Storytel (OM:STORY B) Q3 Earnings Spotlight Strong Margins And Flat ARPU

Storytel came into this Q3 2026 report with its stock at SEK117, up in the mid‑single digits over the past month and carrying a reputation as a profitable, underpriced streamer publisher hybrid. The fresh numbers put that profit story front and center. Net sales reached SEK1,179.5m and net income landed at SEK142.3m, with adjusted EBITDA called out at SEK268m on the call as a key marker of earnings power. If the share price reaction feels muted next to those figures, the gap to focus on is between a “cheap on P/E” label and a business now printing double digit margins in cash terms.

Love Storytel’s cash rich earnings profile but wondering what else in the market combines profits with what you see as an undemanding P/E? Compare it with our curated 195 high quality undervalued stocks as a benchmark list for this kind of setup.

Q3 2026 Earnings Summary

• Revenue (Q3 2026 vs Q3 2025): SEK1,179.5m vs. SEK1,013.4m (up about 16%)
• Net Income (Excl. Extra Items, Q3 2026 vs Q3 2025): SEK142.3m vs. SEK131.3m (up about 8%)
• Basic EPS (Q3 2026 vs Q3 2025): SEK1.84 vs. SEK1.70 (up about 8%)
• Adjusted EBITDA Margin (Q3 2026 vs Q3 2025): 22.7% vs. 22.7% (broadly stable margin profile)

Ask Charlie what Storytel isn’t saying about Spotify pressure.

Storytel bull case: growth engines versus hard numbers

Bulls argue Storytel can turn operational levers into a more profitable streaming and publishing machine.

"Bullish analysts expect Storytel to translate its margin expansion, growing European subscriber base, and AI-driven product work into faster user growth, lower acquisition costs, and stronger profitability over time."

Q3 shows some of this playing out. Net sales grew 16.5% in constant currency with 80k net adds and 2.83m paying subs, while adjusted EBITDA of SEK268m kept the 22.7% margin intact. Publishing delivered SEK153m EBITDA at a 36.2% margin. Streaming profitability felt the weight of higher marketing and tech spend, so margin progress is not across the board.

Bear case check: ARPU, mix and margin pressure

Sceptics worry that growth in lower priced markets and partnership deals will eat into Storytel’s monetisation power.

"The expansion of Storytel into lower priced non Nordic and partnership heavy markets is already keeping group ARPU flat despite local price increases, and a further mix shift toward these segments could hold back revenue growth and limit improvement in net margins."

Q3 data cuts both ways. Overall ARPU rose 3.4%, which softens the most pessimistic take. At the same time, Americas ARPU fell about 5.7% on mix and partnership volumes, and Streaming EBITDA margin sat at 15.3% as marketing and IT costs climbed. Margin upside is therefore slower and more uneven than the optimistic story implies.

The price and this Narrative do not agree. → Uncover what this Narrative says Storytel is actually worth.

Hunt For Quiet Earnings Power

Storytel just showed how a steady margin story can leave the share price reaction looking restrained. The real opportunity could sit in stocks that look undervalued before expectations catch up.

• Company 1 - 40% below our estimate - convert a long construction backlog in civil infrastructure and high tech projects into cash backed contracting and development earnings.
• Company 2 - 42% below our estimate - tighten a CORE efficiency program so rising aircraft build rates feed through into higher margin composite components and aftermarket cash flow.
• Company 3 - 30% below our estimate - shift a product mix toward higher margin composite and clean energy lines as new capacity and automation reshape earnings and capital needs.

Three companies from the same screener. Open every one of the 195 undervalued companies on it →

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