Formpipe: Positive revisions on leaner costs - ABG

* Encouraging ACV growth and margins* Small sales revisions, but '26e-'27e EBIT up 29-28% on lower costs* 2.7x EV/sales in '26e (excl. the anticipated DPS)Sequential improvements and good cost controlQ3 was the first quarter in which Formpipe's Public Segment was de-consolidated from the P&L, as it is now being treated as a discontinued operation following the recent sale (closing expected on 1 December). The remaining segment, Lasernet, saw good sequential improvements, with 13% organic y-o-y growth to sales of SEK 61m — 2% ahead of our forecast. This was mainly driven by good momentum with Dynamics customers. Encouragingly, deal activity with Temenos has also started to improve, resulting in a SaaS ACV of SEK 8m (ABGSCe SEK 8m), up from SEK 7m in Q3'24. Although SaaS ACV is the most important KPI, S&M ACV was SEK -2m due to some churn, which will impact S&M sales in the coming quarters. Nonetheless, cost control was better than we anticipated, with adj. opex coming in 4% below our forecast.Positive earnings revisions due to lower opex assumptionsWe make small revisions to our sales forecasts (slightly lower assumptions for S&M), but raise '26e-'27e EBIT by 29-28% on the back of lower opex assumptions as we extrapolate the lower-than-expected Q3 figure. We now anticipate ~10% organic growth per year over the coming years and an adj. EBITDA margin of 21% in 2027e, up from 13% in 2025e (pro forma).Potential extraordinary dividendFormpipe will disclose more details on the outlook and management's thoughts on capital allocation in conjunction with the CMD in March. The divestment will give Formpipe an elevated cash position of SEK 764m in 2025, and we believe that an extraordinary dividend of SEK 11/share (~SEK 600m) could potentially come in 2026. Adjusting for the anticipated cash distribution, the valuation sits at 2.7x EV/sales in 2026e. For comparison, Nordic software peers are at a median of 3.6x.