Octave holds Investor Day ahead of planned spin-off: Hexagon

STOCKHOLM, March 26, 2026 /PRNewswire/ -- Hexagon AB announced that Octave will today hold an Investor Day in New York, ahead of the planned spin-off. If approved by Hexagon's shareholders, the spin-off is expected to be completed with an effective date of May 22, 2026, with the first day of trading of Octave SDRs on the Nasdaq Stockholm expected on May 25, 2026, and the first day of trading of Octave class B shares on the Nasdaq Stock Market in New York expected on May 28, 2026.

During the investor day, the Octave leadership team will outline their vision for Octave as a stand-alone company, with presentations focusing on the operational strengths of the business, technology and innovation roadmaps, capital allocation priorities and medium-term financial objectives. For Octave, these initiatives combine to support an overall strategy to accelerate growth, expand recurring revenues and drive improved profitability and cash generation.

Octave Investor Day Highlights

Octave is an enterprise software company with approximately $1.6 billion in total revenue, $1.1 billion in annual recurring revenue (ARR), and approximately 4,500 customers across 140 countries. Octave achieved ARR growth of approximately 9% in 2025, an Adjusted operating margin of approximately 31%, and a Free cash flow margin of approximately 20% in 2025.

Key Themes the Investor Day Presentations will cover:

• The customer problem and market opportunity - the asset-intensive industries Octave serves face persistent challenges managing the full lifecycle of their physical assets.This creates a significant market opportunity for Octave, reflected in a serviceable addressable market ("SAM") of approximately $28 billion in 2025, which is expected to grow at a compound annual growth rate of approximately 10% to over $40 billion by 2029.
• Product and technology strategy - Octave's integrated platform spans four workflow environments (Design, Build, Operate, and Protect), delivering "Lifecycle Intelligence" that enables context to persist and intelligence to compound across the entire asset lifecycle. The integration of AI into these workflows is expected to bring additional growth opportunities, deepen existing partnerships and create extra value for customers.
• Competitive differentiation - Octave's unique combination of market leading positions, domain-specific data, workflow integration, and AI-powered intelligence creates a clear right to win, with significant cross-sell and up-sell potential, with ARR per customer increasing from ~$150K for customers adopting one workflow environment; ~$500K for customers adopting 2 workflow environments and to $2M+ for customers adopting 3+ workflow environments.
• Go-to-market strategy - a highly coordinated, global go-to-market engine with a proven track record of growing large customers and driving net revenue retention, with opportunities ahead to drive higher net retention and ARR growth.
• Business model and financial targets - a recurring-revenue-led business model supporting sustainable top-line growth, with management outlining the following 2026 and mid-term financial objectives:
• ARR growth targets:
  • 2026: 6% – 8% (2025: 9%)
  • Mid-term: 10%+
• Organic revenue growth targets:
  • 2026: 3% – 4% (2025: 3%)
  • Mid-term: 6% – 8%
• Adjusted operating margin targets:
  • 2026: ~30% (2025: 31%)
  • Mid-term: ~30%
• Free cash flow margin targets:
  • 2026: 20% (2025: 20%)
  • Mid-term: 23% – 24%

A copy of the presentations will be available on https://www.octave.com/investors. The event will be webcast live here: https://octave-investor-day-march-2026.open-exchange.net/registration, and a replay of the webcast event will be available at https://www.octave.com/investors for one year.

Important Information:

Octave Intelligence plc has filed a registration statement on Form 10/A under the Securities Exchange Act of 1934, as amended, with the U.S. Securities and Exchange Commission (the "SEC") on March 24, 2026, which amends the registration statement on Form 10 filed on February 11, 2026 (as amended, the "Registration Statement"). The Registration Statement has not yet become effective. You should read the Registration Statement and any other documents Octave files with the SEC for more complete information. You can obtain these documents for free by visiting EDGAR on the SEC's website at www.sec.gov.

Non-GAAP Measures:

In this press release we refer to financial measures not prepared in accordance with generally accepted accounting principles in the United States ("non-GAAP"), such as Adjusted income from operations, Adjusted operating margin, Free cash flow and Free cash flow margin. Please refer to the Registration Statement for more detail regarding these non-GAAP measures. The forward looking non-GAAP measures above are provided on a non-GAAP basis and a reconciliation of such non-GAAP measures to the most comparable GAAP measures have not been provided because items that impact these measures, such as tax and other costs, cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts.

Forward-Looking Statements:

This press release contains forward-looking statements. When used in this communication, words such as "anticipate", "believe", "estimate", "expect", "intend", "plan" and "project" are intended to identify forward-looking statements. They may involve risks and uncertainties, including technological advances, product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, foreign currency exchange rates and other risks described in the Registration Statement. These forward-looking statements reflect the views of management as of the date made with respect to future events and are subject to risks and uncertainties. All of these forward-looking statements are based on estimates and assumptions made by management and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results or experience could differ materially from the forward-looking statements. Forward-looking statements are not guarantees of future performance and the actual results of operations and the development of the markets and the industry or other outcomes suggested by such forward-looking statements (including any outcomes of a separation, a spin-off or a listing and any related business, financial, tax, regulatory or other implications, or differences between the existing Octave business area and any separated business) may differ materially from those described in, or suggested by, the forward-looking statements contained in this press release. Hexagon disclaims any intention or obligation to update these forward-looking statements.

FOR MORE INFORMATION, CONTACT:  
Octave:
Elizabeth Chwalk, VP, Investor Relations, Octave +1 401 749 - 0278,  [email protected]

Hexagon:
Tom Hull, Head of Investor Relations, Hexagon AB, +44 7442 678 437, [email protected]
Anton Heikenström, Investor Relations Manager, Hexagon AB, +46 8 601 26 26, [email protected]

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/hexagon/r/octave-holds-investor-day-ahead-of-planned-spin-off,c4326749

The following files are available for download:

SOURCE Hexagon