Storytel: Growth's Second Act — From Turnaround to Scale-Up
Organic sales up 10.7%, EBITDA margin at 19.2%, Overamstel acquisition lifts 2026 guidance to SEK 900m+
STORY-B.ST · Earnings Call · 2026-07-28
Storytel continued its profitable journey in Q2 2026, adding a new chapter of growth fueled by an expanding subscriber base and acquisition-led expansion. The company sustained its momentum: net sales grew 12.7% in constant currency, of which 10.7% was organic, while the adjusted EBITDA margin climbed to 19.2%, up 240 basis points year-over-year. The streaming and publishing group raised its full-year guidance to adjusted EBITDA of at least SEK 900 million for 2026 (from SEK 870 million), powered by the Overamstel acquisition. For the first time, the subscriber base outside the Nordics exceeded the Nordic base, underscoring the accelerating momentum in the European segment.
The Shape of Growth
Europe led the charge, with subscriber growth of 13% and sales up 18% in constant currency, driven by steady execution in core markets and stable ARPU. Publishing was a standout: external revenues grew 32%, and adjusted EBITDA margin expanded to 31.3%. The Overamstel acquisition was pivotal, giving the company a strong platform in the Netherlands and a template for replicating its Nordic playbook across Continental Europe. As CFO Stefan Wård put it on the call, “We're pleased to report a solid performance for the second quarter with strong revenue growth and continued margin expansion.” — Stefan Ward, Chief Financial Officer · 2026-07-28 Operating leverage is clearly visible. Competition remains a central topic, particularly with Spotify's push into audiobooks. Management's stance is constructive: Wård noted, “We think that Spotify is helping to broaden the audiobook market. That's what we've seen in those markets.” — Stefan Ward, Chief Financial Officer · 2026-07-28 This echoes earlier commentary from CEO Bodil Torp: “This is really a local game. It's about having the right competencies and know-how regarding the local game.” — Bodil Torp, Chief Executive Officer (CEO) · 2025-10-28 Despite the confident tone, net adds slowed to 11k in Q2 (83k in H1), but management expects an acceleration in H2, citing a solid pipeline and product launches like Storytel Genie and the author platform Storytel Pulse to deepen engagement.Financial Discipline and Capital Allocation
Cash generation remains robust, with operating cash flow of SEK 170 million in the quarter, and net interest-bearing debt of just SEK 14 million. The balance sheet is strong, with an equity-to-assets ratio of 54%. Capital allocation remains thoughtful: dividends grow, M&A is a priority, and buybacks are now on the table following the main-market listing. Wård said, “We're looking at all three alternatives ... expect similar development to what we've presented over the past couple of years.” — Stefan Ward, Chief Financial Officer · 2026-07-28 This aligns with earlier M&A enthusiasm, when CEO Bodil Torp stated, “We have a high activity ongoing on different markets. So we are on track on having a lot of meetings.” — Bodil Torp, CEO · 2026-02-11 Strategically, the company is leveraging its Nordic segment success into Europe while doubling down on product innovation. The raised guidance, strong cash flow, and tidy balance sheet point to a company entering its second growth phase. With the 2028 targets of at least 10% annual sales growth and an EBITDA margin above 20% — already at 19.8% — the trajectory looks favorable. Yet management remains disciplined, prioritizing growth before margin maximization.By pairing product innovation like Storytel Genie with strategic acquisitions like Overamstel, Storytel is expanding both its user base and its profitability. Whether this dual engine can sustain its pace is the key question — and the evidence from this quarter suggests it can.I think that we have operating leverage, and we are becoming more efficient internally in both our product and tech department, but also in sales and marketing. I think that there is room for further margin expansion, but I think the priority for us is to be more focused on growth.