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Third party research

Generic: Margin expansion driven by SaaS - ABG

Generic Sweden

This is a third party research report and does not necessarily reflect our views or values

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* Sales +3% and adj. EBITA +14% vs ABGSCe* DOCS adoption >24% of municipalities* Consensus adj. EBIT likely up mid single-digits
Q3'25 details
Generic reports Q3'25 sales of SEK 45m (+3% vs. ABGSCe 44m), supported by new contracts and an improved product mix. Gross profit came in at SEK 20m, a 15% y-o-y growth, corresponding to a gross margin of 45% (41% Q3'24), driven by a higher share of SaaS sales. Reported adj. EBITA came in at SEK 11m (+14% vs. ABGSCe 9m), reaching a margin of 24% (21% Q3'24), supported by good cost control and the increasing contribution form SaaS.
DOCS penetration continues to grow
DOCS continues to be a key growth driver for Generic, now reaching penetration of ~24% of Sweden's municipalities, as well as several regions and organisations within healthcare. We also see further potential for upselling, within e.g. SenderID, which should continue to support gross margin expansion. Regarding RCS, we believe a full rollout could occur next year, as we wait for Apple to launch in Nothern Europe. In the meantime, Generic is encouraging customers to start implementing RCS messaging already.
Estimate revisions
Looking ahead, we expect continued growth in SaaS products and increased upselling to further increase gross margins. Based on our initial impression of the report, we expect consensus adj. EBIT to come up mid single-digits.
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