Recurring Revenue ModelWestpay's hardware-plus-software business includes recurring software licenses, support and managed services tied to deployed terminals. This mix creates more predictable revenue, higher lifetime customer value and stickiness versus one-time device sales, supporting durable cash flow as deployments scale.

Improving Gross MarginsA roughly 47% gross margin suggests the company captures material value above hardware costs, implying pricing power or lower unit costs. Sustained higher gross margins give room to fund R&D, expand services and absorb sales/SG&A while supporting eventual path to consistent operating profitability if revenue growth continues.

Reduced Financial LeverageLower leverage (0.44 D/E) reduces financial risk and interest burden, improving resilience to downturns and giving management more flexibility to invest in product development or M&A. A stronger balance sheet enables longer-term strategic initiatives without immediate refinancing pressure.

Bears Say

Negative ProfitabilitySustained negative net margin and ROE indicate the business is not yet reliably converting revenue into shareholder returns. Over months this limits retained earnings for reinvestment, undermines ability to scale profitably and can pressure funding needs if margins do not improve with growth.

Weak Free Cash FlowA steep drop in free cash flow points to constrained internal funding for capex, working capital and growth initiatives. Persistent negative FCF forces reliance on external capital, increases dilution or leverage risk, and reduces the firm's buffer against cyclical merchant spend declines.

Small Scale / Limited ResourcesA small workforce implies limited capacity for large enterprise deployments, rapid geographic expansion, or significant product R&D. Over the medium term this can slow commercial scaling, concentrate key-person risk, and make competing against larger integrated POS providers more difficult.

WPAY FAQ

What was Westpay AB’s price range in the past 12 months?

Westpay AB lowest stock price was kr0.68 and its highest was kr2.44 in the past 12 months.

What is Westpay AB’s market cap?

Westpay AB’s market cap is kr140.00M.

When is Westpay AB’s upcoming earnings report date?

Westpay AB’s upcoming earnings report date is Feb 20, 2026 which is in 3 days.

How were Westpay AB’s earnings last quarter?

Westpay AB released its earnings results on Oct 30, 2025. The company reported kr0.017 earnings per share for the quarter, beating the consensus estimate of N/A by kr0.017.

Is Westpay AB overvalued?

According to Wall Street analysts Westpay AB’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Westpay AB pay dividends?

Westpay AB does not currently pay dividends.

What is Westpay AB’s EPS estimate?

Westpay AB’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Westpay AB have?

Westpay AB has 99,289,180 shares outstanding.

What happened to Westpay AB’s price movement after its last earnings report?

Westpay AB reported an EPS of kr0.017 in its last earnings report, beating expectations of N/A. Following the earnings report the stock price went up 7.801%.

Which hedge fund is a major shareholder of Westpay AB?

Currently, no hedge funds are holding shares in SE:WPAY

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Westpay AB

Westpay AB provides smart transaction and payment solutions in Europe, Africa, South Asia, Southeast Asia, and Nordic countries. The company offers counter-top, mobile devices, and unattended terminals for in-store and card-present transactions; online payment solutions that provide payment infrastructure for physical environments; and self-service solutions. It sells its solutions to retail, hotels and restaurants, and the retail banking sector. Westpay AB was incorporated in 1988 and is headquartered in Upplands Väsby, Sweden.