17.3.2026 15:45:00 EET | Digital Workforce Services Oyj | Other information disclosed according to the rules of the Exchange
Digital Workforce Services Plc. | Other information disclosed according to the rules of the Exchange | March 17, 2026 at 15:45 EET
Digital Workforce Services Plc changes the license sales accounting and presentation principles in its financial reporting. Outlook for 2026 and financial targets for strategy period are specified in line with the change
Digital Workforce Services Plc has re-assessed the license sales accounting and presentation principles, in the light of the current business model and customer contract base. Based on this assessment, the company has decided to change the license sales accounting and presentation principles in its financial reporting. Customer licenses that do not include automation platform maintenance services, or service monitoring and development services, will be recognized so that the revenue reflects the difference between the amount paid by the customer and the license fee payable to the supplier ("net revenue recognition"), instead of the previously applied gross presentation of revenue. Also, the timing of revenue recognition for license sales will change; revenue for contracts starting on or after January 1, 2026, will be recognized in the period in which the customer agreement enters into force, and it will no longer be allocated over the contract term.
The change ensures that the financial reporting reflects better the current business model and provides improved visibility into the development of the company's recurring services business. Another objective is to approach revenue recognition with the internationally applied accounting principles.
Net recognition will decrease the company revenue, while gross margin and EBITDA margin remain unchanged in absolute terms. Profitability in relative terms will improve after the change. Change in timing of revenue recognition might cause an increase of revenue in the short term, but the impact will level out over time.
The change in revenue recognition will apply to contracts commencing at the beginning of 2026 or later. For the contracts that commenced earlier, comparable revenue and gross margin will be presented using net revenue recognition, but the timing of revenue recognition in the comparative figures will follow the previous practice.
Net-recognized license sales will continue to be reported as part of the company's recurring services revenue category. Revenue recognition principles for other recurring services and for professional services will remain unchanged.
Following the change in accounting principles, the company's outlook for 2026 will be modified as follows:
Digital Workforce Group's full-year 2026 revenue is expected to grow 15% or more from the year 2025. Adjusted EBITDA margin is expected to be 7 - 13% of revenue.
Before the change, outlook for 2026 was the following:
Digital Workforce Group's full-year 2026 revenue is expected to grow 15% or more from the year 2025. Adjusted EBITDA margin is expected to be 6 - 12% of revenue.
In addition, following the change in accounting principles, the company's financial target for the strategy period will be modified as follows:
Growth (modified): The company aims for an annualized revenue level of EUR 40 million exiting year 2026. The share of strategically important continuous services is aimed to increase from the level of 2025.
Profitability (unchanged): The company aims to reach an adjusted EBITDA level of over 15% by the end of 2026.
Before the change, financial targets for the strategy period were the following:
Growth: The company aims for an annualized revenue level of EUR 50 million exiting year 2026. Revenue level of approximately EUR 40 million is expected through organic growth and approximately EUR 10 million through inorganic growth. The share of strategically important continuous services is aimed to increase from the level of 2025.
Profitability: The company aims to reach an adjusted EBITDA level of over 15% by the end of 2026.
The financial results for 2024 and 2025, adjusted for the change to net revenue recognition of licenses, and to be used as comparative figures going forward, are presented below. For previous financial periods, the comparable revenue is presented following net revenue recognition. However, the previously applied timing of revenue recognition remains in force for comparative figures.
| EUR thousand | Q1-24 | Q2-24 | Q3-24 | Q4-24 | 2024 |
| Professional Services | 2 710 | 2 632 | 2 176 | 2 461 | 9 979 |
| Continuous Services | 2 877 | 3 210 | 3 237 | 3 405 | 12 729 |
| Revenue | 5 587 | 5 842 | 5 413 | 5 866 | 22 708 |
| Gross profit | 2 416 | 2 650 | 2 163 | 2 351 | 9 581 |
| Gross profit % of revenue | 43 % | 45 % | 40 % | 40 % | 42 % |
| Adjusted EBITDA | 286 | 206 | 211 | 284 | 988 |
| Adj EBITDA % of revenue | 5 % | 4 % | 4 % | 5 % | 4 % |
| EUR thousand | Q1-25 | Q2-25 | Q3-25 | Q4-25 | 2025 |
| Professional Services | 1 984 | 2 597 | 2 336 | 3 301 | 10 218 |
| Continuous Services | 3 295 | 3 346 | 3 169 | 4 235 | 14 045 |
| Revenue | 5 279 | 5 943 | 5 505 | 7 536 | 24 263 |
| Gross profit | 1 789 | 2 674 | 2 464 | 3 332 | 10 258 |
| Gross profit % of revenue | 34 % | 45 % | 45 % | 44 % | 42 % |
| Adjusted EBITDA | -324 | 400 | 440 | 748 | 1 265 |
| Adj EBITDA % of revenue | -6 % | 7 % | 8 % | 10 % | 5 % |
Contact information:
Digital Workforce Services Plc
Jussi Vasama, CEO
Tel. +358 50 380 9893
Laura Viita, CFO
Tel. +358 50 487 1044
Investor relations | Digital Workforce
Certified advisor?
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Tel. +358 50 520 4098
About Digital Workforce Services Oyj
About Digital Workforce Services Plc
Digital Workforce Services Plc (Nasdaq First North: DWF) is a leader in business automation and technology solutions. With the Digital Workforce Outsmart platform and services-including Enterprise AI agents-organizations transform knowledge work, reduce costs, accelerate digitization, grow revenue, and improve customer experience. More than 200 large customers use our services to drive the transformation of work through automation and Agentic AI. Digital Workforce has particularly strong experience in healthcare, automating care pathways across clinical and administrative workflows to reduce burden, enhance patient safety, and return time to patient care. Following the acquisition of e18 Innovation, the company has further strengthened its position in the UK healthcare pathway automation. We focus on repeatable, outcome-based use cases, and we operate with high integrity and close customer collaboration. Founded in 2015, Digital Workforce employs more than 200 automation professionals in the US, UK, Ireland, and Northern and Central Europe. Our vision: Transforming Work - Beyond Productivity.
https://digitalworkforce.com
