Edison Reports on HgT's H126 Performance

On August 10, 2026, Edison Investment Research released a report on HgT, noting the company's preliminary trading update for the first half of 2026. HgT reported a 16% rise in revenue and a 19% increase in EBITDA over the last 12 months, with 11% and 17% attributed to organic growth, respectively. The portfolio's average EBITDA margin stood strong at 34%. Additionally, the average net debt to EBITDA ratio decreased to 6.9x from the previous 7.4x at the end of 2025.

Despite a solid portfolio performance contributing positively to HgT's NAV by 6 percentage points in Q2, peer multiples' decline negatively impacted by 5 percentage points, affected by ongoing uncertainty in the software industry due to AI. The weighted average EV/EBITDA ratio adjusted to 22.9x from 25.2x at the end of 2025.

HgT's NAV total return recorded a modest gain of 0.5% in Q2, but showed a -4.9% return for the first half of 2026. The stock traded at a notable 25% discount to NAV following a sell-off in public software stocks.