Xplora Technologies: Half a billion in revenue and strong margins - Nordea

Xplora's gross profit came in stronger than expected at NOK 263m, 4% higher than consensus, driven by better product mix. The topline came in NOK 510m, slightly softer than expected driven lower sell-in in the kids segment, while Xplora reported highest sell-out quarter, indicating pent-up demand for smartwatches. Subscription revenue came in line with our estimates, while the senior segment came in 5% stronger. The Adj. EBITDA came in stronger than expected at NOK 77m, driven by a higher gross profit beat. In connection with the CMD, Xplora launched a new product road map, where they will expand into Kids feature phones, and will introduce premium devices into their existing verticals. They also want to expand their geographical footprint, and aims to add 4-5 MVNO over the next five years from existing 9. Xplora will continue to roll-out connectivity to seniors and aims to roll-out in retail during H1 2026 (our expectations during 2026). We expect consensus to make positive revision on the back of high margins and record high quarterly sell-out of smartwatches.