The $20M convertible notes provide near-term liquidity but introduce dilution risk, especially if interest is paid in kind. Strong order intake supports the raised revenue guidance, but H1 EBITDA margin weakness warrants caution. Monitor the August 2026 half-year results for actual EBITDA margin and the registration statement effectiveness by August 15 to avoid penalty payments.
Price Chart
Executive Summary
SCHMID Group closed a $20M convertible notes financing (5.0% PIK toggle, due 2029) and provided a Q2 2026 business update. Q2 revenue was €27.7M with order intake of €30.7M, and YTD order intake reached €81.6M including a €37M+ repeat order. Full-year 2026 revenue guidance of >€100M and EBITDA margin >12% was maintained, while order intake guidance was raised to €125-150M from ~€114M. H1 EBITDA margin is expected to be significantly below the full-year target. The financing provides working capital for order acceleration and a China plant expansion but adds dilution risk.
Key Facts
- $20M aggregate principal amount of 5.0% Convertible Senior PIK Toggle Notes due 2029 issued at 99% of par.
- Q2 2026 revenue of €27.7M and order intake of €30.7M.
- YTD order intake of €81.6M including a €37M+ repeat order; order backlog of €54.8M.
- Full-year 2026 guidance: >€100M revenue and >€12% EBITDA margin maintained.
- Order intake guidance raised to €125-150M from approximately €114M.
- H1 2026 EBITDA margin expected to be significantly lower than the 12% full-year target.
- Net proceeds to fund working capital needs and growth capital for a new manufacturing plant in China.
- Registration rights agreement requires filing by August 15, 2026, with 1% monthly penalty for delays.
- Subordination agreements subordinate ~€46.7M in existing shareholder and property loans to the new notes.
Financial Impact
$20M convertible notes issued; Q2 revenue €27.7M; order intake guidance raised to €125-150M
Risk Factors
- Dilution from conversion of notes at prices as low as $1.93 per share.
- PIK interest accretion increases principal and future dilution.
- Registration delay penalties of 1% per month on outstanding principal.
- Negative equity position and high leverage from existing debt and losses.
- H1 EBITDA margin significantly below full-year target may signal execution risk.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 9 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-083488 |
| Document: tm2620429d1_ex10-2.htm | 0001104659-26-083488 |
| Document: tm2620429d1_ex10-4.htm | 0001104659-26-083488 |
| Document: tm2620429d1_ex10-3.htm | 0001104659-26-083488 |
| Document: tm2620429d1_6k.htm | 0001104659-26-083488 |
| Document: tm2620429d1_ex99-1.htm | 0001104659-26-083488 |
| Document: 0001104659-26-083488-index-headers.html | 0001104659-26-083488 |
| Document: 0001104659-26-083488-index.html | 0001104659-26-083488 |
| Document: 0001104659-26-083488.txt | 0001104659-26-083488 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 6-K | $3.11 | awaiting T+5 | — | $2.98 (−4.18%) |
Oct 1, 2026 26d ago | EFFECT | $4.45 $3.97 | ▼ −10.69% | ▼ −11.99% | $2.98 (−32.96%) |
Oct 1, 2026 26d ago | EFFECT | $4.45 $3.97 | ▲ +10.69% | ▲ +11.99% | $2.98 (+32.96%) |
Oct 1, 2026 26d ago | EFFECT | $4.45 $3.97 | ▼ −10.69% | ▼ −11.99% | $2.98 (−32.96%) |
Oct 1, 2026 26d ago | EFFECT | $4.45 $3.97 | ▼ −10.69% | ▼ −11.99% | $2.98 (−32.96%) |
Sep 8, 2026 7w ago | Insider Cluster | $3.35 $3.20 | ▼ −4.48% | ▼ −3.36% | $2.98 (−11.04%) |
Aug 25, 2026 9w ago | 6-K | $3.42 $3.11 | ▼ −9.06% | ▼ −8.53% | $2.98 (−12.87%) |
Aug 25, 2026 9w ago | Press Release | $3.42 $3.11 | ▲ +9.06% | ▲ +8.53% | $2.98 (+12.87%) |
Jul 24, 2026 13w ago | EFFECT | $4.12 $4.04 | ▲ +1.82% | ▲ +2.20% | $2.98 (+27.58%) |
Jul 14, 2026 15w ago | 6-K | $4.34 $4.38 | ▲ +0.92% | ▲ +1.90% | $2.98 (−31.34%) |
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