Irisity Q1-26

Growth Returns

Irisity AB (”Irisity” or ”the Company”) is a leading provider of AI-driven video analytics solutions, transforming traditional security cameras into intelligent detection systems. Operating in over 90 countries, the Company serves a global market across three core segments: AI Solutions, AI Products, and AI SaaS. With 12% FX-adjusted growth delivered alongside a 30% OPEX reduction, Q1-26 marks another step toward profitability. With the full streamlining effect set to materialize in Q2-26, and clear momentum in the partner-driven go-to-market evidenced by the USD 1.0m airport contract won in April, Irisity is steadily building the foundation for profitable growth. Estimated net sales for 2026 stands at SEK 99.4m, and by applying an EV/S-multiple of 1.5x, a potential present value of SEK 0.31 (0.24) per share is derived in a Base scenario.

• Partner Model Yields Tangible Results

Invoicing accelerated to SEK 22.2m (16.6), up 34% Y-Y and 51% FX-adjusted to SEK 25.0m. Reinforcing the trend, the post-quarter U.S. airport contract for 1,000 IRIS+ licenses at approx. USD 1.0m adds a recurring SUP layer from H2-26, the type of repeatable, partner-led win the go-to-market overhaul was designed to produce. Net sales of SEK 19.2m (18.1), up 6% Y-Y and 12% FX-adjusted, came in below our estimate of SEK 22.2m, with part of the variance likely reflecting recognition timing rather than demand, as revenue is realized over the contract term and tends to lag invoicing. Some of the gap between invoicing and reported revenue can therefore be seen as top-line yet to be recognized, which we expect to support reported growth as the recurring base scales.

• Further Cost Reductions Materialize

OPEX fell to SEK 24.8m (35.2), down 30% Y-Y and 12% Q-Q, with personnel costs of SEK 17.6m (23.6) reflecting a leaner 52 FTEs (68) and other external charges of SEK 7.2m (11.7) down 38% Y-Y. Adj. EBITDA improved markedly, from SEK -23.1m to SEK -9.2m Y-Y. The miss against our estimate of SEK -5.4m traces to the revenue shortfall, as both gross margin and OPEX came in slightly favorable. With a further OPEX tailwind set to flow through from Q2-26, combined with a recovering top line, the path to break-even should narrow from both directions.

• Concrete Progress, but Execution Must Hold

We make minor revisions to our estimates for 2026–2028E, as slightly softer near-term sales are largely offset by the post-quarter airport contract win. The broader trajectory is what stands out: Irisity has returned to top-line growth while bringing down OPEX, evidence that the transformation is translating into tangible, if gradual, movement toward profitability. The progress, however, sits against a financial position that remains tight and leaves little margin for execution missteps. Analyst Group therefore awaits sustained growth, supported by a healthy quote-to-cash cycle, before contemplating a more substantial upgrade. For now, the progress warrants a modest re-rating, and Analyst Group lifts the motivated value of Irisity to SEK 0.31 (0.24) per share in a Base scenario.