F-Secure Corporation | Stock exchange release | 28 October 2026 at 8:00 EET
F-Secure Interim report 1 January-30 September 2026: Accelerated growth driven by Embedded Security
This is a summary of F-Secure Corporation's January-September 2026 Interim report. The full report is a PDF file attached to this stock exchange release and available on the company website at www.investors.f-secure.com.
Highlights of July-September 2026
- Currency neutral revenue growth was 12.4%. Reported revenue increased by 12.2% to EUR 40.5 million (EUR 36.1 million). Revenue growth was driven by Embedded Security, which continued to perform strongly.
- Currency neutral revenue from Partner channel increased by 15.8%. Reported revenue increased by 15.6% to EUR 34.1 million (EUR 29.5 million).
- Currency neutral revenue from Direct channel decreased by -2.9%. Reported revenue decreased by -2.9% to EUR 6.4 million (EUR 6.6 million).
- Adjusted EBITA was EUR 13.6 million (EUR 13.3 million), 33.6% of revenue (37.0%). The increase in euros was driven by higher revenue. The margin change was due to planned investments in Embedded Security portfolio and Tier 1 service level capabilities.
- A Tier 1 partner indicated intention to not extend its agreement with F-Secure after March 2027. In 2025, revenue from the agreement was approximately EUR 16 million. The agreement will continue to generate revenue normally until the end of March 2027.
- The possible non-renewal of the Tier 1 partner contract led to a EUR -2.1 million impairment of related capitalized assets.
- Earnings per share (EPS) decreased to EUR 0.02 (EUR 0.04).
- Operating cash flow was EUR 9.1 million (EUR 11.6 million).
- On 1 October, planned new operating model announced and change negotiations started. The objective is to enable F-Secure to respond faster to changing customer needs as AI reshapes the market, to shift investment toward growth-stage products and new customer segments, and to further strengthen profitability.
Highlights of January-September 2026
- Currency neutral revenue growth was 8.1%. Reported revenue increased by 6.0% to EUR 116.6 million (EUR 110.0 million). Growth was driven by strong performance of the Embedded Security business.
- Currency neutral revenue from Partner channel increased by 11.2%. Reported revenue increased by 8.6% to EUR 97.4 million (EUR 89.7 million).
- Currency neutral revenue from Direct channel decreased by -5.3%. Reported revenue decreased by -5.3% to EUR 19.2 million (EUR 20.3 million).
- Adjusted EBITA was EUR 36.2 million (EUR 38.3 million), 31.0% of revenue (34.8%). Decline was due to planned investments in Embedded Security portfolio and Tier 1 service level capabilities as well as currency impact.
- Items affecting comparability (IAC) were EUR -1.7 million (EUR 0.1 million) consisting of costs related to organizational restructuring in sales and services teams. In addition, possible non-renewal of the Tier 1 partner contract led to a EUR -2.1 million impairment of related capitalized assets.
- Earnings per share (EPS) decreased to EUR 0.06 (EUR 0.10).
- Operating cash flow was EUR 22.5 million (EUR 32.0 million). Cash flow from operating activities was impacted by an increase in net working capital, mainly due to higher trade receivables resulting from increased revenue. Cash flow began to recover following a temporary delay in collections in the second quarter, which had led to an increase in trade receivables. These were mostly collected during the third quarter.
- Net debt declined to EUR 137.7 million (EUR 149.2 million), and the leverage ratio was 2.8x (31 Dec 2025: 2.8x).
Figures in brackets refer to the corresponding period in the previous year, unless otherwise stated. Percentages and figures presented herein may include rounding differences and therefore may not add up precisely to the totals presented. Figures in this interim report are unaudited.
Outlook for 2026
Specified on 28 October 2026
Growth: The group's currency neutral revenue growth is expected to be 8-11% (previously: 7-12%) in 2026.
Profitability: The group's adjusted EBITA is expected to be EUR 46-50 million (previously: EUR 44-50 million) in 2026.
Background for the outlook:
- F-Secure expects the core consumer cybersecurity market to grow mid-single digit CAGR mid- to long-term1. F-Secure sees the potential to grow faster than the market, focusing on partner channel and its offering around Embedded Security and Scam Protection. The growth may be moderated by uncertainties around consumer sentiment in certain markets and general economic volatility.
- Partner business and especially Embedded Security solutions are expected to drive F-Secure growth during 2026. Growth is expected to accelerate throughout the year as the most significant new Tier 1 services gradually start to generate revenue and support profitability.
- Direct business revenue development is expected to be negative due to continued strategy of refraining from paid customer acquisition. Focus is on improving retention rate and ARPU.
- Gross margin is expected to be slightly lower than in 2025 (84.7%) due to growth of strategic partners with Embedded Security solutions, as these typically have a lower gross margin level than F-Secure Total business.
- F-Secure continues to develop its service, operations and production capabilities further to meet Tier 1 partner requirements. These efforts are reflected in the higher cost base. As business scales up we expect to leverage continued service level investments across a wider partner base, leading to positive Adjusted EBITA % development along with business growth.
- Capex level is expected to remain on a similar or slightly higher level as in 2025 related to both product development as well as technology infrastructure improvements.
1 Industry analyst views such as Gartner and IDC, and F-Secure management estimates.
Financial targets
F-Secure's medium-term financial targets and dividend policy for the company reflect the company's growth ambitions and strategic direction.
- Growth: High single digit growth (CAGR) with additional significant upside from major Tier 1 deals
- Profitability: Adjusted EBITA margin approaching 40% as revenue reaches EUR 200 million
- Dividend Yield: Around or above 50% of net profit, which can be adjusted as long as leverage is higher than the targeted level
- Leverage: Net debt / adjusted EBITDA ratio below 2.5x, excluding temporary impact from acquisitions
F-Secure Corporation follows the Rule of 40 metric as internal performance measurement and guiding principle, according to which the combined revenue growth rate and profitability margin should be equal to or greater than 40%.
Financial performance
EUR million | 7-9/2026 | 7-9/2025 | Change % | 1-9/2026 | 1-9/2025 | Change % | 1-12/2025 |
Revenue | 40.5 | 36.1 | 12.2% | 116.6 | 110.0 | 6.0% | 145.7 |
Gross Margin | 34.3 | 30.2 | 13.4% | 98.0 | 93.2 | 5.2% | 123.4 |
% of revenue | 84.8% | 83.9% | 84.0% | 84.7% | 84.7% | ||
Operating expenses1 | -20.3 | -16.6 | 22.1% | -60.9 | -54.3 | 12.2% | -72.3 |
Sales & Marketing | -7.9 | -7.0 | 11.7% | -24.4 | -23.9 | 1.9% | -32.2 |
Research & Development | -8.9 | -6.2 | 43.6% | -25.1 | -19.2 | 30.6% | -24.7 |
Administration | -3.6 | -3.4 | 4.8% | -11.4 | -11.2 | 2.4% | -15.4 |
Adjusted EBITA1 | 13.6 | 13.3 | 2.0% | 36.2 | 38.3 | -5.6% | 50.3 |
% of revenue | 33.6% | 37.0% | 31.0% | 34.8% | 34.5% | ||
Items affecting comparability (IAC)2 | - 0.0 | - | -1.7 | 0.1 | 0.1 | ||
EBIT | 7.3 | 9.7 | -24.9% | 20.0 | 27.3 | -26.6% | 35.5 |
% of revenue | 18.0% | 26.9% | 17.2% | 24.8% | 24.4% | ||
Earnings per share (EUR)3 | 0.02 | 0.04 | -37.9% | 0.06 | 0.10 | -34.1% | 0.13 |
Earnings per share, adjusted for PPA amortization (EUR)3 | 0.03 | 0.04 | -30.2% | 0.09 | 0.13 | -27.0% | 0.16 |
Shareholder's equity per share, EUR | 0.36 | 0.29 | 0.32 | ||||
Operating cash flow | 9.1 | 11.6 | -21.4% | 22.5 | 32.0 | -29.7% | 43.6 |
Cash conversion % | 71.6% | 77.7% | 59.1% | 80.7% | 79.1% | ||
Deferred revenue | 24.0 | 23.2 | 3.4% | 27.0 | |||
Net debt (+) / Net cash (-) | 137.7 | 149.2 | -7.7% | 145.6 | |||
Net debt/Adjusted EBITDA | 2.8 | 2.9 | 2.8 | ||||
Gearing, % | 220.2% | 294.7% | 260.0% | ||||
Equity ratio % | 23.8% | 18.7% | 21.5% | ||||
Personnel at the end of the period | 597 | 532 | 12.2% | 549 |
1 Excluding Items Affecting Comparability (IAC) and depreciation, amortization and impairment.
2 A reconciliation and breakdown of items affecting comparability is presented at the end of this report.
3 Based on the average number of shares for the reporting period.
Timo Laaksonen, President and CEO
The third quarter of 2026 brought clear progress with new business wins, an expanding product portfolio and active participation in new tenders. We also received a non-renewal indication from one of our Tier 1 partners, which is a setback for 2027. Nevertheless, we expect the positive development of our business to continue. Currency neutral revenue grew strongly by 12.4 percent to EUR 40.5 million, marking the highest organic growth figure since the demerger in 2022. Growth was driven by the continued strong performance of Embedded Security, particularly in the US. Security Suite revenue continued to decline moderately. Going forward, we will allocate more resources to Security Suite development and marketing to reverse this trend.
Adjusted EBITA increased to EUR 13.6 million (EUR 13.3 million), driven by higher revenue. Adjusted EBITA margin decreased to 33.6% of revenue (37.0%), due to planned investments in the Embedded Security portfolio and Tier 1 service level capabilities. We strengthened our financial position by refinancing our loan portfolio through a new EUR 147 million agreement with Danske Bank and OP Corporate Bank. The new agreement significantly improves our financing terms, while giving us a stronger footing into 2027.
Direct business continued to perform above our expectations, supported by record-level renewal rates and good ARPU. The decline in Direct business has practically stopped quarter-over-quarter, and we see good opportunities in new sales for 2027. This is supported by the September launch of Kiren, the new brand for Project Halo, to our F-Secure Mobile Security direct customers in the US. Kiren is an AI-native mobile security app that screens messages, calls and links in the background to catch scams and AI-powered threats before they reach the user. It is built on the same F-Secure Embedded Security capabilities as Total, but sold directly under its own brand, allowing fast development and quick response to consumer feedback. Our large installed base in the US, with a relatively small share of paying subscribers so far, gives us significant conversion potential. In 2026, we are focusing on the existing user base, with a broader US roll-out planned for next year.
In September, a leading Japanese telecommunications operator and long-standing F-Secure partner expanded the partnership by adding F-Secure SENSE, our home network security solution, to its new home internet service. SENSE monitors home network activity and connected devices to identify and block threats. The expansion gives SENSE the potential to reach a significant number of households in Japan.
In September, we demonstrated how F-Secure Trust technology and AMD Silo AI's model routing can work together to keep digital journeys safe, private and efficient by deciding where each piece of data is processed based on sensitivity, cost, model capability and performance. Our upcoming solution TrustPath uses this approach to protect the entire journey as AI agents increasingly compare products, manage subscriptions and complete purchases on people's behalf. It enters beta during the fourth quarter, with launch planned for the first quarter of 2027. We also continue to develop the value proposition of TrustGuard, our protection layer for interactions with AI assistants.
In October, we announced plans to renew our operating model to drive profitable growth and greater agility through AI-native ways of working. The proposed change has been planned carefully and builds on our strategy. F-Secure would organize into three business units: Partner Products, Embedded Security and Direct Business, each with end-to-end accountability for its customers, products and go-to-market strategy. A New Ventures unit would incubate and validate new technologies, product concepts and business models. To discuss the planned changes, we started change negotiations covering all F-Secure roles, units and locations. The estimated gross annual cost savings are around EUR 13 million, part of which would be reinvested in growth, while strengthening profitability and supporting progress toward our medium-term financial targets.
As announced in September, we received an indication that one of our largest Tier 1 partners does not intend to extend its agreement, which runs until the end of March 2027. The agreement generated approximately EUR 16 million in revenue in 2025 and will contribute normally until it ends, so our 2026 outlook is not affected. However, it led to a EUR -2.1 million impairment of capitalized assets related to the contract in the third quarter. If the agreement is not extended, 2027 revenue is expected to be weaker than previously anticipated. To our understanding, the non-renewal is related to the partner consolidating the apps it offers to its customers into a single app. We have not been informed of a move to a competitor and continue to be in dialogue on future services with the partner.
Overall, we see significant opportunities in Embedded Security as several Tier 1 partners either embark on building or expanding their security app offerings. These apps may take form either as a dedicated security app or as part of an operator app, or a combination thereof. Our Embedded Security value proposition is focused on our scalable core offering - security capability modules underneath the user application layer. We expect continued positive momentum in both absolute and relative profitability in 2027.
Looking ahead, while AI is changing the way we work, the threats we defend against and our market opportunities, our planned operating model is intended to direct investment quickly into growth areas while further strengthening profitability. Our Fellows have quickly adopted AI-native ways of working while keeping our day-to-day commitments to customers and partners. This confirms that the F-Secure Fellowship continues to be our superpower during the fundamental transformation in the cybersecurity market.
Significant events during the review period
On 28 August 2026, F-Secure signed a EUR 147 million financing agreement with Danske Bank A/S and OP Corporate Bank, consisting of a EUR 137 million term loan facility and a EUR 10 million revolving credit facility. The new facilities replace the company's previous term loan, Nordic Investment Bank loan and revolving credit facility, consolidating three separate facilities into one. The facilities have a three-year maturity with two one-year extension options and carry improved pricing compared to the previous facilities.
On 29 September 2026, F-Secure announced that it had received an indication from one of its Tier 1 partners that the partner intends not to extend its agreement with F-Secure, which is scheduled to end at the end of March 2027. In 2025, revenue from the agreement was approximately EUR 16 million. The agreement will continue to generate revenue normally until the end of March 2027, and the situation does not affect F-Secure's outlook for 2026. If the agreement is not extended, F-Secure expects its revenue development in 2027 to be weaker than previously anticipated, while the positive momentum in both absolute and relative profitability is expected to continue. F-Secure's medium-term financial targets remain unchanged.
Significant events after the review period
On 1 October 2026, F-Secure announced that it plans to renew its operating model and started change negotiations on possible role changes and redundancies in Finland and in other countries. The objective is to enable F-Secure to respond faster to changing customer needs as AI reshapes the market, to shift investment toward growth-stage products and new customer segments, and to further strengthen profitability.
Under the planned operating model, F-Secure would be organized into three business units, Partner Products, Embedded Security and Direct Business, each responsible for its own product, customer and go-to-market strategy. In addition, F-Secure plans to establish a New Ventures unit for developing and validating new business models, products and customer segments. Common functions, consisting of Technology, Strategy Office, Finance & Legal, and People & Culture, would set company-wide standards and best practices for all business units. The planned changes would also affect the structure and composition of the Leadership Team. The new operating model is targeted to be effective as of 1 January 2027.
The planned changes are estimated to generate gross annual cost savings of around EUR 13 million. While part of the savings would be reinvested in growth, including new roles, technology and product initiatives, the planned changes are also intended to strengthen F-Secure's profitability and support the company's progress toward its medium-term financial targets. One-off costs related to the planned changes are expected to be recorded as items affecting comparability (IAC), and more information about these will be disclosed once the negotiations are concluded.
The change negotiations cover all F-Secure roles, units and locations. F-Secure expects the changes to result in a maximum reduction of 145 roles globally, of which a maximum of 58 in Finland and 87 in other countries. In Finland, the negotiations began on 6 October 2026, and are estimated to last six weeks.
The change negotiations do not affect F-Secure's outlook for 2026 or its medium-term financial targets. The planned operating model will not affect F-Secure's financial reporting.
Financial reporting in 2027
F-Secure Corporation's planned release schedule for financial reports in 2027 is as follows:
- Financial Statements Release 2026 on Friday, 5 February 2027
- Annual Report 2026 during the week beginning 22 February 2027 (week 8)
- Interim Report for January-March 2027 on Thursday, 29 April 2027
- Half-year Financial Report for January-June 2027 on Tuesday, 20 July 2027
- Interim Report for January-September 2027 on Thursday, 28 October 2027
Result webcast
Everyone interested in F-Secure is welcome to follow the live webcast on the result publication day at 13:00 Helsinki time (EET). In the webcast, F-Secure's President and CEO Timo Laaksonen and CFO Robin Pulkkinen will present the results and after the presentation there will be time for questions. The event can be followed at https://fsecure.events.inderes.com/q3-2026.
Analysts following F-Secure are invited to the news conference at the company headquarters, Tammasaarenkatu 7, Helsinki, Finland.
A recording of the event will be available after the event on the company's website.
Helsinki, 28 October 2026
Board of Directors
F-Secure Corporation
Further information:
Robin Pulkkinen
Chief Financial Officer
tel. +358 50 505 9932
investor.relations@f-secure.com
About F-Secure
F-Secure is a globally operating consumer cyber security company headquartered in Finland. F-Secure offers award-winning security and privacy products and services that make every digital moment more secure, for everyone. F-Secure operates in over 100 countries, has ~200 Service Provider partners and is the global leader providing security through Communication Service Providers. F-Secure Corporation is listed on Nasdaq Helsinki. Read more: www.f-secure.com
