Profile: New Deals in the Pipeline in the UAE

Greek-listed IT company Profile Software appears to have initiated a new round of business discussions in the United Arab Emirates (UAE), reportedly exploring potential new partnerships in the region.

At the same time, a report published by Optima Bank has brought the Group’s growth prospects back into focus, including a potential valuation of €17.69 per share for the company led by Babis Stasinopoulos in the event of a sale.

The company continues to build on its strong growth momentum, following the recent release of first-half results that significantly exceeded expectations, with management actively exploring new expansion opportunities.

Just a few days ago, Profile’s management team visited the United States for a series of business meetings. Furthermore, during the visit of Abu Dhabi’s Crown Prince to Athens, Profile’s management held discussions with both existing partners and prospective new clients, aiming to further strengthen its business presence in the region.

Optima’s Report and the €17.69 Valuation Scenario

A new report released yesterday by Optima Bank once again highlights the momentum gained by Profile Software, whose share price reached a summer high of €11.18.

With the stock closing at €10.40 and a market capitalization of €258.168 million, Optima has set a target price of €13.17, implying 26.6% upside potential.

However, this is not the report’s most significant finding.

The most interesting element concerns a potential acquisition scenario. Based on transaction multiples observed in comparable software industry deals, Optima values Profile at €17.69 per share, representing a potential upside of 70.1% from the €10.40 closing price.

This valuation is substantially higher than the bank’s base-case target price of €13.17, illustrating how differently the company might be valued when assessed against precedent M&A transactions in the software sector.

This assessment is particularly noteworthy given Profile’s stated ambition to invest up to €80 million in acquisitions by 2028, potentially adding €30–40 million in annual revenue.

The report notes that this strategy could accelerate growth and strengthen the Group’s international presence, provided acquisitions are executed on value-accretive terms.

Revenue Expected to Nearly Triple by 2031

Optima’s forecasts reflect Profile’s ambition to achieve significant expansion over the coming years.

Revenue is projected to increase from €47.5 million in 2025 to €69.2 million in 2026 and €127.6 million by 2031.

This represents a compound annual growth rate (CAGR) of approximately 18%, excluding potential future acquisitions beyond those already incorporated into the forecasts.

Profitability is expected to grow even faster.

EBITDA is forecast to rise from €13.1 million in 2025 to €17.3 million in 2026 and €39.5 million in 2031.

Net profit is expected to reach €27.5 million by 2031, compared with €6.4 million in 2025.

Achieving these figures will require not only revenue growth but also a gradual improvement in operating margins.

The first-half results for 2026 already demonstrate both the company’s momentum and its challenges.

Revenue increased by 60% to €32.2 million, while EBITDA rose by 34% to €8 million.

However, the EBITDA margin declined from 30% to 25%, a development the report attributes partly to the lower profitability margins of Algosystems, which has been integrated into the Group.

Order Backlog, AI, and Algosystems

Among the positive factors highlighted by Optima is Profile’s order backlog exceeding €130 million over a three-year horizon.

In the financial software segment, more than 80% of revenue is recurring, providing greater visibility into future financial performance.

At the same time, the company is investing in artificial intelligence and its ProfileOne platform.

The selection of Profile’s Axia solution by Piraeus Bank to consolidate eight systems across wealth management, investments, and custody services is a notable example of how its technology can be deployed in complex banking projects.

International operations are also expanding through partnerships across several markets, including Norway, Kenya, and the Caribbean.

According to Optima, expanding the customer base outside Greece, increasing recurring revenue, and improving profit margins will be key drivers of the Group’s next phase of growth.

Another area emphasized in the report is Profile’s expansion into new technology segments, particularly cybersecurity and managed infrastructure services.

The acquisition of Algosystems strengthens the Group’s capabilities in areas such as cybersecurity services and cloud infrastructure, broadening the scope of potential business partnerships.

The report also identifies portfolio diversification and geographic expansion as key growth drivers, supported by both organic growth and selective acquisitions.