Translation: Original published in Finnish on 11/5/2026 at 7:20 am EET.

Source: Inderes

Reaktor will publish its Q3 report on Wednesday, November 11, and the company’s results presentation can be followed here at 11:00 am EET (in Finnish). We expect the company to continue on a stable growth path with "normal" profitability without significant support from license revenue. We estimate that the Technology Solutions business is generating stable and solid earnings. The Software Product business is growing but is still in the investment phase. In addition to the result, we are particularly focused on the outlook for the new Software Product business and management’s comments on developments in the IT services market demand environment. We recently published an initiation of coverage report on the company, which can be read here.

We expect stable revenue growth

We estimate Reaktor's Q3 revenue to have grown by 7%, settling at 29 MEUR (Q3'25: 27 MEUR). We estimate that growth will be driven by recurring service revenue (1.8 MEUR) generated from Software Product business license deals in the early part of the year. The company has previously stated that it does not expect a significant increase in licensing revenue in the second half of the year, so we do not anticipate any new licenses being recorded in Q3. Our cautious estimate is that the revenue of the larger, more stable Technology Solutions business will be in line with the comparison period at 27.3 MEUR. Additionally, we are monitoring the development of headcount as the company has stated that it is also investing in its operations organically and, on the other hand, the listing may have caused turnover in the organization.

A 'normal' quarter expected for profitability

We expect Q3 adjusted EBIT to be 2.0 MEUR, which translates to an EBIT margin of 6.8%. We do not have more detailed comparative data for the earnings lines (only Q1, Q2, and H2 2025). Earnings are driven by the Technology Solutions business. In the big picture, we understand that the Software Product business is in an investment phase, and without licensing revenue, we estimate that it will be unprofitable at the currently projected level. Reaktor has very strong pricing power in the sector, which we believe will support profitability, even in a challenging market environment. According to our estimate, the reported result continues to be impacted by a one-time item related to the IPO of approximately 0.5 MEUR. In addition, we estimate the Q3 result of associated companies to be 0.7 MEUR. However, earnings from associated companies can vary significantly from quarter to quarter due to factors such as changes in value. This item should primarily be examined on an annual basis, as its cash-flow-based result is approximately 3 MEUR in our forecasts. As a result, we expect EPS to land at EUR 0.07.

Particular focus in the coming years on progress in Software Product

Reaktor does not publish a short-term outlook. The company's IPO prospectus stated that Reaktor expected revenue to grow in 2026, but no profitability estimate was provided. We expect the guidance to remain unchanged. Our full-year estimate expects 15% revenue growth (135 MEUR) and an adjusted EBIT of 17.2 MEUR.

In the report, we are particularly interested in the Software Product's development and the sales pipeline. During the strategy period, the company's value creation will rely heavily on scaling this high-margin unit, especially the Defence & Security products. In addition, we are monitoring management’s comments on the overall demand situation in the IT services market, looking for stronger signals of a market recovery, for which we have already seen cautious indications from the sector this year. The company raised funds through its initial public offering for purposes including acquisitions, so we are interested in any comments regarding plans for inorganic growth. However, we do not expect to receive any new information on this at this stage.