NRD Companies posts 57% EBITDA rise on GovTech push in 21 markets

The Lithuanian GovTech group's H1 2026 results reveal how digital public infrastructure is becoming a repeatable, scalable export business.

By Disrupts Editorial Team Wed, 4 November 2026 AI level 2 of 5

AI level 2 of 5: drafted by our AI editorial assistant from the company's announcement; fact-checked, edited and signed off by Mark Walker, Editorial Director. What the levels mean

A brightly lit data center hallway features two symmetrical rows of glass-front server cabinets displaying glowing green and blue indicator lights, extending towards a far wall with a pair of similar cabinets.

NRD Companies, the Vilnius-headquartered software and consulting group that builds digital public infrastructure for governments and regulators, has reported a 57% jump in EBITDA to EUR 1.07 million in the first half of 2026, alongside revenue growth of 15% to EUR 6.42 million. Net profit more than doubled, rising 147% to EUR 0.65 million, as the group's adjusted EBITDA margin expanded from 12.2% to 16.7%. The results follow a 2025 in which annual revenue climbed 20% to EUR 11.93 million, suggesting the margin improvement is structural rather than cyclical.

The numbers land at a moment when sovereign governments from sub-Saharan Africa to Latin America are accelerating investment in tax administration systems, business registries, customs portals and cross-border health data infrastructure. NRD Companies says it generated revenue across 21 countries in H1, with markets outside Lithuania now accounting for 51% of total income, a threshold that marks the group's effective transition from a Baltic technology exporter to a genuinely global GovTech operator.

Merger dividend and platform economics

A significant portion of the margin improvement traces back to a structural move completed at the end of 2025: the merger of two internal units, NRD Systems and ETRONIKA, into a single entity called NRD Digital. The consolidation has allowed the group to pool specialist talent across tax, registry and customs domains and deploy it more efficiently across concurrent projects. CEO Mindaugas Glodas describes the outcome as "a more scalable platform for growth," noting that the integration also standardises cybersecurity and quality-management practices to ISO 27001 and ISO 9001 standards, a prerequisite for winning contracts with institutions that carry systemic risk.

Project disclosures from H1 illustrate the range of engagements. In Zimbabwe, NRD advanced a fiscal data management system for the revenue authority, enabling real-time validation of tax filings. In Belize, it built out a business registration and licensing platform. In the Americas, the group worked with the Inter-American Development Bank and the Pan American Health Organization on a cross-border clinical data exchange corridor. In Lithuania itself, it delivered a customs services portal and a digital transformation strategy for a central government agency. The breadth is deliberate: repeatable platforms deployed across jurisdictions are a far more capital-efficient growth model than bespoke project delivery.

The macro read-across: GovTech as convergence infrastructure

For cross-sector investors, the NRD story is a small-cap window into a larger structural shift. Governments that are modernising tax collection, business registration and customs are simultaneously creating the data pipes that underpin fintech licensing regimes, digital identity frameworks and, increasingly, AI readiness. Glodas explicitly flags the latter: the group's forward strategy includes helping public institutions "prepare for the responsible use of artificial intelligence and modernise their digital services." That language positions NRD not merely as a legacy IT moderniser but as a precursor layer for the AI-in-government wave that larger systems integrators and sovereign cloud providers are already targeting.

The competitive landscape in GovTech remains fragmented. Larger players such as Temenos and Oracle Public Sector operate at the high end of the market, while a cohort of specialist exporters, many from the Nordic and Baltic states, compete on domain expertise and lower cost-to-serve in emerging-market jurisdictions. NRD's 60-country delivery track record and its new External Technical Teams service, offering clients on-demand access to programmers and analysts with sector-specific knowledge, are positioned to compete in this middle tier. Whether the group can sustain its current margin trajectory as it scales internationally, particularly if it enters higher-competition markets, is the central question for investors watching the INVL Technology portfolio.

Capital flows into GovTech more broadly have remained resilient even as generalist VC has retrenched. Multilateral development banks, including the World Bank and the IDB, continue to co-finance digital government projects in frontier markets, effectively de-risking the revenue pipeline for specialist vendors. That structural tailwind is one reason NRD's forward guidance remains confident, even without disclosing a specific revenue target for the full year.