Interim report
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FINANCIAL REPORT Q3 2026 1 Q3 2026 Financial Report Q3 2026 Empowering Digitally Connected Communities
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FINANCIAL REPORT Q3 2026 2 Q3 2026 Tecnotree Corporation Financial Report 1st Jan – 30th Sep 2026 (unaudited) Revenue grew, margins strengthened and free cash flow stayed positive for the tenth quarter in a row January – September Results • Revenue of EUR 57.0 million (52.8) +7.8% YoY, in constant currency, EUR 57.8 million, +9.5% YoY. • EBIT of EUR 19.0 million (13.2) +43.8% YoY. • EBIT margin of 33.4% (25.0%). • Foreign exchange gains of EUR 1.7 million (-3.9). • Net income of EUR 7.4 million (6.0) +23.8% YoY. • Free cash flow (FCF) EUR 3.9 million (3.2), +21.0% YoY. • Earnings per share EUR 0.34 (0.35). • Order book at the end of the period EUR 105.6 million (105.5), +0.1% YoY. Q3 Results • Revenue of EUR 20.2 million (18.6) +8.4% YoY, in constant currency, EUR 20.2 million, +8.8% YoY. • EBIT of EUR 5.8 million (3.6) +58.9% YoY. • EBIT margin of 28.5% (19.5%). • Foreign exchange gains of EUR 0.2 million (0.2). • Net income EUR 3.0 million (3.4), -13.6% YoY. • Free cash flow (FCF) EUR 1.8 million (1.2), +54.3% YoY. • Earnings per share EUR 0.13 (0.20).
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FINANCIAL REPORT Q3 2026 3 Q3 2026 Key figures, MEUR 7-9/2026 7-9/2025 1-9/2026 1-9/2025 1-12/2025 Revenue 20.2 18.6 57.0 52.8 72.4 EBIT 5.8 3.6 19.0 13.2 25.6 Profit before tax 4.2 4.0 9.9 8.4 15.4 Adjusted net income for the period 1 3.0 3.4 12.6 6.0 16.4 One-time items 0.0 0.0 -5.2 0.0 -6.2 Net income 3.0 3.4 7.4 6.0 10.2 Earnings per share, basic, EUR 2 0.13 0.20 0.34 0.35 0.60 Order book 105.6 105.5 105.6 105.5 107.5 Free cash flow 1.8 1.2 3.9 3.2 4.6 Change in cash and cash equivalents 1.5 1.6 3.2 3.9 2.1 Cash and cash equivalents 22.1 20.7 22.1 20.7 18.9 Equity ratio % (Equity / (Equity + Liabilities)) 83.7 68.8 83.7 68.8 67.4 Debt Equity ratio % (Debt/Equity) 2.6 6.4 2.6 6.4 5.3 Personnel at end of period 765 695 765 695 704 1) Adjusted net income for the period = net income before one-time items. One-time items in 1-9/2026 comprised trade receivables impairment charges of EUR 5.2 million recognised in the second quarter. 2) EPS for the review period is calculated on the increased number of shares following the conversion of compulsorily convertible debentures. Unless otherwise stated, all figures presented below are for the financial period 1-9/2026 and the figures for comparison are for the corresponding period in 1-9/2025. Guidance for 2026 (updated on 21 October 2026) • Revenue is expected to grow by mid to high single-digit percentage in constant currency terms. • Free cash flow > EUR 5.0 million for the full year. Assumptions for 2026 • The Free Cash Flow guidance for 2026 is based on the company’s current market outlook and exchange rate assumptions, especially devaluation of US dollar against the EUR. Previous guidance • Revenue is expected to grow by low to mid single-digit percentage in constant currency terms. • Free cash flow > EUR 5.0 million for the full year.
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FINANCIAL REPORT Q3 2026 4 Q3 2026 From CEO’s Desk: Tenth Straight Quarter of Positive Cash Flow, and We’re Raising Our Outlook Q3 showed that our strategy is working. We grew revenue, increased year -to-date EBIT by more than 40%, and generated positive free cash flow for the tenth consecutive quarter. That record matters to us, and we intend to keep it going. Given this momentum, we have raised our guidance for the year. Our wins are turning into recurring revenue Our focus on products, services and large-scale transformations is now winning business consistently across multiple geographies. The multi-year programmes we secured earlier are in delivery, which brings organic growth and predictable recurring revenue. In August, an existing Tier -1 customer in the Americas signed a three -year ARR agreement total worth around USD 17.5 million. It shows the long -term confidence our customers have in us, and it strengthens our recurring revenue base from 2026 onwards. Our margins reflect a permanent change in how we work Our margin improvement is structural. AI Operations, powered by our own models, automate work across engineering, delivery and maintenance. Together with the full benefit of the restructuring and efficiency programme we began in 2024, this lets us grow revenue faster than costs. Using AI in our own engineering and delivery has made us more productive and lowered our costs. With these foundations in place, we are hiring again. Headcount is up 10% year on year, and we are adding people in priority areas such as AI and 5G. Cash comes first Cash remains our top priority. Through our “Think Cash, Do Cash” programme and milestone-based invoicing, operating cash flow reached EUR 3.7 million (3.3) and free cash flow rose 54% to EUR 1.8 million (1.2). The geopolitical situation in the Middle East is still slowing collections there. We are working closely with those customers, and turning completed milestones into cash is a key focus for Q4. Industry analysts recognise our AI strategy In October, after the end of the period, Gartner named Tecnotree a Visionary in its first- ever Gartner® Magic Quadrant ™ for AI -Enabled CSP Marketing and Sales Solutions. This is our second consecutive year as a Visionary in a Gartner Magic Quadrant. Earlier in 2026, Tecnotree was also included in five Gartner® Hype Cycle ™
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FINANCIAL REPORT Q3 2026 5 Q3 2026 reports for the communications industry, covering algorithmic pricing, digital marketplaces, AI-driven customer interactions and autonomous operations. These recognitions support the direction of our product strategy: an AI -native BSS that helps operators earn more from the customer, billing and data assets they already own. We believe they also reflect our open, governed approach to agentic AI, which put s AI to work across an operator’s entire revenue cycle. We use the same approach to run Tecnotree, and the results show in our margins. Our Q4 priorities • Grow the order book and convert it into cash • Turn completed milestones into invoices • Deliver our large transformation programmes • Keep growing our recurring revenue base Thank you to our employees, customers and shareholders for your continued trust. We go into the final quarter with strong momentum.
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FINANCIAL REPORT Q3 2026 6 Q3 2026 Financial Performance Revenue Revenue in the review period was EUR 57.0 million (52.8), representing 7.8% increase YoY. Revenue from licenses was EUR 10.2 million (10.4), delivery EUR 19.9 million (17.4) and maintenance and management services EUR 26.8 million (25.1). The order book at the end of the review period stood at EUR 105.6 million (105.5) representing 0.1% increase YoY. Revenue for the third quarter was EUR 20.2 million (18.6), representing 8.4% increase YoY. Revenue from licenses was EUR 4.4 million (0.1), delivery EUR 4.4 million (7.6) and maintenance and management services EUR 11.4 million (10.9). Revenue by Geography In the review period, revenue from Europe & Americas was EUR 12.1 million (13.4), while revenue from MEA & APAC was EUR 44.8 million (39.4). In the third quarter, revenue from Europe & Americas was EUR 3.4 million (4.5), while revenue from MEA & APAC was EUR 16.8 million (14.1). Nature of goods and services offered, MEUR 7-9/2026 7-9/2025 1-9/2026 1-9/2025 1-12/2025 Licenses 4.4 0.1 10.2 10.4 14.5 Delivery 4.4 7.6 19.9 17.4 24.8 Maintenance and management services 11.4 10.9 26.8 25.1 33.1 Revenue total 20.2 18.6 57.0 52.8 72.4 Methods used to recognise revenue, MEUR 7-9/2026 7-9/2025 1-9/2026 1-9/2025 1-12/2025 Point in time: Licenses 4.4 0.1 10.2 10.4 14.5 Over time: Delivery 4.4 7.6 19.9 17.4 24.8 Maintenance and management services 11.4 10.9 26.8 25.1 33.1 Revenue total 20.2 18.6 57.0 52.8 72.4 Recognition of revenue by operating segment, MEUR 7-9/2026 7-9/2025 1-9/2026 1-9/2025 1-12/2025 Europe & Americas: Licenses 1.7 0.0 3.4 5.7 5.7 Delivery 0.1 0.5 3.8 1.9 3.4 Maintenance and management services 1.5 4.0 4.9 5.9 8.6 Revenue total 3.4 4.5 12.1 13.4 17.7 MEA & APAC: Licenses 2.7 0.1 6.9 4.7 8.8 Delivery 4.3 7.1 16.1 15.5 21.4 Maintenance and management services 9.9 6.9 21.9 19.2 24.5 Revenue total 16.8 14.1 44.8 39.4 54.7
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FINANCIAL REPORT Q3 2026 7 Q3 2026 Order book by operating segment, MEUR 30.9.2026 30.9.2025 31.12.2025 Europe & Americas 22.9 20.2 24.8 MEA & APAC 82.7 85.3 82.6 Order book total 105.6 105.5 107.5 Result analysis The EBIT for the review period was EUR 19.0 million (13.2), the EBIT margin 33.4% (25.0%) and the net income EUR 7.4 million (6.0). Exchange rate differences in financial items for the review period were EUR 1.7 million (-3.9). The EBIT for the third quarter was EUR 5.8 million (3.6), the EBIT margin 28.5% (19.5%) and net income EUR 3.0 million (3.4). Exchange rate differences in financial items in the third quarter were EUR 0.2 million (0.2). Income statement, key figures, MEUR 7-9/2026 7-9/2025 1-9/2026 1-9/2025 1-12/2025 Revenue 20.2 18.6 57.0 52.8 72.4 Other operating income 0.2 -0.0 0.2 0.0 0.1 Operating costs -14.6 -15.0 -38.1 -39.6 -46.9 EBIT 5.8 3.6 19.0 13.2 25.6 Financial items without currency differences -1.8 0.3 -5.7 -0.9 -0.2 Exchange rate gains and losses in financial items 0.2 0.2 1.7 -3.9 -3.8 Income taxes -1.2 -0.6 -2.5 -2.4 -5.2 Adjusted net income for the period 3.0 3.4 12.6 6.0 16.4 One-time items 0.0 0.0 -5.2 0.0 -6.2 Net income 3.0 3.4 7.4 6.0 10.2 Financial income and expenses for the review period totalled EUR -9.1 million (-4.8). The review period included one-time trade receivables impairment charges of EUR 5.2 million recognised in the second quarter. Financial income and expenses in the third quarter totalled EUR -1.6 million (0.4). Other financial expenses in the third quarter were EUR -1.8 million (0.1). Financial income and expenses, MEUR 7-9/2026 7-9/2025 1-9/2026 1-9/2025 1-12/2025 Interest income -0.1 0.0 0.2 0.1 0.1 Exchange rate gains 1.5 1.3 3.5 3.2 3.5 Other financial income -0.0 -0.0 -0.0 -0.0 -0.0 Financial income, total 1.3 1.3 3.7 3.3 3.6 Interest expenses 0.1 0.1 -0.2 -0.6 -0.8 Exchange rate losses -1.2 -1.1 -1.8 -7.0 -7.3 Other financial expenses -1.8 0.1 -10.8 -0.5 -5.6 Financial expenses, total -2.9 -0.9 -12.8 -8.1 -13.7 Financial items, total -1.6 0.4 -9.1 -4.8 -10.1
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FINANCIAL REPORT Q3 2026 8 Q3 2026 Taxes for the review period totalled EUR -2.5 million (-2.4). Taxes in the third quarter totalled EUR -1.2 million (-0.6). Taxes in income statement, MEUR 7-9/2026 7-9/2025 1-9/2026 1-9/2025 1-12/2025 Withholding taxes paid abroad -0.6 -0.4 -1.7 -1.6 -2.2 Change in withholding tax accrual 0.0 0.0 0.1 0.0 -1.0 Income taxes on the results of Group companies -0.6 -0.2 -0.7 -0.7 -2.0 Other items -0.0 -0.0 -0.1 -0.1 -0.1 Taxes in income statement, total -1.2 -0.6 -2.5 -2.4 -5.2 Geopolitical risk The Company has approximately 30% revenue exposure to the Middle East region, where the current geopolitical situation has introduced near -term uncertainty in project delivery timelines, collections, and operating costs. The Company acknowledges that the evolving situation warrants continued close monitoring. Personnel At the end of the review period, Tecnotree employed 765 (695) persons. Personnel 30.9.2026 30.9.2025 31.12.2025 Personnel, at end of period 765 695 704 Finland 19 22 21 India 658 605 604 United Arab Emirates 33 29 25 Other countries 55 39 54 Personnel, average 738 713 711 Personnel expenses (MEUR) -12.8 -14.1 -19.3 Webcast for investors and media Tecnotree will webcast Q3 results on Thursday, 29 October 2026 at 10.00 a.m. EET (Helsinki). Shareholders and potential investors are invited to pre-register for a Zoom account and join the online presentation using this link: https://zoom.us/j/97271208162. The event will be recorded, and the presentation materials will be made available on the company’s website investors.tecnotree.com. Events after the end of the period On 21 October 2026, Tecnotree Corporation announced raised growth outlook guidance. On 23 October 2026, the Extraordinary General Meeting of Tecnotree Corporation resolved, in accordance with the proposal of the Board of Directors, that a dividend of EUR 0.02 per share be paid for the financial year 2025. The record date for the dividend payment is 3 December 2026 and the payment date is 10 December 2026. Otherwise, there have been no significant changes in the Company's business or financial position after the end of the review period.
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FINANCIAL REPORT Q3 2026 9 Q3 2026 Tecnotree Corporation Board of Directors Further information Padma Ravichander, CEO, tel +971 56 414 1420 Indiresh Vivekananda, CFO, tel +971 56 410 8357 Thomas Koponen, Investor Relations, investor.relations@tecnotree.com www.tecnotree.com
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FINANCIAL REPORT Q3 2026 10 Q3 2026 Table section (unaudited) The financial figures in the income statement, balance sheet and key figures are presented in million euros. The figures shown here have been calculated using exact values. Consolidated income statement, MEUR 7-9/2026 7-9/2025 1-9/2026 1-9/2025 1-12/2025 Revenue 20.2 18.6 57.0 52.8 72.4 Other operating income 0.2 -0.0 0.2 0.0 0.1 Materials and services -1.7 -1.3 -3.1 -2.8 -1.8 Employee benefit expenses -4.4 -3.9 -12.8 -14.1 -19.3 Depreciation, amortisation and impairment charges -1.6 -1.5 -4.8 -4.5 -6.2 Other operating expenses -6.8 -8.4 -17.4 -18.3 -19.6 EBIT 5.8 3.6 19.0 13.2 25.6 Financial income 1.3 1.3 3.7 3.3 3.6 Financial expenses -2.9 -0.9 -12.8 -8.1 -13.7 Profit before tax 4.2 4.0 9.9 8.4 15.4 Income taxes -1.2 -0.6 -2.5 -2.4 -5.2 Net income 3.0 3.4 7.4 6.0 10.2 Allocated to: Equity holders of parent company 3.0 3.4 7.4 6.0 10.2 Non-controlling interest 0.0 -0.0 0.0 0.0 0.0 EPS calculated on the profit attributable to equity holders of parent company: Earnings per share, basic, EUR 0.13 0.20 0.34 0.35 0.60 Earnings per share, diluted, EUR 0.13 0.15 0.30 0.26 0.45
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FINANCIAL REPORT Q3 2026 11 Q3 2026 Consolidated balance sheet, MEUR 30.9.2026 30.9.2025 31.12.2025 Non-current assets Intangible assets 52.7 44.9 49.4 Tangible assets 0.1 0.1 0.0 Other non-current trade and other receivables 1.1 1.8 1.3 Current assets Trade receivables 30.9 30.2 29.3 Other receivables 52.5 42.3 51.6 Cash and cash equivalents 22.1 20.7 18.9 Assets total 159.3 140.0 150.6 Shareholders’ equity 133.4 96.3 101.5 Compulsory convertible debentures 0.3 23.1 23.1 Non-current liabilities Non-current interest-bearing liabilities 1.5 0.0 1.9 Other non-current liabilities 4.5 4.2 4.1 Current liabilities Current interest-bearing liabilities 2.0 6.2 3.5 Trade payables and other liabilities 17.6 10.3 16.5 Equity and liabilities total 159.3 140.0 150.6
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FINANCIAL REPORT Q3 2026 12 Q3 2026 Consolidated condensed cash flow statement, MEUR 7-9/2026 7-9/2025 1-9/2026 1-9/2025 1-12/2025 Cash flow from operating activities Result for the period 3.0 3.4 7.4 6.0 10.2 Adjustments of the result 6.2 -0.1 13.0 9.8 14.2 Changes in working capital -2.8 0.9 -4.2 -1.0 -2.9 Financial income and expenses -1.4 -0.3 -2.8 -2.3 -3.6 Income taxes paid -1.3 -0.6 -2.6 -2.4 -3.1 Net cash flow from operating activities 3.7 3.3 10.8 10.0 14.8 Cash flow from investing activities Utilized from CCD 0.0 0.0 0.0 1.1 1.1 Investment on tangible and intangible assets -1.9 -2.1 -6.9 -6.8 -10.2 Net cash flow from investing activities -1.9 -2.1 -6.9 -5.7 -9.1 Cash flow from financing activities CCDs utilized for investment activity 0.0 0.0 0.0 -1.1 -1.1 Repayments of borrowings -0.6 0.0 -1.4 -1.0 -4.2 Payment of dividends 0.0 0.0 0.0 -0.1 -0.2 New loans 0.0 0.6 0.0 3.5 3.5 Net cash flow from financing activities -0.6 0.6 -1.4 1.3 -1.9 Translation Difference 0.3 -0.1 0.7 -1.7 -1.7 Increase (+) and decrease (-) in cash and cash equivalents 1.5 1.6 3.2 3.9 2.1 Cash and cash equivalents at beginning of period 20.6 19.1 18.9 16.8 16.8 Cash and cash equivalents at end of period 22.1 20.7 22.1 20.7 18.9 Key figures Consolidated key financial figures 1-9/2026 1-9/2025 1-12/2025 Return on investment, % 13.6 12.8 16.3 Return on equity, % 8.4 8.5 10.5 Equity ratio, % 83.7 68.8 67.4 Debt/Equity ratio, % 2.6 6.4 5.3 Investments, MEUR 6.9 6.8 10.2 % of revenue 12.1 12.9 14.1 Order book, MEUR 105.6 105.5 107.5 Personnel, at end of period 765 695 704
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FINANCIAL REPORT Q3 2026 13 Q3 2026 Consolidated key figures per share 1-9/2026 1-9/2025 1-12/2025 Earnings per share, basic, EUR 0.34 0.35 0.60 Earnings per share, diluted, EUR 0.30 0.26 0.45 Equity per share, EUR 5.83 5.64 5.95 Number of shares at end of period, x 1,000 22 868 17 053 17 053 Number of shares on average, x 1,000 21 860 17 053 17 053 Share price, EUR Average 5.74 3.92 4.10 Lowest 3.92 2.50 2.50 Highest 7.99 5.30 5.45 Share price at end of period, EUR 6.09 4.56 4.31 Market capitalisation of issued stock at end of period, MEUR 139.3 77.8 73.5 Share turnover, million shares 4.8 3.4 4.4 Share turnover, % of total 22.0 20.0 25.7 Share turnover, MEUR 27.6 13.3 17.8 Price/earnings ratio (P/E) 17.9 13.0 7.2
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FINANCIAL REPORT Q3 2026 14 Q3 2026 Quarterly key figures (MEUR) Q3/26 Q2/26 Q1/26 Q4/25 Q3/25 Q2/25 Q1/25 Q4/24 Q3/24 Q2/24 Revenue 20.2 19.9 16.8 19.5 18.6 17.3 16.9 17.6 19.0 18.7 Revenue, change % 8.4 14.9 -0.2 11.1 -2.1 -7.2 3.7 -20.7 -11.0 -3.1 EBIT 5.8 8.6 4.6 12.3 3.6 5.1 4.5 10.9 5.0 3.5 % of Revenue 28.5 43.3 27.4 63.1 19.5 29.2 26.9 61.7 26.3 18.8 Net income 3.0 2.4 2.1 4.2 3.4 1.0 1.5 0.5 4.1 2.1 Personnel at end of period 765 753 709 704 695 691 726 758 810 852 Earnings per share, basic, EUR 0.13 0.10 0.11 0.25 0.20 0.06 0.09 0.03 0.24 0.12 Equity per share, EUR 5.83 5.70 5.52 5.95 5.64 5.46 5.47 5.43 5.25 5.13 Net interest-bearing liabilities -18.6 -16.4 -13.8 -13.5 -14.6 -13.8 -13.5 -12.9 -13.0 -12.2 Order book 105.6 106.3 105.4 107.5 105.5 105.7 70.3 79.6 75.1 72.6 Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.