Interim report
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Embla Medical hf Q2 2026 Company Announcement 1 Interim Report Q2 2026 Announcement no. 38/2026 Sveinn Sölvason, President and CEO, comments: “Sales in Q2 2026 were USD 259 million, representing 11% reported growth and 6% organic growth. Strong double-digit Prosthetics & Neuro Orthotics growth in Q2, supported by excellent execution, robust volume growth in EMEA and APAC, and successful new product launches . Bracing & Supports delivered moderate growth in the quarter, while Patient Care declined. In Patient Care, we continue to see encouraging progress, with most of our clinics delivering increased productivity and profitability. However, Q2 sales remained below expectations due to timing effects and challenging market dynamics in selected key European markets. As these factors continue to normalize, management remains confident that performance will improve over the coming periods and gradually return to growth broadly in line with the structural growth of the O&P industry. The EBITDA margin was strong at 22% in Q2 2026, up 1% -point from Q2 2025 , reflecting solid sales contribution from Prosthetics & Neuro Orthotics, continued cost discipline, and US tariff refunds. Based on our first half performance and expectations for stronger growth in H2 2026, we are narrowing our full -year organic sales growth guidance to 5-7% (previously 5-8%). We reiterate our EBITDA margin guidance of 20-22%.” Highlights Q2 2026 ▪ Sales amounted to USD 259m, growing 11% reported, 6% organically and 9% in local currencies incl. M&A. ▪ Organic sales growth by segment: Prosthetics & Neuro Orthotics +12%, Bracing & Supports +1%, Patient Care -2%. ▪ Gross profit margin was 63%, compared to 62% in Q2 2025. The gross profit margin in the quarter was positively impacted by strong sales in Prosthetics & Neuro Orthotics and net US tariff refunds USD 3 million. ▪ EBITDA amounted to USD 58 million, corresponding to a margin of 22% of sales, up from 21% in Q2 2025. The margin increase was driven by a higher gross profit margin and continued SG&A cost discipline. ▪ Net profit was USD 29 million and increased by 39% compared to Q 2 2025 with a net profit margin of 11%. The increase was driven by growing operating results and lower net financial expenses than in the comparable quarter. ▪ Free cash flow amounted to USD 31 million or 12% of sales, compared to 5% of sales in Q2 2025. Free cash flow was solid in the quarter, benefitted from strong operating results, lower net working capital investments than in the comparable quarter and moderate CAPEX. ▪ NIBD/EBITDA before special items was 2.2x at the end of Q2 2026, which is within our target range of 2-3x EBITDA. During Q2 2026, Embla Medical bought back 1,323,653 shares at a market value of USD 5. 5 million. The existing Share Buyback Program concluded on 17 July 2026. A new share buyback program of up to 2 million shares initiated on 20 July 2026. Other highlights ▪ At the OTWorld Congress in Leipzig in May, Embla Medical’s full brand portfolio was on display, with Össur, College Park, Fio r & Gentz, Streifeneder and ForMotion all represented at the industry’s largest global trade fair. The event attracted more than 21,000 visitors from 92 countries, generating strong engagement with healthcare professionals and industry decision makers. ▪ All patient care facilities included in the rollout program have now transitioned to the ForMotion brand, marking an important milestone in our patient care transformation uniting our global clinic network under a single, patient-centered brand. ▪ Six new innovations launched during Q2 2026 across Prosthetics, Neuro orthotics and Bracing & Supports (detailed overview on page 9). ▪ Progress according to plan in developing our first dedicated microprocessor knee for less -mobile users (K2). A fully integrated system prototype has been successfully assembled for upcoming verification and validation activities. On track towards launch in late 2027. 2026 Outlook ▪ Organic sales growth guidance narrowed to 5-7% (previously 5-8%). ▪ EBITDA margin before special items guidance is unchanged at 20-22%. *Potential impact from US trade tariffs continues to be an uncertain element to quantify given the frequent changes in the global tariff environment. Consequently, we deem it too speculative to quantify and guide an exact impact from potential tariffs on Embla Medical’s financial results, but some absorption of tariffs is assumed in the guidance. H1 2026 H1 2025 Q2 2026 Q2 2025 Guidance (current) Guidance (previously) Sales growth, organic 5% 4% 6% 5% 5-7% 5-8% EBITDA margin, before special items 20% 20% 22% 21% 20-22%* 20-22%*
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Embla Medical hf Q2 2026 Company Announcement 2 USD millions Q2 2026 Q2 2025 1H 2026 1H 2025 FY 2025 FY 2024 FY 2023 FY 2022 Income Statement Net sales 259 232 491 435 929 855 786 719 Gross profit 164 144 307 272 579 535 486 440 Operating expenses (excl. other income / exp.) 122 111 243 217 454 422 398 373 EBITDA 58 49 98 85 186 169 139 114 EBITDA before special items 58 49 98 85 186 173 139 128 EBIT 42 34 66 56 125 113 89 65 Net profit 29 21 44 33 84 69 59 43 Sales Growth Sales growth USD % 11 7 13 4 9 9 9 0 Growth breakdown: Organic growth % 6 5 5 4 6 6 9 4 Currency effect % 2 2 5 0 2 0 (1) (7) Acquired business % 3 0 3 0 1 3 1 3 Balance Sheet Total assets 1,717 1,677 1,717 1,677 1,730 1,539 1,386 1,325 Equity 926 836 926 836 896 781 705 636 Net interest-bearing debt (NIBD) 435 472 435 472 439 414 395 404 Cash Flow Cash generated by operations 52 34 72 57 178 160 126 92 Free cash flow 31 12 35 20 100 77 52 35 Key Ratios Gross profit margin % 63 62 63 63 62 63 62 61 EBIT margin % 16 15 13 13 13 13 11 9 EBITDA margin % 22 21 20 20 20 20 18 16 EBITDA margin before special items % 22 21 20 20 20 20 18 18 Equity ratio % 54 50 54 50 52 51 51 48 Net debt to EBITDA before special items* 2.2 2.6 2.2 2.6 2.4 2.4 2.8 3.2 Effective tax rate % 23 24 23 24 23 24 23 23 Return on equity* % 11 9 11 9 10 9 9 7 CAPEX / Net sales % 2.3 4.4 2.3 3.8 3.4 4.6 5.4 3.6 Market Market value of equity 1,749 2,250 1,749 2,250 2,202 2,125 1,713 2,035 Number of shares in millions 428 428 428 428 430 428 421 423 Basic EPS in US cents 6.9 5.0 10.2 7.8 19.6 16.2 14.0 10.3 Diluted EPS in US cents 6.8 5.0 10.2 7.8 19.6 16.2 14.0 10.3 * Financial ratios are based on operations for the preceding 12 months.
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Embla Medical hf Q2 2026 Company Announcement 3 Management’s report Financial performance Sales Sales in 1H 2026 amounted to USD 491 million, compared to USD 435 million in 1H 2025, corresponding to 5% organic growth, 8% local currency growth ( including 3%-points from M&A ) and 13% reported growth (USD growth). Sales in Q2 2026 amounted to USD 259 million, compared to USD 232 million in Q2 2025, corresponding to 6% organic growth, 9% local currency growth (including 3%-points from M&A) and 11% reported growth (USD growth). Reported sales were USD 6 million higher in Q2 2026 due to changes in FX when compared to Q2 2025, which corresponds to about a 2%-point positive effect on the reported growth rate. Sales by geographical segment (USD million) Q2 Organic growth Δ Acq. / div. Δ Curr. effect USD growth 1H Organic growth Δ Acq. / div. Δ Curr. effect USD growth 2026 2026 EMEA 134 8% 6% 4% 18% 258 6% 6% 8% 20% Americas 105 3% 0% ) 0% 3% 193 3% 0% 1% 3% APAC 20 9% 0% 6% 15% 40 11% 0% 7% 18% Total 259 6% 3% 2% 11% 491 5% 3% 5% 13% Sales by business segment (USD million) Q2 Organic growth Δ Acq. / div. Δ Curr. effect USD growth 1H Organic growth Δ Acq. / div. Δ Curr. effect USD growth 2026 2026 Prosthetics & Neuro Orthotics 151 12% 6% 2% 20% 287 10% 6% 5% 21% Bracing & Supports 39 1% 0% 2% 3% 76 1% 0% 3% 4% Internal product sales (11) 10% 1% 3% 13% (21) 7% 1% 5% 13% External sales 179 10% 5% 2% 16% 342 8% 5% 4% 17% Patient Care 79 -2% 0% 3% 1% 149 -2% 0% 5% 4% Total 259 6% 3% 2% 11% 491 5% 3% 5% 13% Growth in Q2 2026 was driven by strong volume growth in Prosthetics & Neuro Orthotics. Sales growth in EMEA remained strong in Q2, with 8% organic growth driven by robust Prosthetics performance across both key European markets and newer markets, including Ukraine. Growth was supported by strong volumes and broad -based demand across key product categories, including Bionics. Recently acquired Streifeneder also made a solid contribution. Neuro Orthotics delivered another quarter of strong growth, with broad-based momentum across the region. Bracing & Supports sales ended down, driven by tough competition and shifting market dynamics . Patient Care sales declined, mainly due to timing effects and challenging market dynamics in selected key European markets such as France and Sweden. As these factors normalize, management expects sales performance to improve over the coming periods and gradually return to growth broadly in line with the structural growth of the O&P industry. Positive FX impact of USD 6 million in Q2 2026 Sales increased by 6% organic in Q2 2026 Strong growth in EMEA and APAC in Q2 2026
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Embla Medical hf Q2 2026 Company Announcement 4 In the Americas, organic sales growth was 3% in the second quarter. Prosthetics growth in the US has begun to pick up, supported by solid performance in core portfolio and continued momentum in Bionics, with strong contributions from Navii, Proprio, Icon, and Odyssey iQ. Neuro Orthotics continued to build momentum in the US, delivering strong growth from a low base, with a more meaningful contribution expected in the co ming periods as the rollout of our first bionic knee joint expands. Bracing & Supports generated solid growth, driven by higher volumes and broad-based demand across core products. Patient Care sales growth was strong across key markets with performance trending in the right direction. In APAC, organic sales growth was strong at 9% in the second quarter. Prosthetics & Neuro Orthotics growth was led by Australia, with broad -based strength across most product categories, supported by solid growth across the rest of Asia. Bracing & Supports delivered solid growth in Australia and New Zealand, driven by increased demand for premium solutions. Patient Care continued to perform well in Australia. As previously communicated, Patient Care underperformed through most of 2025, mainly in EMEA and the Americas, due to lower patient volumes and implementation of strategic initiatives in Patient Care , including the ForMotion rebranding, system integrations, and other operational changes that temporarily affected performance. In the second half of 2025, we launched several strategic initiatives to strengthen performance management and support sustainab le growth and improved profitability. These actions contributed po sitively to profitability in the first half of 2026, although sales recovery and consistent growth across regions have not yet fully materialized. Management remains confident that sales in these key regions will improve in the coming periods and gradually return to growth broadly in line with the structural growth of the O&P industry, supporting a stronger and more resilient Patient Care business over time. Operations Gross profit in 1H 2026 amounted to USD 307 million or 63% of sales, compared to USD 272 million on par with 1H 2025. Gross profit in Q2 2026 amounted to USD 164 million or 63% of sales, compared to USD 144 million or 62% of sales in Q2 2025. The gross profit margin in Q2 was supported by strong Prosthetics & Neuro Orthotics performance and a USD 4 million U.S. tariff refund (USD 3 million refund net of expenses , as a lower tariff rate remains in effect). Operating expenses (OPEX) OPEX amounted to USD 243 million or 49% of sales in 1H 2026, compared to USD 217 million or 50% of sales in 1H 2 025. OPEX amounted to USD 122 million or 47% of sales in Q2 2026, compared to USD 111 million or 48% of sales in Q2 2025. OPEX growth was 5% organic in the quarter, compared to organic sales growth of 6%, highlighting continued focus on cost control in the quarter. Gross profit margin of 63% in Q2 2026 OPEX ratio of 47% in Q2 2026
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Embla Medical hf Q2 2026 Company Announcement 5 EBITDA EBITDA amounted to USD 98 million or 20% of sales in 1H 2026, compared to EBITDA of USD 85 million or 20% of sales in 1H 2025 . EBITDA amounted to USD 58 million or 22% of sales in Q2 2026, compar ed to USD 49 million in Q2 2025. The negative effects on EBITDA margin from changes in currencies amounted to roughly 10 basis points net of hedging in Q2 when compared to the same period in 2025. Financial items Net financial expenses in 1H 2026 amounted to USD 11 million , compared to USD 17 million in 1H 2025. Net financial expenses in Q2 2026 amounted to USD 5 million, compared to USD 10 million in Q2 2025 . The decrease in net financial expenses was primarily driven by lower net exchange differences compared to the same period last year, resulting in approximately USD 5 million positive impact on net financials in the quarter compared with Q2 2025. Income tax Income tax amounted to USD 13 million in 1H 2026, corresponding to a 23% effective tax rate, compared to USD 10 million in 1H 2025, corresponding to a 24% effective tax rate. Income tax amounted to USD 9 million in Q2 2026, corresponding to a 2 3% effective tax rate , compared to USD 7 million in Q2 2025, corresponding to a 24% effective tax rate. Net profit Net profit grew by 32% in 1H 2026 amounted to USD 44 million or 9% of sales, compared to USD 33 million or 8% of sales in 1H 2025. Net profit grew by 39% in Q2 2026 amounted to USD 29 million or 11% of sales, compared to USD 21 million or 9% of sales in Q2 2025. Diluted earnings per share in 1H 2026 amounted to 10.2 US cents, compared to 7.8 in 1H 2025. Diluted earnings per share in Q2 2026 amounted to 6.8 US cents, compared to 5.0 in Q2 2025. EBITDA margin before special items of 22% in Q2 2026 Effective tax rate of 23% in Q2 2026 Net profit margin of 11% in Q2 2026
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Embla Medical hf Q2 2026 Company Announcement 6 Cash flow Cash generated by operations Cash generated by operations amounted to USD 71 million or 14% of sales in 1H 2026, compared to USD 57 million or 13% of sales in 1H 2025. Cash generated by operations amounted to USD 5 2 million or 20% of sales in Q2 2026, compared to USD 34 million or 14% of sales in Q2 2025. Cash generation was solid in the quarter, benefitting from strong operating results, lower net working capital investments than in the comparable quarter and modest CAPEX. Capital expenditures Capital expenditures in 1H 2026 amounted to USD 11 million or 2% of sales, compared to USD 16 million or 4% of sales in 1H 2025. Capital expenditures in Q2 2026 amounted to USD 6 million or 2% of sales, compared to USD 10 million or 4% of sales in Q2 2025. The CAPEX ratio for H1 2026 remained slightly below the normalized 3–4% range due to the timing of investments. Free cash flow Free cash flow in 1H 2026 amounted to USD 35 million or 7% of sales, compared to USD 20 million or 5% of sales in 1H 2025. Free cash flow in Q2 2026 amounted to USD 31 million or 12% of sales, compared to USD 12 million or 5% of sales in Q2 2025. Free cash flow was strong for the quarter, benefitting from strong operating results, lower net working capital investments than in the comparable quarter and modest CAPEX. Bank balances and cash equivalents Bank balances and cash equivalents amounted to USD 99 million at the end of Q2 2026 and USD 67 million of existing facilities were undrawn. Bank balances and cash equivalents in addition to undrawn credit facilities at the end of Q2 2026, therefore, amounted to USD 166 million. Capital structure Net-interest bearing debt Net interest-bearing debt, including lease liabilities, amounted to USD 435 million at quarter-end Q2 2026 compared to USD 472 million at quarter-end Q2 2025. Net interest-bearing debt to EBITDA before special items corresponded to 2.2x at quarter-end Q2 2026, within the target range of 2.0-3.0x. Share buybacks and treasury shares The purpose of the program is to reduce the Company’s share capital and adjust the capital structure with a desired capital level of 2.0-3.0x net interest-bearing debt to EBITDA before special items, by distributing capital to shareholders in line with the Company’s Capital Structure and Capital Allocation Policy. During Q2 2026, Embla Medical bought back 1,323,653 shares at a market value of approximately USD 5.5 million (1,884,756 shares at a market value of approximately USD 8.1 million 1H 2026). At the end of Q2 2026, treasury shares totaled 2,112,095. Cash generation of USD 52 million in Q2 2026 NIBD/EBITDA before special items at 2.2x Share buybacks of USD 5.5 million in Q2 2026 Cash and undrawn facilities amounted to USD 166 million CAPEX was 2% of sales in Q2 2026 Free cash flow was 12% of sales in Q2 2026
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Embla Medical hf Q2 2026 Company Announcement 7 Financial guidance Guidance Guidance FY 2026 (July) Guidance FY 2026 (April) Guidance FY 2025 (February) Sales growth, organic 5-7% 5-8% 5-8% EBITDA margin before special items 20-22% 20-22% 20-22% For modelling purposes CAPEX as % of sales 3-4% 3-4% 3-4% Effective tax rate 23-24% 23-24% 23-24% Guidance for organic sales growth has narrowed and is now expected to be in the range of 5 -7% (previously 5-8%). We continue to expect strong performance in our Prosthetics business across regions in the second half of 2026 supported by solid contributions from our fast -growing bionic portfolio and recently launched innovations. Some positive impact from the US Medicare Coverage Expansion is also expected to contribute to sales supported by our existing portfolio of microprocessor knee (M PK) solutions, which in the future will be complemented by a dedicated K2 MPK solution to better serve the least mobile users in the low active K2 patient population. In Neuro Orthotics we expect to see the increasing effects from the ongoing roll out of our Neuro Orthotics offerings (Fior & Gentz) into new markets leveraging our global commercial infrastructure and ForMotion footprint within O&P Clinics. Albeit growing from a low base we expect to see solid growth in the EMEA region with some contribution s expected in Americas in the second half of 2026 as we roll out our first bionic knee joint “NEURO HiTRONIC MPKAFO”, which received a reimbursement code in 2025 in the important US market. In Patient Care, we expect growth to gradually improve during 2026 with the aim of eventually returning to consistent sales performance in line with market. Growth in 2026 is expected to be driven by volume growth, increased efficiency supported by effects from the initiatives implemented across our Patient Care business in the second half of 2025. Focus will be on strengthening growth and profitability and benefiting from the structural growth in the O&P industry our product business has observed in recent periods. Lastly, Bracing & Supports is expected to grow approximately in line with market growth. We assume solid growth in selected key regions supported by launches of new product categories but also with continued competitive pressure in selected markets. EBITDA margin is expected in the range of 20-22% for 2026 compared to 20% in 2025. The EBITDA margin is expected to be positively impacted by solid sales performance, a favorable product mix from increased sales of our high -end solutions, continued efficie ncy gains in manufacturing, increasing profitability in Patient Care, and cost control in SG&A. At current foreign exchange rates, keeping all other factors constant, the EBITDA margin is expected to be neutral net of hedging in 2026 when compared to 2025.
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Embla Medical hf Q2 2026 Company Announcement 8 Foreign exchange Sales are particularly exposed to fluctuations in the EUR/USD exchange rate. Additionally, the ISK has a relatively high impact on operating results as part of manufacturing, R&D and some corporate functions are based in Iceland, while sales in ISK are min imal. A breakdown of sales and costs by main currencies can be found in note 4 of the accompanying Condensed Consolidated Financial Statements. All else being equal, a +/- 5% movement in EUR/USD is estimated to have an annual impact on EBITDA in the range of +/- USD 3.5-4.5 million when unhedged. The same movement in ISK/USD is estimated to have an annual impact on EBITDA in the range of +/- USD 4.0-5.0 million when unhedged. Embla Medical utilizes forward contracts to hedge approximately 50% of the estimated net currency exposure to ISK. Currency overview USD EUR ISK Average exchange rate FY 2025 1.130 0.0078 Average exchange rate in Q1 2026 1.170 0.0081 Average exchange rate in Q2 2026 1.163 0.0081 Opening rate July 20 2026 1.144 0.0080 Estimated average exchange rate for FY 2026* 1.155 0.0080 Change in estimated exchange rate FY 2026 compared to last year’s average 2% 3% *Estimated average exchange rate is calculated as exchange rate (open) on July 20, 2026, for the remainder of the year Other highlights Section 232 investigations on MedTech equipment On 26 September 2025, the US Department of Commerce published a notice for a public consultation on a possible Section 232 Investigation concerning robotics/industrial machinery as well as personal protective equipment (PPE), medical consumables and medica l equipment including devices such as hearing aids, prosthetics, orthopedic appliances, ventilators and respirators etc. The objective is to determine the effects on the US national security of imports of these goods. We are currently assessing the scope and potential implications of the Section 232 investigation and the potential trade restrictions that might result from this. As several factors remain uncertain at this stage, we deem it to be too premature to discuss potential impact until more clarity has been revealed. Completion of the ForMotion rebranding in Patient Care ForMotion rebranding: All patient care facilities included in the rollout program have now transitioned to the ForMot ion brand, marking an important milestone in our patient care transformation uniting our global clinic network under a single, patient-centered brand.
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Embla Medical hf Q2 2026 Company Announcement 9 Product launches during the last 12 months Launch quarter Segment Product name Product description Q2 2026 Prosthetics (Össur) New variants of Iceross Dermo Cushion, Iceross Synergy Cushion + Iceross Sleeve The dark melange Dermo and Synergy Cushion liners, paired with the black Iceross Sleeve, combine trusted performan ce with a coordinated design that blends seamlessly with today’s black prosthetic components for a cohesive, premium look. Q2 2026 Prosthetics (Streifeneder) Kinegen.flow New lightweight, waterproof hydraulic prosthetic knee joint delivering a comfortable gait, high stability, a smooth extension stop, and reduced strain. Q2 2026 Neuro Orthotics (Fior & Gentz) NEURO HiSWING R+ in 24mm The NEURO HiSWING R+ is a microprocessor -controlled, automatic system ankle joint that comes with integrated shock absorption. The new 24mm system width offers great er load- bearing capacity. Q2 2026 Neuro Orthotics (Fior & Gentz) NEURO SWING Carbon in 10mm The NEURO SWING Carbon is a water -resistant, ultralight system ankle joint made of carbon fiber-reinforced plastics and is now available in 10mm system width. Q2 2026 Bracing & Supports (Össur) OA Move The new OA Move knee brace brings clinically -proven OA pain relief to those with more active lifestyles. Featuring our 3 -Points of Leverage design, dual Dyna mic Force System ™ straps, and medical-grade compression, OA Move is designed specifically for the needs of more active OA patients. Q2 2026 Bracing & Supports (Össur) Formfit® Walker (New Version) The Formfit® Walker provides immobilization for patients suffering from soft tissue injury; grades 2 & 3 strains and sprains; and stable fractures. The new lightweight design is 25% lighter than before. Lower heel height reduces leg length discrepancy. The expert-designed orthopedic rocker bottom aids rollover. It has a shock absorbing sole for reduced impact at heel strike. Q1 2026 Prosthetics (Össur) AeroFit® Vent AeroFit combines a 3D-printed Seal-In liner with a vented socket. The silicone liner increases comfort by reducing humidity accumulation, leaving the limb feeling drier and healthier. The unique design of AeroFit uses the user’s own movement to expel air f rom the socket, promoting airflow leaving the skin feeling drier. Perceived skin health of the residual limb is improved by the micro-hole p attern, meshed silicone structure, and the AeroFit Seal-In liner fabric, which wicks humidity away. Q4 2025 Prosthetics Bionic knee (Össur) Power KneeTM Update Power Knee™ controls have been updated to deliver functional improvements that enhance mobility and adoption of powered solutions. Synchronous Control™ provides natural, powered motion that adapts seamlessly to each step at any walking speed. Sit-to-stand assistance can now be smoothly ramped and tailored to user preference, while improved stair and stumble- recovery functions deliver more natural transitions and support when it is needed most.
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Embla Medical hf Q2 2026 Company Announcement 10 Conference call and Financial calendar Conference call details Embla Medical will host a conference call on July 21, 2026, at 9:00 CET / 7:00 GMT / 3:00 ET. To actively participate in the telephone conference, please use the dial -in details provided below: DK: +45 78 76 84 90 UK: +44 20 3769 6819 US: +1 646 787 0157 Participant access code: 274982 The webcast will be available through following link: Embla Medical Q2 2026 webcast Financial calendar and events 2026 July 21, 2026 Interim Report Q2 2026 July 21, 2026 Q2 2026 Presentation & Q&A, virtual (HC Andersen Capital) July 21, 2026 Q2 2026 US Virtual Investor Road Show (Danske Bank) August 26, 2026 Hamburg Investor Days, Montega, Hamburg September 2, 2026 Dansk Aktionær Forening Investor Event (Retail), Fredericia September 10, 2026 Goldman Sachs Medtech Conference, London September 15, 2026 Berenberg Nordic Seminar, Madrid September 23, 2026 Bank of America Global Healthcare Conference, London October 20, 2026 Interim Report Q3 2026 October 20, 2026 Q3 2026 Presentation & Q&A, virtual (HC Andersen Capital) October 20, 2026 Q3 2026 Investor Road Show, Copenhagen (Danske Bank) November 10, 2026 Berenberg Nordic Seminar, Paris November 18-19, 2026 Jefferies Global Healthcare Conference, London November 24. 2026 Aktie-Info Investor event (retail), Kolding November 26, 2026 Danske Bank Winter Seminar, Copenhagen February 2, 2027 Q4 Report 2026 & 2026 Annual Report For further information Contact details Klaus Sindahl, Head of Investor Relations +45 5363 0134 ksindahl@emblamedical.com Embla Medical corporate announcements by e-mail If you wish to receive Embla Medical’s e -mail alerts, please register on our website: https://emblamedical.com/investor-relations Forward-looking statements This press release includes "forward-looking statements" which involve risks and uncertainties that could cause actual results to differ materially from results expressed or implied by these statements. Embla Medical undertakes no obligation and does not intend to update these forward -looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward -looking statements, which speak o nly as of the date o f this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
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Embla Medical hf. Condensed Interim Consolidated Financial Statements 30.6.2026 Embla Medical hf Grjóthálsi 5 110 Reykjavík Id-no. 560271-0189
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Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 12 Statement by the Board of Directors and President and CEO The Condensed Interim Consolidated Financial Statements of Embla Medical hf. for the period from 1 January 2026 to 30 June 2026 consist of the Financial Statements of Embla Medical hf. and its subsidiaries (together referred to as “the Company“ or “Embla Medical“). The Condensed Interim Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards for Interim Financial Reporting, IAS 34, as adopted by the EU. The Condensed Interim Consolidated Financial Statements have not been audited or reviewed by the Company's auditors. The total Net sales of the Company amounted to USD 491.0 million and the Net profit amounted to USD 43.8 million. Total assets of the Company amounted to USD 1,717.5 million at the end of period, liabilities were USD 791.4 million and equity was USD 926.0 million. In our opinion, these Condensed Interim Consolidated Financial Statements present all the information necessary to give a true and fair view of the Company's financial position as at 30 June 2026 and its financial performance and cash flow for the period ended 30 June 2026. The Board of Directors and the President and CEO of Embla Medical hf. hereby confirm the Condensed Interim Consolidated Financial Statements for the period from 1 January 2026 to 30 June 2026 with their signatures. Reykjavík, 21 July 2026 Board of Directors Niels Jacobsen Chairman of the Board Svafa Grönfeldt Vice Chairman of the Board of Directors Arne Boye Nielsen Alberto Esquenazi Member of the Board of Directors Member of the Board of Directors Tina Abild Olesen Caroline Vagner Rosenstand Member of the Board of Directors Member of the Board of Directors President and CEO Sveinn Sölvason
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Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 13 Consolidated Income Statement All amounts in USD '000 Notes 1H 2026 1H 2025 Q2 2026 Q2 2025 Net sales 3 490,966 435,203 258,571 232,418 Cost of goods sold (183,874) (162,950) (94,531) (87,931) Gross profit 307,092 272,253 164,041 144,487 Other income / (expenses) 1,756 814 415 447 Sales and marketing expenses (177,554) (160,586) (90,524) (82,529) Research and development expenses (25,916) (22,420) (13,000) (11,851) General and administrative expenses (39,363) (34,097) (18,898) (16,817) Earnings before interest and tax (EBIT) 66,014 55,964 42,033 33,737 Financial income 1,052 1,151 489 476 Financial expenses (10,392) (10,318) (5,528) (5,069) Net exchange rate difference (1,400) (7,778) (459) (5,172) Net financial expenses (10,740) (16,945) (5,497) (9,764) Share in net profit of associates 2,006 4,314 1,785 3,701 Earnings before tax (EBT) 57,280 43,333 38,321 27,674 Income tax (13,455) (10,192) (9,002) (6,561) Net profit 43,825 33,141 29,319 21,113 Attributable to: Owners of the Company 43,682 33,069 29,225 20,911 Non-controlling interests 144 72 94 203 Net profit 43,825 33,141 29,319 21,113 Earnings per share Basic earnings per share (US cent) 10.2 7.8 6.9 5.0 Diluted earnings per share (US cent) 10.2 7.8 6.8 5.0
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Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 14 Consolidated Statement of Comprehensive Income All amounts in USD '000 1H 2026 1H 2025 Q2 2026 Q2 2025 Net profit 43,825 33,141 29,319 21,113 Items that may be reclassified subsequently to profit or loss: Change in cash flow hedges 926 (391) (176) (312) Exchange difference on translating foreign operations (5,944) 21,478 (2,635) 12,937 Income tax (1,563) 4,370 (349) 2,948 Other comprehensive income, net of income tax (6,581) 25,457 (3,160) 15,573 Total comprehensive income 37,245 58,598 26,160 36,686 Attributable to: Owners of the Company 37,101 58,526 26,065 36,483 Non-controlling interests 144 72 94 203 Total comprehensive income 37,245 58,598 26,160 36,686
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Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 15 Consolidated Balance Sheet Assets All amounts in USD '000 Notes 30.6.2026 31.12.2025 Property, plant and equipment 5 78,311 80,215 Right of use assets 6 155,908 162,514 Goodwill 7 824,987 835,560 Other intangible assets 8 101,689 106,908 Investment in associates 32,119 27,950 Other financial assets 3,855 3,966 Deferred tax assets 53,649 55,380 Non-current assets 1,250,517 1,272,493 Inventories 161,908 165,617 Accounts receivable 151,900 144,782 Other assets 54,356 45,092 Cash and cash equivalents 98,775 102,507 Current assets 466,939 457,998 Total assets 1,717,456 1,730,491
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Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 16 Consolidated Balance Sheet Equity and liabilities All amounts in USD '000 30.6.2026 31.12.2025 Issued capital and share premium 90,322 98,470 Other reserves (56,699) (50,494) Retained earnings 887,008 842,572 Shareholders equity 920,631 890,549 Non-controlling interest 5,397 5,254 Total equity 926,028 895,803 Borrowings 205,163 292,174 Lease liabilities 146,537 153,499 Deferred tax liabilities 38,253 39,788 Provisions 8,465 8,723 Deferred income 11,265 11,346 Other financial liabilities 8,908 19,588 Non-current liabilities 418,591 525,117 Borrowings 154,943 67,678 Lease liabilities 27,328 28,218 Accounts payable 39,219 32,825 Income tax payable 19,934 21,322 Provisions 16,093 16,315 Accrued salaries and related expenses 51,983 59,550 Other financial liabilities 22,067 35,673 Other liabilities 41,269 47,989 Current liabilities 372,836 309,571 Total liabilities 791,428 834,688 Total equity and liabilities 1,717,456 1,730,491
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Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 17 Consolidated Statement of Cash Flow All amounts in USD '000 Notes 1H 2026 1H 2025 Q2 2026 Q2 2025 Earnings before interest and tax (EBIT) 66,014 55,964 42,033 33,737 Depreciation and amortization 5, 6, 8 31,800 29,168 15,952 14,930 Change in inventories 1,674 (6,779) 3,643 1,314 Change in receivables (18,467) (23,938) (17,050) (20,303) Change in payables (8,541) 1,013 6,090 2,691 Change in provisions (401) 481 729 304 Other operating activities (900) 809 183 846 Cash generated from operations 71,179 56,718 51,580 33,519 Interest received 1,034 1,034 478 380 Interest paid (10,122) (9,920) (5,381) (4,820) Income tax paid (15,758) (11,826) (9,598) (6,880) Net cash generated from operating activities 46,333 36,006 37,079 22,199 Purchase of fixed and intangible assets 5, 8 (11,338) (16,396) (5,957) (10,224) Acquisition of subsidiaries, net of cash in acquired entities (281) 0 0 0 Payment of contingent consideration and deferred payments (21,935) (4,259) 0 (1,020) Other investing activities (1,977) 1,651 (2,129) 3,881 Cash flows used in investing activities (35,532) (19,004) (8,086) (7,363) Proceeds from long-term borrowings 0 57,732 0 57,756 Repayments of long-term borrowings 0 (57,483) 0 (57,419) Changes in revolving credit facility 8,780 3,776 (10,714) (5,017) Payments of lease liabilities (15,398) (13,404) (8,013) (6,944) Purchased treasury shares (8,148) (4,281) (5,532) (3,004) Cash flows generated from financing activities (14,766) (13,660) (24,259) (14,629) Net change in cash (3,964) 3,343 4,734 207 Exchange rate effects on cash held in foreign currencies 232 4,610 383 2,139 Cash and cash equivalents at beginning of period 102,507 86,163 93,658 91,770 Cash and cash equivalents at end of period 98,775 94,116 98,775 94,116
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Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 18 Consolidated Statement of Changes in Equity Share- Non- Share Share Other Retained holders controlling Total All amounts in USD '000 capital premium reserves earnings equity interests equity Balance at 1 January 2025 4,829 88,635 (75,390) 759,112 777,186 3,513 780,699 Net profit 33,069 33,069 72 33,141 Change in cash flow hedges (313) (313) (313) Transl. diff. of shares in subsidiaries 25,770 25,770 25,770 Total comprehensive income 0 0 25,457 33,069 58,526 72 58,598 Share contract charge 902 902 902 Share contract vested/expired (2,690) 2,690 0 0 Purchase of treasury shares (7) (4,274) (4,281) (4,281) Change in non-controlling interests (219) (219) 219 0 Balance at 30 June 2025 4,822 84,361 (51,721) 794,652 832,115 3,804 835,919 Balance at 1 January 2026 4,836 93,634 (50,494) 842,572 890,549 5,254 895,803 Net profit 43,682 43,682 144 43,825 Change in cash flow hedges 741 741 741 Transl. diff. of shares in subsidiaries (7,322) (7,322) (7,322) Total comprehensive income 0 0 (6,581) 43,682 37,101 144 37,245 Share contract charge 1,129 1,129 1,129 Share contract vested/expired (754) 754 0 0 Purchase of treasury shares (15) (8,133) 0 (8,148) (8,148) Balance at 30 June 2026 4,821 85,501 (56,699) 887,008 920,631 5,397 926,028
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Notes to the Condensed Consolidated Financial Statements Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 19 1. Summary of Material Accounting Policies Statement of compliance The Condensed Interim Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standard (IFRS) for Interim Financial Reporting, IAS 34, as adopted by the EU. The Condensed Interim Consolidated Financial Statements are presented in accordance with new and amended IFRS accounting standards and interpretations (IFRIC) effective for the period. New and amended IFRS accounting standards, effective for the current year, had minor impact on the Company´s Consolidated Financial Statements. The Company has not early applied new and revised IFRS accounting standards that have been issued but are not yet effective. The Financial Statements are presented in USD, which is the Company’s functional currency. They do not include all of the information required for full Annual Consolidated Financial Statements and should be read in conjunction with the Company's Annual Consolidated Financial Statements for the period ended 31 December 2025. The Company's Annual Consolidated Financial Statements can be found on the Company’s website www.emblamedical.com. Basis of preparation The Condensed Interim Consolidated Financial Statements have been prepared under the historical cost basis except for certain financial instruments that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The Condensed Interim Consolidated Financial Statements are presented in USD and all values are rounded to the nearest thousand ('000), except when otherwise indicated. This rounding may impact totals. The accounting policies adopted are consistent with those followed in the preparation of the Company's Annual Consolidated Financial Statements for the period ended 31 December 2025.
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Notes to the Condensed Consolidated Financial Statements Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 20 2. Quarterly statements Q2 Q1 Q4 Q3 Q2 2026 2026 2025 2025 2025 ##D CYTD 1H 2026 ##D CQ Q2 2026 YTD compare to Income StatementNet sales 258,571 232,395 256,691 236,795 232,418 0 0 ##D NSCY 490.965829 ##D NSCQ 258.571 490,966 0 Cost of goods sold (94,531) (89,343) (98,625) (88,559) (87,931) 0 0 ##D CogsCY 183.8735 ##D CogsCQ 94.53074 (183,874) (0) Gross profit 164,041 143,052 158,066 148,236 144,487 307,092 0 Gross profit margin 63% 62% 62% 63% 62% ##D %OrgGrCY 5 ##D %OrgGrCQ 5.806801413 1 1 Other income / (expenses) 415 1,341 175 (382) 447 ##D %LCYGrCY 8.153324605 ##D %LCYGrCQ 8.767979371 1,756 (0) Sales and marketing expenses (90,524) (87,031) (92,194) (81,400) (82,529) (177,554) 0 Research and development expenses (13,000) (12,916) (11,948) (11,489) (11,851) (25,916) (0) General and administrative expenses (18,898) (20,465) (21,662) (18,065) (16,817) (39,363) (0) EBIT 42,033 23,981 32,438 36,900 33,737 ##D SpecialItemsCY 1 66,014 0 Net financial expenses (5,497) (5,243) (2,947) (4,135) (9,764) (10,740) 0 Share in net profit of associates 1,785 221 1,127 1,220 3,701 2,006 0 EBT 38,321 18,959 30,618 33,984 27,674 57,279 (1) 57,280 Income tax (9,002) (4,453) (5,896) (8,203) (6,561) (13,455) (0) Net profit 29,319 14,506 24,722 25,782 21,113 0 0 ##D NPCY 43.825 ##D NPCQ 29.31923 43,825 0 43,825 0 0 EBITDA 57,985 39,829 47,939 52,850 48,666 ##D EBITDAspecialCY 97.816 ##D EBITDAspecialCQ 57.987 97,814 (1) EBITDA margin 22% 17% 19% 22% 21% 0 0 There were no special items in the above presented quarters. 3. Net Sales 1H 2026 1H 2025 Q2 2026 Q2 2025 Sales by geographical segment: EMEA 257,816 214,625 133,561 113,155 Americas 193,273 186,753 104,613 101,581 APAC 39,876 33,825 20,397 17,681 Total 490,966 435,203 258,571 232,418 Sales by business segment: Prosthetics & Neuro Orthotics 287,110 237,123 151,399 125,982 Bracing & Supports 76,031 73,088 39,164 38,085 Internal product sales (21,190) (18,804) (11,226) (9,930) External product sales 341,952 291,407 179,338 154,137 Patient Care 149,014 143,796 79,233 78,281 Total 490,966 435,203 258,571 232,418
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Notes to the Condensed Consolidated Financial Statements Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 21 4. Sales and expenses split by main currencies 1H 2026 1H 2025 ##D CYTD 1H 2026 ##D CQ Q2 2026 LCY USD % LCY USD % Sales 19% 18% USD 170,561 170,561 35% 167,129 167,129 38% EUR 144,716 168,835 34% 119,627 130,891 30% ISK 258,489 2,089 0% 263,866 1,979 1% SEK, NOK, DKK 54,648 11% 52,902 12% GBP, AUD, CAD & Other 94,834 19% 82,303 19% Total 490,966 100% 435,203 100% 0 0 ##D NSCY 490.966 ##D NSCQ 258.571 COGS and OPEX USD 137,958 137,958 33% 154,153 154,153 41% EUR 112,432 131,179 31% 80,700 88,259 23% ISK 5,891,456 47,588 11% 5,849,540 43,871 12% SEK, NOK, DKK 48,522 11% 49,095 13% GBP, MXN, CAD & Other 59,705 14% 43,861 12% ##D CogsCY 183.8735 ##D CogsCQ 94.53074 Total 424,952 100% 379,239 100% 0 0 ##D OPEXCY 241.078 ##D OPEXCQ 122.00732 Q2 2026 Q2 2025 LCY USD % LCY USD % Sales USD 92,627 92,627 36% 90,667 90,667 39% EUR 74,463 86,614 33% 60,938 69,150 30% ISK 150,501 1,218 1% 130,885 1,018 0% SEK, NOK, DKK 29,150 11% 28,793 12% GBP, AUD, CAD & Other 48,963 19% 42,790 19% Total 258,571 100% 232,418 100% COGS and OPEX USD 71,638 71,638 33% 79,968 79,968 40% EUR 56,834 66,108 31% 40,634 46,110 23% ISK 2,894,025 23,412 11% 2,907,962 22,622 11% SEK, NOK, DKK 24,713 11% 26,076 13% GBP, MXN, CAD & Other 30,667 14% 23,905 12% Total 216,538 100% 198,681 100% The currency split is derived based on the best available information at each reporting date.
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Notes to the Condensed Consolidated Financial Statements Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 22 5. Property, plant and equipment 2026 Leasehold improvements Machinery & equipment Office equipment Computer equipment Total Cost At 1 January 62,745 92,228 17,862 15,764 188,600 Additions 1,830 4,357 556 2,190 8,932 Eliminated on disposal (486) (213) (65) (79) (843) Fully depreciated assets (77) (174) (491) (30) (771) Exchange rate differences (277) (277) (261) (103) (918) At 30 June 2026 63,736 95,921 17,602 17,742 195,000 Depreciation At 1 January 27,086 58,810 12,175 10,315 108,385 Charge for the period 3,205 4,459 954 1,660 10,278 Eliminated on disposal (363) (183) (42) (54) (643) Fully depreciated assets (77) (174) (491) (30) (771) Exchange rate differences (159) (146) (183) (73) (560) At 30 June 2026 29,693 62,766 12,413 11,818 116,690 At 30 June 2026 34,043 33,155 5,188 5,924 78,311 Depreciation classified by functional category: 1H 2026 1H 2025 Q2 2026 Q2 2025 Cost of goods sold 4,728 4,965 2,367 2,352 Sales and marketing expenses 2,667 2,001 1,334 1,130 Research and development expenses 703 624 392 361 General and administrative expenses 2,180 1,788 1,084 922 Total 10,278 9,379 5,177 4,766
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Notes to the Condensed Consolidated Financial Statements Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 23 6. Leases Right of use assets 2026 Buildings & sites Machinery & equipment Total At 1 January 157,857 4,658 162,514 Additions and renewals 8,698 2,728 11,427 Depreciation charge for the period (13,506) (1,506) (15,012) Eliminated on disposal and termination (971) 0 (971) Exchange rate differences (1,934) (116) (2,050) At 30 June 2026 150,144 5,763 155,908 Depreciation classified by functional category: 1H 2026 1H 2025 Q2 2026 Q2 2025 Cost of goods sold 5,303 5,476 2,648 2,893 Sales and marketing expenses 5,607 4,493 2,796 2,373 Research and development expenses 1,551 1,545 775 816 General and administrative expenses 2,552 2,527 1,274 1,220 Total 15,012 14,041 7,493 7,302 7. Goodwill 30.6.2026 31.12.2025 At 1 January 835,560 776,306 Business combinations 569 18,698 Exchange rate differences (11,142) 40,556 At end of period 824,987 835,560
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Notes to the Condensed Consolidated Financial Statements Embla Medical hf. Q2 2026 Condensed Consolidated Financial Statements 24 8. Other intangible assets 2026 Customer & distribution relationships Patents & development costs Trademarks Software & other Total Cost At 1 January 47,559 34,163 8,627 69,448 159,798 Additions 0 71 0 397 468 Additions - internally generated 0 0 0 1,938 1,938 Exchange rate differences (1,054) (123) (201) (60) (1,439) At 30 June 2026 46,505 34,110 8,426 71,724 160,765 Amortization At 1 January 13,540 12,379 348 26,623 52,889 Charge for the period 2,101 1,227 140 3,042 6,510 Exchange rate differences (227) (50) (9) (38) (324) At 30 June 2026 15,414 13,555 479 29,627 59,076 At 30 June 2026 31,091 20,555 7,947 42,096 101,689 Amortization classified by functional category: 1H 2026 1H 2025 Q2 2026 Q2 2025 Cost of goods sold 279 474 117 230 Sales and marketing expenses 3,623 3,492 1,837 1,671 Research and development expenses 959 868 478 472 General and administrative expenses 1,649 914 849 489 Total 6,510 5,749 3,282 2,862