Looking ahead at 2026, mVISE looks set to enter the next phase of its transformation, shifting from a restructuring-driven to a strategic buy-and-build platform for software-centric businesses. With the operational turnaround completed, bank liabilities eliminated and utilization stabilized, management is now explicitly preparing the company for value-accretive acquisitions, as already outlined in our last update. Importantly, the previously announced stock split has meanwhile been successfully completed, improving tradability and laying the groundwork for upcoming capital measures.
FY25e remained a transition year characterized by a deliberately lean cost base, subdued revenues and a clear focus on profitability and cash generation. From FY26 onwards, however, the strategic emphasis is expected to broaden. In addition to a gradual return to organic growth (eNuW: +11%), mVISE intends to selectively acquire software companies or software-driven business models, initially via minority stakes with active operational involvement. This approach differs materially from classic serial acquirers, as mVISE plans to centrally support portfolio companies with its proven expertise in software development, integration, restructuring and go-to-market optimization.
The rationale behind this strategy is compelling in our view. The current market environment in the DACH region offers an attractive pipeline of small and mid-sized software companies facing succession issues, limited scalability or operational inefficiencies. mVISE's rare combination of in-house software development, product management, integration know-how and restructuring experience positions the company as an active value creator rather than a passive financial investor. The successful turnaround of opcyc serves as a blueprint for this approach.
Financially, the foundation for this strategy is now in place. H1'25 already demonstrated strong operating leverage with an EBITDA margin of 16.5% and sustainably positive FCF (€ 0.4m). As leverage continues to decline and recurring revenues increase, we expect mVISE to gain the flexibility required to execute its acquisition strategy without undue balance sheet risk. Importantly, management emphasizes disciplined capital allocation and strategic fit over deal volume, implying a gradual ramp-up rather than aggressive M&A.
While execution risk naturally increases with M&A, the clear strategic logic, conservative entry via minority stakes and strong operational track record underpin our confidence.
Against this backdrop, valuation remains undemanding as shares trade at 7x EV/EBITDA FY26e. We therefore reiterate BUY with a new PT of € 12.80 (reverse-split adjusted) based on DCF.
ISIN: DE000A0KE043
