MotorK: adjusted EBITDA margin at 13.5% over nine months despite 13.4% revenue decline
Over the first nine months of 2026, MotorK reduced its cost base by 17%. Its adjusted EBITDA margin thus increased to 13.5%, compared to 9.3% a year earlier, while its revenue declined by 13.4%. The automotive distribution software publisher also indicated it is in advanced discussions with the European Investment Bank (EIB) for debt financing that could reach 40 million euros.
This financing is conditional on a reserved capital increase of at least 3 million euros, the issue price of which could reveal a significant discount, greater than those of previous fundraisings, according to the company. The objective of break-even Cash EBITDA for 2026 has been confirmed.
Revenue down 13.4%, adjusted EBITDA at 3.6 million euros
Released on October 26, 2026, the unaudited accounts for the first nine months show revenue of 26.4 million euros, compared to 30.5 million euros a year earlier. Excluding digital marketing activity transferred to Underdogs, the decline is 8.8%, to 23.0 million euros versus 25.2 million euros. The SaaS platform, which represents the bulk of revenues, generated 21.8 million euros (-7%), while digital marketing declined by 38%, to 3.7 million euros.
Subscription indicators are also down year-over-year. CARR (committed annual recurring revenue, which includes signed contracts remaining to be delivered) stands at 32.4 million euros as of September 30, down 10%, which the company attributes mainly to the exit of historical and non-strategic contracts. ARR reaches 30.2 million euros, down 6.5% year-over-year and stable compared to June 30, 2026.
Operating profitability, however, improved. Adjusted EBITDA reaches 3.6 million euros, compared to 2.8 million euros, and Cash EBITDA comes in at -0.5 million euros, compared to -2.2 million euros over the same period in 2025, an improvement of approximately 77%.
Cost base reduced by 17% and increased use of AI agents
The EBITDA improvement is based on lower expenses. The cost base decreased from 27.7 to 22.8 million euros and headcount from approximately 326 to 274 people. Personnel costs fell by 14%, to 15.2 million euros, an effect MotorK attributes to the consolidation of its platform and productivity gains related to artificial intelligence.
The share of recurring revenues reaches 81% of revenue over nine months, compared to 78% in 2025, and 93% on an annualized basis. More than 700 customers now use at least one AI agent from the SparK platform, representing more than 25% of the customer base according to the group, starting from zero a quarter earlier. Internally, more than 230 agents operate each day, and in September, the Software Factory recorded 4.3 minutes of agent work for every minute worked by developers.
"Revenue reflects the transfer to Underdogs and the exit from non-strategic activities, but the cost discipline underlying our EBITDA gains is structural," said Zoltán Gelencsér, interim chief executive officer. By region, Italy remains the leading market with 18.0 million euros (-12%), France remained nearly stable (-2%), and Benelux declined by 48%.
End of CARR guidance, break-even Cash EBITDA targeted for 2026
Management justified the discontinuation of CARR guidance by two factors. Free trials offered on AI agents drive usage growth faster than committed revenue, which should make CARR more volatile from quarter to quarter during the transition. Furthermore, the signing of certain large-scale contracts will not occur in the fourth quarter of 2026, with some of these opportunities remaining in the sales pipeline for 2027.
MotorK indicated it will now prioritize adoption and usage indicators for AI agents, as well as Cash EBITDA, and intends to review its medium-term financial objectives. As of September 30, its qualified opportunity pipeline stood at 10.4 million euros, of which 7.2 million euros from large accounts and 3.2 million euros from distribution.
The envelope under discussion with the EIB is structured in three tranches and intended for R&D, AI product development, as well as sales and marketing. The board of directors will set the price of the reserved capital increase based on market conditions; it estimates that dilution remains modest in light of the release of a first tranche of 10 million euros. The group confirmed it targets break-even Cash EBITDA for 2026, following -0.5 million euros over the first nine months.
