Sweden · Delayed Price · Currency is SEK Yubico AB Earnings Call Transcripts
Fiscal Year 2026
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Q1 saw a decline in bookings and sales due to currency impacts and delayed large deals, but subscription revenue and retention rates remained strong. Operational efficiency improved after a major reorganization, and new partnerships and product launches are expected to drive future growth.
Fiscal Year 2025
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Record Q4 bookings in fixed currency, robust ARR and subscription growth, and strong Asia Pacific momentum offset FX-driven margin pressure. Gross margin guidance for 2026 is 75%-80%, with continued investment in innovation and digital identity expansion.
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Yubico is expanding its market reach and deepening customer relationships through direct sales, channel partners, and strategic alliances, while driving innovation in hardware-based authentication and digital identity. The subscription model is accelerating growth and predictability, with strong financial performance and a focus on open standards and post-quantum security.
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Net sales declined 7% year-over-year due to currency effects, but subscription sales and ARR grew strongly, now comprising 16% of net sales. Large orders were delayed, especially in the U.S. public sector, while small and mid-sized orders showed momentum. Gross margin remained stable at 80%.
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Q2 saw a 19% drop in net sales and a sharp EBIT margin decline, but sales momentum returned late in the quarter, driven by strong growth in subscription bookings and ARR. The company remains confident in its long-term growth targets, despite short-term headwinds from the subscription transition.
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Q1 delivered 25% net sales growth and 40% subscription sales growth, but order bookings declined 10% due to macroeconomic uncertainty and currency headwinds. Gross margin fell to 78.4%, and EBIT margin was 15% (adjusted 19%). Outlook remains cautious for Q2.
Fiscal Year 2024
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Order bookings grew 43% and net sales rose 27.6% year-over-year, with strong gross margins and cash flow. Growth was broad-based across sectors, and management remains confident in achieving a 25% annual sales growth target, focusing on expanding within existing accounts.
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Q3 saw strong growth in bookings and sales, with stable margins and improved profitability. Expansion in EMEA and Asia-Pacific, high renewal rates, and sector diversification support a positive outlook, while regulatory and market trends continue to drive demand.
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Order bookings grew 66% and net sales rose 36% year-over-year, driven by strong perpetual sales and broad-based demand. Gross margin remained stable at 80%, with EBIT margin at 21%. EMEA and financial sectors led growth, and cash flow was robust.