Karnov Group AB (KAR) AI Stock Analysis

• Market Cap: kr7.78B
• Dividend Yield: N/A
• Average Volume (3M): 104.36K
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.22
• Revenue Growth: 5.13%
• EPS Growth: 6875.95%
• Country: SE
• Employees: 1,200
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 7.79
• Shares Outstanding: 107,876,144
• 10 Day Avg. Volume: 88,454
• 30 Day Avg. Volume: 104,363
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.34
• Price to Sales (P/S): 4.11
• P/FCF Ratio: 63.61
• 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: kr115.00
• Price Target Upside: 18.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.27
• Revenue Forecast (FY): kr2.58B

• Rating: 54 Neutral
• Price Target: kr70.00 ▼(-27.91% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

Overall score is held back primarily by weak technical momentum and uneven financial quality (volatile profitability and poor cash conversion), partially offset by a low P/E valuation and some balance-sheet improvement in 2025.

Positive Factors

Recurring subscription business model

Karnov's core revenue is recurring subscriptions to digital legal research platforms for law firms, corporate legal and public-sector customers. That creates durable, high-retention revenue streams, predictable renewal cycles and opportunities to cross-sell content and tools across Nordic professional customers.

Multi-year revenue expansion (2020–2024)

Sustained revenue expansion over several years signals product-market fit and successful adoption of digital offerings across the Nordics. Multi-year top-line growth underpins scale economics, supports continued investment in content and platform development, and provides a base for medium-term revenue recovery.

Improved leverage in 2025

Debt-to-equity improving to ~0.7 from prior >1.0 indicates stronger capitalization and lower financial risk versus recent years. This strengthens financial flexibility for product investment, M&A or buffer against cyclical softness, reducing refinancing pressure and improving credit resilience over the medium term.

Negative Factors

Weak cash conversion

Reported earnings have not translated consistently into cash: operating cash flow lagging net income and a sharp FCF decline limit internal funding for product development, acquisitions or debt reduction. Persistent weak cash conversion increases reliance on external financing or equity for strategic needs.

Volatile profitability and margins

Wide year-to-year swings in margins and net income reduce forecasting reliability and raise concerns about earnings quality. Such volatility may reflect timing of one-offs, cost structure sensitivity or inconsistent pricing/retention, making sustained margin improvement uncertain over the medium term.

Historically elevated leverage

A history of above-1.0 leverage for a professional services/content business suggests higher interest burden and constrained flexibility if revenue softens. Even with 2025 improvement, legacy leverage increases vulnerability to margin or cash-flow shocks and may limit strategic options during downturns.

Karnov Group AB Business Overview & Revenue Model

Company Description

Karnov Group AB (publ) provides online and offline information products and services for professionals in the areas of legal, tax and accounting, environmental, and health and safety in Denmark, Norway, Sweden, and other European countries. The company principally offers subscription-based online solutions. It also publishes and sells printed books and journals, as well as hosts legal training courses. The company provides its products under the Karnov, Norstedts Juridik, Notisum, Legal Cross Border, Forlaget Andersen, LEXNordics, DIBkunnskap, and Echoline brand names. It serves law firms, tax and accounting firms, and corporates, as well as the public sector, including courts, libraries, universities, and other public authorities and municipalities. The company was founded in 1867 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Karnov Group generates revenue through a combination of subscription fees, licensing agreements, and sales of information products. The company primarily relies on its subscription model, where customers pay for access to its digital platforms and content, ensuring a steady stream of recurring revenue. Additionally, Karnov monetizes its extensive database of legal and regulatory information through licensing arrangements with other organizations and offering premium services. Strategic partnerships with law firms, accounting firms, and educational institutions further bolster its revenue, providing access to a broader customer base and enhancing its product offerings.

Karnov Group AB Financial Statement Overview

Summary

Mixed fundamentals: strong reported earnings rebound in 2025 and improved leverage, but revenue growth turned slightly negative, profitability has been volatile, and cash conversion is weak with sharply lower free cash flow.

Income Statement

Revenue expanded strongly from 2020–2024, but growth turned slightly negative in 2025. Profitability is volatile: 2024 posted a small loss despite solid revenue, followed by a sharp rebound to very high net margin and returns in 2025. Margins also swing widely year to year, which raises questions around earnings quality and consistency despite the recent step-up.

Balance Sheet

Leverage is meaningful, with debt-to-equity above 1.0 for several years (2022–2024), improving to ~0.7 in 2025 as equity strengthened. Total assets are large and stable, but the capital structure still leans debt-heavy for a services business, leaving less flexibility if operating results soften.

Cash Flow

Cash generation is positive but not keeping pace with reported earnings: in 2025 operating cash flow is low relative to net income, and free cash flow declined sharply versus the prior year. Free cash flow has generally been choppy and often down year over year, indicating weaker cash conversion and potentially higher working-capital or reinvestment needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.64B	2.59B	2.47B	1.11B	878.07M
Gross Profit	739.70M	2.24B	276.60M	639.18M	518.41M
EBITDA	1.15B	547.70M	554.10M	313.90M	329.37M
Net Income	970.80M	-33.10M	38.20M	59.90M	84.91M
Balance Sheet
Total Assets	7.38B	7.49B	6.93B	7.45B	4.52B
Cash, Cash Equivalents and Short-Term Investments	931.80M	402.80M	450.60M	671.20M	951.47M
Total Debt	2.32B	2.87B	2.44B	2.75B	1.31B
Total Liabilities	4.14B	5.12B	4.60B	5.13B	2.37B
Stockholders Equity	3.25B	2.37B	2.34B	2.32B	2.15B
Cash Flow
Free Cash Flow	170.60M	147.80M	174.00M	182.88M	250.81M
Operating Cash Flow	340.20M	315.50M	337.00M	275.95M	314.16M
Investing Cash Flow	840.30M	-601.90M	-220.90M	-1.74B	-385.45M
Financing Cash Flow	-649.10M	235.80M	-337.70M	1.15B	467.64M

Karnov Group AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 97.10
• 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:KAR, the sentiment is Negative. The current price of 97.1 is above the 20-day moving average (MA) of 76.60, above the 50-day MA of 91.46, and below the 200-day MA of 104.22, indicating a bearish trend. The MACD of -6.50 indicates Negative momentum. The RSI at 35.45 is Neutral, neither overbought nor oversold. The STOCH value of 66.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:KAR.

Karnov Group AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUFAB	68 Neutral	kr22.40B	35.65	15.33%	1.03%	-1.37%	14.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ALIG	61 Neutral	kr13.37B	21.83	9.59%	2.09%	-1.74%	26.36%
ALLIGO.B	60 Neutral	kr6.67B	25.45	6.80%	1.64%	―	―
VOLO	55 Neutral	kr6.60B	27.93	14.16%	1.91%	9.65%	19.40%
KAR	54 Neutral	kr7.78B	8.07	2.68%	―	5.13%	6875.95%
BERG.B	45 Neutral	kr7.21B	-106.98	-3.67%	1.25%	4.65%	-136.09%

Karnov Group AB Corporate Events

Karnov launches SEK 500m share buyback after completing prior programme

Karnov Group AB has completed its previously announced share repurchase programme of series A ordinary shares and is launching a new programme of up to SEK 500 million to further optimise its capital structure. The board, acting under an extraordinary general meeting mandate, aims to reduce the company’s capital base and enhance shareholder value by buying back shares on Nasdaq Stockholm or another regulated market.

Under the new programme, running from 12 February to 5 April 2026, acquisitions will be made in cash within the prevailing market price interval and are capped so that Karnov’s total holding of own shares does not exceed 5 percent of its share capital. The company has already repurchased 295,260 series A shares for about SEK 26.6 million under the completed programme and now holds 521,162 own shares in total, with further buybacks to be reported in line with applicable regulations.

The most recent analyst rating on (SE:KAR) stock is a Buy with a SEK125.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.

Karnov boosts 2025 profit and margins after EHS divestment and AI-driven growth

Karnov Group reported a solid finish to 2025, with fourth-quarter organic growth of 3.8% and a higher adjusted EBITA margin of 25.9%, driven by strong 10% organic growth in its Region North legal information operations and an uplift in AI package sales. For the full year, net sales rose to SEK 2.64 billion, adjusted EBITA increased nearly 15%, and profitability surged as the divestment of the EHS division boosted EBIT and net profit, while cost-efficiency programs delivered SEK 217 million in annual run-rate synergies and the company launched a SEK 500 million share buy-back to optimize its capital structure.

The disposal of the EHS businesses to Infopro Digital generated SEK 1.06 billion in proceeds and sharpened Karnov’s focus on higher-margin core content and AI-driven solutions, significantly improving earnings and leverage. Strong cash generation, with adjusted free cash flow up to SEK 445 million for the year, and enhanced margins position the group more competitively in its niche information markets, supporting both reinvestment in AI capabilities and returns to shareholders through the buy-back program.

The most recent analyst rating on (SE:KAR) stock is a Buy with a SEK125.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.

Karnov Group Expands Share Buyback to Optimise Capital Structure

Karnov Group AB has repurchased 55,698 of its own series A shares on Nasdaq Stockholm between 26 and 30 January 2026 as part of an ongoing share buyback programme aimed at optimising its capital structure and enhancing shareholder value. The transactions, executed independently by DNB Carnegie Investment Bank AB under EU market abuse regulations, bring Karnov’s total holding of treasury shares to 371,139 out of 108.1 million outstanding, underscoring the company’s continued use of buybacks as a capital allocation tool and signalling confidence in its financial position to investors.

The most recent analyst rating on (SE:KAR) stock is a Hold with a SEK100.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.

Karnov Steps Up Capital Management with New Share Buybacks

Karnov Group AB has repurchased 50,193 series A shares on Nasdaq Stockholm between 19 and 23 January 2026 under its ongoing share buyback programme, aimed at optimising its capital structure and enhancing shareholder value. Executed independently by DNB Carnegie Investment Bank, the transactions bring Karnov’s total treasury holding to 315,441 shares out of 108,102,047 outstanding, a modest adjustment that underscores the group’s active capital management while maintaining operational focus on its core legal information and workflow markets in Europe.

The most recent analyst rating on (SE:KAR) stock is a Hold with a SEK100.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.

Karnov Group Continues Share Buyback to Optimise Capital Structure

Karnov Group AB has repurchased 39,346 series A ordinary shares on Nasdaq Stockholm between 12 and 16 January 2026 as part of a previously announced share buyback programme aimed at optimising its capital structure and enhancing shareholder value. Following these transactions, executed independently by DNB Carnegie Investment Bank AB, the company now holds a total of 265,248 own shares, representing a small portion of its 108,102,047 outstanding shares, underscoring a measured capital management strategy without materially altering its share base.

The most recent analyst rating on (SE:KAR) stock is a Hold with a SEK100.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.

Karnov Group Launches SEK 500 Million Share Buyback to Optimise Capital Structure

Karnov Group AB’s board has launched a share buyback programme of up to SEK 500 million in ordinary series A shares, authorised by an extraordinary general meeting held on 8 January 2026, with the stated aim of optimising the company’s capital structure and enhancing shareholder value by reducing capital. The repurchases, to be executed by an independent investment firm or credit institution on Nasdaq Stockholm between 12 January and 11 February 2026 under EU Market Abuse and Safe Harbour regulations, are capped at 5% of Karnov’s total share capital and signal active balance-sheet management that may support earnings per share and underscore management’s confidence in the company’s financial position.

The most recent analyst rating on (SE:KAR) stock is a Hold with a SEK103.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.

Karnov Group Wins Mandate for Share Buybacks to Optimise Capital Structure

Karnov Group AB has received shareholder approval at an extraordinary general meeting to authorise its board to both acquire and transfer up to 5% of the company’s series A ordinary shares. The move, allowing buybacks and disposals on Nasdaq Stockholm or other markets and including the possibility to deviate from existing shareholders’ preferential rights, is aimed at optimising the company’s capital structure and enhancing shareholder value by giving the board greater flexibility in managing its equity base.

The most recent analyst rating on (SE:KAR) stock is a Hold with a SEK103.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.

Karnov Group AB Calls for Extraordinary General Meeting

Karnov Group AB has announced an extraordinary general meeting (EGM) scheduled for January 8, 2026, in Stockholm, Sweden. Shareholders can participate in person, through a proxy, or via postal voting. The agenda includes the election of a chairman and a resolution authorizing the board to manage acquisitions and transfers of series A shares. This move could impact the company’s shareholding structure and market operations.

The most recent analyst rating on (SE:KAR) stock is a Hold with a SEK103.00 price target. To see the full list of analyst forecasts on Karnov Group AB stock, see the SE:KAR Stock Forecast page.