Romania-based Connections hits 36% gross margin on back of AI and emerging technologies

Connections (BVB: CC) closed the first quarter of 2026 with a net profit of RON 7.89 million, approximately 10 times higher than in the same period last year, and a gross margin of 36%, compared to 7% in Q1 2025. These are the first results that fully reflect the company’s new business model, following the completion of the Service Delivery division sale.Revenue grew by 33%, reaching RON 25.8 million, driven primarily by the Software Public segment and recurring activities. Gross profit rose from RON 1.33 million to RON 9.37 million (+601%), while net profit reached RON 7.89 million, up 901% versus Q1 2025. At the same time, operating expenses declined by 8% despite revenue growth, a clear sign that cost structure optimisation has taken effect.

Gross margin advanced from 7% to 36% year-on-year, reflecting operational optimisation and a shift in the business line mix.

”The 901% increase in net profit validates the strategic planning and execution of Connections and lays the foundations for a robust structure through the 2026–2030 cycle. We continue toward the objectives we have set: consolidating the Software segment, developing recurring activities and increasing operational efficiency, with an increasingly clear investment in cybersecurity and artificial intelligence. We are growing year on year but not in isolation. We are part of a Romania that has the potential to become a relevant digital hub, for the region and, further, for a Europe that is building its digital sovereignty. We have the talent, the experience in complex projects, and the companies that know how to deliver. Connections wants to be part of this journey, with responsibility and creativity, project by project, solution by solution,” said Bogdan Florea, Co-CEO & Founder

”Q1 2026 is the first quarter where the numbers truly reflect the business we have built: no margin dilution from low value-added activities, no noise in the figures. We are significantly more profitable and more focused. The external context supports this direction. Digitalisation is accelerating, European regulations like NIS2, AI Act, Cyber Resilience Act are reshaping market rules, and emerging technologies are creating concrete opportunities for companies that know how to capture them. Connections is well positioned to grow in this environment, through its expertise in delivering highly complex projects with real impact in the public and private sectors,” said Radu Marcu, Co-CEO.



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