FormPipe Software AB (FPIP) AI Stock Analysis

• Market Cap: kr1.30B
• Dividend Yield: 1.92%
• Average Volume (3M): 33.84K
• Price to Earnings (P/E): 2.6
• Beta (1Y): >-0.01
• Revenue Growth: -8.38%
• EPS Growth: -38.17%
• Country: SE
• Employees: 262
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.70
• Shares Outstanding: 54,258,120
• 10 Day Avg. Volume: 41,383
• 30 Day Avg. Volume: 33,839
• PEG Ratio: <0.01
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 5.95
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.56
• Revenue Forecast (FY): kr260.45M

• Rating: 55 Neutral
• Price Target: kr23.50 ▼(-9.62% Downside)
• Action: Reiterated Date: 02/23/26
• Date: Action: Reiterated 02/23/26

The score is held back primarily by the sharp 2025 operational downturn and weaker cash conversion (free cash flow falling to zero), despite a very low-debt balance sheet that supports financial stability. Technicals lean bearish with the stock below key longer-term moving averages and a negative MACD. Valuation is also a headwind due to a high P/E, only partly mitigated by a modest dividend yield.

Positive Factors

Very low leverage / strong balance sheet

Extremely low leverage provides durable financial flexibility to absorb shocks, fund targeted investments, or pursue opportunistic M&A without refinancing pressure. Over a 2–6 month horizon this protects operations, supports liquidity management, and preserves strategic optionality.

Stable, regulated customer base

Focus on public-sector and regulated clients creates structural demand and high switching costs because of compliance obligations and long retention needs. This customer profile tends to deliver stickier contracts and more predictable renewals, supporting recurring revenue durability.

Historically strong gross margins

Multi-year gross margins in the 53–59% range indicate an inherently scalable, software-style cost structure with meaningful operating leverage. If revenue normalizes, the business has structural potential to restore healthy margins and generate strong incremental profits.

Negative Factors

Sharp 2025 revenue and margin collapse

A ~50% revenue decline and collapse of gross/EBIT margins to single digits represent a material operational deterioration that reduces revenue visibility and destroys operating leverage. Recovery could take many quarters and undermines medium-term earnings predictability.

Free cash flow fell to zero

Free cash flow falling to zero signals weakened cash conversion and/or higher reinvestment needs, limiting internal funding for product development, customer delivery, or dividends. Even with low debt, constrained FCF reduces flexibility for strategic initiatives and stress resistance.

Earnings quality and volatility concerns

A net margin far out of line with revenue implies one-off items driving profits, making reported earnings unreliable for forecasting. Combined with historically volatile returns, this complicates long-term performance assessment and raises execution risk for durable profit recovery.

FormPipe Software AB Business Overview & Revenue Model

Company Description

Formpipe Software AB (publ), a software company, develops and provides content services in Sweden, Denmark, the United Kingdom, Germany, the United States, and internationally. The company provides various software products that are used to create, store, distribute, automate, relocate, archive, and manage information, data, and metadata. It offers Acadre for document management, record keeping, and controlling the organization's data; Adoxa, a product that helps organizations to ensure automatic general data protection regulation compliance and data quality; ATOM, a technical solution for municipalities; Contentworker, a Microsoft based document management system; FAS, a platform for digitizing of fund work; Formpipe Cloud, a cloud solution for document generation, delivery, and archiving; and Autoform DM, a windows based digital archiving solution for cutting edge applications. The company also provides Lasernet for document input management; Lasernet Vault365, a solution that supports data migration and Microsoft Dynamics 365 implementation; Long-Term Archive, a digital data preservation solution; Meetings Plus, a digital meeting management software; OnDemand, an information-secure Swedish cloud solution; Platina, a digitized document and case management; Platina LS, a platform that delivers an enterprise-level capabilities for the life science industry regulatory requirements; and Portal Bas, a platform for e-services and a publishing solution. In addition, it offers Solution Management, a software that streamlines system with an internal resource; TAP, a business platform that supports and automates business processes; TAS, a platform for grant management; W3D3, a cloud service for document and case management; and X-docs, an electronic quality management system, which manages quality processes and safeguard the compliance. It serves banking, retail, manufacturing, utilities, legal, and life science industries. The company is headquartered in Stockholm, Sweden.

How the Company Makes Money

FormPipe Software AB generates revenue through a combination of software licensing, subscription fees, and professional services. The company primarily earns money by selling its software solutions to public sector entities and regulated businesses, which often require ongoing support and maintenance services. Subscription-based revenue from cloud services also contributes significantly to earnings, as organizations increasingly adopt SaaS models for their software needs. Additionally, FormPipe engages in strategic partnerships with other technology providers to enhance its offerings, which can lead to joint sales opportunities and further revenue generation.

FormPipe Software AB Financial Statement Overview

Summary

Balance sheet strength is a clear positive (very low leverage), but operating performance weakened materially in 2025 with a ~50% revenue decline and sharply compressed gross/EBIT margins. Cash flow quality also softened as free cash flow fell to zero and did not track the unusually high (likely non-recurring) net income, reducing confidence in earnings quality.

Income Statement

The business historically showed solid software-like profitability (gross margin ~53–59% in 2020–2024) with positive operating profitability, but 2025 deteriorated sharply: revenue fell ~50% year over year and gross/EBIT margin dropped to ~6%. Net income in 2025 is extremely high versus revenue (net margin >200%), which looks non-recurring and reduces confidence in earnings quality as a measure of ongoing performance. Overall, the income statement reflects a meaningful recent setback despite a stronger multi-year backdrop.

Balance Sheet

The balance sheet appears conservatively financed with very low leverage in 2025 (debt-to-equity ~0.004) and modest leverage in prior years, providing flexibility and downside protection. Equity and total assets are sizable relative to debt, supporting financial stability. A key watch-out is that profitability metrics are volatile: return on equity ranges from low single-digits in several years to an unusually high 2025 level, which likely reflects one-off earnings rather than a structurally higher return profile.

Cash Flow

Cash generation was healthy in 2020–2024 with positive operating cash flow and consistent free cash flow, though free cash flow growth was choppy. In 2025, operating cash flow remained positive but dropped materially, and free cash flow fell to zero (down 100%), signaling weaker cash conversion and/or higher reinvestment needs. Cash flow also does not closely track the unusually high 2025 net income, reinforcing concerns that recent earnings may not be fully cash-backed.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	242.40M	528.95M	525.16M	485.10M	473.20M
Gross Profit	13.59M	294.12M	295.74M	256.69M	277.44M
EBITDA	34.57M	92.21M	112.73M	69.69M	134.97M
Net Income	495.07M	17.09M	36.91M	8.76M	50.44M
Balance Sheet
Total Assets	1.07B	854.27M	835.97M	782.54M	704.25M
Cash, Cash Equivalents and Short-Term Investments	821.34M	46.52M	39.74M	4.78M	18.07M
Total Debt	3.17M	24.96M	37.84M	44.21M	13.72M
Total Liabilities	195.36M	368.10M	356.52M	340.53M	274.61M
Stockholders Equity	870.12M	486.17M	479.44M	442.02M	429.64M
Cash Flow
Free Cash Flow	0.00	48.32M	50.94M	19.12M	40.28M
Operating Cash Flow	34.74M	109.38M	110.68M	80.72M	99.03M
Investing Cash Flow	803.55M	-62.72M	-59.03M	-91.85M	-58.75M
Financing Cash Flow	-40.64M	-44.31M	-18.12M	-6.29M	-84.63M

FormPipe Software AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 26.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:FPIP, the sentiment is Neutral. The current price of 26 is above the 20-day moving average (MA) of 22.67, above the 50-day MA of 24.13, and below the 200-day MA of 26.18, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 61.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:FPIP.

FormPipe Software AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GENI	75 Outperform	kr462.79M	14.91	―	3.48%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LIME	60 Neutral	kr2.44B	21.89	32.28%	1.41%	11.23%	16.24%
FPIP	55 Neutral	kr1.30B	2.62	―	1.92%	-8.38%	-38.17%
ENEA	55 Neutral	kr1.14B	22.96	―	―	0.86%	73.68%
CINT	52 Neutral	kr1.23B	-0.63	1.00%	―	-21.66%	―
SEYE	44 Neutral	kr2.28B	-13.09	―	―	10.25%	-698.93%

FormPipe Software AB Corporate Events

Formpipe launches share buy-back program to optimize capital structure

Formpipe Software AB’s board has resolved to initiate a share buy-back program on Nasdaq Stockholm under an existing AGM mandate, aiming to repurchase up to MSEK 135 of its own shares, capped at 10 percent of total shares outstanding. The program, executed independently by ABG Sundal Collier AB and conducted under EU market abuse and safe harbour rules, is designed to optimize the company’s capital structure and enhance shareholder value through the planned redemption and reduction of share capital.

The buy-back window runs from 23 February 2026 until the 2026 Annual General Meeting, with purchases restricted to the prevailing price interval on the exchange and settled in cash. With 54,258,121 shares currently outstanding and no treasury shares held, the decision signals an active capital management strategy that may support earnings per share and underscores management’s confidence in the company’s financial position and market prospects.

The most recent analyst rating on (SE:FPIP) stock is a Hold with a SEK24.50 price target. To see the full list of analyst forecasts on FormPipe Software AB stock, see the SE:FPIP Stock Forecast page.

Formpipe pivots to Lasernet core after Public unit sale and boosts margins in 2025

Formpipe Software AB reported modest fourth-quarter 2025 revenue growth, with net sales up 2% and currency-adjusted organic growth of 7%, while recurring revenue accounted for 91% of turnover and profitability improved sharply, as adjusted EBIT swung to a 13% margin from a loss a year earlier. The quarter was dominated by the strategic divestment of its Public business area, significant one-off restructuring and transaction costs, a large cash inflow that will fund a substantial proposed shareholder distribution, and a sharpened focus on scaling the Lasernet platform under a new Lasernet Group name and partner-led growth strategy.

For the full year 2025, the company increased net sales by 9% and lifted EBITDA margin to 15%, but reported a negative EBIT due to SEK 63 million in non-recurring costs tied to the reorganization and divestment. Management has restructured operations around Lasernet, strengthened commercial focus after weak ACV and slightly lower ARR, secured a strong net cash position of SEK 820 million, and signaled a strategic shift toward becoming a focused, profitable and scalable software group with intensified go-to-market efforts alongside key partners.

The most recent analyst rating on (SE:FPIP) stock is a Hold with a SEK24.50 price target. To see the full list of analyst forecasts on FormPipe Software AB stock, see the SE:FPIP Stock Forecast page.

Formpipe Completes Divestment and Announces Leadership Change

Formpipe Software AB has completed the divestment of its Public business unit to Sikri AS, marking a strategic shift to focus on its Lasernet business unit, which specializes in enterprise document and customer communications management. This reorganization, along with the leadership change as CFO Sophie Reinius steps in as acting CEO, positions Formpipe for long-term success by enhancing its customer-centric approach and expanding its market reach, supported by the proceeds from the transaction.

The most recent analyst rating on (SE:FPIP) stock is a Hold with a SEK29.00 price target. To see the full list of analyst forecasts on FormPipe Software AB stock, see the SE:FPIP Stock Forecast page.