Organic growth: Revenue growth excluding license income is estimated at 8 percent (7.3% in Q1).
License income: The forecasts include an estimated 10 million euros in license income for the full year (of which €6.9M was already realized in Q1 and the remaining approx. €3M is expected in the following quarters).
Profitability excluding one-offs: These license revenues significantly increase profitability. Without them, the adjusted EBIT margin would be 9.5% (overall it is 16.8%).
I’ll continue with that Sijoittaja.fi P/E angle. I pulled the P/E (adj.) 2026 forecasts for Finnish peers using Inderes’ MCP and added Reaktor to the same chart using the Sijoittaja.fi figure.
Reaktor’s IPO price adj. P/E 2026 (11.4x) is below the median of Finnish peers (12.6x), so Sijoittaja.fi’s “quite reasonable pricing relative to peers” claim is supported.
If Reaktor were mechanically repriced to the median multiple, there would be an upside of about +10%. If priced at Gofore’s multiple, the increase would be from €8.25 → €9.89, which is approx. +20%.
Good points. As an additional note, if the license revenues are from defense sector sales, they have a very attractive pricing model (see Prospectus) → A one-off license fee plus a five-year maintenance/update fee of 20% per license package, as well as 10% tech and software update costs of the total license value per year. Great to finally have this high-quality company on the stock exchange!
Herlin’s investment companies do not usually become anchor owners in companies going public. And they certainly wouldn’t have committed to this one without a strong conviction regarding the continued growth of international software sales, whether it be NATO Defense or something else. It is good to remember that such high-profile anchor owners have obviously had better visibility into the content of the product business than what is in the IPO prospectus, as well as their own analytical resources to evaluate potential future licensing revenue streams.
"According to the company’s investor relations pages, Mäkelä’s ownership stake stood at 12.95 percent on June 17, and Laukonen’s at 11.64 percent. The number of shares held by both has increased since the IPO.
In contrast, the name of founding member Tuomas Routo is no longer among the company’s largest shareholders, even though prior to the listing, his stake was the third largest at 6.54 percent."
According to the updated data (as of the 18th), the portfolios of Mäkelä (~600k) and Laurosen (675k) have also lightened. Interestingly, a comparison to the data from the 17th is currently not working, even though it worked just a moment ago?
That’s exactly what happened—it immediately dropped well below the IPO price. Once the stabilization measures end, it will fall below six and a half euros.
My own strategy is usually “buy and forget,” but this time it seems it was just “forget.” June has been so hectic that I completely missed participating in the offering. It looks, however, like that turned out to be the winning strategy this time.
From the share price development, one can see that there has been more selling pressure than buying interest. Additionally, a stock exchange release was published yesterday:
Reaktor Group Plc: Stabilization measures performed
Based on the release, the share price has been stabilized so far with approximately 5.3 million euros, which corresponds to 660,000 shares. If I have understood correctly, the stabilization period continues either until July 15, 2026, or until the maximum stabilization lot of 990,000 shares has been exhausted.
It will be interesting to see how the share price develops during the late summer and early autumn, especially when the Q2/2026 results are presented and the stabilization measures have ended.
Stabilization measures were decided upon last week. Those managed to get the share price up to eight euros, but there haven’t really been any buyers since then. Now it has come down 10% from that level, and at least for the moment, the buy side is practically empty. Summer, of course, reduces trading activity, but there is likely a risk here that it will slide down significantly.
The growth financing arrangement for Krosswise Group with the Finnish private equity investor M&M Growth Partners has been completed, and the capital gain recorded from the arrangement (approximately 2.2 million euros) strengthened the second-quarter result.
I missed whether this was adjusted somewhere or not? Q3 and especially next year’s Q1 will likely be the first real “clean slate” reports.
7% EBIT for Q2 is quite a bit lower than what was implied at the time of the IPO.
It’s not bad, but it’s also not the best in the sector. Investors who know how to look at the consulting business are surely disappointed. On the product and ecosystem side, there is good progress, but it’s hard to see “into the product business” when the statements are along the lines of “two NATO countries.”
