Good morning, everyone. I am here with my colleague and CFO, Einar Bonnevie. We thank you all for joining today. Let me start clearly. The fourth quarter, 2025, was a record quarter, and 2025 was a record year. We have interesting topics for you to go through today, and these are the main highlights. We're going through the fourth quarter highlights, the full year, 2025, and of course, AI, which is important. We'll go through that deeply. Then my colleague, Einar, will go through the financials and our guidance for 2026, and then of course, also a status when it comes to M&A. As you see, we will have a presentation for about 25 to 30 minutes, and we will have a Q&A session at the end of the session.
Please, if you have any questions, type them in as we go, and then we will attend to them at the end of the presentation. Let's start and talk about the fourth quarter 2025. Reported revenue, NOK 135 million. That is 17% growth compared to the fourth quarter 2024. We are quite happy with that and also happy with the fact that the reported EBITDA in that quarter is NOK 31 million, and the reported EBITDA margin is 23%. Even there are some one-offs, as usual, this is the reported margin without any adjustments. The full year, it didn't just end on the high note with the fourth quarter. The full year 2025 is also a structural step up for Omda.
NOK 496 million in sales and revenue for 2025, which exceeds our guiding for 2025. 16% growth compared to 2024. That also means that the operational baseline, the operating baseline into 2026 is very, very strong based on what has happened in 2025. The profitability and performance in 2025, NOK 117 million, which is good. That also implies 24% reported EBITDA margin for 2025. Next topic will be AI. When you look at AI in the market today, there's a lot of discussions, a lot of noise and predictions, and we have to respect AI as an important topic for all businesses, including our own.
What we have to do is to explain properly what we are doing and how it is affecting us. The good thing for Omda is that we operate, as you see here in the picture, in a regulated, certified, specialized healthcare and emergency environment. What is going on in there? It is mission critical. It has to do with life-critical treatments, and reliability and compliance is, of course, much more important for customers than speed to change things in these environments. And also, if you think about the switching cost of a situation like this, it's not only about software and code. The stability and the mechanisms in this specialized market will stay the same, although AI will have an impact, which I will get back to in a few minutes.
If you look at this, a user using a software in a process, working in these environments, the value is not necessarily only in the code. The value is, of course, in regulatory trust, in specialized workflows and expertise that we deliver, and of course, in cooperation with the customers and their demands and needs. If you look at it that way, AI for Omda gives us a stable situation seen from the customer side, but it is rather an acceleration tool for us when it comes to be more efficient, a productivity accelerator, really. That is what I'm going to explain to you, is more like, what are we actually using AI for in Omda? These two pictures will give you an idea.
I think many analysts have already seen what's going on, and I think it's clear that a company like Omda can use development tools with AI agents to completely change the development processes and make them much, much more efficient. We are using, like in this picture, a senior developer, the new date, the new era, gives the possibility to get added code, testing, documentation, and much more efficient workflow processes using the agents rather than a lot of other colleagues helping out, creating code, for instance. This was in 2024, it was experimental. In 2025, we already started project to make sure that we could do something, both in our business units, but also centrally, for Omda to create toolboxes for our business units to accelerate this in 2026.
It's no longer experimental, it's our operating model going forward. This is going to accelerate in 2026, and then you will ask yourself: What is the impact on our business? If you look at this graph, and let me explain it simply. To the left, the percentage will, is self-explanatory. You see the topping here, the three, dimensions. One thing is what we have delivered, our guidance for this year, which my colleague will go through in a minute, and then the ambitions and the long-term targets. What does this mean, really? If you look at the gray curve here, CapEx, which is the same as investments in our own software, we think that investments in our own software will continue with the absolute value level that we have today.
That also means that the CapEx and investment in software, compared to our revenue, will decline over time, as we show you in this curve. If you look at the green curve, obviously, when you reduce CapEx like that, it will give more cash from operations. That means the cash EBITDA margin, or so-called EBITDAC, will, of course, then increase. This is really the important thing for Omda. AI in our company is not a hype, it's actually a tool set that helps us create a much more profitable business. That means we have delivered a very strong fourth quarter 2025, and also a strong year 2025. Now it's time to dive deeper into that. Einar, if you're still awake, the floor is yours.
Thank you, Sverre. Thank you. Good morning, everyone. Let's have a deep dive into the financials. Let's start with the quarterly comparison, the fourth quarter 2025 versus the fourth quarter 2024. We see it's a, yes, it is a record quarter. It is one, you know, you could say one of our anomaly here, it's the sales of our hardware. Usually, a large hardware order in the fourth quarter made us beat the expectations. If you adjust for that, I think we are, you know, very much within the guidance of, you know, in the upper range of what we guided more than a year ago for the year.
When we look at earnings, a very marked improvement in earnings, whether you look at the EBITDA or cash EBITDA, you see a very strong margin improvement in the fourth quarter. Also, if you look at the whole year, the same thing here, we see very strong a strong year, ending, you know, very much, you know, ending on a high note. The earnings is, was not only, you know, a quarter or two, we actually, you know, met or beat the expectations each quarter for in 2025. Ending, as Sverre said, on a record high EBITDA and cash EBITDA.
I think it's also worth noting that even though we had a very large hardware order in the fourth quarter, and that, for the year, actually, hardware sales is doubled compared to 2024, our gross margin was still improving. COGS is coming down, and the gross margin is still improving, so take a note of that. That also points to where we will be, in the, you know, in 2026 and going forward. The margin improvement should continue. In a nutshell, NOK 117 million in EBITDA. We had CapEx of NOK 47 million, so slightly less than 10%. That was our guidance. Cash EBITDA, EBITDAC on NOK 70 million. We have received some questions from, you know, various investors: "Why do you focus on EBITDA?
Why don't you only focus on cash EBITDA?" Some say, you know, "EBIT, EBITDA is better, is more, is more general." The thing is, we need them both. For, say, bond purposes and incurrence test, et cetera, measured in, on EBITDA, is more common, so you can compare it to other companies. Cash EBITDA, on the other hand, that is what we use internally. Let me be very, very clear: business unit leaders, they relate to cash EBITDA and not EBITDA. All right? That is namely because CapEx, that is a capital allocation decision, and that is one of the few decisions that are still, you know, centrally managed. Capital allocation is centrally managed. They can't.
You can get the approval for a capital allocation for a CapEx project or you, or not. Loan goes to the highest bidder, so to speak. That is why we have them, and we need them both, and hope this explains it. Okay. As you know, we focus a lot on recurring revenue, in the past, we have discussed the, you know, recurring software revenue. It's not only the software that is recurring, excuse me, a few analysts also have, you know, taken notice of this, that, you know, they've said, "You know, your professional services, they seem to be very, very stable." Yes, indeed, they are.
In the past, we referred to professional services as, you know, semi-recurring, but we split those and started as from the third quarter 2025, we started, you know, splitting the professional services in the recurring part and non-recurring part. What we define is that, you know, customers of ours that were also customers one year ago, they are defined as, you know, recurring professional services or recurring professional services customers. We view those as recurring, and applying that logic, you get a very different perspective on what is recurring of the stability of our business. We see that the recurring software business takes us up to approximately 80%, and then we can add another, you know, 15% or so on recurring professional services.
That brings the real recurring or the true recurring income or recurring revenue up to almost 95%. It's an extremely predictable business and extremely, you know, an extreme stability there to the benefit of shareholders, but also, of course, to bondholders. This is really gives you a stability that you don't see very many other places. Combine this with very limited churn on the software. We have guided in the past less than 2% per annum. We can restate that guidance. Churn is limited.
This, speaking of churn and speaking of predictability, with the earnings in 2025, and you see the cash earnings, the EBITDA and the EBITDAC, cash earnings are coming up, revenues is growing, cash is stabilizing. We are moving into what we call a very low-leverage territory. Okay, let me explain. The bars, three bars, the blue on the left, that is the last four quarters' EBITDA. That's how they are measured, EBITDA is measured in the bondholder agreement for incurrence test purposes. We have the orange bar, that is the run rate. If the current quarter is a template for the other quarters, that's a run rate.
We have, and the green bars, that is, you know, the forward-looking, the next four quarters, because what is ahead of us it is not the past, it's the future, and we have a 2026 guidance. You know, the green bars, they are based on the guidance for 2026. Okay? The blue line, the upper blue line is the incurrence test. Where, you know, we have to be below that in order to do a tap issue on the current bond. We have the purple line that is at 2.5, and that is what, you know, typically is referred to as low leverage, low gearing.
You see that, if you look at in the first quarter, fourth quarter 2025, first quarter 2026, where we currently are, you see, and especially if you look at, the leverage, compare that to, and relate that to the next four quarters' earnings, you see that we are indeed moving into a very low-leverage territory. Low leverage combined with higher predictability on income and earnings, that is where we currently are. This also makes, you know, if you, again, taking, you know, capital allocation perspective, what shall we, how to spend our money most wisely, debt repayment is probably not one of them, but maybe we can improve the debt, terms. That is exactly what we, what we are, you know, now considering.
Very strong performance on the top line, on the bottom line, and low leverage that points to possibilities for refinancing of the current debt. I think as most of you have observed, and some have also, you know, commented to us, saying that, you know, of the approximately NOK 70 million in cash EBITDA, a large chunk of that, you know, or those cash earnings from operations, they go to pay out interest. That is, you know, and paying interest, that's the largest cash items in our P&L. Of course, that costs, as all other costs, we like to reduce the cost and increase the earnings.
Okay, looking at the current bond, that was issued in December 2023, it's callable in December 2026, and at 104.3, until then, there's a so-called make whole clause. The bond has been trading well, and we see that the spread has been narrowing, and the last I saw was actually a spread starting with a number three. We are around 400 basis points, four basis points, four percentage points, 4%. The current bond is nominated in NOK, it's three month NIBOR + 4%, translates into approximately 8%. That is where the bond is currently trading. We have higher ambitions.
Currently the bond is trading in NOK. We will have to evaluate other jurisdictions also. So, when the bond was issued and Omda went public, we were a very Norwegian company. As you have seen on the distribution of earnings, you can see that in the report, where are our customers, where are our employees? You see from an operational perspective, we are more Swedish than Norwegian. Okay, you know, on finance and what we think. There's room for improvement there. Let me move on to the guidance. Where are we? We know where we are. Where are we heading? Okay, we will repeat our guidance for 2026.
We will enter revenues of NOK 500-NOK 525, ending at NOK 494, and even if you knock off the hardware, for 2025, it shouldn't be mission impossible. This is just, you know, the organic part, so this is without any new acquisitions. This is just the organic part. We forecast a margin between 28% and 32% on the EBITDA, and as Sverre just pointed out, we will compress the CapEx. The cash EBITDA, the EBITDAC margin, should be somewhat higher than the EBITDA. CapEx should be less than 10%. We guide on 9% for 2026, and that should absolutely be possible. Not guidance, but targets. What I just showed, they were guidance.
This is where we think we're gonna end up. These, what you see now, are our targets. They haven't changed much since what we presented in the third quarter presentation. Let me be, you know, even more specific and even more clear. We restate organic growth 5%-10%. That includes CPI adjustments and the like. We restate that we aim for target inorganic growth or growth through acquisitions 10%-20% on top of that. EBITDA in excess of 30%, CapEx going forward over the next 5-year period, we see it shrinking from where we have been in the past, around 10% of sales or revenue to 5% of revenue.
We see COGS, as I said, in spite of the unusual large hardware order in the fourth quarter, gross margin was still improving. COGS was still coming down from around 7-7.5% in 2024 to 6.5% in 2025. There's more to come. It's not, you know, an overnight sensation, but we have gradually, if you look five years back, 10 years back, you see we have constantly been improving. That improvement will continue, and we see that we can bring it down to at least 2%-5%. Salary and personnel, we have constantly bringing it down.
We have been trimming the number of FTEs compared to total revenue, to 55 at the end of the fourth quarter, in percent of total revenue, down from, you know, 70s, to 65, to 60, to 55, 54-55, ending exiting 2025. We see we should bring it down to below 50%. Other costs, currently at around 30% of sales. The original target was to bring it down to 15. We are already there and actually beyond. We see now that the next target is to bring it down to 10%. Partly, you know, still, you know, trimming your nails, and also as, you know, part of that they will remain constant and the top line will grow.
Last but not least, on the bond loan, it's currently NOK 500 million. If you just maintain that level, I'm not saying that we will, but just take that as a starting point, we should be able, with the improvement that we have displayed already and what is to come, to bring, you know, an interest rate and end up with an interest rate of closer to five than 10%. No, I'm not saying 5%, zero, I'm saying closer to five than 10. See, some analysts, they have said, "You know, maybe you should reach 7." Well, seven is closer to five than 10. Our target, we are ambitious, and we are ambitious based on the strong underlying performance.
Okay, with these, with those assumptions and targets, we will end up, you know, in revenues, something like this. You can do your own calculation, do your own math. Here I have, you know, used those expectations to see where we end up on revenues, on the organic side and on the acquired side. You can use in your own spreadsheets, own calculations, you can apply, you know, the speed and how much, how fast you think we'll reach, you know, the margin improvement, and you will end up with robust margins. You can do your own math on, you know, what you think the valuation of a company like Omda should be. Okay, let me round off by addressing the M&A.
We have a huge pipeline, we do most of the sourcing ourselves. We have a lot of, you know, targets on the radar screen. We have active dialogue with, you know, somewhere between five and 10 companies. We are absolutely active in the space, in short. Some will say, "Well, you haven't announced anything." That is true, as the old statistics professor once told me, "Absence of evidence is not evidence of absence." Don't think for a single minute that the fact that we haven't announced anything is not because we haven't been active, and sometimes the only thing you end up with is a successful DD. We maintain the goal of 10%-20% inorganic growth.
We will consider, you know, should we do bolt-ons, or should we do large, more transformative deals? Sometimes the bolt-on may be less money for more value, that is always, you know, a consideration. The current market, we've seen there's been turbulence in the market on valuation, everything from, you know, huge stocks, or compounders or software companies and the AI turmoil, that also gives opportunities for us as an acquirer. You know, speaking of acquisitions, this, again, this is a matter of capital allocation, we need to spend money wisely. We also need to reconsider, you know, I mean, how is Omda valued compared to other things we can buy in the market?
Share buybacks is also something we need to keep considering. Last but not least, since we are moving into positive, you know, cash flow, a good cash territory, smaller deals may be financed, you know, with cash from operations without having to issue any new capital in any form. Okay, that was that, just a snapshot, and let's move into the Q&A. There are a few questions here, and most of them seems to be to myself, and there's one question from John here, and it's related to the last topic, M&A.
The question is: "With the incurrence test being met, and you have been expecting that for a while, given your goals," true, "what's the next outlook on getting the M&A engine humming in the next quarters?" As I just said, and you can add some comments to this, Sverre, but as I just said, it has been humming, so it hasn't, it hasn't been turned off. Again, you know, we haven't announced anything, but that doesn't mean that we haven't done anything on the subject, so it is indeed humming. Would you like to add anything, Sverre?
Yeah, I think what is important is actually that the value creation behind M&As has to do with the sequence of things. When we have dialogues going on for many years with many targets, we are also very good at looking at when to put things together. There is a very, very high activity, much more than you think, when we look at this. I think what's going on now is that we will stick to the guiding of 10%-20%. They will come out, as Einar mentioned, probably of a handful of small requisitions rather than a big one. All in all, we're very happy to tell you about the M&A processes going on because these are what will make us reach our goals in the next five years as well.
Okay, thank you. Another question here from John, and that is about the bond agreement. The question is: "Remind us of your buyback opening in the bond agreement." Yes, the current bond agreement gives us the opportunity to buy back shares, and we haven't done anything for the last, you know, last year or so. The bond agreement gives us an opening to continue to buy back bonds. What it doesn't allow currently is to delete the buyback shares. We can buy back and continue to buy back. We still have room to buy back more shares, but we cannot delete them under the current bond agreement.
That is, you know, that was a trade-off we made when we borrowed money the last time. That is something we will look into because, you know, that is one way of making, you know, the implicit dividend more effective. That is, we can continue to buy back shares, but we can't delete them. Okay, there's one question pending. If you have any more questions, any of you, please type them in as we address the last question. There is a little delay, you know, technical delay, so please don't wait to the very end.
If you have anything, if you, any comments, any questions, please type them in as we address the last question here now. Okay, this is from Balázs, and it's related to net working capital. The question is: "Can you please elaborate on net working capital dynamics? It looks like this year, net working capital was a drag on cash generation." I can understand. I can understand the question and the reason behind it. Okay, we have a very active net working capital, you know, view. We, as you saw, you know, in 2024, fourth quarter, we had -31. Our official target is we should be below -10.
We were ended, you know, two years ago in 2024, at -31. That was a record. In 2025, we ended at -26, which is still very good, but not as good as the last year. There are always some dynamics there. As you know, we like to invoice, you know, annual upfront as much as we possibly can, and then, you know, pay our bills as late as we can to, you know, to use the capital effectively. In 2025, we issued invoices, and sometimes, you know, the invoices, they are paid just before New Year's Eve, and other times they are paid just after.
In 2024, in 2025, they were paid, some of them were delayed to be paid early January. That is what you ought to see. There are a few bumps there, but nothing to lose sleep about. There are now 6 new questions, so let me continue. This is one for you, Sverre. It relates to artificial intelligence, it goes like this: "Can you explain in more detail Omda's product moat against AI in the long run?" Contract, security, relationships, I mean, how does AI protect us?
Yeah, I think, first of all, what protects us is really what I was into when it comes to what is the priority on the customer side here, which is the regulated business they have. The reliability and compliance is critical, and the life-saving activity is critical, and these are run through extremely complex workflows. The ability to change things is of course there, but the business case to change things is one thing. It's really not that relevant. It's not only the code, it's a very, very complex completeness there.
Secondly, of course, the, the ability to replace things is one thing, but the timeline, it takes years in these areas, not because you change the code, but because you have to refactor a lot of other things, and you have to handle procurements, rollouts, projects, et cetera, that takes years in the complex environments. It's really not the AI itself that protects that part of, of us, but we are protected in that sense that the collaboration long term, as you ask for here as well, the contracts. What we do now with our customers is to actually have the dialogue, how are we going to deliver add-on components that includes AI functionality? That is not easy because you also have to certify the components that, like that.
Maybe we would use one or two years to certify, but still the customer will use maybe some years even to implement because of the criticality. This is why it takes time. On a good side, although it takes time to implement on the customer side, the speed of the value creation on the inside of Omda is really what is the good thing at the moment, because that is no longer, as I mentioned, experimenting with tools. These are agents that actually already now are actually giving us the ability to increase the cash from operations.
Okay. Thank you, Sverre. There's another question about AI. I suggest we continue that. That's also from Matt. Thank you, Matt, for submitting your questions. Which division or business area, business unit is most at risk from AI competition? It mentions specifically emergency or ProSang or blood management. What will you say?
Yeah, that's a good question, but it's none of those two, that's for sure. I would say quite the opposite. Those are quite protected, given the how these systems are handled. It's difficult to change the engine when you have a flight over the Atlantic. That is not the places to see. However, it's a specific question. My theory would be that the analytics part of our business would probably be more competitive from outside,
Because the usage of large data and the functionality around this is probably the area that will have more competition, because they are not so tied into actual clinical and emergency critical processes. That would be my take. I see already that we are using AI and working with AI components inside our analytics software, and the customers would like to acquire more from us. Please remember, we have contracts there as well, and customers that want to add on. It's not only a competition in the market with tenders, we have existing customers that want more.
Thanks, Sverre. There's six more questions pending. Thank you for submitting them. There's a, there's another one, on, that relates to AI, also from Matt. Let's take that one before we move on to other topics. "What is your average contract length, and do you have enough time to integrate AI innovations before the next round of tenders?" How does this work, Sverre?
Yeah, that's a good question. It's important to understand that when you choose a strategy like we have done, and when you focus only on these very sticky software types that could be there, since you mentioned in your questions ProSang, which has more than a 50-year history with the same customers, being the same, being customers. Of course, when it stays that long, that is really what's the fact here, that it won't change because of the fact that it's tied to the workflow processes in these areas.
Okay. There are some more questions on the financial side, and also from Matt. The question is, "Do you see already an impact on private valuations and M&A targets following the current software sell-off?" That is a very good and relevant question. I think, you know, I tried to sum it up on the very last slide, the M&A in short slide, and say, you know, bolt-ons versus larger transformative deals. We see that, you know, bolt-ons are typically, you know, what you are referring to here, the smaller private valuations. Yes, I think it's probably now an opportunity to pay less money for more value.
Also, as I said, the current market provides more opportunities than challenges from an M&A perspective if you are the buyer. Because, you know, after the, what I say, the hype in maybe 2020, 2021, 2022, and expectations were going, you know, sky high, I think a lot of the private owners, they have sobered up. And much more realistic expectations now than maybe at least two or three years ago. And another, you know, one on acquisitions, and capital allocation, also from Matt.
At current share price of 38 NOK, that's approximately 2x sales or 7-8x EBITDA, isn't share buyback the best capital allocation?" Yes, that is also something, you know, on the, on the very last slide that we tried to sum up, you know. Yes, share buybacks, et cetera, is to be evaluated. It's all about, you know, capital allocation. Should we, you know, increase working capital? No. Should we invest more in R&D? No. We will use AI to be more efficient. Shall we buy companies? Yes, but again, maybe, you know, the bolt-ons rather than the larger deals, again, you know, the best return on your investment.
As you point out, yes, if you compare Omda, I mean, from an outside-in view, not speaking as a CFO, no, but maybe, you know, more like a financial analyst, from outside the in view, Omda is very attractive compared to a lot of, you know, companies that we can buy. That has to be a part of the equation. I think, you know, it's probably not an either/or maybe it's. You can have the cake and eat it, too. Okay, there are still four questions. This is from Mark, and I think it goes to you, Sverre. It's about M&A and startups with AI, it says: "In terms of M&A, do you see interesting startups with, AI agent, tech that you could add to the portfolio? Please expand on the venture capital funding dynamics in the Nordics in the space.
I think the most important answer to that is that our strategy when it comes to M&A is related to Customer, Code, Competence. That means we acquire companies that has a proven track record within the customer space. Of course, we look at additional AI companies that has interesting technology, but this is not our strategy. Also because, as I mentioned, it takes many years to implement on the customer sides, the type of customers we have. One example of how we approach this would be the last acquisition, or one of the last three. There was Dermicus, which is an AI-based app that handles wounds or cancer, skin cancer, for instance.
These type of components that are in production that we can integrate and add and have synergies for our own business, that will be the preferred acquisition of AI companies from our side. I don't think the speed of even if the new technology comes out, the speed on the customer side will still be the same. For us, we will still continue to buy Customer, Code, Competence in that order.
Okay, let's continue on the M&A topic. This is one from John. He writes: "With your aim for small bolt-ons for M&A, do you foresee any material impact to your expected 2026 margin guidance in that year or future years? How far can bolt-on take you versus your targets over the years?" I think I can address those. Those are two questions combined in one. Excuse me. First, on the margin side, I guess the background for the question may be that in the past we've done some, you know, larger deals.
When we IPO'd, we were at NOK 200 million in sales, and a couple of years later, we reached NOK 400 million, so we doubled in size, and a lot of those we acquired were, you know, turned around or turned better candidates. They diluted our margin. Now, if you look at the current guidance, and we say on the current business, we grow, you know, 5%-10% organically, and we will improve the margins. We will take down the COGS, we will take down salary and personnel, we will take down CapEx, we will take down other costs. That's on the current business.
If you add to that, you know, bolt-ons or small acquisitions, and we said, you know, our guidance and target is 10%-20%, that would mean that we would add, you know, NOK 50 million-NOK 100 million, you know, in sales roughly for this year. That means if, but even if you add, you know, say 50% on average, NOK 75 million, and you have zero margin on that, you know, in the year, it turn around, turn better candidate, and you have zero in EBITDA, still the dilution wouldn't be very noticeable, and it would dilute maybe the margin in percentage points with a couple of percentage points, but it wouldn't dilute the absolute number. All right?
We expect that, maybe some margin dilution, you know, on the total, but not if you look at the underlying business and that on top, and it shouldn't be dramatic. It's, we're just speaking of, you know, from 30% down to 10% or something like that, but knock off a few percentage points. That should be your expectation. How far can bolt-on takes us? Okay, again, you know, it comes down to, you know, what is the definition of a bolt-on? But say it's, say we're acquiring a business. There are a lot of businesses, you know, between NOK 10 million-NOK 20 million in sales. Three of those would amount to approximately NOK 50 million, 10%.
That would, you know, three bolt-ons could take, would take us into the lower part of our guided range. Absolutely doable. Okay, there are still three questions. We still have 15 minutes. If there are any more questions, type, keep typing them in. One question here from Javen, and that goes to you, Sverre, and it goes like this: "Are there any success stories from this year that you are particularly proud of, that demonstrate to you the strength of the business?
But I think the results speak for itself, and I think actually, the most important thing is the combination of the decentralization that we have and the ability that each business unit leader have had to work much closer to the customers. The result of that has been a much more predictable business, and there are many smaller and bigger success stories inside those business units. But I think seen from my side, the successful transition to a decentralized organization is definitely what has changed everything and has created a new operating baseline for Omda, which is going to be very strong from 2026 and onwards.
What you're saying is, Sverre, a few things, capital allocation is important, decentralization is important, and then in a decentralized organization, have the right people on board on the bus. If you control those three
Simple as that.
Things are going pretty well.
Yes.
Okay, let's continue to do that, then.
Yeah.
Okay, there's another question from John here, and that is, that directly relates to a potential bond refinancing, and the question is: "Have you had talk with investors in the Swedish market or banks to take advantage of the difference in STIBOR or versus NIBOR?" The general answer is, yes, we have Norwegian investors, we have Swedish investors, we have American, Anglo-American, French. We have investors, and we absolutely and we love to, you know, have a dialogue with our investors. Yes, we, of course, also have dialogue with our Swedish investors. Again, yes, and we have dialogue with, you know, several investment banks, and we bounce ideas.
And to the effect then on STIBOR versus NIBOR, the STIBOR is around 2%, and the NIBOR is around 4%. Of course, if you only, you know, if we were refinancing, just as an example, I'm not saying this is not a guidance, this is not the target, just as an example. If we were to refinance, you know, in Swedish krona on STIBOR 2%, plus where the bond is currently trading 4%, that would, you know, yield 6%.
Just as an example for those of you who are watching this call and are not that into NIBOR, STIBOR, and, you know, the whole, you know, interest rate universe. Okay, there's one more question, this one goes to you, Sverre. you have the That is also from Draven: "Across Europe, many healthcare organizations are cutting staff and budgets. How does Omdia work with customers to support them to maintain standards with less staff? Has this been an opportunity for cross-selling, or how is that? How can we support our customers?
Yeah, that is a, that is a very good question, and it's a, it's a quite interesting thing, combined with the previous question about the average length of a contract, because it's really not a contract we're talking about. Contracts are tools that we have to have, where the stickiness is coming from the fact that customers are using our software. Since the situation is like that, of course, we have the dialogue with the customer on how we could help and combined offerings from our own business. We are doing that, inside our business areas, with different business unit working together and come up with the broader offerings to our customers. That will help to be much more efficient. That is one way.
Also between different business areas, since we have strategic dialogue with large customers and key customers, we have the ability to look at a strategic approach years ahead as well and talk about what's going on. Explicitly, you're quite right in defining the fact that the economy is very, very complex and is hard times for healthcare. That is a good thing for Omda because we can help them. The cost of our recurring software is quite small compared to everything else in these businesses. Yes, we are working with the customers to make sure that they can also get much more benefit of our current software and new software.
Okay, there we are. There is actually one more question that came in while you were addressing this one, Sverre, and this also goes to you. The question is about the, you know, pricing models. The question is, "Please comment on your pricing model on seat versus usage-based." This is typically, you know, from a I take it as a reader from a, you know, from a SaaS, you know, perspective of thinking like, how does the pricing model actually working on that?
First of all, there are differences between different business units. In general, if you look at the complex, widely used national, regional, highly specialized solutions, which is the backbone of our business, this is coming from contracts many years ago, and where the idea is that we pay for the usage of the software, normally as a site license or a predefined pricing model. It might add extra for an extra department or things like that, but it's much more a conservative model from the beginning here.
It's not like a SaaS thing as such, where you can, you know, as you do with your Netflix account, that you add it or you cancel it. This is much more from the beginning, a more stable income that is not related to users directly. However, we have some areas where we have volume-based, but I would say more than 80% of our recurring revenue is based on these stable, long-term, and many times over decades, contracts.
Okay. Thank you, thank you, Sverre. There seems to be no more questions. Happy we have addressed them all. Thank you all for watching. Thank you all for submitting questions. We very much treasure the opportunity to have a dialogue with all our investors. We hope you have enjoyed this presentation and the numbers. Tune in again on the 21 of May, that is when we are going to present the numbers for the first quarter of 2026. Before that, we will also release the annual report that will be released in April. Until we speak again, our minds and souls meets, do you some napkin calculations using the numbers we have guided you on. Enjoy your day, take care, and stay safe.