Innoscripta SE: 60% EBIT margins & rapid growth but why did the 2025 IPO flop ?
Management summary:
Innoscripta, a young German “SaaS company” which IPOed in 2025 came to my attention because it is extremely profitable (EBIT margin 60%) and growing like crazy (10x in sales since 2020). However, because of the unique revenue model (success fee instead of software fees) and a rapid decrease in quarterly growth in 2025, I am currently not investing, although the stock is not super expensive at 21x trailing P/E. But I will keep a close watch.
The 2025 IPO
Innoscripta was one of the few “official” IPOs in Germany in 2025. If we look at the share price, it was not a very successful one:
The IPO price was 120 EUR in May 2025 and they sold only existing shares. We will soon see that they just didn’t need any new capital.
value and opportunity 
I dont like the business model as it depends on the regulatory dschungle of german burocracy.
There might be several headwinds:
I would agree mostly. Only exception is that R&D funding / credits might increase for a while.
Danke, sehr lesenswert! Haben Sie sich CTS Eventim angeschaut? 10x EV/EBIT, 1 Milliarde Net Cash. Marktführer.
I looked at them last tiem 5 years ago…
Have you looked at CTS EVENTIM? Great company back under 70 EUR per share.
Looked at them last time 5 years ago….
yeah – it is a consulting company, i do not understand what saas is there or needed ther.
There are a lot of (very small to very big) consulting companies offering the same service, what differentiated (and probably still does) Innoscripta during my time was there very aggressive aproach on acquiring „customers“…
Well, aggressive customer acquisition is not bad per se if the product is good and sticky.
it used to be a well organized, aggressive sales business trying to convince companies to tab the federal budgets for [Forschungszulagen]. innoscripta was helping with the application for the funding and got a revenue share in exchange for that service. free money for companies who often did not know these government funds existed. No software at all historically but maybe this has changed now. well done by founders to get the software saas multiple for this. financials are very strong and maybe the have an opportunity to build that SaaS business people are talking about.
Thanks for the insight “Bill”. They do have a Software but the question is if it really is an enduring competitive advantage or not.
Back to basics: I have not seen any granular PnL breakdown to understand the cost base and incremental margin. The margins look way off for what is a consulting biz at the end of the day.
Why IPO to begin with with such a tiny float? And now mgt buy some shares in the market?