Carasent AB (publ) (FRA:E0C) Full Year 2025 Earnings Call Highlights: Strong Growth and …

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Thu, February 12, 2026 at 10:00 PM GMT+9 4 min read

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Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Carasent AB (publ) (FRA:E0C) reported a strong quarter with a 15% organic ARR growth and a 16% reported organic growth.

The company achieved a significant improvement in profitability, with an EBITDA margin of 25% and an EBIT margin of 16%, up from 5% last year.

Carasent AB (publ) (FRA:E0C) has a high percentage of recurring revenues, over 90%, with a net revenue retention rate of 110%.

The successful implementation of Volvat in Norway, which involved transferring over 5 million medical records, contributed to high consultancy revenue.

The company is investing in AI to enhance product development and improve productivity, aiming to add more AI functionality to their products.

Negative Points

The growth in Germany is expected to be low this year due to the slow rollout of new products from a small base.

The company faces challenges in convincing healthcare providers to switch from legacy systems, which are deeply integrated and difficult to replace.

There is a high churn rate due to non-voluntary churns such as bankruptcies, although it has normalized in the latter half of 2025.

The adoption of AI tools among customers is slow, with less than 10% currently using AI functionalities.

The company experienced a weak working capital development in 2025 due to delayed payments from a large customer and high consulting revenues occurring late in the year.

Q & A Highlights

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Q: Have you seen any impact on your ability to approach primary caregivers in Vesttrataland Regunan due to their decision to go for a modular solution? A: Good morning, Frederick. We are actively targeting primary caregivers in the region. While they are not quick to make decisions, we are having productive discussions and have gained a few customers. The public primary care could also become a potential opportunity if they proceed with a modular approach, but this will take time. Historically, similar implementations have taken several years, so we expect the situation to remain for 7 to 8 years.

Q: You mentioned changing from Loma to OpenAI. When did this happen, and what impact has it had on gross margins and pricing? A: The transition took some time as we needed to ensure data retention in Europe. We went live with OpenAI last week, and initial feedback from pilots indicates we are now on par with competitors. We paused sales of Medsum until we achieved the desired quality, but we will now resume pushing sales.

Story Continues  

Q: What magnitude of increases are you planning for your sales organizations in Sweden and Germany? A: We have expanded our sales team for our main product, Webdoc, from 4 to 7 people. We’ve introduced customer success managers responsible for upselling, while the sales team focuses on leads and new customers. This change has been effective, and we are seeing positive results.

Q: Are you seeing any meaningful contributions to ARR from the surgery module in the near term? A: The surgery module is still in development, but we expect to wind down development in a couple of months. It has been good enough to sell for over half a year, and we are in discussions with potential large customers. The module’s main importance is to win new and large customers, which will help our growth.

Q: How should we view AI-related risks within your vertical, given recent debates across the Atlantic? A: Our position is strong, and we compete with legacy systems that are 20 to 30 years old. Our challenge is to get customers to adopt new functionalities. There are many legal requirements, and our customers are generally risk-averse. We focus on continuous development to improve our products and maintain our competitive edge.

Q: Has the Medsum soft launch helped on the revenue side, or is it still in pilot phase? A: Medsum is still in the pilot phase, and we have not yet seen significant revenue impact. We are investing more in AI development, and while costs may increase, we aim to become more efficient and focus on areas that provide the most value to our customers.

Q: How should we think about overall OpEx in 2026 with increased sales and marketing efforts in Germany? A: We plan to add some roles in the German sales and marketing team, but in the Nordics, we will maintain similar staff levels. Overall, we aim to keep costs stable while allowing a large part of our growth to fall to the bottom line.

Q: Are you following the original time plan in Germany for pilots, commercial launch, and sales expectations? A: We are slightly behind the original time plan due to complexities in development, but we are in a good place with high development pace. The product looks great, and we are working towards having paying customers in Germany within the year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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