INVL Technology posts 97% profit rise as portfolio sale process opens

INVL Technology, a closed-end investment company focused on Baltic IT businesses, reported an unaudited net profit of EUR 1.51 million for the first half of 2026, up 97% from EUR 0.766 million in the same period a year earlier. Net asset value rose 2% since the start of the year to EUR 66.1 million, or EUR 5.52 per share, while total investments in portfolio companies grew to EUR 70.2 million from EUR 54.15 million at the end of June 2025.

The company is actively pursuing a sale of its entire portfolio. INVL Technology confirmed it is in dialogue with potential investors and that ICON Corporate Finance, appointed earlier this year as M&A adviser, is facilitating the process. All investments must be realised by mid-July 2028, with proceeds distributed to shareholders under the terms of its closed-end structure. INVL Technology is managed by INVL Asset Management, which describes itself as the leading alternative asset manager in the Baltics.

Portfolio performance

Aggregated revenue across the three portfolio companies reached EUR 35.9 million in H1 2026, a 22% increase year-on-year. Aggregated gross profit rose 23% to EUR 12.26 million, and EBITDA grew 46% to EUR 3.96 million, suggesting operating leverage is improving across the group.

The Novian group, an IT services and solutions business, was the fastest-growing unit, recording consolidated revenue of EUR 18.69 million, up 49% from EUR 12.5 million in H1 2025. EBITDA grew 71% to EUR 1.98 million. Managing partner Kazimieras Tonkūnas highlighted rapid expansion within Novian's deep-tech segment, which covers programming solutions and AI technologies for defence, aviation and quantum computing. Revenue in that segment grew 2.7-fold to EUR 3.9 million in the first half of the year.

GovTech firm NRD Companies delivered revenue of EUR 6.42 million, up 15%, with EBITDA margin widening from 12% to 17% as the business improved operational efficiency. Cybersecurity unit NRD Cyber Security posted more modest top-line growth of 3%, reaching EUR 6.2 million in revenue, though gross profit rose 14% and EBITDA increased 22% as recurring contract volumes expanded. Tonkūnas said the company intends to nearly double the number of recurring contracts by year end.

Market context and exit dynamics

The combination of a hard wind-down deadline and improving financial metrics places INVL Technology in a structurally motivated seller position, which is likely to attract trade buyers and private equity sponsors active in the Baltic and broader Central and Eastern European IT services market. The region has drawn increasing interest from Nordic strategic acquirers and pan-European infrastructure-software investors over the past two years, partly because of competitive labour costs and a growing reputation in cybersecurity and defence-technology services.

NRD Cyber Security's focus on government and critical-infrastructure clients positions it within a segment that has seen sustained budget growth across NATO-aligned markets since 2022. Cybersecurity firms with established public-sector recurring revenue tend to attract premium multiples in trade sales, which could be a factor in the valuation expectations INVL Technology is setting with potential acquirers.

Novian's deep-tech exposure to defence AI and quantum computing is notable given that both areas are attracting significant government procurement interest across Europe, though the segment remains small in absolute terms at EUR 3.9 million in half-year revenue. Buyers will scrutinise whether that growth rate can be sustained post-acquisition without the parent's balance-sheet support.

INVL Technology's next scheduled reporting milestone is its full-year 2026 results, which will arrive roughly six months before the July 2028 realisation deadline.