LINK Mobility Turns the Corner with Record Contract Wins and AI-Driven Engagement
Q2 2026 marks a return to organic growth, powered by CPaaS momentum and a landmark AI customer-engagement deal.
LINK.OL · Earnings Call · 2026-08-19
Returning to Growth
LINK Mobility’s Q2 2026 results mark a clear inflection point. After a challenging stretch, the company delivered on its commitment to return to organic gross profit growth, posting 2% growth in stable currency—a 3 percentage-point improvement sequentially. That may sound modest, but it underscores the operational leverage in the business. CEO Thomas Berge struck a confident tone: “we delivered on that commitment with 2% organic gross profit growth for the quarter.” — Thomas Berge, CEO · 2026-08-19 The momentum is visible across the P&L: record high new Contract wins of NOK 53 million, the strongest quarter in the company’s history, and an all-time high adjusted EBITDA of NOK 272 million, up 28% year-over-year. The quality of that growth is improving too, as CPaaS solutions—which carry roughly twice the gross margin of traditional SMS—continue to scale. RCS billable events grew 112% and WhatsApp billable events 194% year-over-year, evidence that the mix shift toward richer channels is accelerating.The AI-Enabled Customer Engagement Contract
The most forward-looking development in the quarter is a contract with one of the world’s largest fashion retailers, an early mover in AI-enabled customer engagement. The solution pairs an AI assistant as the first point of contact with seamless human handover, all within WhatsApp. Thomas Berge explained the strategic significance: “We are seeing an increased market demand for the more advanced solutions, conversational messaging solutions on RCS and WhatsApp” — Thomas Berge, CEO · 2026-08-19 He added that demand is building momentum, especially in Southern Europe, and that this contract demonstrates LINK’s platform is ready for the next generation of engagement. The commercial implications are substantial—these software-driven, value-added solutions carry materially higher margin potential than traditional messaging. It’s a concrete example of how LINK is positioning itself between local providers and global platforms, leveraging local presence with AI-enabled technology.SMSPortal and the Path Forward
SMSPortal, the South African market leader acquired last year, has been a drag on growth due to high prior-year comparables. However, management remains confident. Thomas Berge addressed the slowdown directly: “The reason for the decline in the current quarter is exactly what we informed on the previous quarter in Q1, and we see that we have high comparables.” — Thomas Berge, CEO · 2026-08-19 The company expects a return to growth in H2, with a strong backlog of new contracts under implementation—annualized volumes of 450 million messages already ramping, and 770 million more to go. Additionally, WhatsApp is set to launch in South Africa during H2, adding another growth lever. CFO Morten Edvardsen also highlighted the improving financial profile: “reported adjusted EBITDA margin increased from 12.1% to 13.3% year-over-year.” — Morten Edvardsen, CFO · 2026-08-19 This margin expansion is driven by acquisitions like SMSPortal (28% gross margin) and the ongoing shift to CPaaS. Net retention improved to 101%, approaching the 105% target, and leverage remains comfortably below the 2.0x–2.5x policy range. As LINK reallocates CapEx savings toward AI initiatives and continues its disciplined bolt-on M&A strategy, the second half outlook calls for mid- to high-single-digit organic gross profit growth. The company is riding a broader industry wave—global keywords this quarter highlight the rise of agentic AI and AI-driven engagement. LINK’s unique positioning, with 30 offices and 68,000 customers, gives it the local execution needed to bring these advanced solutions to market. The record contract wins and improving net retention suggest the company is not just talking about AI—it’s already delivering.This combination is now translating into tangible results. With organic growth reaccelerating, margin-accretive acquisitions compounding, and a clear line of sight to AI-driven engagement, LINK Mobility is a compelling story of operational and strategic inflection. The next two quarters will be the real test, but the evidence from Q2 is encouraging.Rather than competing purely on local presence or purely on technology, our strategy is built around combining the strengths of both.