TextMagic AS 2026 6 months consolidated unaudited interim report

The priority for 2026 is to improve cash flow and increase profitability by focusing on revenue growth and cost efficiency. In the first half of the year, revenue returned to growth and cash flow indicators improved compared with the same period in 2025.

TextMagic Group’s revenue amounted to €6,849 thousand in the first half of 2026, increasing by 1% compared with the first half of 2025 (H1 2025: €6,804 thousand). Revenue is affected by fluctuations in the exchange rates of the US dollar and the British pound. Had exchange rates remained at their 2025 levels, revenue for the first half of 2026 would have amounted to €7,154 thousand, representing growth of 5%.

The Group recorded an operating loss of €756 thousand (H1 2025: operating profit of €32 thousand). The result was mainly affected by an increase of €377 thousand in depreciation, amortization and impairment expenses to €2,855 thousand (H1 2025: €2,478 thousand), which had no cash impact during the reporting period. Direct costs also increased by €313 thousand to €2,823 thousand (H1 2025: €2,510 thousand) due to higher input prices and changes in the customer segments.

In 2025, the team was significantly reduced, resulting in a decrease in personnel expenses to €1,590 thousand in the first half of 2026 (H1 2025: €2,330 thousand). The impact on profit indicators was more limited, as the Group focused on smaller enhancements and improvements to existing solutions rather than major development projects in 2026, resulting in a lower capitalization rate for development costs. In the first half of 2026, capitalised development costs amounted to €355 thousand (H1 2025: €1,173 thousand).

Management primarily assesses the Group’s performance based on EBITDA and its ability to generate operating cash flow. EBITDA amounted to €2,099 thousand (H1 2025: €2,510 thousand), with an EBITDA margin of 31% (H1 2025: 37%).

The Group’s unaudited key figures 

Cash flow from operating activities of continuing operations amounted to €2,139 thousand (H1 2025: €2,099 thousand), confirming that the TextMagic Group’s business continues to generate strong cash flows, enabling both investments and distributions to investors. Cash outflows from investing activities of continuing operations decreased by €1,203 thousand to -€196 thousand mainly due to the lower level of development activities (H1 2025: -€1,399 thousand).

In the second quarter, following a proposal by the Management Board, the shareholders resolved to distribute dividends totaling €1,205 thousand (€0.14 per share). The dividends were paid in April. Dividend income tax expense amounted to €340 thousand.

During the first half of the year, Textmagic’s software development focused on improving its automation and integration capabilities. Automation functionality was expanded to enable customers to personalize their communications, schedule recurring activities, and respond promptly to contacts’ actions. The new solutions help reduce manual work, save time, and ensure that messages reach customers at the right time. In addition, integration capabilities were further developed to speed up data exchange between different software applications and make business communication more efficient.

In the second half of 2026, we will continue on the same course, focusing on revenue growth through marketing activities, strengthening cash flow, and improving cost efficiency.

TextMagic AS’s consolidated unaudited interim report for the 6 months of 2026 is attached to the release in PDF format.

 Additional information:
        Getter Grünmann
         TextMagic AS, CFO
         investor@textmagic.biz
         https://investor.textmagic.com/

Attachments

• TextMagic AS_2026. aasta 6 kuu auditeerimata konsolideeritud vahearuanne
• TextMagic AS_2026 6 months consolidated unaudited interim report (Translation of the Estonian original)