Welcome from my part as well to Lemonsoft's Q1 presentation. I will be going through our recent updates on on our strategic development as well as our financials at the end.

My name is Alpo Luostarinen, and I act as the CEO of Lemonsoft. During Q1 '26, I'll go through quickly our financials.

Our net sales declined 1.1%, although our SaaS revenue grew 7% during the quarter. The the decline in net sales was mainly due to the the lower consulting and transaction-based revenue, and at at the end of the quarter, we also made an acquisition of of Jakamo, which was during March already in our financials, but not in in January and February.

The organic growth was slightly negative in -3.5%, and this is especially due to the consulting transaction revenue, especially in in one of our subsidiaries. The organic growth of recurring revenue was still positive, and and as I mentioned, SaaS income grew by by 7%, supported both by by the Jakamo acquisition as as well as price increases executed in the beginning of the year.

Our recurring revenue has been on the increasing side for for a while now, and and the the overall level has now increased close to 90%, ending ending at 88.5% at the end of of the first quarter. Both SaaS growth and and the lower growth of of consulting revenue have been affecting the the increasing share.

The share of SaaS income, which is the majority of of the recurring revenue, has been increasing even faster, ending at at close to 80% at the end of the first first quarter. We expect that number to increase while the the Jakamo figures will be fully reflected in our financials from from Q2 onwards.

Our gross margin, when you compare that to the comparison period a year ago, decreased slightly to 85.3%, although we managed to turn the direction of of platform costs downwards, and the gross margin was significantly higher than in at the end of '25, in in Q4. Growing from 82.6% to 85.3%.

Our profit profitability as a whole was substantially better than than last year: 23.1% last year and 25.8% this year. We've been increasing that trend each each quarter, and we expect that trend to to slightly continue improving in the next quarters.

We ended up at 208 employees at the end of the first quarter, and that number includes roughly 17 people from from Jakamo. We are still significantly lower with the personnel figure compared to to last year.

I'll quickly go through our strategic developments and what we've been focusing on in in Q1. As we mentioned in our strategy update in at the end of November, we have four main strategic focus areas, each of which we've done measures to to improve our position in in in that space.

The first and most important is is being the market leader in our focus segments. We are focusing on manufacturing and wholesale industries, and and we've seen now during the Q1 slight increase in the value of new ERP deals in those segments.

We've had slight increase in each of the each month in the beginning of the year, and we've been focusing a lot on on improving our sales efficiency. With our new chief sales officer, who who started in December, we've been ramping up operations and and increasing resources also in in our sales department, and and focusing on on working with our customers and and increasing our marketing efforts as well in in the next few quarters.

We've also focused on improving our customer experience, which has slightly suffered in the last few years with our major changes in in platform and our organization. We've been now arranging customer events, working with customer success teams to to focus on getting our customers' processes and and the software development as as easy as possible, and utilizing AI tools to to help those workflows getting better and better.

We've also implemented an agent-based product development model at the end of Q1, and we expect to see the results of that expediting and accelerating in in a few few months from now. We are focusing especially Uh the second part of our strategy is the focus area in in category-defining solutions.

We and the main driver there is Lemon Online ERP solutions, which we are building as the operating system for industrial SMEs. We've been executing a lot of product development initiatives to to develop the the product as the next-generation product.

We've been developing We've been bringing features that have still been in our legacy solution, we've been bringing those to the Lemon Online online version. We've been developing AI workflows, we've been developing new enhanced integrations, and and also new modules.

We've been bringing products and and solutions that have been acquired to to Lemonsoft, we've been integrating those as well to Lemonsoft. In each of these areas, we want to be the main player in each category.

Lemon Online ERP is a wider category, and then we have a lot of different smaller niche areas where we want to be the category-leading solution. The third part is our organizational excellence.

We've focused a lot on developing our customer success functions. We've been recruiting a few individuals in in both our customer support teams as well as implementation teams, and and also to the to the sales sales functions.

We also complemented our management team in February 2026 with our chief operating officer joining the company and strengthening the management of our subsidiaries. We are now building the culture towards focusing on customers, focusing on customer satisfaction, improving the understanding and competence within our customers' domain of operations, and and focusing on getting the the team, the product, the function as well as possible to support our customers' operations.

Finally, the fourth piece is value-driven M&A as well as capital efficiency as a whole. We acquired Jakamo in in March, and now I will be talking more about the company in a in a few moments.

As a whole, Jakamo brings major improvement in our manufacturing positioning and and improves increases the the number of manufacturing companies that we have within our sphere of influence, and and and also increases the the effect on how deep we can understand our customers and their customers. We've also announced that Rite Ventures, our largest shareholder, has published their mandatory public tender offer, which is ongoing at the moment, and we are now holding back on share buybacks for for now until the mandatory public tender offer is is finalized in in May.

Jakamo is is really a crucial part of our future development in the manufacturing space. Jakamo has been called in previous years the Facebook of manufacturing companies.

They've been building a platform for supplier collaboration, working with roughly 50 buyers at the moment, the larger manufacturing companies in Finland, Sweden, and Denmark, and then they have a wide space wide space of suppliers, roughly 4,000 companies that have been using Jakamo as as supplier to these companies. As the platform and the number of companies using the platform grows, it's easier and easier for the buyers to take the the system into use and invite their suppliers into the platform.

Also for the suppliers, it's easier and easier for them to work with several different customers, the buyers, as well as their own suppliers, containing all of the data in inside one platform. How we see Lemonsoft in in this space is that Lemonsoft provides one ERP solution where you can manage your whole business operations.

All of the data is in one place, and we can provide AI features on top of that extensive data, and also real-time monitoring of of your operations, as well as financials and HR and everything. We provide a whole operating system, which is designed for SME companies, especially in these fields.

Jakamo, on the other hand, provides a wider supply chain management suite of solutions. They provide one platform for both the customers and the suppliers, or the buyers and and the suppliers to work together with their whole supply chain.

They connect the larger enterprises with the SME customers that Lemonsoft is is especially working with. One point last point in Jakamo is that Jakamo is basically replacing point-to-point integrations and providing a a platform where the companies and their different customers and suppliers work can work in.

Let's dive into our financials next. I'll go through our revenue development, our cost development, and and personnel.

In Q1, our SaaS growth continued, our net sales reached 7.1%, with a slight decline in in overall revenue. Jakamo complemented our revenue in in March 2026 and will be fully reflected in our financials in Q2.

SaaS income grew by 7%. We had Jakamo for one month in the financials, and then price increases executed in the beginning of the year supported those figures.

The organic growth for the quarter was -3.5%, and we expect those figures, the organic growth for the next few quarters, to to remain slightly or actually increase a bit towards the end of the year due to the fact that the comparative financials will be weaker last year, and we and our growth continues to to support the organic growth figures better at the end of the year. Especially consulting and transactions in in Finvoicer have been declining in in a few quarters, and we expect that trend to to stabilize at the end of the year, and and that should support our organic growth as well.

Looking at our annual recurring revenue bridge during Q1, we started from 22.3 million in in revenue at the end of last year. New sales was 1% increase, that's been roughly the same or a bit lower in in previous quarters, and and that number we expect to to increase gradually during the year.

Net down-sell upsell was 4% growth during the quarter, and and churn was 1.9%. Churn is is roughly the same or a bit lower than than previous quarters, and we expect that figure to to actually remain quite the same during during the year.

M&A has been, normally due to due to Jakamo, and that has brought 9.1% increase in our ARR figures in in Q1, and that that is fully reflected since these are calculated on a on a monthly basis, or at the end of the quarter. Revenue split has grown in the SaaS and transactions, and especially in the SaaS space.

SaaS share of overall revenue has increased to 79.9% and will continue to increase when the Jakamo figures will be fully reflected there. Transactions have actually decreased a bit, and and consulting has decreased even even more, and and those figures will continue to to decrease compared to comparison period last year for the end end of the year, at least Q2, Q4 Q2, Q3, and then in Q4, we expect that to stabilize more.

Overall cost base has been we've done a lot of measures in in stabilizing our cost base and and actually reducing the the employ- employ- personnel costs, and then material and services have been on the increase after the platform transition in in Q3, Q4. In Q1, we were able to reduce platform costs and and of turn the direction downwards, and we expect that trend to continue in Q2 in a smaller scale, and then Q3, Q4 remains to be seen how well the or how much, for example, AI investments continue to affect our our figures.

At the moment, we see that we've been able to reduce and stabilize the platform cost, which is affecting positively on our gross margins. Cash flow from operating activities was 1.6 million, and has been stable and positive in in recent quarters.

Our personnel as as a whole increased from 193 people to 208 in Q1, and and that is mainly due to Jakamo's 17 employees. We've also done recruitments and strengthened our resourcing across the customer-facing functions, as I mentioned, including customer support, implementations, and and sales, and we'll continue to to strengthen those functions, especially in in Q2.

COO Reeti Saarinen joined the management team during Q1, and he's focusing on developing the management and operating model of the subsidiaries, and also the shared operating model across the group. He's been able to now dive into some of our subsidiaries and is focusing on on managing one by one each of those, and taking care of all the seven subsidiaries that we now have, and and focusing on developing their operating model as well as well as succession models, and then at some point in in some of some of those companies, we continue to integrate those into Lemonsoft and and and merge those into Lemonsoft in in some cases.

R&D R&D is roughly half of our employees, and and customer functions provides a large part of the the remaining piece, and then other functions is is only 20 people at the moment. Looking forward on our reporting, we have out our half-year report from January to June in in August 14th, and and then we have our Q3 interim report in November.

Thank you very much from from my part, and if we have some questions, I'm happy to answer those.

All right. Thanks a lot.

As I mentioned, we'll be diving deeper into our Q2 reports in August. Thank you from my part for the Q1 report.

Have a great...