Equity research White Pearl Technology Group, Q3 2025: Strong momentum supports aspirational targets

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White Pearl reported a 52% growth in Q3 2025, in line with expectations, driven by strong demand in emerging markets and the rollout of proprietary technology. However, margins also increased impressively, contrary to our forecast. This underlines solid profitability potential, supporting the company’s financial targets. We raise our estimates and valuation.

Solid growth in emerging markets and product platforms

White Pearl’s revenue increased by 52 per cent in Q3 2025 to SEK 131m (86), in line with the communication in the preannouncement on 28 September. The top-line was boosted by the acquisitions of e.g., Lumin4ry and Nuport in Sweden, however, we estimate organic growth of 20+ per cent in the period in local currencies. Drivers include the Systems Integration and Digital and Emerging Technologies segments. Africa was the strongest region, increasing to over 50 per cent of sales. White Pearl is benefiting from its collaborations and alliances in the region, as well as strong momentum for its proprietary products, notably the NEXUS AI platform for managing municipal revenue.

The company also reiterates its financial targets from the September preannouncement. This includes a projection to exceed the previous (from the Q2 2025 report) FY 2025 revenue target of SEK 470m by 5-10 per cent. The target implies at least similar growth in the current quarter compared to Q3, and White Pearl expects stronger seasonality in the Nordic operations to contribute positively.

Profitability uptick suggests better scalability than we had anticipated

Reported EBITDA increased 81% to SEK 29m in Q3, 2025, corresponding to a margin of 21.8%. Our forecast was SEK 18m, equivalent to a margin of 13.7%. The main deviation from our forecast was lower OPEX than expected. We are encouraged by the strong profitability, which is partly attributed to the favourable segment and geographic mix in the quarter. While we are cautious about extrapolating this level of margin, the outcome nevertheless suggests that the company is well on track to achieve its profitability targets.

We raise the valuation based on profitable expansion ahead of targets

Following the recent preannouncement, the confirmed higher profitability in the Q3 2025 report, and M&A activity in recent months, we raise our estimates for sales and EBITDA by approximately 10% and 25% for 2025-2027, respectively, compared to our initial report in August. Hence, we assume double-digit organic growth at a higher EBITDA margin (17+ per cent) than most Nordic peers.  At the same time, we have also assumed higher R&D investments to drive growth in the subsidiaries, affecting our DCF-valuation somewhat. Despite the continued strong share performance following the recent positive news flow, the White Pearl share is trading at an EV/EBIT NTM multiple of 7.3x and P/E NTM of 9.3x, versus the Nordic reference group medians of 9.9x and 12.2x, respectively.  Our fair value translates to a discount of 17-19% compared to Nordic Peers in terms of EV/EBIT and P/E NTM. A narrower gap is reasonable, considering White Pearl’s strong operating performance in 2025 and its recent expansion into the Nordics.

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