Lime Technologies (OM:LIME) Margin Improvement Supports Bullish Earnings Growth Narrative

Lime Technologies (OM:LIME) has opened 2026 with Q1 revenue of 200.0 million SEK and basic EPS of 2.28 SEK, alongside trailing twelve month revenue of 758.9 million SEK and EPS of 8.57 SEK that feed into the latest earnings story. Over recent quarters the company has seen revenue move from 188.7 million SEK and EPS of 2.11 SEK in Q1 2025 to 201.2 million SEK and EPS of 2.40 SEK in Q4 2025, while trailing twelve month EPS has progressed from 6.73 SEK at Q4 2024 to 8.57 SEK at Q1 2026. This sets up a results season where margin quality takes center stage.

See our full analysis for Lime Technologies.

Next, the earnings figures are set against the prevailing Lime Technologies narratives to see which stories the numbers support and which they push investors to question.

See what the community is saying about Lime Technologies

Margins Hold Up Around 15%

• Over the last 12 months Lime Technologies reported a net profit margin of 15%, compared with 13.3% in the prior year, alongside trailing 12 month net income of 113.965 million SEK on 758.869 million SEK of revenue.
• Consensus narrative expects margins to improve further over time, and the current 15% margin interacts with that view in a few ways:
  • Analysts expect margins to move from 14.9% to 18.0% within three years, while recent quarterly net income moved between 24.131 million SEK in Q4 2024 and 32.031 million SEK in Q4 2025, which shows earnings already tracking above the 2024 level used in those assumptions.
  • At the same time, management attention on Expert Services, where revenue has been pressured, and the cyber related costs around Sportadmin, illustrate that the path from 15% to 18% margins is not automatic, even with the current TTM improvement already in hand.

Earnings Growth Outpaces Revenue

• Earnings grew 21.2% over the past year, compared with revenue growth of about 8.2% per year, and trailing 12 month EPS reached 8.57 SEK versus 6.73 SEK at Q4 2024.
• Bulls argue that this gap between earnings and revenue growth validates their more optimistic case, but the quarterly pattern gives a more grounded picture:
  • Across the last three reported quarters, net income moved from 25.407 million SEK in Q3 2025 to 32.031 million SEK in Q4 2025, then 30.366 million SEK in Q1 2026, which fits with the bullish view of rising profitability but also shows that quarterly earnings do not move in a straight line.
  • Bullish analysts are assuming earnings could eventually reach 193.3 million SEK and EPS of 14.51 SEK, so the current 113.965 million SEK of trailing net income and 8.57 SEK EPS provide support for that direction of travel while still leaving a large gap that needs to be closed through future execution.

On these numbers, bulls see a business that is already growing earnings faster than revenue and expect that pattern to continue, but the step up from 113.965 million SEK of net income to 193.3 million SEK is still substantial, so it pays to understand what would need to go right for that view to play out. 🐂 Lime Technologies Bull Case

Premium P/E and Bear Concerns

• The shares trade at a P/E of 26.7x against a peer average of 23.1x and a Swedish software industry average of 27.7x, while the current price of 228.00 SEK compares with a DCF fair value of 483.36 SEK and an analyst price target of 333.25 SEK.
• Bears focus on this premium to peers and on cost pressures, and the recent figures show both support and pushback for that cautious view:
  • On the one hand, earnings growth of 21.2% over the past year and five year earnings growth of 13.2% per year give some justification for a higher P/E than peers, and forecasts for about 14.4% annual earnings growth are still higher than the Swedish market forecast of 1% revenue growth.
  • On the other hand, revenue growth at roughly 8.2% per year is below Lime Technologies' historic 18% target, and bears highlight rising personnel and operating expenses tied to international expansion and cloud and hosting investments as reasons why a P/E premium could be at risk if these costs keep growing faster than revenue.

Skeptics point to the P/E premium, slower revenue growth versus past targets and higher operating costs as reasons to question whether the current 228.00 SEK price, alongside a 333.25 SEK analyst target and 483.36 SEK DCF fair value, fully reflects the execution risks that still exist. 🐻 Lime Technologies Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Lime Technologies on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With sentiment split between bullish and cautious views, it helps to look past the headlines, act quickly, and weigh the upside case for yourself using our 3 key rewards

See What Else Is Out There

Lime Technologies pairs a higher P/E with slower revenue growth versus its historic target and rising costs. Together, these factors raise questions about paying a premium.

If you want alternatives where pricing looks more grounded in current fundamentals, check out the 231 high quality undervalued stocks and see which ideas match your approach.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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