Lectra reports lower Q1 revenue but anticipates a rebound in the second quarter

Lectra, a specialist in technological solutions for the fashion industry, unveiled its financial results for the first quarter of 2026 at the end of April. The company reported a decline in revenue amidst an unstable global macroeconomic climate. This was partially offset by the strength of its software subscriptions.

Revenue impacted by trade tensions

During the first quarter of 2026, Lectra recorded revenue of 113.2 million euros (133.2 million dollars). This marks a 16 percent decrease on a reported basis compared to the same period last year. Recurring EBITDA amounted to 12.1 million euros, representing a margin of 10.6 percent. Net income stood at 0.5 million euros.

This financial contraction is mainly due to a 44 percent decline in non-recurring revenue, directly linked to lower sales of physical equipment. The company highlighted that equipment orders fell by 25 percent on a reported basis compared to the first quarter of 2025. As the company noted in its report, this period served as a particularly high basis for comparison for the fashion sector and the Asia-Pacific region. This was because it preceded the announcement of new customs duties in the US.

Growth supported by recurring revenue

Despite the slowdown in hardware sales, Lectra's business model shows structural stability thanks to the growing strength of its services. Recurring revenue increased by 1 percent, driven in particular by strong 14 percent growth in SaaS software subscriptions. Annual Recurring Revenue (ARR) reached 100.6 million euros on March 31, 2026, representing a 3 percent increase on a like-for-like basis.

Lectra anticipates a significant rebound in the second quarter, supported by an equipment order backlog valued at 24.6 million euros. The company also reiterated the objectives of its 2026-2028 strategic roadmap, aiming for an average annual growth in SaaS ARR of approximately 15 percent. Finally, at the combined general meeting scheduled for the end of April 2026, the board of directors will propose a dividend of 0.35 euros per share.

This article was partially written with the support of an artificial intelligence tool before being completed and edited by a FashionUnited journalist.

This article was translated to English using an AI tool.

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