Divio demonstrates continued momentum from its Agency strategy

First quarter: 01 Jan 2026 to 31 Mar 2026

• MRR at the end of March was KUSD 208 (212), a decrease of 2%, primarily reflecting the transition of a customer from an Open Cloud subscription to a longer-term enterprise agreement.
• Subscription revenue decreased by 9% to KSEK 5,927 (6,532), driven by FX effects.
• Professional services revenue increased by 25% to KSEK 2,407 (1,920)
• Net sales decreased by 1% to KSEK 8,334 (8,452)
• Total revenue decreased by 1% to KSEK 9,270 (9,328)
• Operating costs increased by 1% to -10,708 (-10,599)
• EBITDA decreased to KSEK -34 (342)
• Operating profit decreased by 13% to KSEK -1,438 (-1,270)
• EPS before dilution was SEK -0.01 (-0.01)
• Cash position was KSEK 7,566 (4,419)

Significant events during the quarter

• The company held an EGM on 30 March, at which a SEK 14.2m reduction in capital was approved. As a result, the quota value per share was reduced from SEK 0.10 to SEK 0.062.
• Following its Agency update on 21 January 2026, Divio continued to see strong traction, adding nearly USD 2,000 in MRR, including a USD 1,200 enterprise deal and USD 550 from new Open Cloud projects.
• Under the leadership of our new CTO, we have initiated a new product strategy, significantly reshaping and improving the platform.

Significant events after the quarter

• Divio reported preliminary Q1-2026 numbers
• The company announced a SEK 14.1m capital raise to accelerate the Agency strategy and strengthen the balance sheet. The SEK 8.8m directed share issue was fully covered by subscription commitments and the right issue was pre-committed up to SEK 2.2m by management, board members and existing shareholders. The subscription period for the right issue is 5-19 May 2026. For further information, please see the press release dated 22 April 2026.
• KSEK 3.0m of the convertible loan plus interest has been repaid in cash. The remaining KSEK 1.0m of convertible loan plus interest is to be converted into equity as per the above capital raise.

CEO COMMENT
2026 is the year Divio demonstrates the strength of its model. Where previous periods were characterized by steady progress, we are now operating at a consistently higher level of execution. During the quarter, we have validated our agency-led go-to-market strategy, which is now clearly gaining traction. While we see early but encouraging traction in our new distribution model, this has yet to translate into growth in recurring revenue. With MRR as our key leading indicator, the focus now shifts to accelerating commercial execution.

Our agency strategy targets a large, underserved market, with approximately 150,000 digital agencies in Europe alone. Each agency acts not only as a customer but also as a partner, enabling us to scale sales efficiently while driving long-term growth in platform usage. We are seeing clear evidence that our strategy is working. The number of agencies using our platform continues to grow. Project activity on our platform is increasing, and a greater share of projects is developing into more complex, higher‑value engagements. Importantly, this progress has been achieved with minimal sales resources, further validating our approach.

While revenues from the new strategy are currently small, they are key to validating early traction. This revenue follows the same pattern as the rest of our business—recurring, with strong retention and customer stickiness—providing predictability and a solid foundation for scaling.

Under the leadership of our new CTO, Ralf Brändli, we are making solid progress in how our platform is evolving. Ralf brings deep technical experience across software development, cloud infrastructure, and architecture. Having worked closely with Divio in the past, he also knows the platform well from a customer’s point of view, which helps ensure that technical decisions are grounded in commercial and user needs.

We are improving the platform with a better user experience, clearer pricing models, and much broader compatibility, while leaving the core architecture largely unchanged. With a stable, proven foundation, stronger commercial thinking, and deep AI support in our development work, we can now move and iterate at a speed and depth that were previously not possible. Together, this puts us in a strong position and gives us a real edge going forward. Our ambition is clear: to become the leading PaaS platform on our market.

Operationally, we strengthened our financial and organizational discipline under the leadership of our CFO, Niklas. Forecasting, KPI tracking, and follow-up processes have improved, as has our external communication. At the same time, we have begun to actively reduce administrative overhead across the organization, allowing the team to focus on sales execution and product development.

During the period, we have also refreshed parts of the organization, bringing in new capabilities and energy. I would like to extend my sincere appreciation to both current and former team members whose contributions have been instrumental in bringing us to this point.

Market conditions are increasingly shifting in our favor. Geopolitical tensions and rising regulatory complexity are making data residency and jurisdiction strategic priorities for many organizations. This creates a structural advantage for Divio. Our platform’s flexibility allows customers to choose and move data across regions, including the EU and Switzerland, supporting growing demands for control and independence. With most competitors being U.S.-based, increasing demand for European alternatives presents a clear positioning opportunity, which we are actively working to capture.

In summary, Divio is stronger than ever. We have demonstrated our path toward profitability, validated a scalable and differentiated business model, and are operating in a market where underlying trends are increasingly supportive.
While we have not yet reached profitability, we have clearly validated our business model and demonstrated a path toward improved financial performance.

We are entering the next phase with strong momentum, a focused strategy, and supportive market trends. Our priority is now to scale execution, accelerate sales, and convert early traction into sustainable growth.

Jon Levin
CEO