Verisure Q2 2026 Results

If you would like to access the PDF version of the Verisure Plc Quarterly Report Q2 2026, as well as other financial reports, presentations and materials for current and previous reporting periods, please visit: https://www.verisure.com/financial-results-reports-and-presentations

Quality growth, strong cash generation, first dividend declared

• ARR €3,620m, +11.9% y/y (o/w around 2pp Mexico).
• Adjusted EBIT €269m, +13.9% y/y, inclusive of €10m media investment in rebrand programme.
• Q2 free cash flow €56m, leverage down to 2.7x, already within year end 2026 guidance. Net debt reduced by €72m in the quarter.
• Interim dividend declared €0.10 per share (payout ratio 35% of H1 2026 Adjusted Net Income).
• Confirming 2026 outlook: ARR growth around 10% (excluding Mexico), Adjusted EBIT margin >26%, positive free cash flow. Medium-term guidance reaffirmed.

Global category leadership: ~6.4m customers driving long-term value creation

• Strong portfolio growth – total customers increased +9.4% y/y. 219k new customers in Q2 (+0.6% y/y), with continued focus on quality intake.
• ARPU €48.20, +2.4% y/y and monthly EBITDA per customer at highest-ever levels of €35.71.
• Q2 annualised attrition stable at 7.5%; despite ~7 bps of additional attrition from Mexico integration.

Portfolio Services

• Our portfolio of high-quality customers is the engine of earnings growth and cash generation. In Q2, Portfolio Services revenue grew 12.1% y/y. The structural growth opportunity ahead of us is compelling – our brand, proprietary technology platform and operational expertise position us well to capture a significant share of future category growth.
• We increased Average Revenue Per User ("ARPU") by 2.4% y/y. This reflects the quality and high engagement levels of our growing portfolio. Upselling of new products and services to existing customers is increasing and the response to our Q1 price increase continues to reflect the value customers place on our service.
• Recurring Monthly Costs ("RMC") were well controlled at €12.49 in Q2, up 1.2% y/y. This reflects the higher inherited cost base in Mexico following the acquisition in Q4 2025. Excluding Mexico, underlying RMC was 0.4% lower y/y, despite the increased inflationary environment in which we are operating. Our cost transformation plans continue to bear fruit, with customer maintenance visits down 4% y/y, reducing costly technician callouts.
• EBITDA per Customer ("EPC"), measuring customer profitability, reached a highest ever level of €35.71, up 2.8% y/y. Portfolio Services Adjusted EBITDA margin increased to 74.1%, representing the valuable, recurring monthly contribution generated per customer.
• Quarterly annualised attrition was 7.5%, which was again lower y/y excluding Mexico, which added ~7 bps to overall Group attrition in the quarter. This is a strong signal of portfolio stability. Our data-driven approach to customer management continues to underpin our best-in-class retention performance.

Customer Acquisition

• New customer acquisition activity in Q2 was robust, with a continued bias to quality. We installed 219k new customers, against an uncertain consumer backdrop particularly in Latin America. As always, we focused on quality intake, without compromise on credit scoring or entry ARPU from new customers. Our focus remains on long-term value creation, with new customers remaining with us for approximately 15 years on average.
• Q2 CPA was €1,644 per new customer, up 9.8% y/y. This includes €10m (€46 per new customer) from Spain rebranding, in line with previous guidance. CPA capitalisation rate reduced by 264 bps y/y, to 32.8%, reflecting a change in acquisition cost mix due to the rebrand. With an increased proportion of expenses charged to our income statement, Q2 capital expenditure intensity reduced to 23.9%, the lowest on record.
• Excluding rebrand, Q2 CPA increased 6.7% y/y, broadly consistent with previous periods. We continued to see the impact of media inflation and CPA was also impacted by lower operating leverage related to fixed sales-related costs including our branch network, sales salaries and support costs. Throughout the quarter we continued to invest in media given the long-term benefits to brand awareness and customer acquisition efficiency.
• Our Acquisition Multiple (excluding rebrand) was broadly stable at 3.7x. The long-duration customer lifetime economics of each installation underpin the compounding ARR growth that drives our earnings model.

Cash Flow, Capital Expenditures & Net Debt

• Cash Flow: Q2 free cash was €56m, an improvement of €97m y/y. This improvement reflects strong growth in operating cash flow, continued progress on our working capital improvement plans, lower financing costs and continued reduction in portfolio reinvestment rate.
• Capital Expenditures: Capital expenditure increased +2.3% y/y to €245m in Q2. Capital expenditure intensity was 23.9% in Q2, down 186 bps y/y, as we capitalise a lower proportion of customer acquisition costs. In the quarter we made further progress with our 2G/3G upgrade program, investing €18.3m (Q1 2026 €19.2m) to upgrade existing 2G/3G hardware ahead of projected network sunsets towards the end of the decade. This investment supports enhanced customer lifetime value and increased upsell potential.
• IG rating: On 16 June 2026, Fitch assigned Verisure its first investment grade issuer rating, BBB- with a Stable Outlook. The rating reflects the strength of our recurring revenue model, market position and improving financial profile, while further enhancing our financial flexibility and supporting continued optimisation of our cost of debt.
• Refinancing: Following the reporting period, the Group completed a further refinancing transaction, pricing €1bn of Senior Secured Notes at 4.125%, due 2032. Proceeds were used to fully repay the Group's 5.250% Senior Notes due 2029, resulting in no material debt maturities until May 2030. This followed the €570m Term Loan A upsize finalised in April 2026. Pro forma for these transactions, the Group's WACD is ~4.25%, within the target range of 4.0% to 4.5%. Based on the current debt structure, this is consistent with interest cost savings towards the upper end of the previously indicated €200–220m range versus the 2024 baseline.
• Leverage: Q2 closed with LTM leverage of 2.7x, a 0.1x reduction in the quarter, with net debt reducing by €72m to €4.9bn. We are already within our 2026 guidance range of 2.5–2.75x and reaffirm our medium-term leverage target of around 2.5x. Available liquidity stood at €944m as of 30 June 2026, comprising cash-on-hand and available credit facilities.
• Interim Dividend: Today the Board declared an interim dividend for the 2026 financial year of €0.10 per share. The dividend represents a payout ratio of 35% of H1 2026 Adjusted Net Income and is in line with pre-IPO guidance, and in total will see approximately €103m³ returned to shareholders. The dividend will be paid on 17th September 2026 to shareholders recorded in the Company's share register at the close of business on 10th September 2026.

3) Based on 1,033,962,264 outstanding shares as of 30 July 2026.

Other Updates

• Rebrand: Our Spain rebrand started in April. Brand awareness continues to build faster than initial expectations, with Verisure already above 70% awareness, 3 months after launch. Currently >70% of digital marketing leads are generated through the Verisure brand. Total Q2 investment was €23m, of which €10m media investment was reported as an operating cost, and €13m as SDI. We retain access to the Securitas Direct brand to end 2029, from which point we will make brand license fee savings.
• Cost Transformation: The first phase of our Fit for Growth ("FFG") cost plan is complete with savings already crystallising. AI is a key enabler of the program. The second phase focuses on wider operational transformation built on AI opportunities. AI is also enabling increased hyper-personalised service, including identifying upsell opportunities and identifying early risks of potential attrition.
• Technology: In the quarter we saw further endorsement of our innovation programme, with the award of two "Red Dot" awards, for ZeroVision™ and our GuardVision™ indoor camera. In July, we completed a small, bolt-on acquisition in France, Kivala Système SAS ("Kivala"). Kivala has developed a secure, connected technology for digital intercom access to residential buildings. This acquisition will deliver recurring revenue from building access with accretive unit economics. It will also open new opportunities to increase apartment penetration, complementing our current proposition. The initial M&A investment is €6m and will be cash settled in Q3 and Q4 of 2026.
• Manaus Production: In line with our supply chain strategy of increased regionalisation, hardware production is now underway in Manaus, Brazil. The facility was launched in partnership with Flex Ltd., one of our assembly partners. Locally based operations shorten lead times in Latin America, supporting further improvements in working capital as well as delivering significant unitary cost savings.
• ESG: ESG remains intrinsic to our mission and how we create long-term value. In May, Verisure was awarded the highest possible MSCI ESG Rating of AAA, recognising our leadership in managing financially relevant environmental, social and governance risks and placing us among the leaders in our global peer group. Combined with our third consecutive year of recognition as a Sustainalytics ESG Leader, with top rankings across Global, Regional and Industry categories, and a position among the top 10% of companies assessed globally, this milestone reflects the continued progress we are making to strengthen governance, support our people and customers, and grow responsibly while protecting what matters most.
• Culture & Talent: We are committed to creating supportive, high-performing working environments by fostering a culture based on strong values. In Q2, we continued to be recognised as an outstanding employer in our 18 markets, including being named in the Financial Times 'Europe's Best Employers 2026' list for the second consecutive year and receiving Great Place to Work™ certifications across all participating countries.
• Protecting What Matters Most: In Q2 2026, 24 million alarms were triggered. Our highly trained teams in our 24/7 alarm response centres consequently evaluated 9 million alarm incidents. Our AI-enhanced human service filters 99.5% of false positives. Of total alarms triggered, ~104k incidents required on-site assistance at our customers' homes or business premises. Protecting customers and their families in moments of truth, when it really counts.

2026 Outlook

• ARR growth around 10% (excluding Mexico) and Adjusted EBIT margin above 26%.
• Free Cash Flow positive.
• Interim Dividend paid in the second half of 2026.

Medium-Term Guidance

• ARR growth around 10%.
• Total revenue growth up to 100 bps below ARR growth.
• Progressive expansion in Adjusted EBIT margin to 30% over the long-term.