Interim report
Page 1
♫ Textmagic 2026 6 MONTHS CONSOLIDATED UNAUDITED INTERIM REPORT ( Translation of the Estonian original ) 2026 6 months consolidated unaudited interim report ( Translation of the Estonian original )
Page 2
GENERAL INFORMATION TextMagic AS and its subsidiaries, also referred to as “TextMagic Groupˮ or “Groupˮ. The company is listed on the Nasdaq Baltic Alternative Market First North Tallinn. Business name: TextMagic AS Main activity: B2B Software Development and Management Commercial registry code: 16211377 Address: A. H. Tammsaare 56, 11316 Tallinn Country: Estonia Phone: 372 503 4224 E-mail: investor@textmagic.biz Website: Financial year: https://www.textmagic.com/ From January 1, 2026 to December 31, 2026 Reporting period: From January 1, 2026 to June 30, 2026 Auditor: KPMG Baltics OÜ 1 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 3
TABLE OF CONTENTS MANAGEMENT REPORT 4 CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS 19 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 19 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 20 CONSOLIDATED STATEMENT OF CASH FLOWS 21 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 22 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS 23 NOTE 1. GENERAL INFORMATION 23 NOTE 2. BASIS OF ACCOUNTING 23 NOTE 3. FUNCTIONAL AND PRESENTATION CURRENCY 23 NOTE 4. RISK MANAGEMENT 23 NOTE 5. CHANGES IN ESTIMATES AND PRESENTATION 24 NOTE 6. PROPERTY, PLANT AND EQUIPMENT 25 NOTE 7. INTANGIBLE ASSETS 26 NOTE 8. INVESTMENTS IN SUBSIDIARIES 27 NOTE 9. CAPITAL AND RESERVES 28 NOTE 10. TRADE AND OTHER PAYABLES 29 NOTE 11. INCOME TAX AND TAX LIABILITIES 30 NOTE 12. LEASE LIABILITIES 31 NOTE 13. OTHER PROVISIONS 31 NOTE 14. CONTINGENT LIABILITY 31 NOTE 15. REVENUE 32 NOTE 16. GOODS, RAW MATERIALS AND SERVICES 33 NOTE 17. OTHER OPERATING EXPENSES 34 NOTE 18. STAFF EXPENSES 35 NOTE 19. DISCONTINUED OPERATIONS 36 NOTE 20. SEGMENT REPORTING 37 NOTE 21. TRANSACTIONS WITH RELATED PARTIES 38 MANAGEMENTʼS SIGNATURES ON THE CONSOLIDATED INTERIM REPORT 40 2 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 4
TextMagic Group a multichannel business communication platform for efficient and compliant SMS and email interactions with automated workflows. an AI-powered tool for easily creating professional and visually high-quality newsletters and marketing campaigns. Textmagic business communication platform 3 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 5
MANAGEMENT REPORT Business results The priority for 2026 is to improve cash flow and increase profitability by focusing on revenue growth and cost efficiency. In the first half of the year, revenue returned to growth and cash flow indicators improved compared with the same period in 2025. TextMagic Groupʼs revenue amounted to €6,849 thousand in the first half of 2026, increasing by 1% compared with the first half of 2025 H1 2025 €6,804 thousand). Revenue is affected by fluctuations in the exchange rates of the US dollar and the British pound. Had exchange rates remained at their 2025 levels, revenue for the first half of 2026 would have amounted to €7,154 thousand, representing growth of 5%. The Group recorded an operating loss of €756 thousand H1 2025 operating profit of €32 thousand). The result was mainly affected by an increase of €377 thousand in depreciation, amortization and impairment expenses to €2,855 thousand H1 2025 €2,478 thousand), which had no cash impact during the reporting period. Direct costs also increased by €313 thousand to €2,823 thousand H1 2025 €2,510 thousand) due to higher input prices and changes in the customer segments. In 2025, the team was significantly reduced, resulting in a decrease in personnel expenses to €1,590 thousand in the first half of 2026 H1 2025 €2,330 thousand). The impact on profit indicators was more limited, as the Group focused on smaller enhancements and improvements to existing solutions rather than major development projects in 2026, resulting in a lower capitalization rate for development costs. In the first half of 2026, capitalized development costs amounted to €355 thousand H1 2025 €1,173 thousand). Management primarily assesses the Groupʼs performance based on EBITDA and its ability to generate operating cash flow. EBITDA amounted to €2,099 thousand H1 2025 €2,510 thousand), with an EBITDA margin of 31% H1 2025 37%. EBITDA after capitalized development costs* amounted to €1,744 thousand H1 2025 €1,337 thousand). Cash flow from operating activities from continuing operations amounted to €2,139 thousand H1 2025 €2,099 thousand), confirming that the TextMagic Groupʼs business continues to generate strong cash flows, enabling both investments and distributions to investors. Cash outflows from investing activities decreased by €1,203 thousand to €196 thousand mainly due to the lower level of development activities H1 2025 €1,399 thousand). In the second quarter, following a proposal by the Management Board, the shareholders resolved to distribute dividends totaling €1,205 thousand €0.14 per share). The dividends were paid in April. Dividend income tax expense amounted to €340 thousand. In the second half of 2026, we will continue on the same course, focusing on revenue growth through marketing activities and improving cost efficiency. ______________________________________________________________________________________________________________EBITDA after capitalized development costs: Operating profit + Depreciation, amortization and impairment of non-current assets – Work performed by the entity and capitalized. 4 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 6
Product development Textmagicʼs software is designed to provide businesses with a comprehensive business messaging platform that enables them to send consent-based SMS and email campaigns, automate notifications, and manage two-way customer communication in a shared inbox. The platform brings communication and contact history into a single environment, improves team collaboration, and reduces repetitive manual work. Textmagicʼs vision is to make communication between businesses, customers, and employees simple, secure, and easy to manage. To achieve this, we focus on automating operational messaging, ensuring regulatory compliance, and preventing spam and fraud. In the first half of 2026, Textmagic expanded its automation capabilities, enabling customers to personalize their communication, schedule recurring activities, and respond promptly to contact behavior. The new solutions help reduce manual work, save time, and ensure that messages reach customers at the right time. Integration capabilities were also enhanced to automate data exchange between software applications and make business communication more efficient. Direct integrations with Shopify and WooCommerce were added, and the capabilities of the Zapier integration were expanded. The development of automation and integration capabilities will continue in the second half of 2026. 5 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 7
FINANCIAL RESULTS Textmagic platformʼs revenue and business volumes Textmagicʼs unaudited consolidated revenue for the first six months of 2026 increased by 1% year over year to €6,849 thousand (first six months of 2025 €6,804 thousand). Had exchange rates remained at their 2025 levels, revenue for the first half of 2026 would have totaled €7,154 thousand, representing growth of 5%. A positive indication for sales performance is the increase in platform usage, reflected in the higher number of SMS messages sent. In the first half of 2026, a total of 146,279 thousand messages were sent through the Textmagic platform, 16% more than in the first half of 2025. In the second quarter, usage volume was 21% higher than in the same period of the previous year. The increase in usage, together with improved customer satisfaction indicators, suggests that the platformʼs development is aligned with user expectations. The decline in the number of active users continued to be driven by regulatory changes in the United States that restrict the sending of unregistered campaigns. The new requirements have the greatest impact on lower-volume and more price-sensitive customers, for whom the registration process may be disproportionately time-consuming. Requirements are also being gradually tightened in other regions to reduce fraud and misuse. These regulations help improve market standards, reduce spam and fraudulent messages, and enhance the quality and reliability of SMS marketing. Preventing fraud is also an important part of the Textmagic teamʼs daily work in supporting reliable, transparent, and meaningful business communication. Performance varied by geography: in the first half of 2026, the number of active users increased in the United Kingdom, remained stable in Australia, and declined in the United States as customers continued to adapt to regulatory requirements. The US and Canadian markets together accounted for 58% of revenue 2025 H1 61%. The share of revenue from the United Kingdom increased to 29% 2025 H1 27%. Australia accounted for 8% of revenue 2025 H1 7%, while the European Union represented 3% 2025 H1 3%. All other regions accounted for the remaining 2% of revenue 2025 H1 2%. Textmagic platform usage volumes continue to be influenced by seasonality, with higher activity periods from March to May and from September to November, while lower usage levels occur during holiday and vacation periods. Direct costs In the first half year of 2026, the direct costs of sold services in continuing business segments amounted to €2,823 thousand, representing 41% of revenue 2025 H1 €2,510 thousand; 37%. Direct costs increased due to higher input prices, and changes in the customer segments. The direct costs recognized mainly include resale services such as SMS, voice and email communications, as well as services directly related to the provision of services, including payment solutions, web hosting, verification and fraud detection services. 6 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 8
Staff costs Our team consists of both employees and contractors, all of whom we consider integral members of our team. A significant portion of personnel expenses relates to the development team. During 2025, the size of both the development and marketing teams was reduced. As a result, the Textmagic team consisted of 42 people as of June 30, 2026 June 30, 2025 58. Personnel expenses from continuing operations amounted to €1,590 thousand in the first half of 2026 H1 2025 €2,330 thousand). Of this amount, 22%, or €355 thousand, was capitalized as development costs H1 2025 50%; €1,173 thousand). In 2026, the focus is on smaller projects and improvements to existing solutions rather than major development projects, and therefore the capitalization rate for development costs is lower. Personnel expenses also include the non-cash impact of three-year option agreements in the amount of €14 thousand 2025 H1 €42 thousand). Other operating expenses Operating expenses in continuing operations increased by 13% to €772 thousand 2025 H1 €681 thousand). Of the operating expenses of continuing operations, 68% consisted of marketing expenses, which amounted to €527 thousand in the first half year of 2026 2025 H1 €280 thousand; 41%. These expenses include various advertising costs, social media expenses, marketing consultancy fees, as well as costs of tools and software. Marketing expenses have increased because advances in artificial intelligence have changed how marketing channels operate, while intense competition and information overload have made it increasingly difficult to capture customersʼ attention. Professional services include legal, accounting, audit and other professional advisory services. In the first half year of 2026, these expenses in continuing operations totaled €88 thousand, representing 11% of operating expenses 2025 H1 €114 thousand; 17%. Recruitment and personnel-related expenses in continuing operations decreased compared to the same period in 2025 and amounted to €61 thousand 2025 H1 €78 thousand), reflecting the reduction in team size. Office and administrative expenses in continuing operations totaled €83 thousand 2025 H1 €107 thousand). Foreign exchange losses and other expenses in continuing operations decreased to €13 thousand 2025 H1 €102 thousand), due to volatile exchange rates. The expense breakdown presented in the management report relates only to continuing operations. The comparative figures for individual expense categories presented in the notes also include expenses attributable to discontinued operations. These expenses are excluded from the totals in a separate line item and presented in aggregate in the statement of profit or loss as the result of discontinued operations. Profitability The business environment in TextMagic Groupʼs industry remains highly competitive and is increasingly shaped by the need to balance growth with profitability and strong cash generation. Leading market participants continue to emphasize cost and operational efficiency, and higher-value services, while telecommunication operators' charges, changes in customer segment, and pricing continue to place pressure on margins. At the same time, the market is evolving from basic messaging toward more automated, interactive, and AI-enabled customer 7 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 9
communication, with SMS remaining an important channel alongside email, integrations, and automated workflows. These developments also increase the importance of secure infrastructure, reliable message delivery, fraud prevention, and regulatory compliance. They affect both the operations and financial results of TextMagic Group, which continues to focus on improving operational efficiency and profitability while developing automation, integrations, and trusted business messaging solutions that support customersʼ changing communication needs. Gross profit, defined as revenue less direct costs, amounted to €4,026 thousand in the first half year of 2026 2025 H1 €4,294 thousand). Gross profit decreased due to higher direct costs resulting from increased input prices and changes in customer segments. The Group recorded an operating loss of €756 thousand H1 2025 operating profit of €32 thousand). In addition to higher direct costs, the result was affected by a €377 thousand increase in depreciation, amortization and impairment expenses to €2,855 thousand H1 2025 €2,478 thousand), which had no cash impact during the reporting period. In 2025, the size of the team was significantly reduced, resulting in personnel expenses being €740 thousand lower in the first half of 2026 than in the same period of the previous year. However, the impact on profit indicators was more limited, as the focus in 2026 is on smaller enhancements and improvements to existing solutions rather than major development projects, resulting in a lower capitalization rate for development costs. Capitalized personnel expenses decreased by €818 thousand in the first half of 2026 compared with the same period in 2025. EBITDA, which eliminates the impact of depreciation and amortization, amounted to €2,099 thousand 2025 H1 €2,510 thousand) and the EBITDA margin was 31% 2025 H1 37%. EBITDA after capitalized development costs amounted to €1,744 thousand, with a margin of 25% H1 2025 €1,337 thousand; 20%. Cash flows As of June 30, 2026, the TextMagic Group had a cash balance of €4,256 thousand June 30, 2025 €4,060 thousand). The Textmagic platform continues to generate a strong positive cash flow, allowing investments in product development and distributions to shareholders. The Group's cash flow from operating activities of continuing operations in the first half year of 2026 amounted to €2,139 thousand 2025 H1 €2,099 thousand). Cash flows from investing activities of continuing operations consisted mainly of expenditures on intangible assets amounting to €355 thousand H1 2025 €1,442 thousand). Total cash flows from investing activities amounted to €196 thousand H1 2025 €1,399 thousand). As a financing activity, a distribution to shareholders of €1,205 thousand was made in April 2026 2025 H1 €0, to which income tax expense of €340 thousand was added 2025 H1 €0. 8 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 10
Financial ratios 2026 H1 2025 H1 Revenue (in thousands of euros) 6,849 6,804 EBITDA (in thousands of euros) 2,099 2,510 EBITDA margin EBITDA / revenue) 30.6% 36.9% EBIT (in thousands of euros) 756 32 EBIT margin EBIT / revenue) 11.0% 0.5% Net Profit (loss) for the period (in thousands of euros) 1,061 93 Net Profit (loss) margin Profit for the period / revenue) 15.5% 1.4% Total Assets at the end of the period (in thousands of euros) 30,653 36,688 Equity at the end of the period (in thousands of euros) 28,175 33,530 Liquidity ratio Current assets / Current liabilities) 1.99 1.47 Debt-To-Equity ratio Total liabilities / Equity) 0.09 0.09 Assets-to-Equity ratio Total assets / Equity) 1.09 1.09 9 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 11
GROUPʼS OBJECTIVES FOR 2026 In 2026, the priority is to improve cash flow and increase profitability, building on the existing product value proposition and focusing on revenue growth and cost efficiency. In 2026, a key focus is the transformation of the Textmagic platformʼs marketing strategy and its consistent execution. Marketing messages and platform positioning are changed and refreshed, placing stronger emphasis on operational messaging and consent-based business communication. The core value drivers are time savings, workflow efficiency, and ensuring regulatory compliance. The objective is to more clearly address priority customer segments, improve marketing performance, and strengthen the platformʼs visibility and competitiveness. Enhancing user experience and applying a data-driven decision-making approach will play an important role in increasing the effectiveness of marketing activities and supporting customer satisfaction. Textmagic's mission is to be a reliable software solution that helps companies reach their customers, target groups, and partners in a fast, effective, and secure way. TEXTMAGIC GROUP TextMagic AS is the parent company of the Group, which maintains a portfolio of B2B (business-to-business) software products. As of June 30, 2026, the Group had two wholly owned subsidiaries. The structure of the Group is shown below: TextMagic AS organizes the management and development of intellectual property and manages the day-to-day business of the Group. TextMagic Ltd is the sales unit of the Group and TM Marketing Ops SRL is the marketing unit of the Group. In November 2025, the management of TextMagic AS resolved to discontinue the operations of TM Marketing Ops SRL. The liquidation will take place during 2026. 10 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 12
THE GROUP'S PRODUCT PORTFOLIO Textmagic Textmagic is a B2B business communication software platform that helps companies manage and automate their day-to-day business communications. The platform enables two-way messaging and the sending of order confirmations, reminders, notifications, and marketing campaigns. The shared inbox solution allows teams to manage customer inquiries collaboratively and gain a better overview of communication history. Integrations connect the Textmagic SMS platform with other business software, making data exchange and messaging more efficient. The Automations functionality enables the creation of automated messaging flows and workflows that are triggered by customer actions or predefined conditions. This allows businesses to send timely notifications, reminders, and marketing messages without manual intervention, reducing time spent and the risk of human error. Automation supports consistent customer communication, increases contact engagement, and enables businesses to scale their communications without a corresponding increase in personnel expenses. The purpose of the Textmagic SMS platform is to provide businesses with reliable and efficient business communication software. Additional communication channels, the shared inbox solution, automated workflows, and integrations help customers save time and manage their day-to-day business communications more effectively. 11 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 13
Touchpoint Touchpoint.com is an artificial intelligence–based email creation and design platform that enables the rapid development of professional and visually high-quality marketing and newsletter campaigns. The platform is targeted at small and medium-sized businesses, marketing teams and agencies seeking to accelerate campaign creation while ensuring consistently professional results without dedicated design resources. The objective of the Touchpoint software is to make professional email marketing accessible to every business, regardless of size or technical expertise, enabling companies to create more personalized, effective and meaningful customer communication. 12 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 14
CORPORATE GOVERNANCE The highest governing body of TextMagic AS is the general meeting of shareholders. The general meeting of shareholders is responsible for amending the articles of association and the share capital, electing, removing and compensating the members of the supervisory board, appointing the auditor, approving the annual report, distributing profits and deciding on other matters prescribed by the articles of association and by law. Every shareholder has the right to attend the general meeting, to speak on the items on the agenda and to ask reasoned questions and make proposals. Each share in TextMagic AS carries equal voting and dividend rights. All shareholders are equal and there are no restrictions or agreements regarding separate voting rights. To the best of our knowledge, there are no agreements between shareholders concerning the coordinated exercise of shareholders' rights. The day-to-day business of TextMagic AS is represented and managed by the management board. According to the articles of association, the management board may consist of one to three members elected for a term of three years. As of June 30, 2026, the management board of TextMagic AS consisted of two members, Mr. Priit Vaikmaa and Ms. Getter Grünmann. The Groupʼs extended management team also includes business operations manager Kärtu Vaikmaa. The management board is obliged to act in the most economical manner and to make day-to-day management decisions independently, based on the best interests of TextMagic AS and its shareholders, excluding personal interests. The members of the management board shall avoid conflicts of interest and observe non-competition clauses. The supervisory board shall decide on transactions of importance to the company involving TextMagic AS and its management board members or persons closely associated or related to them and shall determine the terms and conditions of such transactions. A member of the management board of TextMagic AS may not solicit or accept money or other benefits from third parties in connection with his or her work for personal purposes, nor may he or she make unlawful or unjustified inducements to third parties on behalf of the issuer. There were no cases of conflict of interest or corruption in 2025 or the first half year of 2026. The Supervisory Board is responsible for planning the company's activities, organizing the management, and supervising the activities of the Management Board. According to the articles of association, the supervisory board of TextMagic AS consists of three to five members elected for a term of five years. As of June 30, 2026, the supervisory board of TextMagic AS consists of four members: Kärtu Vaikmaa, Eduard Tark, Pavel Karagjaur and Siim Vips. Two members of the Supervisory Board, who concurrently serve as employees, have an insider's perspective on the company, complemented by the unbiased viewpoints of two independent external board members. The management of TextMagic AS is closely intertwined with the management of its subsidiaries and business units. This governance framework is designed to best protect shareholder interests and ensure the longevity of the company. 13 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 15
RISK MANAGEMENT Risk management is an important and integral part of the Groupʼs governance. The primary objective of the Groupʼs risk management is to achieve an optimal balance between potential losses or reduced profits and the resources required to mitigate those risks. The Groupʼs strategy focuses primarily on preventing risks rather than responding to them. In this context, risk is defined as any possible future event or circumstance that could hinder the achievement of the Groupʼs or its business objectives. The Groupʼs ability to identify, quantify, and manage various risks has a significant impact on profitability. The risk management process consists of identifying, assessing, prioritizing, and mitigating risks. We assess and prioritize risks based on their potential impact and likelihood. During the current period, the Groupʼs most significant business risks include technological risks arising from the continuously evolving technology landscape; regulatory and compliance risks resulting from increased oversight and changing regulations worldwide; strategic risks, including macroeconomic developments and investments in new products; and reputational risk associated with being a public company. The Companyʼs operations are exposed to several financial risks. TextMagic Group is currently not exposed to material liquidity, credit, or interest rate risk, as the Group has no interest-bearing liabilities and maintains a strong cash position. To mitigate foreign exchange risk, the Group conducts its business in multiple currencies and seeks to match significant revenues and expenses in the same currencies, although material exchange rate fluctuations may affect revenue and profitability. TextMagic Group is also exposed to operational risks specific to its business. Messaging-related regulations may become more stringent and expand into additional regions. The Group operates in a highly competitive communications platform market, and the provision of its services depends partly on cooperation with partners, including telecommunications operators, cloud service providers, and other technology partners. SUSTAINABILITY Sustainable and responsible operations are an integral part of the TextMagic Groupʼs long-term value creation. In our governance and day-to-day decision-making, we consider environmental impact, employee well-being, and thoughtful and responsible management practices to support stable development and trustworthy relationships with customers, employees and partners. This approach helps maintain competitiveness and enables balanced decision-making in a changing business environment. Our objective is to develop an operating model that supports long-term sustainability, clear areas of responsibility and prudent use of resources, integrating these principles into the companyʼs processes and management practices. Environmental responsibility Environmental sustainability permeates every aspect of our business. We have identified key areas of focus, with key principles emphasizing the promotion of environmentally responsible behaviors and the establishment of practices aimed at minimizing digital waste. We prioritize energy efficiency by choosing appliances and equipment that limit energy consumption and by promoting habits that help save energy. We aim to use electricity from renewable sources whenever possible. We are committed to reducing waste in our operations. We encourage employees to reduce, reuse and recycle. As part of our waste reduction initiatives, we have moved towards paperless operations to reduce unnecessary waste. Most of our operations are already paperless, i.e. we 14 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 16
have digitized accounting, management and operational procedures. Our software products are designed to enable paperless operations for us and our customers. We are in the process of developing an electronic waste management system that will provide a sustainable solution for the disposal of obsolete or broken hardware. For digital waste, we will implement a policy to reduce the storage of unnecessary data. Our procurement process is guided by our environmental goals. We look for suppliers with a track record of sustainability and prioritize environmentally friendly office supplies. We give preference to certified eco-labeled products, reinforcing our commitment to sustainability throughout our supply chain. The group's approach to travel also reflects our commitment to environmental sustainability. We use video conferencing and remote collaboration tools to reduce the frequency of business travel. Digital resources not only decrease our carbon footprint, but also increase flexibility and responsiveness. Where travel is essential, we encourage employees to make sustainable choices. Social responsibility We focus on providing a healthy work environment for both traditional office and remote environments. This includes cleanliness, safety, ergonomic furniture and equipment, and natural lighting where possible. As part of our health promotion, fresh fruit is available daily. Mental health and work-life balance are integral parts of a healthy work environment. We support the well-being of our employees by offering reimbursement for sports and health expenses, encouraging reasonable working hours, and respecting personal time. Work-life balance is a critical component of our employee well-being strategy. We want to help our employees cope with stress and are consciously working to create a balanced and caring work environment. Competitive compensation and benefits are part of our commitment to our employees. We strive to provide packages that meet or exceed industry standards and reflect the value and contributions of each individual. Our approach to employee training and development prioritizes digital programs to reduce environmental footprint. We strive to ensure equal access to training and development opportunities for all employees. Ethics are at the heart of our development programs and business operations. It is essential that our employees understand and adhere to our ethical standards, thereby maintaining a strong and fair organizational culture. Respect for cultural diversity is promoted throughout the organization. This includes recognizing different cultural events and holidays and encouraging compliance with local norms and rules when employees travel. Diversity also extends to our leadership team. Data protection and cybersecurity are essential parts of our business. We are committed to the protection of the privacy and security of our employees and customers. The Textmagic platform is SOC 2-certified for technical compliance and is audited annually. We believe that it is important to make a contribution to societal good. We express this through charitable donations or grants that align with our company's values. Our charitable giving strategy is to participate in initiatives that promote environmental sustainability, the education of young people and the well-being of children. 15 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 17
Governance responsibility Ensuring the ethical and professional conduct of the organization is an important part of the management of the Group. First, honesty and integrity must be respected at all levels. It is essential that all employees act honestly and transparently and provide accurate information in all communications. This includes avoiding fraudulent or misleading practices and maintaining a high level of personal integrity and accountability. Second, we value respect for all people. The company fosters an environment of equality and non-discrimination in which employees treat all people with respect, regardless of race, age, gender, religion or nationality. This includes creating a harassment-free workplace where employees are protected from bullying and intimidating behavior. The importance of confidentiality and sensitive information cannot be overstated. Employees have a duty to maintain the confidentiality of sensitive company and customer information and to respect all intellectual property. The Conflict of Interest Policy requires employees to avoid such conflicts and to disclose them when they arise. Accepting or offering bribes or inappropriate gifts that could influence business decisions is strictly prohibited. Good governance ensures that the company operates in a transparent, honest and accountable manner. Management accountability is at the heart of our governance principles, whereby company leaders are accountable for their actions and decisions and act in the best interests of the company, its employees, customers, and shareholders. Adherence to industry standards, including software development, privacy, and customer service, is mandatory. Transparency and disclosure are a priority. The management promotes a culture of open communication, both internally and externally, and reports regularly and accurately on its financial and operational performance. Stakeholder engagement, including respect for shareholders' rights and regular dialog with all stakeholders, is an integral part of the company's activities. Risk management, which includes the regular identification, assessment, and mitigation of potential risks, is an important aspect of our governance. We believe it is important for the management to be balanced and independent, with a diversity of skills, experience, gender, race and age. Diversity in the composition of the management reflects a range of perspectives to effectively address changing needs and represent the best interests of shareholders. 16 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 18
TEXTMAGIC SHARES The shares of TextMagic AS are listed on the Nasdaq Baltic Alternative Market First North Tallinn as of December 15, 2021. As of June 30, 2026, 8,610,000 shares have been issued with a book value of €0.1 per share, resulting in a share capital of €861,000. June 30, 2025 8,610,000 shares; share capital €861,000. All shares are of the same class and there are no restrictions on ownership. The Articles of Association of the Company do not impose any restrictions on the transfer of shares. Also, there are no known restrictions on the transfer of securities established by shareholders' agreements. In 2025, TextMagic AS received recognition at the Nasdaq Baltic Awards, achieving 2nd place in the First North share list for best investor relations. Only Priit Vaikmaa, the company's CEO and a member of the board, has a significant shareholding (more than 5% through the holding company Monday Media OÜ. TextMagic stock 2026 H1 2025 H1 Average price 1.73 3.29 Maximum price 2.07 4.00 Minimum price 1.62 2.22 Closing price at June 30 1.66 2.70 Number of shares at June 30 8,610,000 8,610,000 Number of shareholders at June 30 5,357 5,915 Market value of the company at June 30 Closing price * number of shares) 14,292,600 23,247,000 Earnings per share EPS Profit / number of shares) 0.12 0.01 17 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 19
Dividend policy The Group's objective is to provide shareholders with a return that is commensurate with the Group's performance and financial position. The realization of distributions is a priority for the Group but will always depend on the Group's growth potential and the availability of financial resources. In April 2026, the shareholders resolved to distribute dividends in the amount of €1,205 thousand, corresponding to €0.14 per share. Since the initial public offering IPO, TextMagic AS has distributed a total of €10,062 thousand to shareholders, corresponding to €1.18 per share. The management of TextMagic AS also plans to propose future distributions to the shareholders, either in the form of dividends or other equity distributions, subject to the possibilities and limitations imposed by law. The realization of such distributions will depend on the financial strength and liquidity of the Group. The company ensures that the payment of dividends or other equity distributions does not jeopardize its financial stability or its ability to meet its long-term obligations. Priit Vaikmaa Getter Grünmann CEO, TextMagic AS CFO, TextMagic AS 18 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 20
CONSOLIDATED UNAUDITED INTERIM FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF FINANCIAL POSITION (in thousands of euros) Note 30.06. 2026 31.12. 2025 30.06. 2025 31.12. 2024 Non-current assets Property, plant and equipment 6 375 329 483 581 Intangible assets and goodwill 7 25,746 28,165 31,941 32,972 Total non-current assets 26,121 28,494 32,424 33,553 Current assets Trade and other receivables 161 281 20 22 Prepayments 115 123 184 165 Cash and cash equivalents 4,256 3,914 4,060 3,432 Total current assets 4,532 4,318 4,264 3,619 TOTAL ASSETS 30,653 32,812 36,688 37,172 Current Liabilities Current tax liabilities 11 160 173 215 270 Trade and other payables 10 750 666 734 913 Lease liabilities 12 95 106 115 107 Contract liabilities 15 1,269 1,235 1,506 1,669 Other provisions 13 0 0 338 384 Total current liabilities 2,274 2,180 2,908 3,343 Long-Term Liabilities Lease liabilities 12 204 144 250 309 Total long-term liabilities 204 144 250 309 Total liabilities 2,478 2,324 3,158 3,652 Equity Share capital 9 861 861 861 850 Share premium 9 141 141 141 141 Reserve capital 9 86 85 85 85 Voluntary reserve 9 27,710 27,710 27,710 27,710 Other reserve 9 71 398 376 1,235 Foreign currency translation reserve 17 16 27 35 Retained earnings 350 3,227 4,477 1,481 Profit / Loss 1,061 1,950 93 2,053 Equity attributable to owners of the parent 28,175 30,488 33,530 33,520 Total equity 28,175 30,488 33,530 33,520 TOTAL EQUITY AND LIABILITIES 30,653 32,812 36,688 37,172 The Notes presented on pages 23 to 39 form an integral part of the consolidated interim financial statements. 19 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 21
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (in thousands of euros) Note 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Revenue 15 6,849 6,804 Other income 80 54 Goods, raw materials and services 16 2,823 2,510 Other operating expenses 17 772 681 Work performed by the entity and capitalized 355 1,173 Employee expenses 18 1,590 2,330 Depreciation, amortization and impairment of non-current assets 6, 7 2,855 2,478 Operating profit (loss) 756 32 Discontinued Operations 19 0 164 Financial income and expense 37 47 Profit (loss) before tax 719 85 Income tax 11 342 8 Profit (loss) for the period 1,061 93 Other comprehensive income Items that are or may be reclassified subsequently to profit or loss Foreign currency translation differences 1 8 Other comprehensive income for the period 1 8 Total comprehensive income for the period 1,060 85 The Notes presented on pages 23 to 39 form an integral part of the consolidated interim financial statements. 20 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 22
CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands of euros) Note 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Cash flows from operating activities Profit (loss) for the period - continuing operations 1,061 70 Adjustments for: Depreciation and amortization 6, 7 2,855 2,478 Financial Income 37 47 Income tax on dividends 340 0 Other adjustments 71 68 Total adjustments 3,087 2,499 Changes in trade and other receivables 0 10 Changes in contract liabilities 34 163 Changes in prepayments 8 18 Changes in trade and other payables 71 299 Cash flows from operating activities – continuing operations 2,139 2,099 Cash flows from operating activities – discontinued operations 0 99 Cash flows from operating activities 2,139 2,198 Cash flows from investing activities Subsidiary sale proceeds 120 0 Interest received 45 47 Acquisition of property, plant and equipment 6 6 4 Development expenditure 7 355 1,442 Cash flows from investing activities – continuing operations 196 1,399 Cash flows from investing activities – discontinued operations 0 124 Cash flows from investing activities 196 1,523 Cash flows from financing activities Repayment of lease liabilities 12 57 56 Issued shares 0 11 Income tax on dividends 340 0 Payouts to shareholders 9 1,205 0 Cash flows from financing activities – continuing operations 1,602 45 Cash flows from financing activities – discontinued operations 0 10 Cash flows from financing activities 1,602 55 TOTAL CASH FLOWS 341 620 Cash and cash equivalents at the beginning 3,914 3,432 Effect of movements in exchange rates on cash held 1 8 Cash and cash equivalents at the end 4,256 4,060 The Notes presented on pages 23 to 39 form an integral part of the consolidated financial statements. 21 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 23
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (in thousands of euros) Total equity attributable to owners of TextMagic AS Note 9 Share Capital Share premium Reserve capital Voluntary reserve Other reserve FX translation reserve Retained earnings Total equity Balance at December 31, 2024 850 141 85 27,710 1,235 35 3,534 33,520 Loss for the period 0 0 0 0 0 0 93 93 Other comprehensive income 0 0 0 0 0 8 0 8 Transactions with shareholders 11 0 0 0 0 0 0 11 Other changes in equity 0 0 0 0 859 0 943 84 Balance at June 30, 2025 861 141 85 27,710 376 27 4,384 33,530 Loss for the period 0 0 0 0 0 0 1,857 1,857 Other comprehensive income 0 0 0 0 0 43 0 43 Transactions with shareholders 0 0 0 0 0 0 1,292 1,292 Other changes in equity 0 0 0 0 22 0 42 64 Balance at December 31, 2025 861 141 85 27,710 398 16 1,277 30,488 Loss for the period 0 0 0 0 0 0 1,061 1,061 Other comprehensive income 0 0 0 0 0 1 0 1 Transactions with shareholders 0 0 0 0 0 0 1,205 1,205 Other changes in equity 0 0 1 0 327 0 278 48 Balance at June 30, 2026 861 141 86 27,710 71 17 711 28,175 The Notes presented on pages 23 to 39 form an integral part of the consolidated financial statements. 22 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 24
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS NOTE 1. GENERAL INFORMATION TextMagic AS (hereinafter also referred to as the Parent Company or the Company) is a company incorporated in the Republic of Estonia on April 21, 2021. The registered address of the Company is A. H. Tammsaare 56, 11316 Tallinn, Republic of Estonia. The consolidated interim financial statements of TextMagic AS for the 6 months ended June 30, 2026 include the parent company and its subsidiaries (hereinafter collectively referred to as the "Group"). The Group's principal activity is the management and development of software products. The Group's financial year begins on January 1 and ends on December 31. NOTE 2. BASIS OF ACCOUNTING The condensed consolidated interim financial statements have been prepared in accordance with the international financial reporting standard IAS 34 "Interim Financial Reporting", as adopted by the European Union, and consists of condensed consolidated financial statements and selected explanatory notes. The accounting policies and methods of computation used in the preparation of the interim report are the same as the accounting policies and methods of computation used in the annual report for the year ended December 31, 2025, which comply with the International Financial Reporting Standards, as adopted by the European Union IFRS EU. These condensed consolidated interim financial statements have not been audited and do not contain the entire range of information required for the preparation of complete financial statements. The condensed consolidated interim financial statements should be read in conjunction with the Annual Report prepared for the year ended December 31, 2025, which has been prepared in accordance with the IFRS EU. The applicable accounting policies have not changed compared to the previous financial year. The period of this report is January 1, 2026 to June 30, 2026. The reference period is January 1, 2025 to June 30, 2025. This consolidated interim report has not been audited or otherwise reviewed by auditors. NOTE 3. FUNCTIONAL AND PRESENTATION CURRENCY These consolidated interim financial statements are presented in euro, which is the Companyʼs functional currency. All amounts disclosed in the interim financial statements have been rounded to the nearest thousand unless referred to otherwise. NOTE 4. RISK MANAGEMENT In its daily operations, the Group is exposed to both business and financial risks- credit risk, liquidity risk, market risk, currency risk, interest rate risk. The interim financial statements do not cover the entire financial risk management as required in the annual reports; this information can be found in the Group's 2025 annual report. There have been no significant changes in the policies governing the work of risk management since the end of last year. 23 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 25
NOTE 5. CHANGES IN ESTIMATES AND PRESENTATION Changes in presentation TextMagic ASʼs 2025 Annual Report states that, due to the sale of Edicy OÜ and the discontinuation of the related operations, the activities of Edicy OÜ and the platforms managed by it are presented as discontinued operations in accordance with IFRS. Therefore, the results presented in the six-month interim report for 2025 differ from the comparative-period figures presented in this interim report. For further information, see Note 19. 24 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 26
NOTE 6. PROPERTY, PLANT AND EQUIPMENT (in thousands of euros) Lease assets Office equipment Computer equipment Other tangible assets Total Cost at December 31, 2024 458 32 189 143 822 Accumulated depreciation at December 31, 2024 56 13 142 30 241 Carrying amounts at December 31, 2024 402 19 47 113 581 Additions 0 0 2 2 4 Depreciation 57 4 23 18 102 Cost at June 30, 2025 458 30 134 124 746 Accumulated depreciation at June 30, 2025 113 15 108 27 263 Carrying amounts at June 30, 2025 345 15 26 97 483 Additions 0 0 17 3 20 Depreciation 44 6 10 14 74 Discontinued operations 75 0 5 20 100 Cost at December 31, 2025 377 29 59 99 564 Accumulated depreciation at December 31, 2025 151 20 31 33 235 Carrying amounts at December 31, 2025 226 9 28 66 329 Additions 306 0 6 0 312 Depreciation 51 3 13 15 82 Lease terminations 184 0 0 0 184 Cost at June 30, 2026 306 16 43 99 464 Accumulated depreciation at June 30, 2026 9 10 22 48 89 Carrying amounts at June 30, 2026 297 6 21 51 375 25 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 27
NOTE 7. INTANGIBLE ASSETS (in thousands of euros) Goodwill Software* Other intangibles Incomplete software** Pre- payments Total Cost at December 31, 2024 256 42,057 2,568 534 0 45,415 Accum. amortization at December 31, 2024 0 11,613 830 0 0 12,443 Carrying amounts at December 31, 2024 256 30,444 1,738 534 0 32,972 Additions 0 0 0 1,570 0 1,570 Amortization 0 2,472 129 0 0 2,601 Reclassification from prepayments 0 1,844 0 1,844 0 0 Cost at June 30, 2025 256 43,901 2,568 260 0 46,985 Accum. amortization at June 30, 2025 0 14,085 959 0 0 15,044 Carrying amounts at June 30, 2025 256 29,816 1,609 260 0 31,941 Additions 0 0 0 690 145 835 Amortization 0 2,211 129 0 0 2,340 Reclassification from prepayments 0 950 0 950 0 0 Impairment losses 0 306 0 0 0 306 Disposal 0 94 0 0 0 94 Discontinued operations 48 1,818 5 0 0 1,871 Cost at December 31, 2025 208 42,612 2,563 0 145 45,528 Accum. amortization at December 31, 2025 0 16,275 1,088 0 0 17,363 Carrying amounts at December 31, 2025 208 26,337 1,475 0 145 28,165 Additions 0 0 0 355 0 355 Amortization 0 2,475 130 0 0 2,605 Reclassification from prepayments 0 500 0 355 145 0 Impairment losses 0 169 0 0 0 169 Cost at June 30, 2026 208 43,113 2,563 0 0 45,884 Accum. amortization at June 30, 2026 0 18,920 1,218 0 0 20,138 Carrying amounts at June 30, 2026 208 24,193 1,345 0 0 25,746 * Software acquisitions and improvements consist of capitalized development costs for the Textmagic and Touchpoint platformsʼ software. ** Uncompleted software additions consist of capitalized development costs for both Textmagic and Touchpoint software. 26 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 28
NOTE 8. INVESTMENTS IN SUBSIDIARIES Investments of the Group's Parent Company in subsidiaries as of the end of the reporting period: Subsidiary Core business Domicile Ownership interest at June 30, 2026 Ownership interest at June 30, 2025 TextMagic Ltd Client-facing entity of the Textmagic SMS platform United Kingdom 100.00% 100.00% TM Marketing Ops SRL Marketing services Romania 100.00% 100.00% Edicy OÜ Management of Voog.com and Edicy.com Estonia - 100.00% In November 2025, the management of TextMagic AS resolved to close the operations of TM Marketing Ops SRL. The liquidation will take place during 2026. Edicy OÜ was sold in September 2025, and the related operations are presented in this report as discontinued operations Note 19. 27 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 29
NOTE 9. CAPITAL AND RESERVES Share capital and share premium The share capital as of June 30, 2026, was in the amount of €861 thousand June 30, 2025 €861 thousand), which is divided into 8,610,000 ordinary shares with a book value of €0.1 per share June 30, 2025 8,610,000 ordinary shares). The share capital consists of: ➢ €25 thousand contributed at establishment; ➢ €775 thousand contributed as a non-monetary contribution on September 23, 2021; ➢ €50 thousand contributed as a result of the IPO on December 15, 2021. ➢ On the basis of the decision of June 28, 2022, share capital was increased by €2,550 thousand, increased the book value of the shares from €0.1 to €0.4 as a result of the bonus issue at the expense of the share premium; ➢ On the basis of the decision of August 5, 2022, the share capital was reduced by €2,550 thousand, which reduced the book value of the shares from €0.4 to €0.1. ➢ On the basis of the decision of April 19, 2024, share capital was increased by €32,725 thousand, increased the book value of the shares from €0.1 to €3.95 as a result of the bonus issue at the expense of the share premium; ➢ On the basis of the decision of May 22, 2024, the share capital was reduced by €32,725 thousand, which reduced the book value of the shares from €3.95 to €0.1. ➢ Increase of share capital by €11 thousand through cash contributions based on the resolution dated November 25, 2024. The share premium amounts to €141 thousand and consists of: ➢ €51,342 thousand which was recognized as a result of a non-monetary contribution on September 23, 2021; ➢ €2,450 thousand which was recognized as a result of IPO on December 15, 2021; ➢ On the basis of the decision of June 28, 2022, share capital was increased by €2,550 thousand, which increased the book value of the shares from €0.1 to €0.4 as a result of the bonus issue at the expense of the share premium. ➢ On the basis of the decision of April 19, 2024, covering loss in total of €18,376 thousand. ➢ On the basis of the decision of April 19, 2024, share capital was increased by €32,725 thousand, which increased the book value of the shares from €0.1 to €3.95 as a result of the bonus issue at the expense of the share premium. Nature and purpose of reserves Reserve capital In accordance with the Parent Companyʼs Articles of Association, a statutory reserve is established to cover potential losses and increase share capital, amounting to one-tenth of the share capital. As of June 30, 2026, the statutory reserve amounted to €86 thousand June 30, 2025 €85 thousand). Voluntary reserve According to the Articles of Association of the Parent Company, a voluntary reserve capital has been established to ensure compliance with net assets requirements and to cover business-related risks and needs. The voluntary reserve capital was formed in 2024 through a share capital reduction in the amount of €27,710 thousand and may be used for ensuring net assets compliance, covering losses, distributing profits, or issuing bonus shares. The use and 28 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 30
modification of the reserve are decided by the shareholders in accordance with the procedures set out in the Commercial Code. Foreign currency translation reserve The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. Foreign currency translation reserve as of June 30, 2026 was €17 thousand June 30, 2025 €27 thousand). Other reserves Other reserves include the share-based payment reserve, which is used to recognize options granted to employees and other service providers. As of June 30, 2026, the total number of granted but not yet exercised options was 11,000 June 30, 2025 93,200. The exercise price per share is €0.10. The reserve for granted but not yet exercised options was recognized in the amount of €71 thousand as of June 30, 2026 June 30, 2025 €376 thousand). The expected expenses from previous periods were reduced by €279 thousand in the first half year of 2026, and the impact was recognized through retained earnings from prior periods. NOTE 10. TRADE AND OTHER PAYABLES (in thousands of euros) 30.06.2026 30.06.2025 Trade payables 230 218 Total trade payables 230 218 Payables to employees 106 141 Other accrued liabilities 414 375 Total other payables 520 516 Total 750 734 Non-current 0 0 Current 750 734 Total 750 734 Trade payables are unsecured and are usually paid within 30 days of recognition. The carrying amounts of trade and other payables are considered to be the same as their fair values, due to their short-term nature. 29 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 31
NOTE 11. INCOME TAX AND TAX LIABILITIES Amounts recognized in profit or loss (in thousands of euros) 30.06.2026 30.06.2025 Current tax for the year 342 8 Income tax for the year 342 8 Profit (loss) before tax 719 85 Income tax on dividends 340 0 Tax using the Company's domestic tax rate 0 0 Effect of tax rates in foreign jurisdictions 2 8 Income tax for the year 342 8 Tax liabilities (in thousands of euros) 30.06.2026 30.06.2025 Value-added tax 26 27 Personal income tax 37 53 Corporate income tax 7 11 Social security tax 63 93 Funded pension contributions 3 5 Unemployment insurance contributions 3 5 Global tax liabilities 21 20 Other tax payables 0 1 Total 160 215 Non-current 0 0 Current 160 215 Total 160 215 30 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 32
NOTE 12. LEASE LIABILITIES TextMagic leases office premises, which are recognized as a right-of-use asset and a corresponding liability. (in thousands of euros) 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Lease liabilities at the beginning of the period 250 416 Lease additions 306 0 Lease terminations 208 0 Cash flow 57 55 Interest 8 12 Discontinued operations 0 8 Lease liabilities at the end of the period 299 365 incl. current lease liabilities 95 115 incl. long-term lease liabilities 204 250 The following amounts related to lease agreements have been recognized in the consolidated statement of comprehensive income. (in thousands of euros) 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Finance costs: Interest 8 12 Other operating expenses: Short-term and low-value leases 5 72 NOTE 13. OTHER PROVISIONS In the second half of 2025, the provision related to global business operations was reversed, as management assessed that, at the reporting date, it was no longer probable that the corresponding obligation would arise. As at 30 June 2025, the provision amounted to €338 thousand. The potential obligation is disclosed as a contingent liability in Note 14. NOTE 14. CONTINGENT LIABILITY As at the reporting date, there is a possible obligation related to global business operations for which the previously recognized provision was reversed, as management considers it unlikely that the obligation will materialize. Since the existence and potential impact of the obligation depend on future events, it has not been recognized as a liability but is instead disclosed as a contingent liability. (in thousands euros) 30.06.2026 30.06.2025 Liability of global business operations 318 0 Total contingent liabilities 318 0 31 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 33
NOTE 15. REVENUE (in thousands of euros) 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Sales to countries other than the European Union United States 3,597 3,799 United Kingdom 1,987 1,828 Australia 570 476 Canada 340 318 Other countries 124 172 Discontinued operations 0 10 Total sales to countries other than the European Union 6,618 6,583 Sales to countries of the European Union Countries of the European Union 231 522 Discontinued operations 0 301 Total sales to European Union countries 231 221 Total revenue 6,849 6,804 Major products/service lines Text-messaging services 5,565 5,366 Virtual mobile number services 1,192 1,341 Other Textmagic platform services 92 97 Voog.com platform 0 311 Discontinued operations 0 311 Total revenue 6,849 6,804 Timing of revenue recognition At a point in time 6,849 6,804 Over time 0 311 Discontinued operations 0 311 Total revenue from contracts with customers 6,849 6,804 Contract liabilities primarily relate to advance consideration received from customers, with the related revenue recognized at the point in time when the service is used. Contract liabilities will be recognized as revenue when services have been provided to customers. 32 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 34
Contract balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. (in thousands of euros) 30.06.2026 30.06.2025 Receivables, which are included in ‘trade and other receivables 0 20 Contract liabilities 1,269 1,506 Total 1,269 1,486 No information is provided about remaining performance obligations as of June 30, 2026 that have an original expected duration of one year or less, as allowed by IFRS 15. NOTE 16. GOODS, RAW MATERIALS AND SERVICES (in thousands of euros) 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Payment processing fees 314 267 Purchased services 2,302 2,027 Other software expense 207 242 Other 0 8 Discontinued operations 0 34 Total 2,823 2,510 33 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 35
NOTE 17. OTHER OPERATING EXPENSES (in thousands of euros) 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Office expenses 21 41 Administrative expenses 4 20 Software expenses 58 65 Legal and other professional service costs 25 44 Accounting and audit expenses 63 70 Marketing expenses 527 292 Recruitment and other personnel expenses 61 80 Exchange rate variance and foreign currency gains and losses 28 87 Other operating expenses 41 16 Discontinued operations 0 34 Total 772 681 34 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 36
NOTE 18. STAFF EXPENSES (in thousands of euros) 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Salary expenses 556 1,022 Share option expense* 14 86 Social security charges 182 260 Discontinued operations 0 319 Total employee expenses 752 1,049 Average number of personnel converted to full-time equivalent 13 31 Average number of staff by employment relationship: Personnel working under employment contracts 11 30 Personnel working under board member contracts 2 1 * Estimated expense from option agreements with employees. Options are issued from December 2021. (in thousands of euros) 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Cost of contract developers 838 1,281 Option expense 0 0 Discontinued operations 0 0 Total subcontractorsʼ expense 838 1,281 (in thousands of euros) 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Total employee expense 752 1,368 Total subcontractorsʼ expense 838 1,281 Total discontinued operations 0 319 Total staff expenses 1,590 2,330 35 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 37
NOTE 19. DISCONTINUED OPERATIONS In September 2025, the subsidiary Edicy OÜ, together with the web platforms operated by it, Voog.com and Edicy.com, was sold. The operations of Edicy OÜ constituted a separate cash-generating unit, the principal activity of which was the development and provision of website and content management solutions. The sale of Edicy OÜ resulted from the Groupʼs strategic decision to focus its operations on the Textmagic platform. As a result of the transaction, the Group lost control over Edicy OÜ, and the operation of the Voog.com and Edicy.com platforms by the TextMagic Group ceased. As a result of the sale of Edicy OÜ and the discontinuation of the related operations, the activities of Edicy OÜ and the platforms operated by it are presented as discontinued operations in accordance with IFRS. The results of the discontinued operations are presented separately in the financial statements and are not included in continuing operations. The comparative figures for the prior year in the consolidated statement of profit or loss and the consolidated statement of cash flows have been restated in accordance with IFRS 5 to present discontinued operations separately from continuing operations. Impact on profit or loss (in thousands of euros) Software products Voog and Edicy 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Revenue 0 311 Other income 0 9 Goods, raw materials and services 0 34 Other operating expenses 0 34 Work performed by the entity and capitalized 0 138 Employee expenses 0 319 Depreciation, amortization and impairment of non-current assets 0 226 Operating loss 0 155 Financial expense 0 9 Loss for the period 0 164 36 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 38
Impact on cash flows (in thousands of euros) 01.01.2026 - 30.06.2026 01.01.2025 - 30.06.2025 Cash flow from operating activities Cash flow from operating activities - discontinued operations 0 99 Cash flows from operating activities 0 99 Cash flow from investing activities Cash flow from investing activities - discontinued operations 0 124 Cash flows from investing activities 0 124 Cash flow from financing activities Cash flow from financing activities - discontinued operations 0 10 Cash flows from financing activities 0 10 TOTAL CASH FLOWS 0 35 NOTE 20. SEGMENT REPORTING The business segments have been defined by management based on reports reviewed by the board of TextMagic AS. The Management Board considers the Groupʼs entire business to constitute a single operating segment. The Management Board primarily uses the measures revenue and EBITDA and the growth of these measures to assess the performance of the business segment. (in thousands of euros) Development and management of software products 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Revenue 6,849 6,804 Other income 80 54 Goods, raw materials and services 2,823 2,510 Other operating expenses 772 681 Work performed by the entity and capitalized 355 1,173 Employee expenses 1,590 2,330 Depreciation, amortization, and impairment of non-current assets 2,855 2,478 Operating profit (loss) 756 32 EBITDA 2,099 2,510 37 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 39
The Management Board monitors the geographic segmentation of revenue by software product. (in thousands of euros) Textmagic platform 01.01.2026 30.06.2026 01.01.2025 30.06.2025 United States 3,597 3,797 United Kingdom 1,987 1,825 Australia 570 476 Canada 340 318 European Union 231 221 Other 124 167 Total revenue 6,849 6,804 NOTE 21. TRANSACTIONS WITH RELATED PARTIES Parent and ultimate controlling party The Groupʼs parent company is TextMagic AS, which is registered in Estonia. The ultimate controlling party is Priit Vaikmaa, the sole owner of Monday Media OÜ (the parent company of TextMagic AS, which held 85.4% of the shares in TextMagic AS as of June 30, 2026 June 30, 2025 85.5%. Shares of management and supervisory board As of June 30, 2026, members of the Management Board and Supervisory Board, together with entities under their control, held the following shares in TextMagic AS Priit Vaikmaa (representative of Monday Media OÜ – 7,355,527 Kärtu Vaikmaa (representative of Merkatiko OÜ – 400,100 Eduard Tark Edly OÜ representative) – 341,373 Getter Grünmann – 10,039 Transactions with key management personnel Salary expenses recognized for members of Management Board and Supervisory Board for the period from January 1 to June 30, 2026 totaled €345 thousand January 1 to June 30, 2025 €256 thousand). (in thousands of euros) 01.01.2026 30.06.2026 01.01.2025 30.06.2025 Management and supervisory board Salary expenses 345 256 38 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 40
Other related party transactions Transactions of shareholders with a controlling interest During the reporting period, other transactions with shareholders holding a controlling interest were recognized, and as at June 30, 2026, a receivable of €1 thousand was outstanding from them June 30, 2025 €0 thousand). Transactions with the Management Board, the Supervisory Board and entities under their control During the reporting period, there were no transactions with the Management Board, the Supervisory Board or entities under their control, and as at the reporting date there were no related receivables or liabilities. The Group considers a party to be a related party if one party has control over, or significant influence on, the business decisions of the other party. Related party transactions include transactions with shareholders, executive and senior management, their close family members, and entities under the control or significant influence of any of the aforementioned persons. 39 2026 6 months consolidated unaudited interim report Translation of the Estonian original)
Page 41
MANAGEMENT BOARDʼS SIGNATURES ON THE CONSOLIDATED INTERIM REPORT The Management Board has prepared the management report and the consolidated interim financial statements of TextMagic AS for the six-month period ended June 30, 2026. The members of the Management Board confirm that, to the best of their knowledge, the management report and the consolidated interim financial statements give a true and fair view of the significant events and developments in the business activities of TextMagic AS and the entities included in the consolidation as a whole during the reporting period, and their impact on the financial position, financial performance and cash flows; include a description of the principal risks and uncertainties; and disclose material transactions with related parties. Management Board Priit Vaikmaa Getter Grünmann Chairman of the Management Board, CEO Member of the management board, CFO 40 2026 6 months consolidated unaudited interim report Translation of the Estonian original)