Dynavox Group AB (publ) today announced its results for the first quarter 2026.
Comment from the Dynavox Group CEO Fredrik Ruben:
We delivered a solid start to the year knowing that the first quarter is our seasonally weakest and most volatile period. North America was temporarily impacted by severe weather in January and February but rebounded well in March. Other markets performed well throughout the quarter. Profitability and cash flow improved notably, reflecting operating leverage as investment-related costs continue to taper off. This reinforces our confidence in the resilience of, and outlook for, our business amid macroeconomic and geopolitical uncertainty.
JANUARY - MARCH 2026
- Revenue grew 1% to SEK 588 million (581). The currency adjusted growth was 15%.
- Gross margin was 67% (68).
- Operating profit increased by 35% to SEK 57 million (43), corresponding to an operating margin of 9.8% (7.3). Currency adjusted EBIT growth was 56%.
- Cash flow after continuous investments increased by 109% to SEK 56 million (27).
- Basic earnings per share increased by 58% to SEK 0.36 (0.23) and SEK 0.35 (0.22) after dilution.
SIGNIFICANT EVENTS DURING THE QUARTER
- Dynavox Group has appointed two new members to its executive management team, with Marie Josée Leblond joining as Chief Digitalization and Information Officer and Luis Mustafa succeeding Tony Pavlik as Chief Operating Officer upon his retirement, effective March 1, 2026.
- Dynavox Group has announced that CFO Linda Tybring will leave her position, remaining until 31 January 2027 to ensure a smooth transition while the search for her successor has begun.
SIGNIFICANT EVENTS AFTER THE QUARTER
- On April 1st Dynavox Group completed the previously announced acquisition of SR Labs Healthcare, its reselling partner in Italy.
COMMENTS FROM THE CEO:
We delivered a solid start to the year knowing that the first quarter is our seasonally weakest and most volatile period. North America was temporarily impacted by severe weather in January and February but rebounded well in March. Other markets performed well throughout the quarter. Profitability and cash flow improved notably, reflecting operating leverage as investment-related costs continue to taper off. This reinforces our confidence in the resilience of, and outlook for, our business amid macroeconomic and geopolitical uncertainty.
We entered the first quarter 2026 with tough comparisons as the same period in 2025 was unusually strong due to backlog reductions. Revenue growth in local currencies was 15%. Demand remained robust but weather-related closures among schools and institutions in North America in January and February impacted our ability to meet customers and deliver products. The effects are expected to normalize and deferred business to be regained during the coming quarters. March isolated was back at historic growth levels in North America. The business in markets outside North America continued on the good trajectory from previous quarters.
Profitability improved by 2.5 percentage points in the quarter to 9.8%, resulting in a 35% increase in operating profit. This includes a negative currency impact on EBIT of SEK 7 million. The currency headwinds have decreased as primarily the SEK and USD fluctuations have stabilized as we enter Q2. We can also see positive effects from our work on improved processes and operations, with a cash flow after continuous investments which more than doubled compared to last year.
Last year, we made major investments to build a stronger and more scalable organization, including the finalized consolidation of our product and development organization into a central hub in Stockholm and the launch of a new ERP system in North America. Earlier in April this year, we successfully transitioned also our Swedish parent company to the new ERP system. A few local country entities remain to be transferred, which will result in lower costs and a more efficient backbone supporting future growth, scalability and profitability.
We continue to strengthen our local presence in Europe. Following the recent acquisitions of our reseller partners in France and Germany, we completed the acquisition of our Italian reselling partner on April 1. This further strengthens our position in another key European market and supports our ambition to increase commercial effectiveness across the region.
Our overall exposure to import tariffs to the U.S. remains limited since our products are classified as medical certified assistive devices, exempting them from tariffs under the Nairobi Proto-col. While policy uncertainty and geopolitical developments are important to monitor, we have not seen any material impact on our business to date. The recent cost increases in certain components and freight will have some, yet limited, negative impact on gross margin depending on magnitude and time of such effects.
Our long-term financial targets remain unchanged: average annual revenue growth of 20% adjusted for currency effects and an EBIT margin exceeding 15%. While currency effects and the broader macro environment can create some volatility quarter-to-quarter, Dynavox Group is well-positioned to continue delivering sustainable long-term growth in a severely under penetrated market while advancing our mission to provide life-changing solutions to those who need them most.
Fredrik Ruben, CEO
Webcast:
Today at 9:00 a.m. CEST, Dynavox Group will host a webcast presentation for media, analysts and investors. If you want to attend the webcast click the following link. The report and a recording of the webcast will be available here after the webcast.
This information is inside information that Dynavox Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 07.30 CEST on April 24, 2026.
Contact
Linda Tybring, CFO, Dynavox Group, phone: +46 (0) 7068 14 980, email: linda.tybring@dynavoxgroup.com
About Dynavox Group
Dynavox Group AB (publ) is the parent company of Tobii Dynavox, the global leader in assistive communication. Headquartered in Stockholm, and listed on Nasdaq Stockholm (DYVOX), Dynavox Group employs over 1,000 people and serves customers in more than 65 countries. Tobii Dynavox's custom designed solutions enable people with disabilities such as cerebral palsy, ALS, autism and spinal cord injury to communicate with a voice of their own, develop literacy skills and live more independently. To date, hundreds of thousands of people worldwide have benefited from our integrated solutions, which include hardware, software, clinically developed language systems, mounting solutions, training, and dedicated support. We offer extensive funding expertise to facilitate funding for as many people as possible. As voice and motor impairments are common among our users, our solutions are accessed via alternative methods, such as eye gaze or touch screen. Using AI-based speech synthesis, we offer users a personalized voice identity in over 30 languages, for children and adults. For more information, please visit the Dynavox Group website: www.dynavoxgroup.com
