Sinch's Email and AI Pivot Drives Americas-Led Acceleration

Q2 2026 organic revenue growth accelerates to 6% as the company doubles down on e-mail and AI-native customers.

SINCH.ST · Earnings Call · 2026-07-22

Growth Accelerates, Led by Americas

In Q2 2026, Sinch reported organic revenue growth of 6%, a clear acceleration from prior quarters. The engine is the Americas, which grew 9% organically, driven by the API product category and strong commercial momentum. As Jonas Dahlberg noted:

The growth comes exactly from the right product category that is the API product category. Combined, this bodes well for the future.
Jonas Dahlberg, Acting CEO and CFO · 2026-07-22

This marked a contrast with APAC, where India-related challenges and a SEK 17 million customer dispute weighed on results. However, the company stressed that India is a low single-digit percentage of group profit, and that the worst is likely behind.

E-mail: The Quiet Growth Engine

Perhaps the most striking insight from the quarter is the emphasis on e-mail as a major profit driver. Jonas explicitly stated: “From a bottom line perspective, e-mail is roughly the same size as messaging with the same EBITDA contribution.” — Jonas Dahlberg, Acting CEO and CFO · 2026-07-22 This reframes Sinch's narrative from a pure messaging player to a diversified communications platform. With 850 billion e-mails delivered annually and 21% volume growth, e-mail is now a cornerstone. The Sinch e mail platform offers 99.99% uptime and 97% delivery rates, making it mission-critical for enterprises.

Cross-Sales and AI Natives: The Next Wave

Sinch's go-to-market strategy is now explicitly centered on cross-selling and winning AI-native customers. Jonas highlighted that 50% of top new deals were cross-sales:

In fact, if you look at the second quarter, 50% of the top 10 new deals in the quarter were cross-sales of products to existing customers.
Jonas Dahlberg, Acting CEO and CFO · 2026-07-22

This aligns with the broader push into AI companies — firms like OpenAI that are growing hyper-fast and need reliable customer communications. The company is leveraging its enterprise motion, as seen with its position versus Twilio and Bandwidth, to capture these relationships. Prior quarters established the groundwork. As Laurinda Pang said in February 2026: “We've established an AI partnership team that we are deploying around the world to pursue these partnerships so that we can natively integrate with these AI native companies.” — Laurinda Pang · 2026-02-17 Now, the company is reaping the benefits, with several hyper-growing AI companies won over the past six months. This commitment is echoed in the November 2025 call: “This combination between AI and conversational messaging will absolutely generate larger volumes for communications, ultimately.” — Laurinda Pang, CEO · 2025-11-05

Financial Discipline and Shareholder Returns

The quarter also showcased strong cash flow (SEK 751 million) and a cash conversion of 61% on a rolling basis, well above guidance. Leverage eased to 1.9x, and the company initiated a new buyback program of up to 10% of shares. This financial strength supports the strategic investments in growth areas while maintaining the adjusted EBITDA margin within its 12-14% target range.

Why It Matters

Sinch is no longer just a messaging aggregator. The deliberate pivot to e-mail, the focus on cross sales and AI voice positions it to ride the AI communication wave. The Americas-led growth and the stabilization in EMEA suggest the turnaround is on track. While APAC remains a headwind, the scale of opportunity in AI and e-mail offers meaningful upside. As Jonas put it: “We think that Americas is and will continue to be a key growth engine.” — Jonas Dahlberg, Acting CEO and CFO · 2026-07-22 The market is beginning to see the results, and with a clean balance sheet, Sinch is well-placed to consolidate in a fragmented market.