Q2/25 Sales were below forecast but profits were significantly above. We expect a pickup in sales in the seasonally stronger H2. The NAV discount is slightly below the long-term average on exit expectations. Our SOTP valuation imply upside but it is likely we need to see an exit before it is realized.

The INVL Technology share price increased 70% in 2024 driven by increasing profits and NAV. The end of 2024 estimated value of the portfolio companies was raised by 20% by the external valuator. First exit is likely to come later than we initially expected due the high volatility in the stock markets. Nevertheless, we see potential for continued strong performance underpinned by strong operations and exits.

The INVL Technology share has rallied strongly on expectations of exits confirming the NAV valuation. We expect the first exit to happen by the end of the year and that the proceeds are promptly distributed to shareholders.

INVL Technology is a tech-focused private equity fund with portfolio companies active in several high-growth segments. The valuation of its holdings is low compared to peers, and the NAV discount is high compared to other investment companies in the region.

Revenue and profits grew strongly leading to an upward valuation adjustment of the portfolio companies by the external valuator. The NAV discount is at historical highs. The company entered the EXIT phase this year. An exit at the NAV could result in a lower NAV discount/higher share price.

Both revenues and earnings were above our expectations. The NAV discount is at record highs, while the exit phase is starting next year. We raise our Base case Fair value.

The portfolio companies’ revenues and profits were significantly above estimates. The external valuation of the portfolio companies is too low in our view. The NAV discount is at historical highs. We raise our estimates and Fair value per share.

Both revenues and earnings were below our expectations. However, a fee reversal resulted in a NAV increase. Management guided for a pick-up in H2/22, and we align estimates accordingly.

The NRD Systems and the Novian business area had a challenging 2021, while the Cybersecurity business area posted a record year. This report highlights INVL Technology’s largest business area, Novian.

The Cybersecurity segment pushed Q2 Group Revenues and Sales above our estimates, despite a weaker than expected result for NRD Companies. In this report, we will highlight the Cybersecurity segment.