Weak top line, but strong cost control - Q3 initial take

We regard Net Insight’s Q3 results as a confirmation of a continuous challenging market, where new product launches have not yet yielded financial results, but seemingly an initial positive customer response and interest. At the same time, the company appears disciplined on the cost side, leaving losses limited and reaching our forecast despite a lower top line. Key ahead will be to turn customer interest into actual orders, we believe.

Overall impression. Net Insight’s Q3 results were weaker than expected on the top line – the organic decline amounted to 30% Y/Y, where we expected a 20% decline. Both Media and Time Sync units came in below our forecasts. By region, mainly EMEA fell short of our expectation. A stronger gross margin related to a higher share of software in the revenue mix combined with cost discipline left the losses on EBIT at SEK5m, in line with our forecast.

Q3 report in more detail. Sales of SEK104m were 12% below our forecast, implying 30% Y/Y organic growth (-36% in Q2 and +5% in Q1). By division, Media sales were SEK92m (we expected SEK103m), and Time Sync sales SEK12m (SEK15m). The gross margin ex. R&D amortisation was 74%, versus our 67% forecast. EBIT was SEK-5m (we estimated a loss of SEK5m). Cash flow was negative due to the EBIT loss.

Some small signs of increased customer activity. CEO Anders Eriksson acknowledged Q3 being weak. Still, there is a sense of optimism from the customer interactions made in the quarter where customers demand IP/Cloud based products and where existing customers have started to use the newly launched products. Comparisons will be easier ahead, but to turn to growth, the company needs to improve its ability to turn customer interest into actual orders, we believe.

Conference call at 09:00 CET. To participate, please register by using this link: Net Insight Q3 Report 2026.