Irisity AB (”Irisity” or ”the Company”) published its Q1 report for 2026 on May 29th, 2026. The following are key events that we have chosen to highlight in the report:
- Net Sales of SEK 19.2m (18.1), +6% Y-Y, +12% FX-Adjusted
- Invoicing of SEK 22.2m (16.6), +34% Y-Y, +51% FX-Adjusted
- Collections of SEK 22.0m (26.5), -17% Y-Y
- MRR of SEK 4.4m (4.1), +7% Y-Y, +22% FX-Adjusted Stod at SEK 5.0m
- OPEX of SEK 24.8m (35.2), -30% Y-Y – Simplification Programme On Target
- EBITDA of SEK -9.2m vs. Estimate of SEK -5.4m – Miss Driven by Revenue, OPEX Tracking Ahead of Plan
- Total Available Liquidity Narrowed to SEK 3.7m at end of Q1-26, with a SEK 5m Credit Facility Added Post-Quarter
Net Sales Return to Y-Y Growth on First Clean Comparable Since the Q4-24 Reset
Net sales for Q1-26 amounted to SEK 19.2m (18.1), corresponding to an increase of 6% Y-Y, or 12% FX-adjusted. The outcome fell short of Analyst Group’s estimate of SEK 22.2m, as we had anticipated a larger fraction of the strong H2-25 invoicing to convert into reported revenue during the quarter. However, the deviation is primarily explained by the timing of revenue recognition under the recurring revenue model, where net sales naturally lag invoicing.
Notably, Q1-26 marks the first quarter in which both the reporting period and the Y-Y comparable sit under the revenue recognition framework introduced in Q4-24, when management reassessed the timing of recognition for large-scale partner contracts. Every Y-Y comparison throughout 2025 was distorted by this transition, and Analyst Group therefore considers the Q1-26 print as the first genuinely comparable read on underlying top-line momentum since the transformation began.
Airport Contract Layers Material Commercial Momentum onto an Already Stronger Top Line
Invoicing accelerated to SEK 22.2m (16.6), up 34% Y-Y and 51% FX-adjusted at SEK 25.0m, a tangible signal that the partner-first model is continuing to translate into measurable commercial throughput. The Q-Q decline of approx. 22% relative to Q4-25 (SEK 28.4m) is consistent with the historical H1 seasonal softness, while LTM invoicing of approx. SEK 106.7m compares with SEK 101.1m at year-end 2025, confirming a gradual underlying uplift.
Collections amounted to SEK 22.0m (26.5), down 17% Y-Y, or 14% FX-adjusted. As flagged in the Q4-25 comment, the strong collections of SEK 33.0m in Q4-25 were expected to partially reverse in Q1-26, given that quarterly collections largely follow the previous quarter’s invoicing trajectory.
Layered onto this, the contract announced on April 24th, 2026 for 1,000 IRIS+ Enterprise AI licenses at a major U.S. airport, with an order value of approx. USD 1.0m, represents approx. 9% of LTM invoicing captured in a single engagement. The hybrid construct combining an up-front license with a committed multi-year SUP supports both near-term invoicing visibility and an incremental recurring revenue layer. Analyst Group considers the post-period contract, together with the Q1-26 invoicing, as evidence that the partner-first model is translating into repeatable commercial outcomes.
FX-Adjusted MRR Reaches SEK 5.0m on Continued Recurring Revenue Conversion
MRR amounted to SEK 4.4m in Q1-26, flat versus Q4-25 and up from SEK 4.1m in Q1-25, equivalent to approx. 7% Y-Y growth. At constant currency, MRR reached SEK 5.0m, corresponding to an increase of 22% Y-Y. The multi-year SUP element of the U.S. airport contract is expected to provide an incremental tailwind to the MRR base from H2-26 onwards as the engagement ramps.
Strong Gross Margin and Further OPEX Reductions
The gross margin expanded to 81.3% (66.8) in Q1-25, above our estimate of 78.4%, reflecting a higher share of recurring revenue in the mix and efficiencies on hosting services. OPEX came in at SEK 24.8m (35.2), corresponding to a 30% reduction Y-Y and 12% sequentially, confirming that the simplification programme is now broadly visible in the P&L. Personnel costs of SEK 17.6m (23.6) declined 25% Y-Y, reflecting the workforce reduction to 52 FTEs at quarter-end from 68 in Q1-25, alongside 15 consultants compared with 20. Other external charges of SEK 7.2m (11.7) declined 38% Y-Y, supported by the consolidation of R&D activities to Sweden. Both lines came in slightly favorable to Analyst Group’s estimates of SEK 19.7m and SEK 7.0m, indicating that the cost structure is tracking ahead of plan. The majority of the streamlining efforts have now materialized in the P&L, but the full effect is yet to be visible during Q2-26, providing an additional tailwind on the path toward positive adjusted EBITDA.
Adj. EBITDA improved to SEK -9.2m (-23.1), a Y-Y improvement of approx. SEK 14m in absolute terms, or approx. 60% in relative terms. The outcome fell short of Analyst Group’s estimate of SEK -5.4m, with the deviation entirely attributable to the revenue shortfall, given that OPEX came in marginally favorable. Nevertheless, Analyst Group considers the combination of 6% Y-Y top-line growth and a 30% Y-Y OPEX reduction as a clear testament to the well-executed simplification programme, through which the Company has enhanced scalability, simplified processes, and increased operational efficiency.
Liquidity Tightens Materially, Partially Offset by the Post-Period Stockhorn Facility
Total available liquidity narrowed to SEK 3.7m at quarter-end, comprising cash of SEK 1.8m and approx. SEK 1.9m remaining on the SEK 20m overdraft facility (SEK 18.1m utilized). OCF improved to SEK -4.5m from SEK -13.6m in Q1-25, supported by the OPEX reduction, while investing activities of SEK -4.4m (-2.3), primarily related to capitalized product development, brought free cash flow to SEK -9.0m (-15.8).
On April 28th, 2026, Irisity announced a new credit facility agreement with Stockhorn Capital AB of up to SEK 5m on market-based terms, bringing total available liquidity post Q-end to approx. SEK 8.7m. Analyst Group continues to view liquidity as the principal area to monitor, given that the remaining buffer leaves limited room for execution slippage ahead of the seasonally stronger H2-26 cycle, and does not rule out that further bridge measures may be required before reaching cash flow neutrality.
Concluding Remarks About the Report
In summary, Analyst Group views Q1-26 as a quarter that meaningfully reinforces the operational progress of the transformation, with multiple reinforcing dynamics materializing in parallel. OPEX declined 30% Y-Y to SEK 24.8m, with further reductions still to flow through as executed cost actions reach full-quarter effect. While net sales fell short of Analyst Group’s estimate, a better-than-expected gross margin and lower-than-expected OPEX cushioned the impact, leaving adj. EBITDA at SEK -9.2m, an absolute Y-Y improvement of approx. SEK 14m. With invoicing rising by 51% FX-adjusted to SEK 25.0m, FX-adjusted MRR reaching SEK 5.0m, and the post-quarter USD 1.0m airport contract, Analyst Group views the quarter as a structural validation of Irisity’s partner-first commercial model. Although the available liquidity of SEK 3.7m at quarter-end was strengthened by the additional SEK 5m credit facility in early Q2-26, the financial position remains under pressure. Hence, three execution variables will determine the pace of Irisity’s path to cash flow neutrality during 2026: the cash conversion of the elevated invoicing through H1-26, the materialization of the residual cost actions in the Q2-26 P&L, and the navigation of the constrained liquidity position through the seasonally weaker first half of the year.
We will return with an updated equity research report of Irisity.
