Earnings call transcript: EVS posts record H1 2026 revenue as stock stays flat

EVS Broadcast Equipment reported record first-half 2026 revenue of EUR 107.2 million, a significant 70% increase from the previous year. Net profit rose 24% to EUR 16.5 million, while operating cash flow improved to EUR 13 million, up from a EUR 3 million outflow in the same period last year. The company remained confident in its outlook, keeping its full-year guidance unchanged.

EVS highlighted resilience across its business, driven by strong demand in Europe and growing interest in North America, APAC, and Latin America. The company is transitioning from being a broadcaster supplier to a broader live-content ecosystem provider, incorporating software, AI tools, infrastructure, and robotics. This shift is expected to expand EVS's reach beyond its core broadcast base without altering its technical identity.

Despite global challenges, EVS maintained a strong competitive position with high market share in its LiveCeption business and no signs of erosion. The company's financial performance, with EUR 107.2 million in revenue and EUR 16.5 million in net profit, demonstrates solid execution and operating leverage. However, investors will closely monitor whether the second half can sustain growth while protecting profitability.

EVS shares closed at $8.35, unchanged from the previous day. The stock's price reflects cautious market sentiment, with a 52-week range of $8.12 to $13.09. InvestingPro suggests EVS may be undervalued, with a Fair Value of $11.60, indicating a potential upside of 39%. Analysts anticipate revenue growth of 11% for fiscal 2026, supporting management's cautiously optimistic outlook.