Interim report
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Embla Medical hf Q3 2026 Company Announcement 1 Interim Report Q3 2026 Announcement no. 51/2026 Sveinn Sölvason, President and CEO, comments: “Sales in Q3 2026 were USD 250 million, representing 5% reported growth and 4% organic growth. Growth was driven by Prosthetics & Neuro Orthotics, with strong performance in EMEA, partially offset by softer results in Americas and APAC. Bracing & Supports delivered moderate growth, while Patient Care sales were flat in the quarter. In Patient Care , sales performance has been below the expectations we set at the beginning of the year. Mainly as significant integration effort has slowed down our ability to drive growth in patient volumes in selected regions. We are encouraged by the progress we are making in a large part of our network of clinics, with significant work ongoing to enhance our performance across the whole Patient Care network. EBITDA margin was strong in the quarter, or 22%, in line with Q3 2025, as disciplined cost control offset lower gross profit margin. Based on our performance in the first nine months and our outlook for Q4 2026, we are narrowing our full -year guidance to approximately 5% organic sales growth (previously 5–7%) and an EBITDA margin of approximately 21% (previously 20–22%).” Highlights Q3 2026 ▪ Sales amounted to USD 250 million, growing by 4% organically and 5% reported and in local currencies incl. M&A. ▪ Organic sales growth by segment: Prosthetics & Neuro Orthotics +7%, Bracing & Supports +2%, Patient Care 0%. ▪ Gross profit margin was 62%, compared with 63% in Q3 2025. Stronger gross margin driven by Patient Care was partly offset by temporary costs related to the optimization of selected smaller manufacturing sites in our Prosthetics business. The initiative is expected to improve operational efficiency and support profitability over time. Gross margin in the first nine months of the year was broadly on par with the comparable period last year. ▪ EBITDA amounted to USD 56 million, corresponding to a margin of 22% of sales, on par with Q3 2025, as cost control in SG&A and stronger profitability in Patient Care offset a temporary lower gross profit margin related to the manufacturing optimization initiative. ▪ Net profit amounted to USD 26 million, corresponding to a net profit margin of 10%, compared with 11% in Q3 2025. The lower margin primarily reflected adverse net exchange rate differences between comparable quarters, partly offset by higher operating profit. Net profit for 9M 2026 increased 19% compared to 9M 2025. ▪ Free cash flow amounted to USD 31 million, or 12% of sales, compared with 16% of sales in Q3 2025. The year -on-year decline mainly reflected timing effects. For 9M 2026, free cash flow increased by 13%. ▪ NIBD/EBITDA before special items was 2. 1x at the end of Q 3 2026, which is within our target range of 2 -3x EBITDA. In Q3 2026, Embla Medical repurchased 635,267 shares with a market value of USD 2.8 million. Other highlights ▪ At the American Orthotic & Prosthetic Association (AOPA) National Assembly 2026, Össur showcased its latest innovations and engaged with clinicians and industry partners from across the O&P community, reinforcing its position as a trusted partner and innovation leader. ▪ Two new innovations launched during Q3 2026 across Prosthetics and Neuro Orthotics (detailed overview on page 9). 2026 Outlook ▪ Organic sales growth guidance narrowed to ~5% (previously 5-7%). ▪ EBITDA margin before special items guidance narrowed to ~21% (previously 20-22%). 9M 2026 9M 2025 Q3 2026 Q3 2025 Guidance (current) Guidance (previously) Sales growth, organic 5% 5% 4% 7% ~5% 5-7% EBITDA margin, before special items 21% 21% 22% 22% ~21% 20-22%
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Embla Medical hf Q3 2026 Company Announcement 2 USD millions Q3 2026 Q3 2025 9M 2026 9M 2025 FY 2025 FY 2024 FY 2023 FY 2022 Income Statement Net sales 250 237 741 672 929 855 786 719 Gross profit 155 148 462 420 579 535 486 440 Operating expenses (excl. other income / exp.) 116 111 359 328 454 422 398 373 EBITDA 56 53 153 138 186 169 139 114 EBITDA before special items 56 53 153 138 186 173 139 128 EBIT 39 37 105 93 125 113 89 65 Net profit 26 26 70 59 84 69 59 43 Sales Growth Sales growth USD % 5 11 10 7 9 9 9 0 Growth breakdown: Organic growth % 4 7 5 5 6 6 9 4 Currency effect % 0 3 3 1 2 0 (1) (7) Acquired business % 2 1 3 0 1 3 1 3 Balance Sheet Total assets 1,697 1,722 1,697 1,722 1,730 1,539 1,386 1,325 Equity 950 870 950 870 896 781 705 636 Net interest-bearing debt (NIBD) 414 460 414 460 439 414 395 404 Cash Flow Cash generated by operations 51 58 122 115 178 160 126 92 Free cash flow 31 38 66 58 100 77 52 35 Key Ratios Gross profit margin % 62 63 62 63 62 63 62 61 EBIT margin % 16 16 14 14 13 13 11 9 EBITDA margin % 22 22 21 21 20 20 18 16 EBITDA margin before special items % 22 22 21 21 20 20 18 18 Equity ratio % 56 51 56 51 52 51 51 48 Net debt to EBITDA before special items* 2.1 2.5 2.1 2.5 2.4 2.4 2.8 3.2 Effective tax rate % 24 24 24 24 23 24 23 23 Return on equity* % 10 9 10 9 10 9 9 7 CAPEX / Net sales % 2.6 3.3 2.4 3.6 3.4 4.6 5.4 3.6 Market Market value of equity 1,765 2,091 1,765 2,091 2,202 2,125 1,713 2,035 Number of shares in millions 428 430 428 430 430 428 421 423 Basic EPS in US cents 6.1 6.0 16.4 13.8 19.6 16.2 14.0 10.3 Diluted EPS in US cents 6.1 6.0 16.3 13.8 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 Q3 2026 Company Announcement 3 Management’s report Financial performance Sales Sales in 9M 2026 amounted to USD 741 million, compared to USD 672 million in 9M 2025, corresponding to 5% organic growth, 8% growth including acquisitions (local currency growth) and 10% reported growth (USD growth). Sales in Q3 2026 amounted to USD 250 million , compared to USD 237 million in Q3 2025, corresponding to 4% organic growth, a 5% increase including acquisitions (local currency growth) and 5% reported growth (USD growth). Impact on sales from acquisitions amounted to USD 4 million in Q3 2026 corresponding to about a 2%- point positive effect on the reported growth rate, while effects from FX were neutral in Q3 2026 compared to Q3 2025. Sales by geographical segment (USD million) Q3 2026 Organic growth Δ Acq. / div. Δ Curr. effect USD growth 9M 2026 Organic growth Δ Acq. / div. Δ Curr. effect USD growth EMEA 125 8% 4% -1% 11% 382 6% 6% 5% 17% Americas 105 0% 0% 0% 0% 298 2% 0% 0% 2% APAC 20 -2% 0% 4% 1% 60 6% 0% 5% 12% Total 250 4% 2% 0% 5% 741 5% 3% 3% 10% Sales by business segment (USD million) Q3 2026 Organic growth Δ Acq. / div. Δ Curr. effect USD growth 9M 2026 Organic growth Δ Acq. / div. Δ Curr. effect USD growth Prosthetics & Neuro Orthotics 148 7% 3% 0% 9% 435 9% 5% 3% 17% Bracing & Supports 38 2% 0% 0% 2% 115 1% 0% 2% 3% Internal product sales (11) 8% 0% 0% 8% (32) 7% 0% 3% 11% External sales 176 5% 3% 0% 8% 518 7% 4% 3% 14% Patient Care 74 0% 0% 1% 0% 223 -1% 0% 4% 2% Total 250 4% 2% 0% 5% 741 5% 3% 3% 10% Growth in Q3 2026 was driven by solid volume growth in Prosthetics & Neuro Orthotics. In EMEA, organic sales growth was strong at 8% in the third quarter, driven by Prosthetics & Neuro Orthotics across key European and newer markets, including Ukraine. Performance was supported by broad-based demand, continued momentum in Bionics and a soli d contribution from Streifeneder. Bracing & Supports sales were flat, while Patient Care delivered modest growth, as solid performance across several European markets was partly offset by continued softness in a few key markets, including Sweden, due to challenging market dynamics. 30 April 2020 Announcement no. 27/2020 Interim report Q3 2025 Sales performance in line with expectations Össur guidane suspended FX impact was neutral in Q3 2026 Sales increased by 4% organic in Q3 2026 Strong growth in EMEA in Q3 2026
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Embla Medical hf Q3 2026 Company Announcement 4 In the Americas, sales were flat in the third quarter. Prosthetics & Neuro Orthotics sales were flat, despite continued solid growth in Bionics and strong performance in College Park, which was partly offset by softness in other product categories. Neuro Orthotics continued to grow albeit from a low base as the US commercial rollout progressed. Bracing & Supports delivered good growth, supported by higher volumes across key sales channels. Patient Care sales were soft in the quarter, despite solid growth across key US clinics, as the ongoing integration and onboarding of additional clinics temporarily constrained growth. Management remains focused on strengthening commercial execution and expects the improving operating platform to support stronger performance over time. In APAC, organic sales declined by 2% in the third quarter against a strong comparable period. Prosthetics & Neuro Orthotics delivered strong growth in Australia and New Zealand, supported by Bionics and Neuro Orthotics, while sales in Asia were lower, mainly due to increased competition in markets like China . Bracing & Supports delivered strong growth, driven by Australia and New Zealand and improved performance in Asia. Patient Care sales in Australia were soft in the quarter. In Patient Care, initiatives implemented since the second half of 2025 are driving productivity improvements across key clinics and strengthening overall segment profitability. There is clear pro gress across a large part of the clinical network, although sales remain below the expectation s set at the beginning of the year, primarily reflecting integration-related impacts and challenging market conditions in Sweden. The loss of a regional tender in Sweden earlier this year is estimated to negatively impact Patient Care sales growth by approximately 2 percentage points in 2026. A newly awarded tender in another Swedish region, commencing towards the end of 2026, is expecte d to offset this impact in 2027. With an increasingly integrated and efficient operating platform in place, management remains focused on strengthening commercial execution and translating operational improvements into renewed, sustainable sales growth. Operations Gross profit in Q3 2026 amounted to USD 155 million or 62% of sales, compared to USD 148 million or 63% of sales in Q3 2025. Gross profit in 9M 2026 amounted to USD 462 million or 62% of sales, compared to USD 420 million or 63% for the same period last year. Gross margin increased in Patient Care but was offset by softer than expected sales growth in Prosthetics & Neuro Orthotics and temporary cost fluctuations from optimizing the footprint for selected smaller manufacturing sites. The initiative is expected to improve operational efficiency and support profitability over time. For the first nine months of 2026, the gross profit margin was broadly in line with last year, at 62.4% compared with 62.6%. Operating expenses (OPEX) excluding other income / (expenses) OPEX amounted to USD 116 million or 4 6% of sales in Q3 2026, compared to USD 111 million or 4 6% of sales in Q3 2025. OPEX amounted to USD 359 million or 49% of sales in 9M 2026, compared to USD 328 million or 49% of sales in 9M 2025. OPEX growth was 2% organic in the quarter, compared to organic sales growth of 4% with continued focus on cost management in SG&A and stronger profitability in Patient Care. Gross profit margin of 62% in Q3 2026 OPEX ratio of 46% in Q3 2026
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Embla Medical hf Q3 2026 Company Announcement 5 EBITDA EBITDA amounted to USD 56 million or 22% of sales in Q3 2026, compared to EBITDA of USD 53 million or on par relative to sales in Q3 2025. For 9M 2026 EBITDA amounted to USD 153 million or 21% of sales, compared to EBITDA of USD 138 million or on par relative to sales in 9M 2025. The EBITDA margin in the quarter benefited from SG&A cost control and a 30 -basis-point positive FX impact net of hedging, partly offset by a lower gross profit margin. Financial items Net financial expenses in 9M 2026 amounted to USD 17 million, compared to USD 21 million in 9M 2025. Net financial expenses in Q3 2026 amounted to USD 6 million, compared to USD 4 million in Q3 2025. The increase in net financial expenses was primarily driven by higher net exchange differences compared to the same period last year, resulting in approximately USD 4 million negative impact on net financials in the quarter compared with Q3 2025. Income tax Income tax amounted to USD 8 million in Q3 2026, corresponding to a 24% effective tax rate, compared to USD 8 million in Q3 2025, corresponding to a 24% effective tax rate. For 9M 2026 income tax amounted to USD 22 million, corresponding to a 24% effective tax rate, compared to USD 18 million in 9M 2025, corresponding to a 24% effective tax rate . Net profit Net profit grew by 1% in Q3 2026 amounting to USD 26 million or 10% of sales, compared to USD 26 million or 11% of sales in Q3 2025. For 9M 2026 net profit grew by 19% in 9M 2026 amounted to USD 70 million or 9% of sales, compared to USD 59 million or on par relative to sales in 9M 2025. Diluted earnings per share in Q3 2026 amounted to 6.1 US cents, compared to 6.0 in Q3 2025. Diluted earnings per share in 9M 2026 amounted to 16.3 US cents, compared to 13.8 in 9M 2025. EBITDA margin of 22% in Q3 2026 Effective tax rate of 24% in Q3 2026 Net profit margin of 10% in Q3 2026 EBITDA margin of 22% in Q3 2026
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Embla Medical hf Q3 2026 Company Announcement 6 Cash flow Cash generated by operations Cash generated by operations amounted to USD 51 million or 20% of sales in Q3 2026, compared to USD 58 million or 24% of sales in Q3 2025. Cash generated by operations amounted to USD 122 million or 16% of sales in 9M 2026, compared to USD 115 million or 17% of sales in 9M 2025. Cash generation was lower than in Q3 2025, as timing effects of net working capital requirement between quarters more than offset stronger operating results. Capital expenditures Capital expenditures in Q3 2026 amounted to USD 7 million or 3% of sales, compared to USD 8 million or 3% of sales in Q3 2025. Capital expenditures in 9M 2026 amounted to USD 18 million or 2% of sales, compared to USD 24 million or 4% of sales in 9M 2025. CAPEX in the quarter is below a normalized level of 3-4% due to the absence of any material leasehold or facility improvements during the year. Free cash flow Free cash flow in Q3 2026 amounted to USD 31 million or 12% of sales, compared to USD 38 million or 16% of sales in Q3 2025. The YoY decline in the quarter mainly reflected timing effects of NWC and CAPEX investments as the free cash flow in 9M 2026 increased by 13% to USD 66 million, from USD 58 million in 9M 2025. Bank balances and cash equivalents Bank balances and cash equivalents amounted to USD 76 million at the end of Q3 2026 and USD 143 million of existing facilities were undrawn. Bank balances and cash equivalents in addition to undrawn credit facilities at the end of Q3 2026, therefore, amounted to USD 219 million. Capital structure Net-interest bearing debt Net interest-bearing debt, including lease liabilities, amounted to USD 414 million at quarter-end Q3 2026 compared to USD 460 million at quarter-end Q3 2025. Net interest-bearing debt to EBITDA corresponded to 2.1x at quarter-end Q3 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 Q3 2026, Embla Medical bought back 635,267 shares at a market value of approximately USD 2.8 million. At the end of Q3 2026, treasury shares totaled 2,747,362. Cash generation of USD 51 million in Q3 2026 NIBD/EBITDA before special items at 2.1x Share buybacks of USD 2.8 million in Q3 2026 Cash and undrawn facilities amounted to USD 219 million CAPEX was 3% of sales in Q3 2026 Free cash flow was 12% of sales in Q3 2026
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Embla Medical hf Q3 2026 Company Announcement 7 2026 Financial guidance Guidance Guidance FY 2026 (Oct) Guidance FY 2026 (July) Guidance FY 2026 (April) Guidance FY 2026 (Feb) Sales growth, organic ~5% 5-7% 5-8% 5-8% EBITDA margin before special items ~21% 20-22% 20-22% 20-22% For modelling purposes CAPEX as % of sales 2-3% 3-4% 3-4% 3-4% Effective tax rate 23-24% 23-24% 23-24% 23-24% Organic sales growth guidance has been narrowed to approximately 5% (previously 5 –7%), reflecting a slower than expected sales recovery in Patient Care, particularly in EMEA and the Americas, despite continued improvements in productivity and profitability. We expect continued solid performance in Prosthetics & Neuro Orthotics in the fourth quarter of 2026, driven by strong momentum in EMEA, continued growth in Bionics and recently launched innovations. In the US, expanded Medicare coverage is expected to support access to microprocessor knee solutions over time, while our dedicated K2 MPK remains on track for launch in the latter part of 2027. 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 continued solid growth in the EMEA region with some contributions expected in Americas in the fourth quarter of 2026 as we roll out our first bionic knee joint “NEURO HiTRONIC MPKAFO”. In Patient Care, initiatives introduced since the second half of 2025 are driving improved productivity across key clinics and stronger overall segment profitability. The continued integration and onboarding of clinics are temporarily constraining growth, with sales performance remaining uneven across selected markets in the Americas and EMEA. This includes the loss of a regional tender in Sweden, which is expected to offset the impact in 2027 by a newly awarded tender in another key Swedish region. Patient Care Management remains focused on strengthening commercial execution and translating the improving operating platform into renewed sales growth over time. 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 to come in around 21% for 2026 (previously 20-22%) 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 efficiency 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. Finally, for modelling purposes, expected CAPEX has been reduced to 2–3% of sales, from 3–4% previously in line with moderate CAPEX investments in the first nine months of the year.
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Embla Medical hf Q3 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 Average exchange rate in Q3 2026 1.151 0.0081 Opening rate October 19 2026 1.125 0.0083 Estimated average exchange rate for FY 2026* 1.152 0.0081 Change in estimated exchange rate FY 2026 compared to last year’s average 2% 4% *Estimated average exchange rate is calculated as exchange rate (open) on October 19, 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.
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Embla Medical hf Q3 2026 Company Announcement 9 Product launches in 2026 Launch quarter Segment Product name Product description Q3 2026 Neuro Orthotics (Fior & Gentz) NEURO SWING Carbon 24 mm Water-resistant, ultralight carbon fiber ankle joint. The new 24 mm width supports higher loads, extending its proven functionality to more users. Q3 2026 Prosthetics (Össur) Black Adapters Two practical adapter kits that integrate with black prosthetic components and the latest Iceross liners for a cohesive, premium finish without compromising performance. Q2 2026 Prosthetics (Össur) Iceross Dermo & Synergy Cushion Liners + Iceross Sleeve Dark melange liners and a black sleeve combine trusted Iceross performance with a coordinated, premium look. Q2 2026 Prosthetics (Streifeneder) Kinegen.flow Lightweight, waterproof hydraulic knee offering a smooth, stable gait with reduced strain. Q2 2026 Neuro Orthotics (Fior & Gentz) NEURO HiSWING R+ 24 mm Microprocessor-controlled ankle joint with automatic adjustment and integrated shock absorption. The new 24 mm width increases load 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 Dynamic 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 from the socket, promoting airflow leaving the skin feeling drier. Perceived skin health of the residual limb is improved by the micro-hole pattern, meshed silicone structure, and the AeroFit Seal-In liner fabric, which wicks humidity away.
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Embla Medical hf Q3 2026 Company Announcement 10 Conference call and Financial calendar Conference call details Embla Medical will host a conference call on October 20, 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 Q3 2026 webcast Financial calendar and events 2026/2027 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) October 21 2026 Q3 2026 Investor Road Show, Helsinki (ABG) October 21 2026 Q3 2026 Virtual Investor Road Show (Nordea) October 26 2026 Q3 2026 Investor Road Show, Reykjavik (Embla HQ) 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 Denmark November 26, 2026 Danske Bank Winter Seminar, Copenhagen January 11 2027 SEB Nordic Seminar, Copenhagen February 2 2027 Q4 Report 2026 & 2026 Annual Report March 2 2027 UBS European Healthcare Conference, London March 17 2027 DNB Carnegie Healthcare Conference, Stockholm 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 of 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 30.9.2026 Embla Medical hf Grjóthálsi 5 110 Reykjavík Id-no. 560271-0189
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Embla Medical hf. Q3 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 September 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 740.5 million and the Net profit amounted to USD 69.9 million. Total assets of the Company amounted to USD 1,696.5 million at the end of period, liabilities were USD 746.2 million and equity was USD 950.3 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 September 2026 and its financial performance and cash flow for the period ended 30 September 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 September 2026 with their signatures. Reykjavík, 20 October 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. Q3 2026 Condensed Consolidated Financial Statements 13 Consolidated Income Statement All amounts in USD '000 Notes 9M 2026 9M 2025 Q3 2026 Q3 2025 Net sales 3 740,544 671,998 249,578 236,795 Cost of goods sold (278,346) (251,509) (94,473) (88,559) Gross profit 462,198 420,489 155,106 148,236 Other income / (expenses) 2,396 432 640 (382) Sales and marketing expenses (261,186) (241,986) (83,632) (81,400) Research and development expenses (39,129) (33,909) (13,213) (11,489) General and administrative expenses (58,960) (52,162) (19,597) (18,065) Earnings before interest and tax (EBIT) 105,319 92,864 39,305 36,900 Financial income 1,569 1,699 517 548 Financial expenses (15,397) (16,553) (5,005) (6,235) Net exchange rate difference (3,385) (6,226) (1,985) 1,551 Net financial expenses (17,213) (21,081) (6,473) (4,135) Share in net profit of associates 3,533 5,534 1,527 1,220 Earnings before tax (EBT) 91,639 77,317 34,358 33,984 Income tax (21,751) (18,395) (8,296) (8,203) Net profit 69,888 58,922 26,062 25,782 Attributable to: Owners of the Company 69,812 58,932 26,130 25,863 Non-controlling interests 76 (10) (68) (81) Net profit 69,888 58,922 26,062 25,782 Earnings per share Basic earnings per share (US cent) 16.4 13.8 6.1 6.0 Diluted earnings per share (US cent) 16.3 13.8 6.1 6.0
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Embla Medical hf. Q3 2026 Condensed Consolidated Financial Statements 14 Consolidated Statement of Comprehensive Income All amounts in USD '000 9M 2026 9M 2025 Q3 2026 Q3 2025 Net profit 69,888 58,922 26,062 25,782 Items that may be reclassified subsequently to profit or loss: Change in cash flow hedges 2,552 (881) 1,626 (490) Exchange difference on translating foreign operations (6,575) 21,052 (631) (426) Income tax (1,918) 4,951 (355) 581 Other comprehensive income, net of income tax (5,941) 25,122 640 (335) Total comprehensive income 63,946 84,044 26,702 25,447 Attributable to: Owners of the Company 64,032 84,054 26,932 25,528 Non-controlling interests (86) (10) (229) (81) Total comprehensive income 63,946 84,044 26,702 25,447
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Embla Medical hf. Q3 2026 Condensed Consolidated Financial Statements 15 Consolidated Balance Sheet Assets All amounts in USD '000 Notes 30.9.2026 31.12.2025 Property, plant and equipment 4 78,149 80,215 Right of use assets 5 152,473 162,514 Goodwill 6 823,867 835,560 Other intangible assets 7 99,952 106,908 Investment in associates 34,674 27,950 Other financial assets 3,911 3,966 Deferred tax assets 53,082 55,380 Non-current assets 1,246,108 1,272,493 Inventories 165,546 165,617 Accounts receivable 149,467 144,782 Other financial assets 2,200 0 Other assets 57,213 45,092 Cash and cash equivalents 76,005 102,507 Current assets 450,431 457,998 Total assets 1,696,539 1,730,491
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Embla Medical hf. Q3 2026 Condensed Consolidated Financial Statements 16 Consolidated Balance Sheet Equity and liabilities All amounts in USD '000 30.9.2026 31.12.2025 Issued capital and share premium 87,565 98,470 Other reserves (55,454) (50,494) Retained earnings 913,062 842,572 Shareholders equity 945,174 890,549 Non-controlling interest 5,116 5,254 Total equity 950,290 895,803 Borrowings 181,585 292,174 Lease liabilities 145,138 153,499 Deferred tax liabilities 38,531 39,788 Provisions 8,830 8,723 Deferred income 11,236 11,346 Other financial liabilities 9,013 19,588 Non-current liabilities 394,334 525,117 Borrowings 136,414 67,678 Lease liabilities 27,313 28,218 Accounts payable 33,038 32,825 Income tax payable 19,193 21,322 Provisions 14,904 16,315 Accrued salaries and related expenses 54,712 59,550 Other financial liabilities 20,074 35,673 Other liabilities 46,267 47,989 Current liabilities 351,916 309,571 Total liabilities 746,249 834,688 Total equity and liabilities 1,696,539 1,730,491
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Embla Medical hf. Q3 2026 Condensed Consolidated Financial Statements 17 Consolidated Statement of Cash Flow All amounts in USD '000 Notes 9M 2026 9M 2025 Q3 2026 Q3 2025 Earnings before interest and tax (EBIT) 105,319 92,864 39,305 36,900 Depreciation, impairment and amortization 4, 5, 7 48,125 45,118 16,324 15,950 Change in inventories (1,721) (10,635) (3,395) (3,857) Change in receivables (20,445) (19,900) (1,979) 4,038 Change in payables (5,293) 4,089 3,249 3,076 Change in provisions (1,186) 1,329 (784) 848 Other operating activities (3,037) 1,664 (2,137) 855 Cash generated from operations 121,762 114,529 50,583 57,810 Interest received 1,622 1,670 588 636 Interest paid (14,969) (16,139) (4,847) (6,219) Income tax paid (24,815) (17,831) (9,057) (6,005) Net cash generated from operating activities 83,600 82,229 37,267 46,222 Purchase of fixed and intangible assets 4, 7 (17,927) (24,277) (6,589) (7,882) Acquisition of subsidiaries, net of cash in acquired entities (966) (3,275) (685) (3,275) Payment of contingent consideration and deferred payments (21,935) (4,259) 0 0 Other investing activities (3,007) 749 (1,029) (902) Cash flows used in investing activities (43,835) (31,062) (8,303) (12,059) Proceeds from long-term borrowings 0 57,463 0 0 Repayments of long-term borrowings 0 (57,822) 0 (339) Changes in revolving credit facility (32,537) (6,684) (41,318) (10,730) Payments of lease liabilities (22,582) (20,370) (7,184) (6,965) Increase in subsidiaries that does not affect control (325) (5,123) (325) (5,123) Dividends from subsidiaries paid to non-controlling interests 0 (35) 0 (35) Purchased treasury shares (10,905) (6,951) (2,757) (2,670) Cash flows generated from financing activities (66,349) (39,522) (51,584) (25,862) Net change in cash (26,584) 11,645 (22,620) 8,301 Exchange rate effects on cash held in foreign currencies 82 4,266 (150) (343) Cash and cash equivalents at beginning of period 102,507 86,163 98,775 94,116 Cash and cash equivalents at end of period 76,005 102,074 76,005 102,074
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Embla Medical hf. Q3 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 58,932 58,932 (10) 58,922 Change in cash flow hedges (705) (705) (705) Transl. diff. of shares in subsidiaries 25,827 25,827 25,827 Total comprehensive income 0 0 25,122 58,932 84,054 (10) 84,044 Payment of dividends 0 (35) (35) Share option charge for the period 1,453 1,453 1,453 Share option vested during the period (2,715) 2,715 0 0 Issued new shares 23 14,550 14,573 14,573 Purchase of treasury shares (11) (6,939) (6,951) (6,951) Change in non-controlling interests (2,581) (2,581) (1,229) (3,810) Balance at 30 September 2025 4,841 96,246 (51,529) 818,177 867,735 2,239 869,974 Balance at 1 January 2026 4,836 93,634 (50,494) 842,572 890,549 5,254 895,803 Net profit 69,812 69,812 76 69,888 Change in cash flow hedges 2,041 2,041 2,041 Transl. diff. of shares in subsidiaries (7,821) (7,821) (162) (7,983) Total comprehensive income 0 0 (5,780) 69,812 64,032 (86) 63,946 Share contract charge 1,634 1,634 1,634 Share contract vested/expired (815) 815 0 0 Purchase of treasury shares (20) (10,885) 0 (10,905) (10,905) Change in non-controlling interests (137) (137) (52) (189) Balance at 30 September 2026 4,816 82,749 (55,454) 913,062 945,174 5,116 950,290
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Notes to the Condensed Consolidated Financial Statements Embla Medical hf. Q3 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 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, which is the Company’s functional currency, 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. Q3 2026 Condensed Consolidated Financial Statements 20 2. Quarterly statements Q3 Q2 Q1 Q4 Q3 2026 2026 2026 2025 2025 ##D CYTD 9M 2026 ##D CQ Q3 2026 YTD compare to Income StatementNet sales 249,578 258,571 232,395 256,691 236,795 0 0 ##D NSCY 740.5443 ##D NSCQ 249.578 508,150 (232,395) Cost of goods sold (94,473) (94,531) (89,343) (98,625) (88,559) 0 0 ##D CogsCY 278.3462 ##D CogsCQ 94.47262 (189,003) 89,343 Gross profit 155,106 164,041 143,052 158,066 148,236 319,146 (143,052) Gross profit margin 62% 63% 62% 62% 63% ##D %OrgGrCY 5 ##D %OrgGrCQ 3.541128328 1 1 Other income / (expenses) 640 415 1,341 175 (382) ##D %LCYGrCY 7.697072471 ##D %LCYGrCQ 5.382473546 1,055 (1,341) Sales and marketing expenses (83,632) (90,524) (87,031) (92,194) (81,400) (174,156) 87,031 Research and development expenses (13,213) (13,000) (12,916) (11,948) (11,489) (26,213) 12,916 General and administrative expenses (19,597) (18,898) (20,465) (21,662) (18,065) (38,495) 20,465 EBIT 39,305 42,033 23,981 32,438 36,900 ##D SpecialItemsCY 9 81,338 (23,981) Net financial expenses (6,473) (5,497) (5,243) (2,947) (4,135) (11,971) 5,243 Share in net profit of associates 1,527 1,785 221 1,127 1,220 3,312 (221) EBT 34,358 38,321 18,959 30,618 33,984 72,679 (18,959) 91,639 Income tax (8,296) (9,002) (4,453) (5,896) (8,203) (17,298) 4,453 Net profit 26,062 29,319 14,506 24,722 25,782 0 0 ##D NPCY 69.888 ##D NPCQ 26.06237 55,382 (14,506) 69,888 0 0 EBITDA 55,629 57,985 39,829 47,939 52,850 ##D EBITDAspecialCY 153.452 ##D EBITDAspecialCQ 55.638 113,614 (39,830) EBITDA margin 22% 22% 17% 19% 22% 0 0 There were no special items in the above presented quarters. 3. Net Sales 9M 2026 9M 2025 Q3 2026 Q3 2025 Sales by geographical segment: EMEA 382,417 326,755 124,600 112,130 Americas 297,797 291,196 104,524 104,443 APAC 60,331 54,047 20,454 20,222 Total 740,544 671,998 249,578 236,795 Sales by business segment: Prosthetics & Neuro Orthotics 435,129 372,468 148,109 135,345 Bracing & Supports 114,521 110,885 38,495 37,796 Internal product sales (31,855) (28,736) (10,761) (9,932) External product sales 517,795 454,616 175,843 163,209 Patient Care 222,749 217,382 73,736 73,586 Total 740,544 671,998 249,578 236,795
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Notes to the Condensed Consolidated Financial Statements Embla Medical hf. Q3 2026 Condensed Consolidated Financial Statements 21 4. 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 2,941 6,297 688 3,704 13,630 Business Combinations 285 121 5 0 411 Eliminated on disposal (486) (298) (65) (78) (926) Fully depreciated assets (77) (1,683) (493) (66) (2,319) Exchange rate differences (326) (311) (279) (130) (1,045) At 30 September 2026 65,083 96,354 17,719 19,195 198,351 Depreciation At 1 January 27,086 58,810 12,175 10,315 108,385 Charge for the period 4,803 6,810 1,383 2,537 15,533 Eliminated on disposal (363) (257) (42) (54) (717) Fully depreciated assets (77) (1,683) (493) (66) (2,319) Exchange rate differences (214) (165) (209) (92) (680) At 30 September 2026 31,235 63,514 12,813 12,640 120,202 At 30 September 2026 33,848 32,840 4,906 6,555 78,149 Depreciation classified by functional category: 9M 2026 9M 2025 Q3 2026 Q3 2025 Cost of goods sold 7,273 7,383 2,545 2,418 Sales and marketing expenses 4,086 3,210 1,419 1,209 Research and development expenses 1,082 1,000 379 376 General and administrative expenses 3,092 2,718 911 930 Total 15,533 14,311 5,254 4,933
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Notes to the Condensed Consolidated Financial Statements Embla Medical hf. Q3 2026 Condensed Consolidated Financial Statements 22 5. Leases Right of use assets 2026 Buildings & sites Machinery & equipment Total At 1 January 157,857 4,658 162,514 Additions and renewals 12,861 2,982 15,843 Depreciation charge for the period (20,304) (2,252) (22,557) Eliminated on disposal and termination (971) 0 (971) Exchange rate differences (2,223) (134) (2,357) At 30 September 2026 147,220 5,253 152,473 Depreciation and impairment classified by functional category: 9M 2026 9M 2025 Q3 2026 Q3 2025 Cost of goods sold 7,662 8,956 2,360 3,479 Sales and marketing expenses 8,732 6,884 3,125 2,391 Research and development expenses 2,328 2,366 777 822 General and administrative expenses 3,835 3,946 1,283 1,419 Total 22,557 22,152 7,544 8,111 6. Goodwill 30.9.2026 31.12.2025 At 1 January 835,560 776,306 Business combinations 517 18,698 Exchange rate differences (12,211) 40,556 At end of period 823,867 835,560
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Notes to the Condensed Consolidated Financial Statements Embla Medical hf. Q3 2026 Condensed Consolidated Financial Statements 23 7. 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 0 132 0 566 698 Additions - internally generated 0 0 0 3,599 3,599 Exchange rate differences (1,179) (130) (222) (66) (1,597) At 30 September 2026 46,381 34,164 8,405 73,548 162,498 Amortization At 1 January 13,540 12,379 348 26,623 52,889 Charge for the period 3,141 1,855 210 4,830 10,036 Exchange rate differences (275) (51) (9) (44) (380) At 30 September 2026 16,406 14,182 549 31,409 62,545 At 30 September 2026 29,975 19,982 7,856 42,139 99,952 Amortization classified by functional category: 9M 2026 9M 2025 Q3 2026 Q3 2025 Cost of goods sold 378 689 99 215 Sales and marketing expenses 5,461 5,058 1,837 1,566 Research and development expenses 1,450 1,340 491 472 General and administrative expenses 2,747 1,568 1,098 653 Total 10,036 8,655 3,526 2,906