Verisure Q3 2026 Results

If you would like to access the PDF version of the Verisure Plc Quarterly Report Q3 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

Continue to prioritise quality growth, driving strong cash generation and margin expansion

• Q3 ARR €3,712m, +11.8% y/y (o/w around 2pp Mexico).
• Q3 Adjusted EBIT €285m, +13.9% y/y, margin reaches highest ever level of 27.7%.
• Q3 Free Cash Flow €59m, positive for the fourth consecutive quarter.
• Customer Portfolio increased 9.0% y/y to ~6.5m customers.
• Macro conditions unchanged, with consumer confidence below long-term average in several markets.
• Reflecting the YTD trend, we expect 2026 full year ARR growth of 9.0% to 9.5% (cc, exc. Mexico), with 2026 Adjusted EBIT margin around 26.5% and Free Cash Flow around €200m.
• With cash flow inflection reached we are approaching our 2.5x leverage target, which will create financial flexibility and capacity for additional shareholder returns.

Portfolio Services

• Our portfolio of 6,474k customers increased 9.0% year-on-year — reflecting the strength of our proposition and the durability of our customer relationships. We increased Average Revenue Per User (“ARPU”) by 3.0%, to €48.1 per month, reflecting the quality of our portfolio, with discounting remaining very well controlled.
• Recurring Monthly Costs (“RMC”) at €12.3 were 3.5% above prior year in constant currency, with approximately 50% of the increase attributable to the Mexico portfolio's higher inherited cost base. We continue to drive operational efficiency and cost transformation through our “Fit for Growth” programme.
• EPC reached a record €35.8, up 2.8% y/y in constant currency — increasing further the per-customer profit contribution. Portfolio Services Adjusted EBITDA margin was 74.4%, driving the high quality, recurring earnings that underpin our financial framework.
• Quarterly annualised attrition of 7.3% remains best-in-class and reflects a high level of usage and engagement with our products and services. We remain focused on enhancing the quality of our customer portfolio, with data and analytics supporting personalised, human-led retention operations. Our AI-powered Customer Insights engine, now operating across Spain and France with several other countries following soon, proactively identifies detraction risk, maintaining our best-in-class retention performance.

Customer Acquisition

• New installations of 215k in Q3 remained broadly stable year-on-year. New customers joining the portfolio were at high quality – entering the portfolio at the same ARPU level as existing customers, as we continue to avoid any front book / back book dynamic. We experienced country-specific macro-led factors in France and Latin America where the consumer backdrop continues to be challenging. Elsewhere, our major markets performed well, delivering solid growth year over year.
• External CPA of €1,658 was 9.2% above prior year in constant currency, reflecting the continuation of our Spain rebrand programme, which added approximately €33 per installation in Q3. Excluding rebrand, underlying CPA growth of 7.0% is attributed to lower upfront revenue per install, as previously guided, and the under-absorption of fixed costs against lower than planned installation volume. Our Acquisition Multiple of 3.8x excluding rebrand — up 0.2x year-on-year — reflects investments in CPA, partly offset by increased customer profitability.
• CPA gross capitalisation rate of 34.4% was 188 basis points below the prior-year period, reflecting the continued mix shift in our CPA spend towards expensed media - driven by the temporary re-branding investment – reducing the proportion of capitalised hardware and variable sales commissions, as guided.

Cash Flow, Capital Expenditures & Net Debt

• Cash Flow: Free cash flow was €58.6m in Q3, taking year-to-date free cash flow to €153.9m, an improvement of €278.4m y/y. This marks our fourth consecutive quarter of positive free cash flow. The step change reflects further progress on our working capital improvement programme and lower financing costs following our refinancing activity. It also reflects a continued improvement in portfolio reinvestment rate as our markets grow.
• Capital Expenditures: In Q3, capital expenditure increased +4.0% y/y to €245.8m. Capital expenditure intensity was 23.8%, down 150 bps y/y as we capitalise a lower proportion of customer acquisition costs. We made further progress with our 2G/3G upgrade program, investing €16.8m (€54.2m for the nine months of 2026) to upgrade 2G/3G hardware ahead of projected network sunsets towards the end of the decade. We are progressing this program proactively, with a positive impact on customer lifetime and upsell propensity.
• Refinancing: During the quarter, the Group completed the refinancing announced alongside our Q2 results, issuing €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, leaving no material debt maturities until May 2030. Following the reporting period, we continued to optimise our capital structure – in October 2026 we upsized our Term Loan A by €250m and used the proceeds, together with a modest drawing under our Revolving Credit Facility, to prepay €350m of our Term Loan B. Our proactive approach to capital structure management has maintained our weighted average cost of debt within our 4.0%–4.5% guidance range.
• Leverage: Q3 closed with LTM net leverage of 2.7x, stable versus Q2 including €103m paid to shareholders by way of our interim dividend. Net debt closed Q3 at €4,953m. We remain within our 2026 range of 2.5–2.75x and reaffirm our medium-term leverage target of around 2.5x. Available liquidity stood at €910.8m as of 30 September 2026, comprising cash-on-hand and undrawn credit facilities.

1) Defined as Cash Flow for the period excluding changes in borrowings, M&A activity, and returns to shareholders2) Defined as Capital Expenditures divided by Revenue

Other Topics

• Innovation: A key element of our strategy is innovation; delivering premium and differentiated technology-driven solutions to better protect our customers.
  • We continued to strengthen our innovation leadership during the quarter, expanding the rollout of our award-winning, AI-powered GuardVision^TM Outdoor video detector to 12 of our 18 markets. GuardVision^TM extends protection beyond the home by combining advanced AI with our 24/7 professional monitoring and human intervention. Data from some of our largest markets shows that outdoor security solutions can help prevent a significant number of detected intrusion attempts, demonstrating the tangible value of our continued investment in innovation and technology.
  • In September, we signed a strategic partnership with US company Ting Labs^TM to exclusively commercialise their pioneering electrical fire prevention device to our customers in Europe. This system will be fully integrated into our home alarm ecosystem, expanding our fire protection offering. This partnership complements our Connected Smoke Alarms and AI-powered Wi-Fi Vision to add a new layer of protection in the home.
• Partnerships: Alliances remain an important growth lever, contributing >10% of new installations. Beyond sales, these channels provide us partner data, insights, and advanced analytics to enhance both sales effectiveness and customer experience, typically delivering lower-than-average CPA. 2026 has been a record year for expanding partnerships. Adding to partnerships in Spain, France, Sweden, Brazil and Italy, we recently announced new alliances with the insurer Frende in Norway, and Danske Bank in Denmark.
• Italy: We have surpassed 500,000 customers in Italy, a milestone that reflects the growing demand for our services. Since entering the Italian market in 2013, our rapid growth has positioned us as the leading provider of monitored home security. Today, the company operates across 18 regions and 94 provinces, helping protect homes and small businesses through a combination of award-winning technology, 24/7 professional monitoring and rapid human response.
• Rebrand: With brand awareness for Verisure in Spain now ~80%, our rebrand program continues to progress well. More than 80% of digital marketing lead-traffic is now generated via the Verisure.es website. Total Q3 investment was ~€10m, of which €7.2m was media investment and reported as an operating cost. We retain access to the Securitas Direct brand to year-end 2029, from which point we will make brand license fee savings of €10m per annum.
• Material Costs: As has been the case across supply chains globally, we are experiencing some challenges around supply and cost of key components, particularly memory and chipsets. We remain well-positioned in terms of supply availability and have appropriate levels of inventory on hand. As previously noted, we are seeing some cost inflation against which we are working on broad-based mitigation options. We remain comfortable with CPA consensus for 2027.
• Culture & Talent: At Verisure, we are committed to creating an environment where people feel engaged, trusted and empowered to reach their full potential. With over 30,000 colleagues across 18 countries, we are proud to now also be recognized as one of the Fortune 100 Best Companies to Work For in Europe, in addition to being a Top Employer® Europe for the third consecutive year, as well as Financial Times’ Europe’s Best Employer (2025 & 2026). We believe that when colleagues are given opportunities to learn, grow and make a meaningful impact, they can do their best work and build rewarding careers.
• AI: Our vision for AI is to improve service quality, enable new services where possible, and reduce operating costs. Our large scale, vertically integrated approach plays to our advantage. Within recruitment we have introduced an AI-powered platform to support our growth and enhance productivity across our hiring operations. By automating a significant portion of the recruitment process, the platform will reduce administrative effort, provide candidates a faster, more personal experience and free our recruiters to focus on judgement, relationships and the final decision. Over time, it will become a smarter talent engine, improve hiring outcomes and support our continued growth with greater efficiency.
• Protecting What Matters Most: In Q3 2026, around 24 million alarms were triggered, and our highly trained teams in our 24/7 alarm response centres evaluated nearly 9 million incidents. Our AI-enhanced human service filters 99.7% of false positives. Of total alarms triggered, ~128k incidents required on-site assistance at our customers’ premises. Protecting customers and their families in moments of truth, when it really counts.

2026 Outlook

• ARR growth expected at 9.0% to 9.5% (cc, exc. Mexico), Adjusted EBIT margin around 26.5%, and Free Cash Flow expected at around €200m. All considered broadly in line with the outlook shared in February 2026.
• 2027 outlook will be provided alongside our full year 2026 results, in February 2027.

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

Q3 2026 Financial Results

• Group Revenue in Q3 was €1,031m, an increase of 10.5% y/y (9.2% at constant currency). The key driver of revenue growth was a 9.0% increase in the customer portfolio, alongside strong ARPU growth.
• Reported EBITDA was €472.9m in Q3. Q3 EBITDA included a lower capitalisation rate on customer acquisition costs due to increased media investment associated with the Spain rebrand programme. Capitalisation of acquisition costs reduced from 36.2% in Q3 2025 to 34.4% in Q3 2026. Q3 Adjusted EBITDA was €488.6m, up 10.4% y/y (9.7% at constant currency).
• SDIs impacting EBITDA in Q3 reduced to €15.7m. These non-operating items include the management of our rebrand programme, the continued roll-out of our new ERP system and costs associated with the integration program in Mexico.
• The Group’s Operating Profit increased to €126.0m in Q3, which included €35.1m of share-based compensation expenses. Adjusted EBIT was €285.1m, up 13.9% y/y, with Q3 Adjusted D&A and Asset Retirements increasing 5.8% y/y to €203.5m, representing 19.7% of revenue.
• In Q3, the Group reported Net Income of €75.1m, with Adjusted Net Income at €166.8m, an increase of 87.6% y/y at constant currency. This increase was driven by additional growth in customer portfolio, strong ARPU progression and tight cost control. Lower interest charges benefited our Adjusted ETR, which was ~24% in Q3. Adjusted Earnings per Share were €0.16 in the quarter.

Q3 2026 Quarterly Financial Review

Unaudited Consolidated Income Statement

Unaudited Consolidated Statement of Comprehensive Income

Unaudited Consolidated Statement of Financial Position

Unaudited Consolidated Statement of Changes in Equity

Unaudited Consolidated Statement of Cash Flows

Reconciliation Tables

Acquisition multiple

Adjusted earnings per share (Adjusted EPS)

Adjusted EBIT and Adjusted EBIT margin

Adjusted EBITDA, Revenue growth, Adjusted EBITDA margin, Adjusted EBITDA incl. SDI and Adjusted EBITDA margin incl. SDI

Adjusted Operating Cash Flow, Adjusted Operating Cash Flow before portfolio growth and Free Cash Flow

Annualised recurring revenue (ARR)

Cost per acquisition (CPA) and Customer Acquisition capital expenditures

Monthly Adjusted EBITDA per customer (EPC), Portfolio Services Adjusted EBITDA and Portfolio Services Adjusted EBITDA margin

Monthly average revenue per user (ARPU)

Recurring monthly cost (RMC)

Separately disclosed items (SDIs)

Reconciliation of the depreciation, amortisation and asset retirement charge

The below presents a bridge between reported depreciation, amortisation and asset retirements and adjusted depreciation, amortisation and asset retirements with the main reconciliation item being amortisation from historical business combinations.

Net debt and LTM net leverage