Growth in Digital Technologies and Identity & Payment solutions reinforces the strategic agenda set out at FY2025 results
AUSTRIACARD HOLDINGS AG (ACAG), the international applied technology group headquartered in Vienna, announces its Q1 2026 financial results.
▪ Group Revenues of €89.4m (8% increase vs. Q1 2025), driven by solid growth in both Digital Technologies (+83% vs. Q1 2025) and Identity & Payment solutions (+7% vs. Q1 2025). All 3 geographic segments registered revenue growth vs. Q1 2025, with the WEST segment the clear outperformer.
▪ Digital Technologies (+83% vs. Q1 2025), supported by the accelerated implementation of large-scale, public sector digitization projects in Greece (€6m revenue contribution vs. Q1 2025). Identity & Payment solutions (+7% vs. Q1 2025) anchored by strong growth from Fintech clients in the WEST segment as well as by the business development strategy for Identity solutions in the MEA segment.
▪ EBITDA of €11.5m (11% increase vs. Q1 2025), supported by revenue growth and a favourable revenue mix with growing contribution from higher-margin services and solutions. Group EBITDA margin widened by 30bps vs. Q1 2025 to 12.9%.
▪ Net Profit of €4.1m (61% increase vs. Q1 2025), on the back of EBIT growth (+18% vs. Q1 2025) and declining interest expenses (-11% vs. Q1 2025), as we continue to deleverage the Group’s Balance Sheet (loans and borrowings declined by 2% vs. 31/12/2025).
▪ Operating Cash Flow of €7.5m outflow in Q1 2026 was adversely impacted by a seasonal build-up in working capital, predominantly attributed to project billing timing (the accelerated implementation of contracted Greek public sector digitization projects, which are invoiced upon project completion) and legacy contractual purchasing obligations with key suppliers. Hence, this temporary worsening of the operating cash flow generation is not at all attributed to a structural weakening in the underlying working capital management. Management anticipates a normalization of the working capital requirements and an improvement in operating cash flow generation in H2 2026, driven by the gradual contract assets conversion into billings and cash collection as well as by the anticipated positive results from last year’s renegotiation of the Group’s contractual purchasing obligations with its main chip suppliers.
▪ Group Leverage (Net Debt / EBITDA) (1.9x), vs. 1.7x in FY2025, maintained at healthy levels and within our medium-term target range of 1.5x-2x. Group Net Debt of €94.5m (vs. €81.6m in FY2025), with the aforesaid temporary working capital-related cash utilization more than offsetting the continued deleveraging.
▪ 2026 Outlook: Q1 2026 performance is consistent with and supportive of the Management FY2026 targets previously communicated (FY2025 Results Press Release). The strong year-on-year growth in Digital Technologies and Identity & Payment solutions, combined with Group EBITDA margin expansion in the quarter, reinforces Management’s confidence in targeting high-single digit Group Revenue growth and further EBITDA margin expansion for the full year, notwithstanding the fragile macroeconomic and geopolitical environment.
Manolis Kontos, Chairman of the Management Board and Group CEO, commented:
“Q1 2026 confirms that the strategic choices we have made are delivering results. Our Digital Technologies business is scaling at pace, our Payment and Identity solutions continue to gain ground in competitive markets, and the geographic diversification of our revenue base is proving its resilience. Across our core and emerging markets — namely Greece, the US and UK and MEA — the commercial momentum we are building gives us confidence in the trajectory for the remainder of 2026.
We are also seeing early proof that our strategic adjacencies are not theoretical. GaiaB™ Appliance has secured its first contracted international deployment. The Cartes Bancaires technical approval process in France is actively underway, opening access to one of Europe’s largest payment card markets. Our SAMA mada certification has made Saudi Arabia accessible. These are markets where we were not present, or not certified, twelve months ago, and their progressive opening reinforces the deliberate geographic and product diversification at the heart of our strategy.
The working capital build in Q1 reflects project execution timing and supplier payment phasing temporarily, anticipated, and resolving through the second half of 2026. As contracted Greek public sector digitization projects reach completion milestones in H2 2026, contract assets will convert into billings and cash collection, while the renegotiated supplier terms we secured last year — reduced purchase commitments and improved pricing — begin delivering their full financial benefit from the second half of 2026 onwards. With Group leverage at 1.9x comfortably within our 1.5x–2.0x target range, and both drivers of normalization firmly within our control, we expect operating cash flow to strengthen materially as the year progresses.
At our FY2025 results, we committed to continue evolving AUSTRIACARD into an end-to-end applied technology group — deepening our Digital Technologies capabilities, advancing our AI solutions and expanding into new geographies. Our commitment to building trust through digital growth has never been stronger.”
