Core Insights - cBrain has been selected by the State of California for a 12-week AI Proof of Concept (POC) aimed at reducing redundancies in government agencies through AI and Natural Language Processing (NLP) [1][2] - The POC will test AI's ability to provide contextual understanding of complex regulatory materials, identifying overlaps and redundancies in public documents [2] - The POC will utilize cBrain's F2 digital platform, which is designed for government use and integrates AI capabilities into workflows and regulatory processes [3] - This initiative aligns with cBrain's strategic focus for 2026–2028 on environmental permitting and regulatory administration, supporting its international expansion with standardized AI-enabled software [4]

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]

Core Viewpoint - cBrain has upgraded its earnings expectations for the financial year 2026, now forecasting earnings before tax (EBT) in the range of 20–25%, up from the previous expectation of 15–20% [1][2]. Group 1: Earnings Expectations - The new EBT forecast reflects improved operational visibility and disciplined cost management [2]. - The revenue growth expectation remains unchanged at 10–15%, corresponding to expected revenue in the range of DKK 275–290 million [2]. Group 2: Strategic Focus - cBrain continues to execute its 2026–2028 strategy with a strong focus on profitable growth [1]. - The company is prioritizing investments that align with current commercial momentum [2].

Core Viewpoint - cBrain is embarking on a new growth phase with a strategic plan for 2026-2028, aiming to lead in the global market for standard software for government, which is projected to exceed 50 billion USD due to ongoing digitalization efforts [1][4][20]. Group 1: Growth Strategy - The 2026-2028 plan focuses on accelerating sustainable growth through scalable sales of standard software, utilizing a segment-focused go-to-market approach and a partner-led delivery model [3][11]. - cBrain has invested over 15 years and 500,000 hours in developing the F2 platform, which is positioned to serve the emerging market for standard COTS software for government [6][25]. - The company aims to capitalize on the significant market shift from custom-built IT solutions to standardized platforms, representing a major untapped opportunity [5][21]. Group 2: Financial Outlook - cBrain forecasts revenue of DKK 275–290 million for 2026, reflecting an organic growth of 10-15%, with an expected EBT margin of 15–20% [14]. - The revenue growth is anticipated to be driven by expansion in selected market segments, partnerships, and increased sales to existing customers [14][16]. - Software subscription revenue has shown steady growth, averaging approximately 20% annually from 2022 to 2025, with long-term subscriptions constituting about two-thirds of total revenue in 2025 [17]. Group 3: Market Opportunities - The global government software market is undergoing a structural shift towards standardized software, with cBrain positioned to lead this transition [20][21]. - cBrain's strategy includes targeting specific segments such as paperless ministries and environmental permitting, with plans to expand into additional segments over time [19]. - The F2 platform is designed to support digital transformation at scale, enabling governments to digitize multiple functional areas simultaneously without modifying the standard software [25][26]. Group 4: Product Development - cBrain is enhancing the F2 ServiceBuilder to enable rapid workflow automation and establish a partner channel, which is crucial for scaling operations [9][10]. - The company is also investing in AI technology to embed capabilities within the F2 ServiceBuilder, providing customers with greater control over their processes [10][19]. - The F2 platform has been successfully deployed by government organizations across five continents, demonstrating its adaptability and effectiveness in various bureaucratic environments [27].

Core Insights - cBrain has signed a partnership agreement with Publica AI to support digital transformation initiatives in Nigeria's federal ministries and agencies [1][3] - The partnership leverages cBrain's F2 digital platform, designed specifically for government use, which includes integrated case management, self-services, and AI capabilities [2][4] - Publica AI will implement and deliver the F2 platform, combining cBrain's software with local expertise to ensure compliance with Nigeria's regulatory environment [3][9] Company Strategy - cBrain is adjusting its go-to-market strategy to focus on partner-led engagements, which are expected to play a crucial role in international expansion and scalable growth [4] - The partnership with Publica AI aligns with cBrain's Africa strategy, which aims to adapt proven Danish digital government practices for the African context [6] Digital Transformation Impact - Digital transformation is essential for creating efficient and accountable government organizations, which can drive GDP growth and empower citizens in Africa [5] - The F2 platform has been successfully deployed in other regions, such as Kenya, demonstrating its effectiveness in facilitating rapid digital government transformation [7] Local Collaboration - Publica AI's CEO emphasized the importance of this partnership for Nigeria's digital government landscape, ensuring compliance with local data protection and content requirements [8] - cBrain's Director highlighted the significance of working with a local partner to understand Nigeria's administrative needs and regulatory environment [9]

Core Viewpoint - cBrain has adjusted its revenue expectations for 2025, forecasting a decline to approximately DKK 250 million, primarily due to a significant drop in one-time license sales, while planning a new growth strategy for 2026-2028 focused on recurring software revenues and market-driven approaches [1][3][4]. Group 1: Revenue Expectations - cBrain initially forecasted revenue for 2025 to be between DKK 268 million and DKK 281 million, indicating a year-on-year growth of 0-5% [1]. - The company now expects revenue to decline from DKK 268 million in 2024 to approximately DKK 250 million in 2025, reflecting a decrease in sales of new one-time licenses [3]. - Earnings before tax (EBT) are projected to be around DKK 45 million, with an EBT margin of 18% [3]. Group 2: Sales Performance - During the fourth quarter, cBrain secured orders from both existing and new clients, including the Danish Secretariat for Competence Development and a digital platform for Aarhus Municipality [2]. - Despite these new orders, there was a further decline and postponement of expected orders and projects in the fourth quarter [2]. Group 3: Recurring Revenue Growth - Recurring software revenues are forecasted to grow to DKK 165 million in 2025, representing a 19% increase from DKK 139 million in 2024, and will constitute two-thirds of total revenue [4]. - The decline in one-time license sales is contrasted by the growth in recurring revenues, indicating a strategic shift towards long-term government contracts [4]. Group 4: Strategic Shift and Future Plans - cBrain is transitioning from a project-focused sales model to a broader, market-driven approach centered on the F2 standard software, which aims to reduce dependency on individual customers [6]. - The company is finalizing a new three-year growth plan for 2026-2028, focusing on selected market segments within the emerging market for standard government software [5][6]. - Organizational changes have been initiated to support this revised strategy, including the establishment of new sales and product units [6].

Core Insights - cBrain is executing a growth strategy based on four pillars: large customers, niche markets, subscriptions, and partner channels [9] Large Customers - In Q3, cBrain secured its largest individual agreement in Denmark with Aarhus Municipality, expected to have 20,000 users on the F2 platform [1] - cBrain also signed an agreement with Kompetencesekretariatet for a national F2-based grant management system, contributing to a DKK 20 billion investment in reforestation [2] Niches - cBrain is focusing on two global market niches: environmental permitting, primarily targeting the US market, and paperless ministries [3][4] - The company has expanded its F2 platform to serve over 75 Danish government entities and is observing a larger potential market for paperless ministries [5][7] Subscriptions - cBrain reported a 24% growth in subscription revenue, which now constitutes 61% of total revenue, driven by long-term contracts with over 100 government customers [8] Growth Perspectives - cBrain anticipates a long-term growth rate of 10–15%, with potential peaks from large customer agreements and shorter sales cycles in niche markets [10][11] - Revenue growth fluctuated, with a 22% increase in 2022 and 27% in 2023, but a projected total growth of 0–5% for 2025 due to stabilization in the German business [12] Strategic Outlook - cBrain achieved approximately 50% total growth and maintained earnings before tax (EBT) above 25% during its 2023–2025 growth plan [14] - The company is preparing a new growth plan for 2026–2028, focusing on market niches and partnerships [15] Product and Positioning - cBrain's F2 platform has been instrumental in Denmark's digital government transformation and is being adapted for use in various countries [16][19] - The company is developing a blueprint for the F2 COTS for Government platform, which supports a wide range of digital government functions [23][26] Leveraging a Strong Reference Position - cBrain is building strategic footholds globally, with a focus on developing partnerships in countries like Romania, Germany, the US, Kenya, and Ghana [13][22]

Core Insights - cBrain has lowered its revenue growth expectations for 2025 to a range of 0-5%, while upgrading its expected EBT margin to 24-27% [1][4][5] Revenue Performance - In the first half of 2025, cBrain reported revenue of DKK 132 million, a decrease of 5% from DKK 139 million in the same period of 2024, attributed to postponed government procurements affecting one-time software license sales [1][2] - The company initially maintained a full-year revenue growth guidance of 10-15%, expecting a recovery in the second half of the year with projected growth of 25-30% [2][4] Customer Acquisition and Projects - cBrain has successfully attracted new customers in Denmark, including projects for Aarhus Municipal and a grant management system for the Danish Secretariat for Competence Development, although significant configuration work is required, limiting revenue recognition in 2025 [3][4] - Potential projects in the US, Germany, and Africa are not expected to contribute significantly to revenue in 2025 [4] Financial Adjustments - Due to delays in international projects, cBrain has revised its revenue growth expectations for the second half of 2025 to 5-15% and for the full year to 0-5% [4] - The company planned one-time investments of approximately DKK 30 million for market initiatives in the USA and Germany but has decided to execute only a smaller portion of these investments, leading to an increase in the EBT forecast from DKK 53-70 million to DKK 64-77 million [5]

Core Insights - cBrain has won a public tender to deliver a national F2 based grant management system for the Danish Secretariat for Competence Development [1] - The Secretariat has processed over 17,000 applications and allocated more than DKK 83 million in grants during the current collective agreement period [2] - The new grant solution is set to go live for the next application round in 2026, enhancing cBrain's position in the Danish market and internationally [4] Company Expertise - cBrain specializes in grants and subsidy management, with a proven track record of delivering high-performing grant systems for various government agencies [3] - The company's cBrain F2 platform supports public sector transformation through integrated case management and process automation [5] - cBrain aims to help governments achieve efficient, transparent, and scalable digital administration [5]

Core Insights - Aarhus Municipality has signed a contract with cBrain for the implementation of the cBrain F2 digital platform, marking a significant milestone for the company [1][4]. Group 1: Contract Details - The contract involves the deployment of cBrain F2 as a unified digital platform for Aarhus Municipality, which is Denmark's second-largest municipality with over 375,000 residents and approximately 28,000 employees [2]. - The initial rollout of the F2 platform will be for around 5,500 users, with the potential to extend to up to 20,000 users [3]. Group 2: Platform Capabilities - The F2 platform is designed to manage approximately half a million cases and over 4 million documents annually, providing an integrated solution for case handling, decision-making, communication, workflows, and compliance [3]. Group 3: Market Impact - This agreement significantly expands the market reach of the F2 platform, enhancing cBrain's presence in the local government and municipal sector both in Denmark and internationally [4]. - The adoption of F2 in Aarhus strengthens cBrain's role as a key technology provider in Denmark, which has ranked first in the United Nations Global E-Government Index for the past eight years [5].