Zetadisplay reported a modest revenue decline in Q1 amid its third CEO transition in less than two years. But major DooH and retail media wins signal continued commercial momentum in the Nordic market.
Zetadisplay’s Q1: A Weaker Quarter, But Strong Pipeline
Zetadisplay reported lower first-quarter revenue but improved profitability, as the European digital signage integrator continues its shift toward larger enterprise projects and recurring software and services revenue.
For Q1 of 2026, net sales were SEK 141.9 million (EUR 13.1 million), down 11.1 percent from SEK 159.6 million (EUR 14.8 million) a year earlier. Zetadisplay attributed the decline primarily to reduced volumes from a global customer undergoing restructuring, with foreign exchange effects accounting for roughly one-third of the decrease.
Recurring revenue totaled SEK 62.8 million (EUR 5.8 million), down 4.0 percent year-over-year, though the company said recurring annual revenue remained stable on a constant-currency basis. Recurring revenue represented 44.3 percent of total sales, up from 41.0 percent in the prior-year period.
While revenue softened, profitability improved. Gross margin increased to 59.0 percent from 56.4 percent, reflecting a higher mix of recurring revenue. EBITDA before restructuring costs rose 22.0 percent to SEK 15.5 million (EUR 1.4 million), compared with SEK 12.7 million (EUR 1.17 million) a year earlier, driven by operational efficiencies and cost controls.
Operating profit remained negative at SEK -4.0 million (EUR 370K), an improvement from SEK -4.9 million (EUR 450K) in the first quarter of 2025. Net loss widened to SEK -21.4 million (EUR -1.98 million) from SEK -15.8 million (EUR -1.46 million), largely due to higher financing costs associated with the company’s bond debt and currency-related impacts.
LG partnership to expand software reach
During the quarter, Zetadisplay announced an expanded partnership with LG Electronics that will see its Engage Suite content management software preloaded on LG professional displays. The arrangement is designed to simplify deployment and reduce installation times for enterprise digital signage projects.
Zetadisplay also received a SEK 37.1 million (EUR 3.43 million) capital injection from owner Hanover Investors.
Major Nordic contracts add momentum
Since quarter-end, Zetadisplay has announced two significant Nordic contracts: the company was selected by Norway’s national rail operator, Vy Group, to deploy an onboard media platform across approximately 1,400 displays on 135 trains. It also expanded its relationship with Coop Norway, moving from a pilot program to a broader rollout of an in-store retail media network.
Zetadisplay’s new CEO, Daniel Nergård, said demand remains strong for retail media, commerce media, and DooH solutions, with several large-scale customer projects expected to move into rollout phases during the coming quarters.
Looking ahead, the company expects its expanding enterprise pipeline and recently announced contract wins to support growth in the second half of 2026, while maintaining a focus on improving EBITDA performance through a combination of software, services, and operational efficiency.