Proact Q1 2026: Revenues impacted by memory component price rises
CEO Magnus Lönn said cost-efficiency efforts have improved profitability and increased operational efficiency across the entire business
Swedish IT services provider Proact today posted positive first quarter results in the wake of the memory shortage and price increases.
Q1 revenues grew 2.3 per cent to SEK 1.2bn (£98m).
Adjusted EBITA spiked 45.7 per cent to SEK 115m (£9.1m) owing to higher gross margins and cost-efficiency measures. The former was driven by customers’ brought-forward investments and price changes for memory components.
New contracts for cloud services rose 23.8 per cent year-on-year from SEK 122m to SEK 151 million (£12m).
While recurring revenue from cloud and support services remained flat at SEK 429m (£34m).
‘‘The first quarter of 2026 was characterised by sharp price increases for memory components, both implemented and announced, as well as longer delivery times, which were the result of extensive global investments in AI,” said Proact president and CEO, Magnus Lönn.
“At the same time, the effects of the cost-efficiency programme implemented in 2025 are becoming apparent. These efforts have improved profitability and increased operational efficiency across the entire business’.”
Proact’s highlights during the quarter include its appointment as a VMware Cloud Service Provider within the Broadcom Advantage Partner Program.
The Swedish reseller also secured a new loan agreement to replace previous deals.
The new contract comprises a loan facility of €20m (£17.2m) and a revolving credit facility of SEK 600m (£48m).
Regional breakdown
Proact’s home turf (Nordic & Baltics), which accounts for the highest share of total revenue (58 per cent), grew four per cent in the quarter to bring in SEK 746m (£59m).
Customer activity varied across segments. Larger customers in both the public and private sectors maintained stable demand, while investment appetite in other areas remained more selective. Demand for solutions in data management, cyber resilience, and platforms linked to AI-related use cases remained strong and were key drivers of the business unit's development.
Proact UK, which accounts for 14 per cent of total revenue share, also increased during the quarter.
Revenues were up 8.1 per cent to SEK 172m (£14m) driven by increased systems sales (15.6 per cent rise) and the March 2025 BlakYaks acquisition, which contributed 17.7 per cent during the period.
The market environment during the quarter was marked by more cautious investment decisions and longer sales cycles, particularly for larger deals. At the same time, supplier-driven price adjustments supported systems revenue and provided volume support during the period.
Q2 expectations
Proact predicts performance in the next quarter will remain relatively strong, primarily due to customers bringing forward investments in response to price increases and delivery challenges.
However, it adds this may have a dampening effect on system sales during the second half of the year.