Banqup: subscriptions up 43% over nine months, EBITDA margin target withdrawn
Banqup Group published on 12 November 2026 a business update on the first nine months of the year, showing two distinct trends. Subscription revenue rose 43.0% to €11.6 million. Total revenue from continuing operations, including revenue generated from client funds, increased 10.6% to €34.05 million.
At the same time, the Belgian group withdrew its adjusted EBITDA margin target of approximately 3% of revenue, due to the change in scope of its continuing operations. It also updated its target for year-end annualised recurring digital revenue (ARR) growth to approximately 20%.
Subscriptions account for most of the digital growth
The growth in subscriptions is reflected in the composition of digital revenue, which rose 16.3% to €31.2 million. Subscription revenue increased from €8.1 million to €11.6 million over one year, accounting for most of this increase.
The group attributes this to the growing adoption of electronic invoicing and the increasing contribution of recurring digital services. Annualised recurring digital revenue also increased: it reached €44.4 million at the end of September 2026, up 19.3% on a like-for-like basis.
According to Banqup, this ARR growth mainly reflects the momentum of the Belgian electronic invoicing market. The digital gross margin (revenue net of client funds included) rose by 0.3 points to 60.6%, while digital gross profit increased 16.9% to €18.9 million, a pace slightly higher than that of digital revenue.
Transaction revenue up 5.1%, traditional communication down 28.1%
Transaction revenue remains the largest revenue line, at €12.3 million, up 5.1%. It includes revenue generated from client funds, which rose 20.0% to €1.19 million.
The payments division reported growth in its revenue and in the volume of client funds attracted, which it links to the broadening of its commercial approach.
Other digital revenue increased 4.4% to €7.3 million. Conversely, traditional communication declined 28.1% to €2.85 million, compared with €3.97 million a year earlier, which explains why consolidated growth remains lower than that of the digital division alone.
The document management business now claims approximately 200,000 clients, following an initial wave of SME integrations on the French market. In its half-year publication of 25 August 2026, the group had cited among its opportunities the mandatory rollout of electronic invoicing in France from September 2026.
Adjusted EBITDA margin target withdrawn, ARR target around 20%
Banqup now targets ARR growth of approximately 20% by year-end, in line with current activity. This revision mainly reflects the review of character recognition services with human intervention (“Human-in-the-Loop”), which will no longer be offered in certain markets due to limited contribution margins.
Given the change in scope, the group withdrew its adjusted EBITDA margin target of approximately 3% of revenue. The Balkan entities, whose planned disposal is the subject of a separate press release published the same day, are classified as discontinued operations under IFRS 5, and the comparative figures have been restated.
Management is also pursuing its value creation plan, which aims for cost savings representing between 15% and 20% of the current cost base over the full 2027 financial year.
Chief Executive Officer Koen De Brabander described “a clear trajectory towards profitability”, with the migration of legacy platforms to the Banqup platform being, in his view, a key lever.
In its half-year publication of 25 August 2026, the group had cited among its risks net financial debt of €46.1 million as at 30 June 2026, and the increase of the PIK interest rate on its senior facility from 8.00% to 10.50%.
The growth in subscriptions is thus accompanied by a refocusing of quantified targets on ARR and cost reduction, with the adjusted EBITDA margin target having been withdrawn.
