Qualco H1 revenue rises 14% on bigger backlog

That backlog matters because Qualco is not just selling software on a one-off basis. Its mix is increasingly weighted toward platform and recurring-type services, which tend to produce better revenue durability than pure project work. Platform as a Service rose 18% to 56.2 million euros and accounted for 53% of revenue, suggesting the group is building a more scalable model. International revenue also accelerated 24% to 32.1 million euros, or 32% of sales, up from 25.9 million euros a year earlier, reducing reliance on the domestic market and broadening the addressable base.

The margin picture was less strong. Adjusted EBITDA margin slipped to 13.2% from 14.7% in the first half, showing that growth is still coming with some cost and investment pressure. Over the last 12 months, revenue reached 228.2 million euros and adjusted EBITDA 43.6 million euros, but the EBITDA margin eased to 19.1% from 21.1%. For investors, that is the key tension in the story: the company is expanding fast and converting more of its business abroad, but profitability is not yet keeping pace with top-line growth.

Management appears willing to trade some near-term margin for scale. Qualco said 80% of the capital raised in its public offering had already been deployed by June 30, earlier than planned, largely into acquisitions, platforms and working capital. It expects revenue growth of about 15% for 2026 and an EBITDA margin near 20%, rising to 22% in 2027, with leverage below 1.0 times and international revenue above 40% by 2028.

The balance sheet and funding profile remain relevant. Cash fell to 21 million euros from 55.1 million euros at the start of the year, while total debt declined to 67 million euros from 73 million euros. Net debt, excluding SCI and leases, stood at 1.3 times trailing adjusted EBITDA, with management targeting around 1.0 times by year-end. That suggests the company still has room to fund growth, but not unlimited flexibility if execution slows or acquisition spending accelerates again.

The strategic thesis is straightforward: Qualco is trying to evolve from a domestically anchored tech group into a broader international platforms business with recurring revenue, regulatory and financial-services exposure, and a heavier backlog to underpin valuation. Its wins in the Middle East, selection under the European Commission’s DIGIT TM III framework and new work in real estate digitisation and embedded finance all point in that direction.

For investors, the question is whether the growth story can keep outpacing the compression in margins. If management delivers on the path to 22% EBITDA margin and a lower leverage profile, the backlog and international mix could justify a rerating. If margins remain stuck while cash is absorbed by expansion, the market will likely focus more on execution risk than on the headline revenue growth.