Hacksaw $HACK (-0.81%) reported positive results today, yet its stock fell by 7%.
The performance compared to Q2 2025 is clearly positive:
- Revenue up 31% to €59.3 million
- EBIT up 31%, margin stable at 82%
- Net income up 43% to €45.7 million
- Cash flow from operating activities: +60% to €43.1 million
Why is the stock falling anyway?
EPS fell slightly short of expectations; €0.16 per share was expected, but the company reported €0.158. Given the company’s growth to date and its valuation, even minor shortfalls are enough to trigger a significant market reaction. And this is despite the fact that Hacksaw’s operating performance was actually even stronger; exchange rates are weighing on earnings. Strong results were repeated, but not stronger than in recent quarters. Stronger growth momentum had likely been priced in; here we see that “very good” can’t be good enough for the market. Additionally, the dividend payout—which is high for a growth stock—was viewed critically by some investors.
Is this a major setback for my investment?
No. Hacksaw remains on track operationally. Strong growth, impressive margins, robust cash flow, a growing portfolio, and continued expansion into new markets reaffirm my decision. Fundamentally, there’s no sign of a breakdown, and I view today’s pullback as an opportunity—so I’ve added a second tranche to my position. Even though it’s not yet clear whether the dividend policy will continue as is—which is normally an important factor for me—I see significant upside potential here that should be capitalized on.
