Lectra: Revenue Down 8% in H1, but Margin Rebounds in Q2

Sharp Q2 Turnaround: EBITDA and Profitability Regain Traction

In the second quarter of 2026, Lectra recorded revenue of €126.5 million, stable on a reported basis and up 1% on a comparable basis. This stability masks two distinct trends: recurring revenue grew 3% on a comparable basis, while non-recurring revenue declined 6%. SaaS activity advanced 14% on a comparable basis over the half-year.

Current EBITDA stood at €21.6 million, up 12% on a reported basis and 15% on a comparable basis, bringing the current EBITDA margin to 17.1%. This margin improved by 1.9 percentage points on a reported basis and 2.1 percentage points on a comparable basis compared to Q2 2025 (15.2%). Current operating profit reached €11.8 million (+37% on a comparable basis), and net profit surged to €9.2 million versus €5.3 million in Q2 2025 (+73%).

This improvement in both volume and margin reflects the structural enhancement of Lectra's business model: recurring revenues are growing and costs are tightly controlled.

In H1, Recurring Revenues Advance Despite Equipment Weakness

Broadened to the first half, the picture is more nuanced. Revenue for the period stood at €239.6 million, down 8% on a reported basis and 6% on a comparable basis, due to the decline in non-recurring activities (equipment). On this basis, recurring revenue, which now represents 79% of the total, reached €190.0 million, up 2% on a comparable basis.

Cumulative SaaS revenue for the half-year reached €48.5 million (+14% on a comparable basis), and ARR (Annual Recurring Revenue) advanced 5% on a comparable basis to €102.6 million as of June 30, 2026. Current EBITDA for the half-year stood at €33.7 million, down 17% on a reported basis and 9% on a comparable basis, with a current EBITDA margin of 14.0% down 1.4 percentage points on a reported basis and 0.6 percentage point on a comparable basis.

This decline is more limited on a comparable basis (-0.6 percentage point) than on a reported basis (-1.4 percentage points), with the difference attributable to currency and scope effects. Net profit for the half-year declined to €9.7 million versus €11.1 million in H1 2025 (-13%), but free cash flow remained solid at €24.5 million, supported by active working capital management which stood at -€61.5 million (negative, thus generating liquidity).

2026-2028 Guidance Reiterated: SaaS Growth Expected, Equipment at Play

Facing results that improved in the second quarter following a weaker first quarter, Lectra fully confirmed its strategic ambitions for the 2026-2028 period, announced on February 11, 2026. The group targets average annual SaaS ARR growth of approximately 15% on a comparable basis and recurring revenue growth between +5% and +8% per year, supported by operational discipline.

In this context, the group targets an increase in current EBITDA margin of 120 to 180 basis points per year on a comparable basis, and a security ratio that should progress from 94% in 2025 to above 100% in 2028. This guidance is based on the assumption that equipment orders and consumables revenue would remain stable, excluding inflation. Lectra notes, however, that any rebound in equipment sales, whose timing and scale remain uncertain, would represent additional potential for revenue and current EBITDA growth.

The strength of the group's financial structure (equity of €340.4 million, net debt of €64.3 million as of June 30, 2026) enables it to continue executing its investments and strengthening its SaaS base. In the first half, the group paid out the second tranche of the acquisition of TextileGenesis minority interests (€19.5 million) and the third tranche of Launchmetrics (€22.6 million), paid a dividend for 2025 (€13.3 million) and launched a share buyback program (€13.6 million).