Translation: Original published in Finnish on 6/18/2026 at 8:00 am EEST.

We reiterate our Buy recommendation for Talenom and revise our target price to EUR 1.7 (previous EUR 1.8). Following the Easor spin-off, Talenom has become a software-independent accounting firm that generates its earnings and cash flow in Finland. The core of the investment case lies in the turnaround in profitability of international operations: Growth is strong and profitability is on the rise in Spain, while problematic operations in Sweden pose the biggest risk. High leverage increases both risk and potential return, but the sum-of-the-parts calculation suggests a clear upside from the current price.

Easor's departure changed the company's fundamental nature

Following the separation of Talenom and Easor (software business) in February 2026, Talenom became a software-independent accounting services company. Currently, the company purchases most of its accounting software from Easor; however, other software options have emerged alongside it, and the potential customer base has grown. In Sweden, in particular, this strategic shift is critical because Easor had effectively become a competitive disadvantage in a market dominated by Fortnox. Talenom still has significant technological expertise, which the company now applies, among other things, to automation built on top of various software programs. Eliminating heavy software investments will at the same time ease investment needs and significantly strengthen cash flow. In the future, Talenom's competitive advantage will rely particularly on efficient processes, scale, and active new customer acquisition. In Finland, we believe that the company has proven its competitive advantage with productivity and profitability among the best in the industry. However, abroad, Talenom still has a lot to prove.

Finland stands firm, Spain grows, and Sweden stabilizes

Talenom's core business in Finland remains strong and generates all of the group's earnings and cash flow. The outlook for Finland is positive despite the weak market situation, but growth will inevitably be relatively slow. We expect Finnish revenue to be around 72 MEUR and the EBIT margin to be around 14% in 2026. Profitability is presumably at its lowest point right now, as the separate public listing is driving up group expenses and the company is investing heavily in sales. 

Talenom's growth engine is Spain, where its acquisition-driven growth story has progressed quite impressively. Launched in 2021, the Spanish business is expected to generate approximately 21 MEUR in revenue this year, surpassing its Swedish counterpart (2026e ~20 MEUR) this year. Although Spain's profitability remains weak, the company has been moving in the right direction, and the potential for a leap in productivity is enticing as digitalization progresses. While the historical mistakes made in Sweden served as valuable lessons for Spain, Sweden’s business profile is firmly that of a turnaround company. The situation has stabilized following the change in strategy, and, for example, employee satisfaction already exceeds the Finnish average. However, there is still a long way to go. Sweden’s profitability must be turned around, not least because of its significant goodwill, the write-down of which could be devastating given the group’s high debt leverage.

Valuation attractiveness depends on perspective

Talenom's international business is currently weakly profitable in Spain and performing poorly in Sweden, but both operations still hold value. For this reason, we primarily use a sum-of-the-parts analysis for valuation, which yields a value of around EUR 1.8 (72% Finland, 20% Spain, and 8% Sweden). High financial leverage leads to a wide range between positive and negative scenarios, but if the new strategy and management succeed, Talenom, which is out of favor, also has significant upside potential. Additionally, when looking at cash flow, we believe the valuation is already attractive, even with 2026 forecasts, despite high earnings-based valuation multiples. We set our target price (EUR 1.7) slightly below the sum-of-the-parts average (EUR 1.8) and the DCF valuation (EUR 2.0) to reflect the lower forecasts for the coming years, the risks related to Sweden, and the weak sentiment toward the stock.