Lectra: Revenue Down 11% in Q1, but SaaS Grows by 14%
In the first quarter of 2026, Lectra recorded an 11% decline in revenue on a like-for-like basis, impacted by a tense geopolitical and commercial context and a drop in equipment sales. Concurrently, its recurring business is accelerating with SaaS subscriptions growing by 14%, while the accumulation of equipment orders indicates a significant rebound in the second quarter.
Revenue Decline, SaaS Activity Accelerating
Revenue for the first quarter of 2026 amounted to 113.2 million euros, down 11% on a like-for-like basis. This contraction primarily stems from the non-recurring segment, which fell by 44% due to lower equipment sales. In contrast, recurring revenue grew by 1%, driven by a 4% increase in recurring contracts and particularly by SaaS subscriptions, which advanced by 14%. The ARR (Annual Recurring Revenue) stood at 100.6 million euros as of March 31, 2026, up 3% from December 31, 2025, corresponding to an annualized rate of 12%.
Operating Margin Contracted but Balance Sheet Remains Strong
Current EBITDA reached 12.1 million euros in Q1 2026, down 31%. The current EBITDA margin was at 10.6%, down 340 basis points on a like-for-like basis compared to Q1 2025. Current operating income fell to 2.3 million euros (compared to 10.3 million in Q1 2025), while net income amounted to 0.5 million euros (compared to 5.8 million in Q1 2025). Free cash flow amounted to 8.9 million euros in the first quarter of 2026, compared to 17.7 million euros a year earlier. On the balance sheet side, the Group has equity of 365.6 million euros and net debt of 24.4 million euros as of March 31, 2026.
Sequential Rebound in Orders, 2026-2028 Guidance Confirmed
Equipment orders rose to 22.1 million euros in Q1 2026, up 11% compared to Q4 2025, driven by improvements in the automotive sector in Asia-Pacific. On a year-over-year basis, they fell by 21% on a like-for-like basis due to a high comparison base in Q1 2025, particularly in fashion and Asia-Pacific before the announcement of US tariffs. The equipment order book reached 24.6 million euros as of March 31, 2026, with about 80% expected to be delivered in Q2. This accumulation allows for the anticipation of a significant sequential rebound in equipment revenue in the second quarter. Lectra confirms its strategic roadmap for 2026-2028 with a target of increasing the current EBITDA margin by 120 to 180 basis points per year on a like-for-like basis, assuming that equipment orders and consumables revenue remain stable excluding inflation.
