Verve Group (AO) | Hold | Slight miss, but cash flow rebounded

Research evidence excerpt

Verve Group (AO) | Hold | Slight miss, but cash flow rebounded

Verve Group Hold | Target Price: SEK15.00

Company description Management

Verve Group is a fast-growing, profitable digital media company that provides AI- Remco Westermann, CEO

driven ad-software solutions. Verve matches global advertiser demand with Christian Duus, CFO

publisher ad-supply, enhancing results through first-party data from its own Key shareholders

content. The company is especially strong in ID-less mobile advertising. For a Free float 56.96%

European company, Verve is unusual in that it has 70-80% of its revenue from the Bodhivas GmbH (Remco Westermann) 23.16%

US, but its head office in Germany. Oaktree Capital Management 19.88%

Lombard International 5.00%

Investment case Valuation methodology

Verve Group's business helps its customers buy or sell digital Valuation multiples are low, due to the high leverage and poor

advertising space, an instantaneous operation executed through cash flow. The company needs to reduce its debt materially to

connected platforms and exchanges. It is a business with be able to sustain growth. If they manage to do this through

economies of scale, where cutting-edge technology is key. internal measures there could be a major upside in the share.

Verve has taken on a fair amount of debt from acquisitions, yet Verve's peers trade at an EV/EBITDA of approximately 6x for

has failed to improve cash flow before M&A. It seems to us that 2026. Being smaller, we would expect Verve to require a

potential earnings growth in 2026 will mainly depend on the low discount.

base comps in late Q2 and Q3. We set a target of SEK 15.

Adtech peers are trading at 6x EBITDA for 2026E, slightly above Risks to our rating

Verve, but they are also clearly larger companies.