Value in softwarepocalypse ? (2/N)
A 60%-margin, net-cash cash machine fell from €137 to €73 - the market is pricing a software-enabled annuity like a dying consultancy, and paying you a 5.5% dividend to wait
Disclaimer: The views expressed in this article are the author’s personal opinions and are provided for educational and entertainment purposes only. Nothing herein should be considered financial advice. Always do your own research and consult a qualified financial advisor before making investment decisions. The author may hold positions in the stocks mentioned, in line with the opinions shared. This is a disclosure, not a recommendation to buy or sell any securities.
One paragraph summary
Innoscripta sells the only end-to-end software platform (Clusterix) for claiming Germany's R&D tax allowance (Forschungszulage), monetised through a ~20% success fee on the cash subsidy its clients receive.
It is extraordinarily profitable (≈60% EBIT margin) and has grown roughly 10x in sales since 2020, yet after a poorly-received IPO it has de-rated from €137 to the low-€70s and now trades at ~13–14x forward earnings with a ~5.5% dividend and net cash.
The market is repricing it from a "SaaS multiple" toward a "digitised-consulting multiple" because revenue is a transactional success fee, not a subscription, and because headline revenue growth optically decelerated through 2025.
That is the mispricing.
The underlying booking engine (submitted-application "production") is compounding ~33%, FY2026 revenue is largely pre-booked, the regulatory backdrop is a multi-year tailwind (the eligible-cost cap just stepped to €12m and a new 20% overhead allowance arrives in 2026), penetration of the addressable base is still only ~28%, and Q1 2026 net income already grew +68%.
You are being paid 5.5% to wait for a re-rating with a credible path to a double.
Read more below.
