cBrain delivers a solid EBT margin of 22% and increases dividends by 56%

Core Insights - cBrain has reported a solid earnings before tax (EBT) margin of 22% and announced a 56% increase in dividends, reflecting strong financial performance despite a revenue decline in 2025 [8][9] - The company is positioned to capitalize on the growing global government software market, which is expected to exceed USD 50 billion, by focusing on standardized Commercial-Off-The-Shelf (COTS) software [3][16] - cBrain's strategic plan for 2026-2028 aims to accelerate sustainable growth through scalable sales and a partner-led delivery model [2][15] Financial Performance - In 2025, cBrain's revenue decreased by 6% from DKK 268 million to DKK 251 million, primarily due to delays in customer projects [6] - Despite the revenue decline, software subscriptions grew approximately 18%, accounting for 66% of total revenue, providing a solid financial foundation [7] - The company achieved an EBT of DKK 56 million, exceeding expectations, and generated strong positive cash flow from operating activities [8] Growth Strategy - The 2026-2028 growth plan focuses on accelerating sustainable growth through scalable sales of standard software, targeting specific market segments [2][15] - cBrain aims to leverage its F2 Digital platform, which is fully AI-enabled, to enhance productivity and decision support for government operations [5][6] - The sales strategy includes winning selected global market segments and accelerating the F2-for-Partners strategy to enable scalable partner-led delivery [20][22] Market Opportunity - The global government software market is undergoing a significant structural shift towards standardized platforms, representing a major untapped opportunity [3][16] - cBrain's F2 platform is uniquely positioned to serve this emerging market, having been proven with government customers worldwide [17][32] - The company plans to expand its market presence by developing partnerships and enhancing its product offerings, particularly in areas like paperless ministries and environmental permitting [20][31] Customer Engagement - cBrain has successfully delivered significant customer projects, including a national Danish hunting license system and a digital grant management solution for reforestation [14] - The company has established a strong customer reference base, with over 75 Danish government organizations using the F2 platform [32] - Internationally, cBrain's F2 platform has been deployed across five continents, demonstrating its adaptability to various bureaucratic principles [32]