Pexip Hldg Asa (PXPHF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, and welcome to this presentation of PECSIP's first quarter results. My name is Trond Johansson, and I'm the CEO. Together with me here at Lysakir, I have Øystein Hamm, our CFO, and Osmund Fodsla, our Chief Revenue Officer. Together, we will take you through the highlights of the quarter and our current focus. The standard disclaimers apply as usual. First, a brief overview of PECSIP for those new to the company. TechSIP was founded in 2012 and currently we operate in 25 markets across the globe. We are a specialist video conferencing and infrastructure company focusing on interoperability and secure and custom meetings. We do software only, delivered as software or software delivered as a service. TechSIP has unique and established partnerships with the leading companies in our industry. We complement and enhance their solutions and do not generally compete with them. Our customers are mainly large organizations, both in the public and private sectors, that have complex needs when it comes to video collaboration. The financial performance has been strong and has also been continuously improving over the last quarters. Now to the highlights of the past quarter. Our annual recurring revenues grew with $4 million during the quarter, and this gives us an ARR base of $135 million leading Q1. In Q1, we had continued strong growth in our secure and custom business area with new ARR of $2.9 million. $1.3 million of this growth came from defense, which is a core segment to Pexit. In connected spaces, we had solid progress with our solutions for native rooms. This means Teams rooms, Zoom rooms, and Google rooms. And this was the main growth driver in this business area. EBITDA came in at $18.7 million, which corresponds to a 46% margin in the quarter. Free cash f...