Equity research White Pearl Technology Group: A growth and profitability engine at a discount

For the full year 2025, White Pearl delivered robust revenue growth of 65%, accompanied by a strong EBITDA margin of 16.9%. The business model is well-positioned for the future, with its revenue mix shifting towards higher-margin IP-protected solutions and recurring income streams, while its presence across the Nordic region continues to expand. Given the performance and outlook, we regard the current discount as fundamentally unwarranted.

Robust growth and margins underpinned by favourable revenue mix

White Pearl Technology Group (“WPTG” or “the Company”) delivered full-year 2025 revenue of SEK 511m, a robust 65% increase YoY. EBITDA rose by an impressive 72% to SEK 86.3m, corresponding to a margin of 16.9%, whilst EPS grew 193% to SEK 2.44 despite a one-off impairment charge of SEK 12.2m. CFO increased 336% to SEK 70.0m, underscoring the quality of earnings growth across the period. 70% of revenue growth came from acquisitions, while 68% of profit growth was organic, signalling that the core business is scaling efficiently independent of M&A.

In line with the Company’s strategy, the European footprint has expanded meaningfully, with regional revenues rising to ~29% of group sales in 2025, up from 22% in Q3 2025. Encouragingly, this European expansion has not come at the expense of emerging-market growth; rather, it represents an additional layer of revenue, enhancing geographical diversification and thereby reducing risk. Equally significant is the continued shift towards higher-margin activities. Software, Platforms & IP and Managed & Recurring Services together accounted for 58% of revenue in 2025 (19% and 39%, respectively), a six-percentage-point increase compared with 2023. This favourable mix shift supports improved profitability and more stable, contractual revenue streams.

Solid outlook confirmed by management confidence

During the past quarter, The Company has raised its FY 2026 revenue guidance to “exceed SEK 620m,” up from the prior target of SEK 570m, citing organic momentum and full-year contributions from recent acquisitions, alongside expectations of continued EBITDA margin expansion. The raise aligns with our forecast and free cash flow should continue to scale, providing more capacity for reinvestment and shareholder returns.

Undeserved valuation discount

The share currently trades at a P/E NTM of 5.5x, representing a ~55% discount to Nordic peers. Given the solid performance and outlook in combination with the shift in geographical revenue distribution in favour of developed markets, we update our fair value of SEK 29.9 per share (26.6), implying a P/E NTM of 9.9x and a ~20% discount to the Nordic reference group. In our bull case, we arrive at a value of SEK 37.5 per share, implying a P/E NTM of 12.3x, more in line with the Nordic peers.

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