The “Tax-Tech” Compounder With 57% EBIT Margins
This founder-led SaaS just IPO’d and it may be one of the cleanest “rule-of-40 is too low” business models in European small/mid caps.
I’m going to make a bold claim: one of the most under-discussed multi-bagger setups in Europe right now sits in a niche most investors ignore: tax incentives + compliance + workflow software.
This company sells a SaaS platform that helps businesses document and file R&D tax credit claims in a legally compliant way. It’s not sexy. It’s not viral. And that’s exactly why it’s interesting.
The numbers are the giveaway.
In 2024, the business reported €64.7m revenue and €37.3m EBIT—an ~57.6% EBIT margin. In Q1 2025, it reported €25.6m revenue and €16.3m EBIT (about ~65% EBIT margin).
This is not “SaaS with potential.” This is already a cash-heavy, scalable machine.
The kicker is runway. Germany’s R&D tax incentive (“Forschungszulage”) has been expanding in awareness and complexity, and there are proposals that could increase the funding cap and add a flat-rate overhead surcharge starting in 2026.
In the paid section, I’ll name the company, show exactly why the unit economics look almost unfair, and outline what would have to break for this not to work.
Also: we recently restarted our MultiBagger Portfolio for the new year (cash-heavy, early-phase focus). Portfolio holdings + weights remain Founding-only by design but research posts like this are how we build the “next buys” pipeline.
🔒 Paid section - The company is …
