ARR growth remained solid and the FX-adjusted organic y/y growth was 21% and 20% q/q annualized. Once again, the company sees solid growth even though the environment for most retailers remain rather challenging – further strengthening management’s conviction about customers’ investing in Digital In-store for the long-run, large unaffected by short-term business cycles. Adjusted for SEK1.5m in M&A-related one-offs, EBITDA – CAPEX (Cash EBITDA) was SEK18.4m (8.8), corresponding to an adjusted EBITDA – CAPEX margin of 22.4% (9.1). Our forecast was SEK15.9m. The R12m EBITDA-CAPEX margin was 18%, compared to 5% for the previous R12m period. Combined with its ~20% organic ARR growth, Vertiseit is close to being an R40 business (for Q3 isolated, it is).

In the Q3 report, Vertiseit highlighted several ongoing larger rollouts, containing several sectors, markets, customers, and partners – including co-op and DXTA. Vertiseit has also signed several new partners in the US market. However, those are in an early stage, and management does not want to provide more information at this point. Overall, we are encouraged to see several partners in different markets and segments assisting Vertiseit in growing its customer base – just as it should be for a successful SaaS business with a partner-driven go-to-market model. Management expects to retain solid organic growth going forward.

We leave our Base Case at SEK 59 (59) following largely unchanged forecasts. Trading at 16x and 12x EBITDA – CAPEX for 2025e and 2026e, we believe Vertiseit remains an interesting case despite the ~130% YTD share price increase. This is because it combines a large global market, ~20% organic ARR growth, and a strong profitability trend.