Lime Technologies (OM:LIME) Stock Faces 15.3% Net Margin That Reinforces Bullish Profit Narratives

Lime Technologies (OM:LIME) has put fresh numbers on the table for Q2 2026, reporting Total Revenue of 205.5 million SEK and Basic EPS of 2.39 SEK, with trailing twelve month EPS at 8.99 SEK and Total Revenue at 781.2 million SEK framing the broader earnings picture. The company has seen quarterly revenue move from 183.2 million SEK and Basic EPS of 1.97 SEK in Q2 2025 to 205.5 million SEK and 2.39 SEK in Q2 2026. Over the same period, trailing twelve month EPS has shifted from 7.51 SEK to 8.99 SEK, alongside Total Revenue rising from 714.9 million SEK to 781.2 million SEK. This sets up a results season where higher net margins and profit quality are front of mind for investors assessing the quarter.

See our full analysis for Lime Technologies.

With the headline figures in place, the next step is to see how Lime Technologies' latest earnings line up against the prevailing narratives around its growth, profitability and risk profile, and where those stories start to diverge.

See what the community is saying about Lime Technologies

15.3% net margin shows profit conversion

• On a trailing basis Lime Technologies earned Net Income (excluding extra items) of 119.7 million SEK on 781.2 million SEK of revenue, which works out to a 15.3% net margin compared with 14.0% a year earlier in the data.
• Supporters of the bullish narrative point to this 15.3% margin and 20% earnings growth over the last year as evidence that profit quality is improving, even though revenue growth of 8.8% is more modest.
  • That combination of 8.8% revenue growth and 20% earnings growth suggests, within the data provided, that more of each krona of sales is reaching the bottom line than a year ago.
  • Bullish analysts also reference five year earnings growth of 14.2% per year, so the most recent 20% outcome in the dataset lines up with their view that profit expansion is tracking ahead of the longer term trend.

For bulls who think margin gains and 20% earnings growth tell only half the story, the full optimistic case around Lime Technologies is set out in 🐂 Lime Technologies Bull Case.

Revenue growth at 8.8% vs softer market

• The risk and reward summary states that Lime Technologies grew revenue at 8.8% per year over the last 12 months, compared with a Swedish market figure in the data of 0.08% contraction.
• Critics in the bearish narrative argue that this growth rate still trails the company’s historic 18% revenue target and could face pressure from weaker Expert Services and higher operating costs.
  • The data notes that Expert Services revenue has shown declines such as 3.9% in Q4 and 2.3% for the full year, while personnel and operating expenses in that commentary rose 7% and 11%, which bears treat as a warning that cost growth can run ahead of sales.
  • At the same time, recurring subscription revenue is described as 68% of total revenue and moving toward a 70% target, so bears focus on the risk that slower Expert Services and service agreements offset the benefits of that shift if new subscriptions do not keep pace.

Skeptical investors who see 8.8% revenue growth and rising costs as a reason for caution can walk through that cautious argument in 🐻 Lime Technologies Bear Case.

P/E of 24.4x and DCF fair value gap

• The stock trades on a P/E of 24.4x versus a peer average of 21.2x and a Swedish software industry average of 25.7x, while the provided DCF fair value of 493.85 SEK sits well above the current 219.50 SEK share price.
• Consensus style commentary in the analysis notes that analysts see scope for earnings to grow about 16.4% per year and have a single allowed price target in this article of 304.00 SEK, which is above today’s 219.50 SEK, yet the higher P/E relative to peers means they are effectively treating Lime Technologies as higher quality than the peer group.
  • The same dataset describes earnings growth of 20% in the last year and an improvement in net margin to 15.3%, which analysts use to justify paying more than the 21.2x peer P/E while still seeing a gap to the 25.7x industry average.
  • However, with the market price below the 493.85 SEK DCF fair value, investors comparing the 24.4x P/E to peers need to weigh the implied upside from that DCF figure against the fact that the share already trades at a premium to closer comparables.

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.

Given the mix of confidence and caution around Lime Technologies in this earnings season, it makes sense to look through the numbers yourself and move quickly while sentiment is still forming. To see which 1 or more rewards other investors are focusing on, take a closer look at the 4 key rewards.

See What Else Is Out There

Even with stronger margins, Lime Technologies still faces questions around slower 8.8% revenue growth, pressure on Expert Services and the stock trading at a premium P/E to peers.

If you are concerned that Lime Technologies already carries a richer P/E while you would prefer potential upside from stocks priced more conservatively, checking out the 216 high quality undervalued stocks could help you act before others catch on.

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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