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Karnov boosts margins and cash flow on AI-driven legal content and cost savings

Story Highlights
  • Karnov grew organically and expanded margins, as strong online sales and cost efficiencies offset lower headline revenue and profit.
  • AI-powered legal products and cost synergies underpinned cash generation, supporting a major share buy-back to enhance shareholder value.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Karnov boosts margins and cash flow on AI-driven legal content and cost savings

Meet Samuel – Your Personal Investing Prophet

The latest announcement is out from Karnov Group AB ( (SE:KAR) ).

Karnov Group reported first-quarter 2026 net sales of SEK 628 million, down year-on-year due to currency and acquired-growth effects, but delivered 3.2% organic growth and 4.8% organic online growth, driven by strong performance across all markets. Adjusted EBITA rose to SEK 180 million, lifting the margin to 28.6%, while adjusted free cash flow increased to SEK 264 million despite lower net profit and earnings per share.

The company highlighted robust demand for its AI-enhanced legal information services, with its legal information segment in Region North posting 11% organic online growth and Spain accelerating to 5% organic growth. Newly launched AI products in France and Spain attracted promising early customer response, and ongoing cost-efficiency initiatives have generated SEK 214 million in run-rate synergies, supporting margin expansion and funding a substantial share buy-back programme aimed at boosting shareholder value.

The most recent analyst rating on (SE:KAR) stock is a Buy with a SEK115.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.

More about Karnov Group AB

Karnov Group AB is a provider of mission-critical legal information and research tools, focusing on online legal content and AI-driven solutions for professionals in Europe. The company operates legal information services across several markets, including the Nordics, Spain and France, with a growing emphasis on AI packages that enhance search, analysis and workflow efficiency for legal practitioners.

Average Trading Volume: 465,722

Technical Sentiment Signal: Sell

Current Market Cap: SEK7.3B

Find detailed analytics on KAR stock on TipRanks’ Stock Analysis page.

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