Formpipe: Better margins than expected - ABG

* Lasernet +13% organic growth y-o-y, +2% vs. ABGSCe* 13% adj. EBIT margin (vs. ABGSCe 4%)* Cons. to lift '26e-'27e EBIT by ~10%Q3 resultsSales SEK 61m (+2% vs ABGSC 59m), EBITDA 9m (+25% vs ABGSC 7m), adj. EBIT 8m (+273% vs ABGSC 2m). Cash flow was strong, albeit mainly driven by the divested business. Overall, a good report, with much better margins than expected on the back of lower opex.Q3 thoughtsThis was the first quarter with Formpipe's Public segment deconsolidated from the PnL, as it is now treated as discontinued operations following the recent sale. The segment that remains - Lasernet - saw organic sales +13% y-o-y, which was 2% ahead of our forecast. Meanwhile, costs were lower, resulting in adj. EBITDA margin (before group costs) of 32% (vs. 17% Q3'24). Including group costs, the adj. EBITDA margin was 21% (8%), whereas the y-o-y improvement was driven by operational leverage on higher sales coupled with recent cost outs. ARR grew 7% y-o-y, which was in line with +7% y-o-y in Q2. SaaS ACV was SEK 8m (ABGSCe SEK 8m), up from SEK 7m in Q3'24, whereas Formpipe says that momentum with Dynamics is good. Encouragingly, momentum with Temenos is also picking up (which we have recently expected to occur).Estimate changes and valuationFormpipe's share is -14% over L3M at is trading at 2.1x EV/sales on our unrevised 2026 estimates. Following the Q3 report, we expect consensus to raise '26e-'27e EBIT by ~10% on lower cost assumptions.