Storytel entered Q2 earnings with a stock that had already climbed double digits over the past month, yet still trades on a P/E of 13.4x that is below both peers and the wider European media sector. The latest report sharpened that valuation debate. Streaming and publishing both turned in solid revenue, adjusted earnings before interest, tax, depreciation and amortisation hit SEK 205m with a 19.2% margin, and net profit reached SEK 100m. Management lifted full year adjusted EBITDA guidance. This puts the focus squarely on whether the earnings power now matches the long term growth story.
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Q2 2026 Earnings Summary
- Revenue, Q2 2026 vs. Q2 2025: SEK 1,070m vs. SEK 958.2m (up 11.7%)
- Net Income, Q2 2026 vs. Q2 2025: SEK 91.8m vs. SEK 42.4m (up 116.5%)
- Basic EPS, Q2 2026 vs. Q2 2025: SEK 1.19 vs. SEK 0.55 (up 116.4%)
- Adjusted EBITDA Margin, Q2 2026 vs. Q2 2025: 19.2% vs. 17.1% (expanded by 2.1 percentage points)
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Storytel Starts To Prove The Scale And Margin Story
The bullish narrative around Storytel hinges on streaming scale, tighter operations and strong cash generation all working together. Q2 gives some concrete milestones on that front. Subscribers reached 2.75 million with growth outside the Nordics now larger than inside, which is exactly what a global expansion story needs. Group streaming sales grew alongside a higher gross margin of about 41.2%, showing that growth and unit economics can move in the right direction at the same time.
On profitability, adjusted EBITDA of SEK 205m at a 19.2% margin and a roughly zero net debt position back up the claim of solid recurring cash flows and low leverage. Publishing delivered SEK 108m of EBITDA at a 31.3% margin, helped by the Overamstel deal, which supports the idea that disciplined M&A can add scale and earnings rather than just volume.
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The bearish view argues that Storytel’s growth will skew to lower priced regions, with content and marketing costs eating into long term margins. Q2 only partly challenges that. Group streaming sales rose and the gross margin reached about 41.2%, yet subscriber growth was 7.2% while net adds in the quarter were just 11,000. That is a modest step for a scaled streaming platform that aims for durable double digit sales growth.
ARPU was flat at group level and fell in the Americas to SEK 129, while management explicitly prioritised faster expansion in lower ARPU European markets such as Poland. That choice supports concerns about mix driven pressure on future margins. Publishing EBITDA of SEK 108m at a 31.3% margin and the Overamstel contribution help offset this for now, but they do not directly resolve questions about the long term profitability of Storytel’s core streaming engine.
With Storytel now reporting a higher net profit margin and a market price that still sits well below one valuation model, the unanswered question is whether cash flows and liquidity genuinely back this earnings story. Verify the balance sheet strength, debt coverage and cash runway in the full financial health analysis of Storytel stock.Stay Ahead With Storytel And Beyond
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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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