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 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].