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Kiiski's avatar

This ain’t pretty! :D

Currently at 30,26 SEK (-50% from my elevator pitch).

They just dropped a forced profit warning “inadvertently disclosed.”

Great job! FFS!

Classic move from one of the most hyped company:

Hire aggressively in 2025 → fire people in early 2026.

Very poor job from management.

Bookings down ~25%. WTF?

The business looks shit. The product does not. (I still like it.)

Still: the thesis is not dead yet. None of the kill switches has triggered:

Starts losing money

ARR growth stops (Q1 report is key… doesn’t look great)

They start doing stupid acquisitions

This was a witty gigabrain “mispriced transition story” in early 2026.

Now? Just a painful Swedish small cap to hold.

Kiiski's avatar

Update 12.2.2026 | Q4 Results are in. Not pretty. Stock -15% to SEK 55.

The numbers:

🚩 Profitability collapsed - EBIT margin 1.2% vs 17.8% last year. Full year 9.0% vs 18.8%. Ugly.

🚩 Currency doomloop confirmed - Single biggest driver of the ugly headlines.

🚩 Management looks lost - New CEO started December 17th. Give him time...

🚩 Hardware keys remain niche - Top 3 verticals: high-tech, financial services, defense. They're leaning into segments where "good enough" passkeys aren't good enough. Smart, but confirms the niche.

✅ Subscription flywheel is REAL - Strongest confirmation from the report. 28% of bookings now subscription (vs 19% last year). ARR +21% to SEK 391m. Renewals SEK 96m in Q4 alone. Customers are locked in and not leaving!!!

✅ Bookings in constant currency = record quarter. Largest booking quarter in Yubico history when you strip out FX. Demand isn't dying. It's being masked.

✅ Optionality getting real - Straight from the report: "protect user and AI agent identities end-to-end." They're starting to believe their own re-rating story. The market can do what it wants.

✅ Balance sheet is a good - SEK 856m net cash. No real debt. They can fund this transition without diluting you.

Pain isn't over. Transition continues through 2026. This doesn't turnaround in a few quarters. Weakness → More weakness. Currency doomloop still in the mix. We are probably not at the bottom.

Risk/reward? Still beautiful. Thesis holds. We keep dreaming!

Kiiski's avatar

When to stop dreaming? This report still confirms that we can dream.

- ARR growth stops, subscription flywheel compounding was a dream.

- Keeps losing cash.

- New CEO starts doing stupid acquisitions

If any of these happen, we kill the dream. No emotions, no "hopium". Out.