Aiforia issued a profit warning with H1'26 revenues coming in at a mere € 0.75m, down from € 1.4m in H1'25 (-46% yoy), against our expectation of roughly doubling yoy, following last year's strong Clinical momentum (organic growth of +65%). At the same time, the order book at the end of H1 stood at € 3.5m, down from € 5.1m in H1'25 (-32%). Despite this, management maintains its mid-term targets of financial independence by 2027.
The investment case now stands at a pivotable point as Aiforia needs to re-accelerate recurring Clinical revenue growth in order to justify the investments into the model portfolio. In light of the above, we cut our PT to € 1.10 (old: € 3.60) and downgrade our recommendation to HOLD.