Basis: revenue up 25.7%, but cash is going into development and receivables

On August 4, 2026, Basis released its Q2 2026 results: revenue grew 25.7% YoY to RUB 1,451.4 million, EBITDA rose 19.9% to RUB 684.1 million, and net profit increased 6.2% to RUB 337.5 million. This review examines why growth is slowing, where operating cash flow is going, and what it means for valuation.

Key takeaways

— Q2 revenue grew 25.7% – the slowest in five quarters

— EBITDA margin fell to 47.1% from 49.4% a year ago, driven by higher cost of sales and commercial expenses

— Net profit rose only 6.2%, pressured by long-term incentive costs and credit loss provisions

— Quarterly operating cash flow was RUB 289.2 million, but the half-year figure is negative at minus RUB 172.7 million

— Capex for the half-year reached RUB 978.7 million, almost double the operating cash flow

— Net debt is negative at minus RUB 358.4 million, but it increased by RUB 0.4 billion over the year

— EV/EBITDAC stands at 7.5 – higher than EV/EBITDA (4.4) due to capitalised development

Key figures, RUB bn

Q2 revenue grew 25.7% – the slowest in five quarters

In Q2 2026, Basis's revenue reached RUB 1,451.4 million, up 25.7% YoY. This is a marked slowdown compared to 2025 growth rates: Q2 2025 saw 89.8% growth, Q3 54.5%, Q4 73.8%, and Q1 2026 35.8%. Thus, the trend is consistently weakening.

The main driver remains licenses and subscriptions – RUB 1,271.4 million for the quarter, up 21.5% YoY. Technical support grew faster – by 64.2% to RUB 174.9 million, but its share in revenue is still small. Other services contributed only RUB 5.0 million. The company notes seasonality: major orders close in the second half, so early-year dynamics are typically weaker.

EBITDA margin fell to 47.1% from 49.4% a year ago, driven by higher cost of sales and commercial expenses

Quarterly EBITDA reached RUB 684.1 million, up 19.9% YoY – slower than revenue. Consequently, the EBITDA margin fell to 47.1% from 49.4% in Q2 2025. Pressure came from higher cost of sales (up 14.2% to RUB 738.4 million) and commercial expenses (up 71.9% to RUB 206.7 million).

Within cost of sales, telecom services jumped to RUB 41.0 million from RUB 7.4 million a year ago, and other expenses rose to RUB 43.0 million from RUB 2.1 million. The company attributes this to enhanced secure development practices and product testing. Commercial expenses grew due to marketing activities, likely aimed at supporting growth amid the slowdown.

Net profit rose only 6.2%, pressured by long-term incentive costs and credit loss provisions

Quarterly net profit reached RUB 337.5 million, up only 6.2% YoY. Besides operational factors, the result was affected by long-term incentive costs of RUB 32.7 million (absent a year ago) and expected credit loss provisions of RUB 19.4 million versus nearly zero in Q2 2025.

Finance income fell to RUB 21.3 million from RUB 53.8 million a year ago – likely due to lower interest rates and reduced free cash. The effective tax rate was low at 2.3%, partially offsetting the pressure. Net margin declined to 23.3% from 27.5%.

Quarterly operating cash flow was RUB 289.2 million, but the half-year figure is negative at minus RUB 172.7 million

In Q2 2026, operating cash flow was RUB 289.2 million – a positive result after minus RUB 461.9 million in Q1. However, for the first half as a whole, operating cash flow is negative: minus RUB 172.7 million versus plus RUB 938.6 million in H1 2025.

The main reason is the growth in receivables: they increased by RUB 1,126.9 million in the half-year, while a year earlier they decreased by RUB 255.2 million. This is typical for companies with a strong Q4, but the scale is significant. Income tax paid rose to RUB 110.8 million from RUB 10.4 million a year ago.

Capex for the half-year reached RUB 978.7 million, almost double the operating cash flow

In H1 2026, capital expenditures reached RUB 978.7 million – 1.6 times higher than in H1 2025 (RUB 628.3 million). The bulk is acquisitions of intangible assets: RUB 815.6 million versus RUB 623.1 million a year ago. The company is actively investing in development, capitalising software creation costs.

As a result, free cash flow for the half-year turned negative: minus RUB 1,151.4 million versus plus RUB 310.2 million a year ago. This means the company is spending more on development than it generates operationally, covering the gap with accumulated cash.

Net debt is negative at minus RUB 358.4 million, but it increased by RUB 0.4 billion over the year

At the end of Q2 2026, Basis's net debt stood at minus RUB 358.4 million – that is, cash and deposits exceed debt. However, over the last 12 months net debt increased by RUB 0.4 billion, and compared to the previous reporting date – by RUB 0.2 billion. This reflects active financing of development and growth in receivables.

The net debt to EBITDA ratio for the last 12 months is minus 0.38 – the company remains a net creditor. Debt burden is minimal, leaving room for further investments or dividends.

EV/EBITDAC stands at 7.5 – higher than EV/EBITDA (4.4) due to capitalised development

Based on trailing twelve-month data, EV/EBITDAC stands at 7.5 – a more appropriate valuation for a software company that capitalises development costs. For comparison, EV/EBITDA is only 4.4, but this metric overstates profitability as it ignores capitalised expenses. The gap between the multiples reflects the scale of investment in intangibles.

Market capitalisation at the time of calculation was RUB 17,140.2 million, P/E LTM – 7.6, ROE – 22.9%. The stock fell after the release: by 2.3% on the day of publication and by 14.7% by August 17 from the pre-release level. Investors seem disappointed by the growth slowdown and weak cash flow.

Valuation on the latest reported figures

Bottom line

Basis remains profitable and fast-growing, but growth is slowing and margins are declining. The main negative is negative operating and free cash flow for the half-year, driven by rising receivables and active investment in development. The company is still funding this from accumulated cash, but if the trend persists, liquidity will become a sharper issue. For shareholders, the key question is whether the company can convert revenue growth into cash in H2, as it did last year.