Equity research WPTG, Q1 2026: Platform momentum builds on all fronts

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White Pearl delivered a solid Q1 revenue growth, with an estimated organic growth of ~26%. EBITDA was reported at SEK 23.4m, corresponding to a strong margin of 16.3%. Management has, encouragingly, raised the full-year 2026 revenue target. Whilst the operational momentum is clear, the share continues to trade at a discount.

Revenue up 45% with Europe emerging as a growth engine

With sales data for the quarter in place ahead of the report, net sales of SEK 143.7m came in broadly in line with our estimate. The growth rate YoY landed at a solid 45%, whilst we estimate the organic growth to ~26%.  Europe accounted for over 25% of sales, up from 18% in H1 2025, underscoring the continued progress in building out the international revenue base. Gross profit of SEK 51.2m translated into a 36% margin, ahead of our 34% forecast, reflecting a more favourable revenue mix than we had anticipated.

EBITDA grew 48% YoY to SEK 23.4m, corresponding to a margin of 16.3%, against our estimate of SEK 24.3m. The modest shortfall reflects somewhat higher OPEX than anticipated, which absorbed the upside in the gross profit beat. EPS of SEK 0.71 came in 3% ahead of our SEK 0.69 estimate. Cash flow from operations was SEK -11.1m, weighed down by working capital movements, though we expect this to reverse in Q2. The cash balance stood at SEK 49.6m at the end of March.

Acquisitions accelerate and a raised revenue target

Organic growth proves the platform-model, while the M&A activity is high. On the back of this, management raised the 2026 revenue forecast to above SEK 620m, an 8.4% upward revision. Four acquisitions from Spotr Group were completed, adding Nordic software, cloud, and consulting capabilities. Post-period, WPTG acquired another Swedish company and the Bulgarian agencies CreateX and Native Digital, strengthening the European footprint. The pipeline remains active with LOIs for ServIT AB, Saltycustoms in Southeast Asia, GVO Media Group AB, Profit Solutions Sweden AB, and Guerilla Tactical Services in South Africa.

Lower multiples trim fair value despite solid fundamentals

We make only marginal adjustments to our estimates following Q1. Revenue forecasts are nudged up by an average of 0.3% across 2026-28E, whilst gross profit estimates are lifted by an average of 6.3%. EBITDA and EBIT estimates are broadly unchanged. Our revised fair value of SEK 29.0 per share (previously SEK 30.2), on a six-month horizon, is driven by softer EV valuation multiples in the broader market rather than any deterioration in the underlying business. At current levels, WPTG trades at a P/E NTM of 6.3x, a material discount to Nordic IT peers of ~54%. We consider this gap unwarranted as the platform model has demonstrated its ability to consistently generate organic growth at solid margins creating a credible outlook.

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