Flowscape published its Q3 report on the evening of November 12th, delivering one of the strongest results in its history and finally breaking the 40 MSEK ARR barrier.
Q3/2026 (comparative period in parentheses):
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Net sales 11.1 MSEK (10.7), an increase of 3%
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EBITDA 3.93 MSEK (2.60), an increase of 51%
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Profit after financial items 1.92 MSEK (0.54), an increase of 259%
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Order intake 1.98 MSEK (3.95), a decrease of 50%
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Annual recurring revenue (ARR) included in orders 0.95 MSEK (1.89)
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Yet to be capitalized revenue 0.80 MSEK, of which 0.35 MSEK is annual recurring revenue
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Cash flow +0.32 MSEK (−0.16)
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Earnings per share 0.098 SEK (0.027)
January–September 2026:
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Net sales 35.64 MSEK (33.15), an increase of 7.5%
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EBITDA 9.43 MSEK (7.09), an increase of 33%
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Profit after financial items 3.40 MSEK (0.73), an increase of 364%
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Order intake 9.99 MSEK (11.37), a decrease of 12%
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Cash flow +10.45 MSEK (−2.48)
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Cash and cash equivalents 16.70 MSEK (6.25 at the beginning of the year)
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Earnings per share 0.174 SEK (0.037)
According to the CEO, thanks to the new platform resulting from extensive software development conducted this past spring, numerous new features will be released during the first half of next year. These will enable Flowscape to offer an even broader range of solutions to both existing and new customers, helping them replace other systems.
Additionally, the CEO stated that they are investing in the development of the sales organization. An experienced Marketing Director and a senior sales executive will start at the beginning of the year. In 2027, the sales organization will also be expanded with additional sales reps in the second half of the year.
In my opinion, Flow continues on a strong path, and profitability in particular has taken a giant leap forward over the past two years. Upgrades to internal systems have also gotten billing and contract management in order, as evidenced by the strengthened cash position and the decrease in accounts receivable. Now, the company is in a position to address the challenge of slow growth by expanding its product family and adding sales resources.
The company seems to be flying under the radar for many investors and naturally suffers from the general lack of interest that seems to plague small caps. EV/ARR is now as low as 1.2x, whereas multiples closer to 2.0x would be completely justified given Flowscape’s key metrics. The company is also debt-free with nearly 17 MSEK in cash, which on its own currently accounts for nearly a third of the company’s valuation.
Let’s see how the market reacts to the results today. With low trading volume, the moves can be quite large 