F-Secure Half-year Report 1 January-30 June 2026: Strong growth in the Embedded Security business
F-Secure Corporation | Stock exchange release | 17 July 2026 at 8:00 EEST
F-Secure Half-year report 1 January–30 June 2026: Strong growth in the Embedded Security business
This is a summary of F-Secure Corporation’s January–June 2026 Half-year report. The full report is a PDF file attached to this stock exchange release and available on the company website at www.investors.f-secure.com.
Highlights of April–June 2026
- Currency neutral revenue growth was 9.9%. Reported revenue increased by 8.0% to EUR 39.8 million (EUR 36.9 million). Revenue growth was driven by good development in the Embedded Security business within Tier 1 partners.
- Currency neutral revenue from Partner channel increased by 13.1%. Reported revenue increased by 10.8% to EUR 33.4 million (EUR 30.2 million).
- Currency neutral revenue from Direct channel decreased by -4.5%. Reported revenue decreased by -4.4% to EUR 6.4 million (EUR 6.7 million).
- Adjusted EBITA was EUR 11.0 million (EUR 11.9 million), 27.7% of revenue (32.2%). Decline was due to planned investments in Embedded security portfolio and Tier 1 service level capabilities.
- Earnings per share (EPS) decreased to EUR 0.02 (EUR 0.03).
- Operating cash flow was EUR 5.5 million (EUR 10.8 million). Cash flow was burdened by growth in accounts receivables due to temporary delay in collection.
Highlights of January–June 2026
- Currency neutral revenue growth was 6.0%. Reported revenue increased by 3.0% to EUR 76.2 million (EUR 74.0 million). Revenue growth was driven by good development in the Embedded Security business within Tier 1 partners.
- Currency neutral revenue from Partner channel increased by 8.9%. Reported revenue increased by 5.1% to EUR 63.3 million (EUR 60.3 million).
- Currency neutral revenue from Direct channel decreased by -6.4%. Reported revenue decreased by -6.5% to EUR 12.8 million (EUR 13.7 million).
- Adjusted EBITA was EUR 22.6 million (EUR 25.0 million), 29.6% of revenue (33.8%). Decline was due to planned investments in Embedded security portfolio and Tier 1 service level capabilities as well as currency impact.
- Items affecting comparability (IAC) were EUR -1.6 million (EUR 0.1 million) related to organizational restructuring in sales and services teams.
- Earnings per share (EPS) decreased to EUR 0.04 (EUR 0.06).
- Operating cash flow was EUR 13.4 million (EUR 20.4 million). Cash flow was burdened by growth in accounts receivables due to temporary delay in collection.
- Net debt declined to EUR 143.1 million (EUR 152.9 million), and the leverage ratio was 2.9x (31 Dec 2025: 2.8x).
Figures in brackets refer to the corresponding period in the previous year, unless otherwise stated. Percentages and figures presented herein may include rounding differences and therefore may not add up precisely to the totals presented. Figures in this half year report are unaudited.
Outlook for 2026
Unchanged, last updated 10 March 2026
Growth: The group’s currency neutral revenue growth is expected to be 7–12% in 2026.
Profitability: The group’s adjusted EBITA is expected to be EUR 44–50 million in 2026 (2025: EUR 50.3 million).
Background for the outlook:
- F-Secure expects the core consumer cybersecurity market to grow mid-single digit CAGR mid- to long-term1. F-Secure sees the potential to grow faster than the market, focusing on partner channel and its offering around Embedded security and Scam Protection. The growth may be moderated by uncertainties around consumer sentiment in certain markets and general economic volatility.
- Partner business and especially Embedded Security solutions are expected to drive F-Secure growth during 2026. Growth is expected to accelerate throughout the year as the most significant new Tier 1 services gradually start to generate revenue and support profitability.
- Direct business revenue development is expected to be negative due to continued strategy of refraining from paid customer acquisition. Focus is on improving retention rate and ARPU.
- Gross margin is expected to be slightly lower than in 2025 (84.7%) due to growth of strategic partners with Embedded Security solutions, as these typically have a lower gross margin level than F-Secure Total business.
- F-Secure continues to develop its service, operations and production capabilities further to meet Tier 1 partner requirements. These efforts are reflected in the higher cost base. As business scales up we expect to leverage continued service level investments across a wider partner base, leading to positive Adjusted EBITA % development along with business growth.
- Capex level is expected to remain on a similar or slightly higher level as in 2025 related to both product development as well as technology infrastructure improvements.
1 Industry analyst views such as Gartner and IDC, and F-Secure management estimates.
Financial targets
F-Secure's medium-term financial targets and dividend policy for the company reflect the company’s growth ambitions and strategic direction.
- Growth: High single digit growth (CAGR) with additional significant upside from major Tier 1 deals
- Profitability: Adjusted EBITA margin approaching 40% as revenue reaches EUR 200 million
- Dividend Yield: Around or above 50% of net profit, which can be adjusted as long as leverage is higher than the targeted level
- Leverage: Net debt / adjusted EBITDA ratio below 2.5x, excluding temporary impact from acquisitions
F-Secure Corporation follows the Rule of 40 metric as internal performance measurement and guiding principle, according to which the combined revenue growth rate and profitability margin should be equal to or greater than 40%.
Financial performance
| EUR million | 4-6/2026 | 4-6/2025 | Change % | 1-6/2026 | 1-6/2025 | Change % | 1-12/2025 |
| Revenue | 39.8 | 36.9 | 8.0% | 76.2 | 74.0 | 3.0% | 145.7 |
| Gross Margin | 33.4 | 31.3 | 6.8% | 63.7 | 63.0 | 1.2% | 123.4 |
| % of revenue | 83.9% | 84.8% | 83.7% | 85.1% | 84.7% | ||
| Operating expenses1 | -22.1 | -19.3 | 14.3% | -40.6 | -37.6 | 7.8% | -72.3 |
| Sales & Marketing | -9.0 | -8.7 | 3.0% | -16.5 | -16.9 | -2.2% | -32.2 |
| Research & Development | -9.1 | -6.6 | 37.8% | -16.2 | -13.0 | 24.4% | -24.7 |
| Administration | -4.0 | -4.0 | 0.6% | -7.8 | -7.7 | 1.4% | -15.4 |
| Adjusted EBITA1 | 11.0 | 11.9 | -7.1% | 22.6 | 25.0 | -9.7% | 50.3 |
| % of revenue | 27.7% | 32.2% | 29.6% | 33.8% | 34.5% | ||
| Items affecting comparability (IAC)2 | 0.1 | 0.0 | -1.6 | 0.1 | 0.1 | ||
| EBIT | 7.0 | 8.2 | -15.0% | 12.8 | 17.6 | -27.5% | 35.5 |
| % of revenue | 17.6% | 22.3% | 16.8% | 23.8% | 24.4% | ||
| Earnings per share (EUR)3 | 0.02 | 0.03 | -19.3% | 0.04 | 0.06 | -31.9% | 0.13 |
| Earnings per share, adjusted for PPA amortization (EUR)3 | 0.03 | 0.04 | -15.0% | 0.06 | 0.08 | -25.2% | 0.16 |
| Shareholder's equity per share, EUR | 0.33 | 0.25 | 0.32 | ||||
| Operating cash flow | 5.5 | 10.8 | -48.9% | 13.4 | 20.4 | -34.4% | 43.6 |
| Cash conversion % | 52.9% | 89.9% | 51.6% | 82.3% | 79.1% | ||
| Deferred revenue | 25.3 | 24.7 | 2.4% | 27.0 | |||
| Net debt (+) / Net cash (-) | 143.1 | 152.9 | -6.4% | 145.6 | |||
| Net debt/Adjusted EBITDA | 2.9 | 2.9 | 2.8 | ||||
| Gearing, % | 245.0% | 345.2% | 260.0% | ||||
| Equity ratio % | 22.2% | 17.0% | 21.5% | ||||
| Personnel at the end of the period | 616 | 530 | 16.2% | 549 |
1 Excluding Items Affecting Comparability (IAC) and depreciation and amortization.
2 A reconciliation and breakdown of items affecting comparability is presented at the end of this report.
3 Based on the average number of shares for the reporting period.
Timo Laaksonen, President and CEO
The second quarter of 2026 was strong for F-Secure both commercially and strategically. Our currency neutral revenue grew by 9.9 percent to EUR 39.8 million, driven by returns on our Embedded portfolio investments and continued Tier 1 Communication Service Provider (CSP) wins. We are especially proud of signing and launching our partnership with Verizon, which marked the largest deal in F-Secure history. This growth reflects a period of deliberate prioritization of Embedded Security business. In the meantime, we have experienced moderate decline in the Security Suite business which we are addressing by returning to more balanced commercial and product efforts. This includes the launch of AI-native Project Halo at the end of Q3 2026 to our Direct business mobile customers in the US.
Despite the strong growth, our Adjusted EBITA and Adjusted EBITA margin declined respectively to EUR 11.0 million (EUR 11.9 million) and 27.7% (32.2%), due to planned investments in Embedded security portfolio and Tier 1 service level capabilities. With Tier 1 expansion now underway, our focus turns to driving service adoption growth in collaboration with our partners and translating revenue growth into stronger profitability.
During the quarter, we expanded our partnership with NTT DOCOMO, Japan's leading mobile operator and one of our most valued partners in the Asia-Pacific region. We launched two new security plans featuring advanced scam protection – including scam call checking and fake image detection – deepening a collaboration that spans years in one of the world's most sophisticated mobile markets.
We also unveiled F-Secure Trust, a new service framework designed to protect consumers in the age of agentic AI, starting with two new capabilities: TrustPath, which secures entire digital lifestyle flows end-to-end, and TrustGuard, a protection layer for AI assistant interactions. Both are expected to enter beta phase in Q4 2026 and move to production in Q1 2027. These are not incremental features – they reflect a genuine shift in how we develop our value proposition; from protection to resilience, and from security to trusted digital experiences.
To support this direction, we partnered with Qutwo, Europe’s next-generation AI lab for a quantum world. Together, we are developing AI-native consumer security solutions that protect entire digital lifestyle flows from everyday browsing to AI agent interactions. The partnership embeds Qutwo directly into our AI research and development, accelerating our roadmap as an integrated unit rather than an external research partner. The collaboration brings together F-Secure's three decades of consumer trust with Qutwo's frontier AI and quantum research capabilities.
In May, we held SPECIES, our annual partner summit. Attendance was strong, and partner satisfaction came in at 100% – a result we can be proud of. That same spirit is reflected internally: our Employee NPS reached 43, a strong score in a period of change and high ambition.
The quarter also brought changes to our leadership team. In the beginning of May, we welcomed Robin Pulkkinen as our new Chief Financial Officer. Robin brings strong financial leadership at the right moment, as we enter a more intense phase of business growth. In May, it was announced that TL Viswanathan, our Chief Product Officer will leave the company after the summer to pursue a new career opportunity. A warm welcome to Robin, and a heartfelt thank you to TL for his outstanding contributions to F-Secure over the past years.
The shift to agentic AI is creating a trust gap at the center of consumers’ digital life, and F-Secure is well placed to address it. Our AI adoption is proceeding effectively across the whole organization and transforming how we create new products. With Verizon in our partner network, F-Secure Trust under development, and Qutwo supporting our AI capabilities, we are building a future where trusted digital experiences are the norm, not the exception.
Significant events during the review period
New performance period for the Performance Share Plan and Restricted Share Plan
On 29 April 2026, F-Secure's Board of Directors approved Performance Share Plan 2026–2028 (PSP) and Restricted Share Plan 2026–2028 (RSP) for the Leadership Team and key employees.
The PSP covers approximately 47 participants with an on-target award of 585,715 shares and maximum total of 1,171,429 shares, tied to total shareholder return, earnings per share and revenue growth. The RSP, a supplementary plan for selected key employees, carries a maximum of 500,000 shares. Rewards under both plans are paid partly in shares and partly in cash, with PSP rewards settling within five months of the performance period end and RSP rewards by end of May 2029, but in any event earliest after a minimum of 12 months has elapsed from the grant of the reward.
Financial reporting in 2026
F-Secure Corporation's planned release schedule for financial reports in 2026 is as follows:
- Interim Report for January–September 2026 on Wednesday 28 October 2026
The reports will be available on the company’s website https://investors.f-secure.com/en immediately after publication. All reports are available in Finnish and English.
Webcast
Everyone interested in F-Secure is welcome to follow the live webcast on the result publication day at 13:00 Helsinki time (EEST). In the webcast, F-Secure’s President and CEO Timo Laaksonen and CFO Robin Pulkkinen will present the results and after the presentation there will be time for questions. The event can be followed at https://fsecure.events.inderes.com/q2-2026.
Analysts following F-Secure are invited to the news conference at the company headquarters, Tammasaarenkatu 7, Helsinki, Finland.
A recording of the event will be available after the event on the company's website.
Helsinki, 17 July 2026
Board of Directors
F-Secure Corporation
Further information:
Robin Pulkkinen
Chief Financial Officer
tel. +358 50 505 9932
investor.relations@f-secure.com
F-Secure in brief
F-Secure is Finland headquartered and globally operating consumer cyber security company. F-Secure offers award-winning security and privacy products and services that make every digital moment more secure, for everyone. F-Secure operates in over 100 countries, has ~200 Service Provider partners and is the global leader providing security through Communication Service Providers. F-Secure Corporation is listed on Nasdaq Helsinki Ltd. Read more: www.f-secure.com.