Investor FAQs

You can find the digital version of Verisure Plc’s Q1 2026 results on the following page: www.verisure.com/investors/results/q1-2026

Verisure operates a subscription-based, recurring revenue model built around long-term customer relationships and predictable cash flows.

At the core of our business is a professionally monitored security service, for which customers pay a monthly subscription fee. In exchange, we provide 24/7 monitoring, incident verification, rapid response, maintenance, and continuous service and product innovation. Approximately 92% of our revenue is recurring, which provides strong visibility and resilience across economic cycles.

Our model combines two complementary engines:

• Customer Acquisition: we invest upfront to acquire high-quality customers through marketing, installation, and equipment.
• Portfolio Services: once installed, customers generate recurring monthly revenue over long lifetimes (on average customers remain with Verisure for ~15 years), with low attrition rates (7.4%) and attractive unit economics.

For more information about our recurring revenue model, please refer to pages 72-73 of the Verisure Prospectus, available on our website.

We manage our business through six core metrics that together capture the size, growth, quality, and profitability of our subscription model.

• Portfolio size: the total number of customers Verisure protects, i.e. the total number of long-term subscribers to our service. Our customer portfolio is the bedrock of our entire business, as it drives our total revenue (portfolio subscriptions make up 90+% of our revenue) and total profitability (portfolio revenue carries a 70+% EBITDA margin)
• Attrition: the percentage of customers who cancel their subscription. Maintaining a low and stable attrition is fundamental to our model, ensuring long customer lifetimes and predictable recurring revenues.
• New Installations: the number of new customers added to our customer portfolio. New installations reflect the strength of our commercial engine, replenishing customers lost to portfolio attrition and driving net portfolio growth.
• Average Revenue per User (ARPU): the average monthly revenue per customer – reflects our pricing power, product innovation, and ability to increase value per subscriber over time.
• Recurring Monthly Cost (RMC): the total monthly cost to serve each customer in our portfolio. Our RMC is typically only a fraction of our ARPU.
• Cost per Acquisition (CPA): the upfront cash investment to acquire a new customer, including material costs, sales & installations, marketing & media and support cost. That investment typically carry a high ROI of around 20%.

At Verisure, these metrics form the foundation of our value creation model, helping us to focus on high-quality, capital-efficient growth, balancing scale with profitability to deliver sustainable, recurring value over time.

Clear category leadership: We protect over 6.2 million customers across 18 countries. We are the leading provider of professionally monitored security services for residential households and small businesses in 14 of our 18 geographies, and the leader in both Europe and Latin America. Across our footprint, we are more than 6 times larger than the second largest player. As of the close of 2025, we are also the category leader globally, both in terms of total number of customers served and new installations.

Vertically integrated tech stack, fuelling continuous innovation: Our end-to-end system ownership – from sensors in the premise to backend signal reception and management, followed by our human intervention process – enables continuous innovation. This vertically integrated approach allows us to control the design, functionalities, and cost efficiency of our products, to continue delivering award-winning technologies for our customers.

High levels of customer loyalty and best-in-class attrition: Our marketing-led, booking-based, and counselled sales approach focuses on attracting high-quality customers. We then strive to delight customers in our portfolio with service excellence, aiming to retain them for the long term. This combination results in our industry-leading attrition levels (7.4%) and long customer lifetime (~15 years).

Differentiated customer proposition: We focus on providing differentiated products and services that generate recurring revenues from residential homes and small businesses, avoiding low-price and non-monitored systems that lack a path to recurring revenue.

Continued margin expansion trajectory: a disciplined approach to cost control and a continuous effort to improve our service offering and the pricing we earn as a result, combine to allow us to capture increasing profitability margins over time. We then re-invest a good portion of the cash-flows derived from our portfolio operations into the acquisition of new customers, an investment generating high returns of around 20%.

Proven resilience: Verisure has been growing consistently for decades in terms of customer portfolio, revenue and profitability. Our growth has been uninterrupted, every single year, across economic and societal cycles. Over the past 10 years our customer portfolio has been multiplied by more than 3 times, our revenue close to 4 times, our EBITDA close to 5 times.

For further information, please refer to pages 58-75 of the Verisure Prospectus, available on our website.

The professionally monitored security market remains underpenetrated across our footprint, offering significant long-term growth opportunities.

As of 31 December 2025, we estimate our Total Addressable Market (“TAM”) to comprise approximately ~437 million residential dwellings and small businesses. We recognise that not all this TAM is immediately serviceable, as demand varies depending on factors such as housing type, location, affordability, or perceived need for security. Under our central modelling scenario, we estimate our current Serviceable Addressable Market (“SAM”) at around 137 million.

Despite this large addressable market, penetration remains low. We estimate that the total installed base of professionally monitored security systems across our footprint is ~16 million, implying a penetration rate of below 4% of our TAM and around ~12% of our SAM. Penetration also varies significantly by region, with around 10% in Iberia and the Nordics, approximately 4% in Other Europe, and less than 2% in Latin America.

Overall, these low penetration levels, combined with our proven ability to activate demand and expand our addressable market, provide a significant headroom for future growth.

For further information on our market opportunity, please refer to page 45 of the Verisure Prospectus, available on our website.

We grow our customer base through a highly scalable, integrated sales model combining strong lead generation, efficient conversion, and a large, well-trained salesforce.

Our sales funnel is supported by over 760 contact centre agents and around 12,500 field sales professionals, ensuring high engagement from lead generation through to installation. Leads are quickly converted into bookings, which are then handled via on-site visits by our field salesforce.

At the core of our model is our “seller-installer” approach, where the same security expert consults, sells and installs the system typically in a single visit. This drives higher conversion, faster deployment and strong customer satisfaction.

The model also delivers attractive unit economics, with 70–80% bookings productivity supported by both company-generated and self-generated leads, including referrals.

We complement our direct salesforce with additional channels such as telesales, commercial partnerships and local partners, further expanding our reach.

Overall, this combination of scale, productivity and a differentiated go-to-market approach enables us to grow efficiently and capture long-term market growth.

For further information, please refer to pages 66 and 67 of the Verisure Prospectus, available on our website.

We are a consumer and customer-centric company. Business success starts with delivering a service that customers value, are satisfied with, and remain subscribed to over the long term.

A key driver of our performance is our focus on attracting and onboarding high-quality customers who are likely to stay with us for many years. Our commercial model is based on marketing-led, booking-based, counselled sales, including in-home security surveys and fully customised solutions. A meaningful upfront fee and, in some markets, credit scoring help ensure strong customer commitment from the outset.

Customer loyalty is one of our key strengths, with customers remaining with us for approximately 15 years on average. From 2014 to 2025, our attrition rates have ranged between 6% and 8%, which we believe is best-in-class in our industry and across subscription-based businesses.

Our low attrition is also the result of operational excellence across all customer touchpoints. Once onboarded, we focus on delivering an exceptional customer experience, with particular emphasis on the first 90 days to build strong engagement and usage habits.

We continuously track service performance and customer satisfaction through metrics such as response times and Net Promoter Score (NPS), and we use data-led predictive analytics to identify and address potential churn early.

Our disciplined customer acquisition strategy, combined with ongoing investment in service quality and customer experience, enables us to maintain best-in-class attrition and support long-term recurring revenue growth.

For further information, please refer to pages 68 and 69 of the Verisure Prospectus, available on our website.

Our go-to-market (“GTM”) is one that we believe allows us to execute at scale and is structured around four key pillars:

1. Creating demand: We generate demand through a combination of marketing-led efforts, booking-based outreach and self-generated sales. Our annual marketing spend totalled €306 million in 2025. We leverage both push and pull media channels to drive awareness and engagement. This diversified demand generation model ensures a steady and qualified lead flow into the top of the sales funnel.
2. Converting demand: Conversion is driven by our highly trained, professional salesforce. Our counselled sales method is supported by specialised tools that guide the customer journey. Performance is incentivised through a structured commission scheme. This approach delivers consistent conversion efficiency and enables us to capitalise on the demand we create, resulting in approximately 873,000 new installations for the year ended 31 December 2025.
3. Managing the GTM and salespeople: Our GTM model is managed through a rigorous sales structure that includes detailed processes for both branch execution and individual performance. Responsibility over our regional balance sheets is held at the branch level, creating strong accountability and ownership. We complement this with real-time performance management systems that enable responsive coaching, data-driven decision-making and continuous optimisation. We currently operate with approximately 12,500 sales agents across our footprint.
4. Building new channels and partnerships: To expand our reach and improve customer access, we are actively building additional distribution channels through strategic alliances and partnerships. We also leverage telesales to drive incremental volume. These additional channels account for around 18% of new installations, evidencing the scalability and diversification of our model.

Yes, we operate a fully vertically integrated technology platform, managing the entire product lifecycle in-house – from hardware design and software development to deployment and customer experience.

Our technology organisation, comprising around 1,800 professionals, operates across multiple innovation hubs, including Geneva, Malmö, and Madrid, and works closely with our operations, marketing and sales teams to ensure continuous, customer-driven innovation.

We manage a large-scale infrastructure, with over 90 million connected devices, running 24/7 and generating around 1.5 trillion signals annually, enabling us to deliver a secure, resilient and high-quality service.

This end-to-end control of our technology stack is a key differentiator, supporting innovation, efficiency, and long-term value creation.

As a technology-enabled human services company, innovation is a core part of our value proposition. We leverage our vertically integrated tech stack to continuously develop and deploy proprietary products across our end-to-end security offering.

In recent years, we have introduced several innovative solutions that enhance protection, improve customer experience, and support growth:

• WiFi Vision™ – We are the first alarm company in Europe to launch Wi-Fi sensing technology that detects presence through analysing fluctuations in Wi-Fi signals associated with human movement, supporting our monitoring teams during break-ins or fire emergencies.
• ZeroVision™ – The first affordable battery-operated vision impairment device that releases dense smoke during a confirmed intrusion, slowing or stopping any on-going theft and usually expelling intruders.
• GuardVision™ – Security cameras with an on-device proprietary AI detection algorithm to enable more accurate alarm verification and reduce our operating costs.
• LockGuard™ – An advanced electronic front door lock integrated with the alarm system, using machine learning to detect tampering and enabling remote control and facilitate access for first responders during emergencies.
• Sentinel Anti-Jamming Alarm – Detects attempts to disrupt our wireless communication networks and triggers a response via alternative networks.
• Verisure Guardian™ – Mobile-based SOS service that extends protection beyond the home, allowing customers to trigger emergency responses wherever they are.

These products are integrated into our proprietary alarm management systems and are increasingly leveraging AI and advanced signal processing to improve detection, verification and response.

For further information, please refer to pages 66 and 67 of the Verisure Prospectus, available on our website.

We are a technology-enabled human service company, and AI has become a key enabler of our strategy in recent years. Our business model is both data- and people-intensive. With access to an unmatched base of over 90 million connected devices generating continuous data, we benefit from industry-leading AI training capabilities.

We leverage AI across our operations to enhance service quality, improve customer experience and drive operational efficiency, while maintaining strong standards around data privacy and responsible deployment. Some examples of recent AI use cases include:

• Detection and verification: AI is embedded in our products, such as GuardVision™ cameras, using computer vision and machine learning to classify events and reduce false alarms.
• Monitoring and intervention: Proprietary machine learning models, such as our Advanced Monitoring, assess the risk level of each alarm, enabling faster, more accurate and prioritised responses.
• Customer operations: AI supports lead qualification, contact centre efficiency and customer satisfaction, through tools such as our AI Customer Decision Engine and sentiment analysis.
• Operational efficiency: Predictive models optimise maintenance and reduce costs, for example by anticipating battery replacement needs across our installed base.

We also embed AI across our workforce to enhance productivity, while continuously improving our models through proprietary data and ensuring robust governance and ethical standards.

Overall, AI strengthens our ability to deliver better protection, improve efficiency and support long-term value creation.

For further information, please refer to page 22 of the Verisure Plc Annual Report 2025.

Our growth has been uninterrupted throughout our history, accelerated by increased investments in innovation, category-creating marketing, go-to-market expertise, and customer service. As 2025 ended, we reached close to 6.26.3 million customers.

For our shareholders, Verisure creates value through a virtuous cycle of recurring cash flow generation, disciplined reinvestment, and compounding growth. Our business model is based on building a large, high-quality customer portfolio that generates predictable, recurring revenues. 92% of our revenues are subscription-based and recurring in nature, derived from a large, diversified customer base across multiple geographies. These cash flows are then reinvested into acquiring new customers at a high ROI, fuelling further profitable portfolio growth.

This model is underpinned by strong unit economics. We acquire customers at disciplined cost levels and maintain controlled Acquisition Multiples (3.7x in 2025), generating an attractive unlevered IRR of approximately 20% on new customer cohorts.

As the portfolio scales, value creation is amplified through:

• Recurring revenue growth driven by portfolio expansion
• Improving unit economics, including ARPU growth and cost efficiency
• Operating leverage, translating into accelerated profitability

As markets mature, profitability and cash generation accelerate. As penetration increases, profits from the existing customer portfolio grow faster than reinvestment opportunities, reducing the Portfolio Reinvestment Rate (the share of portfolio cash flows reinvested into customer acquisition). A decreasing Portfolio Reinvestment Rate delivers increasing cash accretion and drives progressive increases in our free cash flow over time.

We intend to adopt a progressive dividend policy, targeting ordinary dividend payouts of approximately 30–40% of Adjusted Net Profit. Over time, we may also return excess capital through share buybacks and special dividends, depending on market conditions and capital requirements.

For further information, please refer to pages 72-74 of the Verisure Prospectus, available on our website.

We actively manage the balance between growth, profitability and cash flow through a disciplined capital allocation framework focused on long-term value creation.

In the short term, growth through new customer acquisition reduces earnings and operating cash flows, as acquiring new customers requires upfront investment. These investments momentarily depress operating cash flow, while the impact on Adjusted EBIT is smaller due to the partial capitalisation of certain customer acquisition costs. As a result, periods of strong growth temporarily lower our Cash Conversion ratio.

Despite this, we deliberately choose to invest cash generated from our growing subscriber base into customer acquisition, as it delivers strong long-term value, with an IRR of approximately 20% on cash spent on new customer acquisition. This creates a trade-off: higher growth implies lower short-term margins and cash conversion, while lower growth would increase short-term profitability and cash generation, but at the expense of long-term value creation.

Over time, as the business scales and matures, this balance improves. As Portfolio Services profitability grows faster than customer acquisition costs, our Portfolio Reinvestment Rate declines, leading to increasing cash accretion and progressively higher free cash flow.

In addition, our model provides financial flexibility, as new customer cohorts generate recurring earnings that support funding capacity and capital allocation choices. This enables us to both invest in growth and, over time, increase cash returns to shareholders.

We report our business across three segments that reflect how we create value through recurring services, disciplined growth, and complementary offerings:

1. Portfolio Services
   This is the core of our business and represents the recurring subscription revenues we generate from our installed customer base. It includes monitoring, alarm verification and response, customer care, maintenance, and technical support. This segment benefits from high customer loyalty, low attrition and strong operating leverage, driving growing, predictable cash flows over time.
2. Customer Acquisition
   This segment reflects our investment in acquiring new customers, including marketing, sales, installation and equipment. We deliberately reinvest a significant portion of the cash generated by our portfolio services into acquiring high-quality customers, supporting long-term growth and value creation. These investments present a high ROI and are largely discretionary, allowing us to balance growth and cash flow.
3. Adjacencies
   This segment includes non-core but complementary businesses, such as our Senior Protection offering and the sale of Arlo cameras and video surveillance services through e-commerce and retail channels.

Together, these three segments underpin our model of recurring revenue generation, disciplined reinvestment and scalable growth.

As of 31 December 2025, we continued to achieve an attractive IRR of approximately 20% on new customer acquisition through a combination of disciplined investment, strong unit economics, and high-quality customer intake.

A key driver is our focus on high-quality customer intake, characterised by a strong attrition profile and an attractive level of pricing and profitability. Our customers come in at a price level in line with our existing customer portfolio. We believe this disciplined approach is what creates long-term value.

We closely manage our customer acquisition economics through the Acquisition Multiple, which represents the ratio between the upfront investment made to acquire a new customer relative to the annualised Adjusted EBITDA they generate. We have a long track record of keeping this metric under control, improving from 4.2x in 2015 to 3.7x in 2025.

This combination of controlled acquisition costs and attractive recurring revenues results in strong lifetime value per customer, driving high returns on investment.

We aim to continue capturing high ROIs in the future through leveraging our effective sales teams and maintaining disciplined cost per acquisition (“CPA”) levels, supporting customer retention through our strong service proposition delivered at competitive cost-to-serve.

We have set medium-term financial targets focused on delivering sustained growth, improving profitability and increasing returns to shareholders.

Financial targets

• Revenue: Our medium-term target is to grow ARR by around 10% per annum and to grow revenue up to 100 basis points below ARR growth.
• Profitability: Progressively increase Adjusted EBIT margins aiming to deliver 30% margins in the long term.
• Capital structure: Our target is to decrease net leverage to around 2.50x–2.75x by the end of 2026 from approximately 3.0x at IPO, and we aim to maintain net leverage around 2.5x thereafter.

Dividend policy

• We intend to adopt a progressive dividend policy, targeting ordinary dividend payouts of approximately 30–40% of Adjusted Net Profit.
• Dividends are expected to be paid semi-annually, with the first (partial) distribution anticipated in H2 of 2026.
• Over time, we may also return excess capital through share buybacks and special dividends, depending on market conditions and capital requirements.

These targets reflect our ambition to balance continued investment in growth with increasing profitability and shareholder returns over time, but are based on estimates and assumptions, as set out in page 82 of the Verisure Prospectus, available on our website.

Our capital allocation framework remains consistent, and are structured across four key pillars:

1. Invest in Long-Term Growth Continuing to invest in new installations while also continuing to invest in technology and innovation to support long-term growth, service quality and operational efficiency.
2. Balance Sheet Management Focus on further strengthening our balance sheet, targeting a leverage range of approximately 2.5x in the medium term.
3. Prioritize Organic growth We are highly selective on mergers and acquisitions, due to our strong organic growth capabilities and our focus on quality intake. Over the past decade, 95% of our growth has been organic, and we expect it will largely remain as such.
4. Return Capital to Shareholders We expect to progressively return capital to shareholders as our business continues to scale and cash flow generation increases. This includes a progressive ordinary dividend policy with a 30-40% payout ratio, alongside potential share buybacks or special dividends over the medium term.

Our business model has proven its strong resilience even in challenging market conditions, underpinned by the essential nature of our services, high recurring revenues, and a disciplined operating model.

We provide a fundamental service. Demand for security is structurally resilient as protection remains a priority for homes and small businesses even (or more so) in challenging external environments. This is complemented by what we intend to be an excellent service and our best-in-class customer retention, resulting in stable and predictable cash flows.

Since our inception in 1988 we have delivered continuous and uninterrupted growth in customer portfolio, revenue, and profitability. In the past decade alone, we have grown our portfolio more than 3 times, our revenue close to 4 times, and our EBITDA close to 5 times.

Our subscription-based model provides further visibility and stability, with 92% of our revenues being subscription-based, recurring in nature and generated from a large, diversified customer base across multiple geographies.

We maintain a disciplined approach to growth and capital allocation, prioritising customer quality and long-term returns. We do not pursue growth at any cost and have demonstrated our ability to price appropriately to protect margins over time.

For further information, please refer to pages 74-76 of the Verisure Prospectus, available on our website.

We operate in a large and fragmented market. We continuously track over 70 professionally monitored security providers across our footprint, but online research easily points out much more exist at local level within each country.

Within this landscape, we have established a clear leadership position. In 2025, we became the worldwide leader in total customers protected and total annual new sales and installations of monitored alarm systems. We are the leading provider of professionally monitored security for homes and small businesses in both Europe and Latin America, with an estimated ~39% share of the total installed base. We are the leader in 14 of our 18 geographies. Across our total footprint, we estimate that we are more than six times larger than the next largest competitor.

Importantly, regulatory requirements across our markets favour professionally installed and monitored solutions, limiting the adoption of self-installation solutions sold at retail or online, and reinforcing the strength of our service-led approach.

Overall, our market remains highly fragmented and underpenetrated, which, combined with our scale, brand strength and integrated offering, positions us well to continue gaining market share over time.

For further information on our competitive landscape, please refer to pages 50-51 of the Verisure Prospectus, available on our website.

For further information, please refer to pages 16-32 of the Verisure Prospectus, available on our website.