Equity research WPTG Q3 2026: Integration phase sets up for improved cash flow

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White Pearl delivered record Q3 net sales of SEK 179m, 4% below our estimate, while EBITDA of SEK 31m came in line. Higher amortisation left EBIT short of our forecast, but operating cash flow of SEK 39m marks a clear turn after a weak H1. We trim our estimates somewhat but continue to see a robust growth outlook and maintain an almost-intact base-case valuation.

Record sales and a cash rebound, with amortisation weighing on EBIT

Net sales rose 36.5% y/y to SEK 179.1m, 4% below our SEK 186.3m estimate. Acquisitions, including Aixia, contributed materially, and the organic split was reported as a solid 16.5%.. AI & Platforms rose to 27% of Q3 sales (20% in Q1), Recurring Services made up 38% of nine-month sales and Europe reached 37.4% of Q3 sales (31.1% in H1).

Gross profit of SEK 63.7m (36% margin) trailed our SEK 68.2m forecast, but lower-than-expected OPEX kept EBITDA at SEK 31.3m against our SEK 31.8m, a 17% margin. EBIT of SEK 22.0m was 30% below our SEK 31.4m. D&A rose to c. SEK 9.3m as amortisation of capitalised platforms began in Q3, as management flagged in August. EPS was SEK 0.56 (0.74E). Operating cash flow of SEK 38.6m equalled 124% of EBITDA.

Aixia integrated as the focus shifts from deal-making to execution

Completion of the Aixia offer, with 96.43% of shares tendered, was the defining event of the quarter, and Aixia is now organisationally integrated. Its AI infrastructure capability is already converting into orders, following the large USD27m data centre order announced in September.  Since quarter-end, Aixia has announced contracts of SEK 45m (19 October) and SEK 35m (2 November) plus several smaller ones, while Omnitell Tech won a SEK 15m AI software contract with a South African government entity in September. The ServIT and GVO Media Group bolt-ons were also added. Subsequently, management’s tone has shifted from expansion to discipline, with a focus on integration, cross-selling, and cash conversion.

Lower near-term estimates, but the discount remains too wide

We lower our 2026E net sales by 6% to SEK 734m, reflecting the relocation of some Aixia revenue previously forecast for this year into 2027 and beyond. The softer gross profit and higher amortisation seen in Q3 also affect our FY EBIT forecast. For 2027E and 2028E, EBIT falls by 4% and 5% and EPS by 7%, to SEK 3.49 and SEK 3.94. EBITDA is cut by only 2–3% across the period, so the operating case is intact. We expect strong Q4 2026E sales boosted by acquisitions and order intake. We leave our fair value basically unchanged at SEK 32.9 per share (33.4) underpinned by peer valuation.  This equals 9.4x our 2027E EPS and remains below the Nordic peer P/E NTM of ~11x. In our view, delivery on integration and cash conversion could help close that gap.

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