 2025): SEK222.2m vs. SEK150.7m (up approximately 47%)
• Net Income, excl. extra items (Q3 2026 vs Q3 2025): SEK16.7m vs. SEK10.6m (up approximately 57%)
• Basic EPS (Q3 2026 vs Q3 2025): SEK0.50 vs. SEK0.35 (up approximately 41%)
• Annual Recurring Revenue, ARR (Q3 2026 vs Q3 2025): SEK464m compared with the prior-year level (up 44% year on year, including FX effects)

Prefer clean, visual charts instead of another wall of Vertiseit earnings tables and ratios. See the full picture of Vertiseit, including how the valuation compares with its recent results, in the interactive company report for Vertiseit.

Vertiseit hits early SaaS and ARR milestones

Vertiseit bulls argue that a richer software mix should gradually turn ARR into a stronger earnings engine. The ambition is clear.

"The shift toward a higher SaaS share of revenue, now above 50%, together with management's focus on software license based Retail Media modules instead of revenue share, creates a mix that can support margin expansion and net profit."

The latest quarter backs up that claim on execution. SaaS has reached 54% of sales, ARR stands at SEK464m and net revenue retention is about 108%. A cash EBITDA margin of 22% and an adjusted EBITDA margin of 25% indicate that a higher recurring mix is already feeding through to profitability, not just headline growth.

The price and this Narrative do not agree. → Uncover what this Narrative says Vertiseit is actually worth.

Vertiseit bear case: slowing tenders, solid ARR print

Bearish investors question whether Vertiseit can keep large projects flowing as the business retools around Scala and partners.

"Although Vertiseit is seeing a stronger international tender pipeline, including in QSR and automotive, the loss of the Volvo Cars Sweden integrator tender and the long decision cycles for large global contracts mean that wins may be lumpy, which could keep ARR growth and EBITDA progression uneven from period to period."

The latest quarter does not remove that risk. ARR reached SEK464m with 3.5% organic growth in the period, and margins recovered to 22% cash EBITDA. Yet management still highlights long decision cycles and tender lumpiness, even as wins such as Circle K arrive, so the concern about uneven progression remains live.

Hunt For Mispriced Growth Stories

Vertiseit has just shown what happens when a richer subscription mix starts to pull earnings higher. The real opportunity is spotting stocks that could be undervalued before the market closes that gap.

• Company 1 - 44% below our estimate - supplies copper, optical and high power links that slot into new AI data centre and chip gear buildouts.
• Company 2 - 28% below our estimate - wins long term maintenance and engineering contracts that convert once off construction work into recurring cash flows.
• Company 3 - 36% below our estimate - handles local pay in and pay out for large merchants that need one platform across fragmented emerging market payment options.

Three companies from the same screener. Open every one of the 190 undervalued companies on it →

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com