Incredibly good work. Great to see Digital Workforce leading the way now. This kind of news is needed 
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Financial reporting is interesting at times when examining which figures have been published for the comparison period. Below is the latest information.
Revenue for the comparison period had changed significantly compared to the December release. Digital Workforce Services Plc publishes illustrative financial information following the acquisition of e18 Consulting Ltd - Inderes
A year ago, the following was reported for the first quarter.
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Joni has published a new company report on Digital Workforce following the Q1 results.
We are raising the share’s target price to EUR 3.3 (prev. EUR 3.2) and lowering the recommendation to Accumulate (prev. Buy), driven by the share price increase. Digital Workforce’s revenue grew significantly faster than expected and partly scaled into profitability. In this way, the company provided much-needed evidence of the effectiveness of its strategy and sales. We now expect growth to remain solid and to scale slightly better into profitability in the future. The valuation profile (2026e EV/EBIT 13x, P/E 13x) remains attractive following the share price increase, based on 2026 profitability forecasts that are only partially scaled.
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Contract renewal and expansion for a bank.
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Digital Workforce, a leading specialist in enterprise automation and AI-based solutions, announced today that Raiffeisen Bank International (RBI), one of the leading banks in Austria and Central and Eastern Europe, has renewed and expanded its partnership with Digital Workforce based on SS&C Blue Prism automation technology. Under the expanded agreement, Digital Workforce now acts as RBI’s partner covering group-wide SS&C Blue Prism license management and delivering managed automation services to RBI’s headquarters. The collaboration deepens a partnership built over several years.
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@Joni_Gronqvist Digital Workforce has performed very well in the market.
One thing that would have been nice to see from the company or from you at Inderes would have been a full comparability analysis of the change in accounting practices for licenses.
If I understood correctly, DWF made two changes to its accounting practices. The conversion of licenses to net values was fully accounted for in the new comparative figures. However, the change in the timing of license revenue recognition—where previously license revenue was spread over a year or perhaps two or even three (?), and is now recognized all at once at the time of the transaction—has, as I understand it, not been factored into the comparative figures. It would be good to understand how significant this change is.
If I understand correctly, in the comparative figures, for example, a one-year license deal of 100,000 euros made in January 2025 would previously have recognized only 25,000 euros in Q1 (with the rest in subsequent quarters). But now, from a corresponding deal in Q1/2026, the full 100,000 euros is recognized immediately?
Depending on the volume and timing of license sales, this could have a reasonably large impact on the top line and simultaneously on profitability during the transition period, as that net revenue should flow directly to the bottom line.
Have you had any discussions or thoughts on this? Is this impact significant?
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DW’s CEO Jussi Vasama was presenting his company as an investment at the IT Services evening.
Topics:
(00:00) Introduction (00:35) DWF in brief (02:26) DWF in numbers (03:39) AI agents and healthcare (04:22) AI is a consumer product (06:21) Market potential (10:55) From complex manual work to automated follow-up (11:51) In-house modular care path solution (12:58) DWF as an investment (14:52) Q&A
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In that IT Services evening Q&A section, there is a response from Jussi regarding the question about the timing/accrual of license accounting
Apologies that it took a little while!
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Hi, this is Digital Workforce’s CFO Laura!
Jussi already managed to answer yesterday, but here is a slightly more detailed explanation.
The change in license accounting consisted (just as you noted) of two parts:
1. Netting of revenue, where only the resale margin is recognized as revenue.
2. A change in timing, where the entire license deal (net) is recognized at once, rather than being deferred over time as before.
As shown in the published comparative figures, the annual value of license sales is around 5 million. With a margin slightly below 20%, the revenue after netting is approximately 1 million per year. Adjusting the timing for comparative periods would only have affected the allocation of this million between quarters and financial years. A significant portion of the license base is renewed annually, so the impact stabilizes after the first year. The impact of the change was assessed as minor and was implemented only for new contracts starting in 2026. To clarify the impact of timing, we will report the additional sales caused by the change in the first quarter of 2026.
Thank you for the great question, and wishing you a sunny investment spring ahead!
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Digital Workforce Services Oyj has today signed and completed an agreement to acquire the AI agent-based customer service business of Front AI Oy.
Purchase price €3–3.6M.
At least personally, I have quite a positive feeling about this based on the limited information. Regardless, this does not represent a massive risk.
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The acquisition seems like a very good small-scale bolt-on purchase to complement the offering for existing customers. The target was acquired at moderate valuation multiples (EV/EBITDA 5-6x). CapMan Growth Equity Fund 2017 Ky appears to be a shareholder in both companies.
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Joni released a company update this morning following yesterday’s acquisition. The recommendation was upgraded from Accumulate to Buy, with the target price remaining unchanged.
We also recorded a video today commenting on the acquisition and discussing the stock’s sluggish performance, even though Q1 progressed in a good direction operationally.
Fears of AI-driven disruption have weighed on Digital Workforce’s share price, despite the company reporting an exemplary start to the year in Q1. Now, the company is strengthening its AI capabilities, customer retention, and cross-selling potential by acquiring Front AI’s AI-based business. Analyst Joni Grönqvist comments on the current buying opportunity in the stock and the recent acquisition.
Topics:
00:00 Introduction
00:56 Acquisition of Front AI’s AI agent-based customer service business
03:13 Purchase price
05:01 Balance sheet & M&A
07:11 AI disruption risk
12:20 Progress of the earnings turnaround
13:34 Buying opportunity in the stock
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Here are Joni’s preview comments ahead of Digital Workforce reporting its Q2 results on Friday.
We expect the company’s revenue to have continued its strong growth, driven by acquisitions and strong organic momentum. We also forecast that the earnings level has improved compared to the comparison period, supported by volume growth and the slight scalability of recurring-revenue services. In the report, our attention is focused in particular on the sustainability of organic growth, the progress of commercializing AI agents, and comments on the outlook for the UK market.
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Positive developments, good work.
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Digital Workforce Services Oyj is raising its revenue growth guidance for 2026. The guidance regarding profitability remains unchanged.
New guidance for 2026
The Digital Workforce Group’s revenue is expected to grow by 27–37% in 2026 compared to 2025. Adjusted EBITDA is expected to be 7–13% of revenue.
Previous guidance for 2026 (published Feb 18, 2026, updated March 17, 2026)
The Digital Workforce Group’s revenue is expected to grow by at least 15% in 2026 compared to 2025. Adjusted EBITDA is expected to be 7–13% of revenue.
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The midpoint is 0.7 percentage points higher than Inderes’ forecast, so in that sense, it’s also a positive surprise.
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Here are Joni’s comments on Digital Workforce’s morning earnings report
Digital Workforce published its half-year report this morning, which was positive and gave confidence that the strong momentum will continue. Revenue grew strongly, driven by an acquisition and also organically, which was in line with our forecast. The operating result was also very much in line with our expectations. The company also reported strong sales and continues to invest, which we consider natural given the demand outlook. In addition, the company raised its growth guidance yesterday evening, which was also very much in line with our pre-report expectations. All in all, we believe the report was positive and strengthened our confidence in the continuation of good performance.
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CEO Jussi Vasama in an interview with @Joni_Gronqvist regarding Q2! 
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It looks like DWF is among the best in Inderes’ latest analysis of IT sector companies.
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Digital Workforce is way ahead of many others when it comes to AI development and expertise. I believe this company will be one of the few winners in this new era, and I’m really glad I jumped on board this year.
There’s a big difference between brainstorming with a client that we could add a little AI here and there to a process, versus serving up a ready-made platform and process on a silver platter that has actually been proven to work.
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