Interim report
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Quarterly Report Q325
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2Q3 Report 2025 Highlights Key Figures • Q3 2025 revenue of NOK 266 million, up 16% y-o-y. Pexip’s subscription base measured in ARR was USD 122.2 million at the end of Q3 2025, up 12% y-o-y. • Growth driven by Secure and Custom where ARR grew 30% year-on-year, with key wins in Defense, Healthcare and Government. Connected Spaces ARR grew 0% year-on-year, and 1% quarter-on-quarter. • EBITDA excluding other gains and losses amounted to NOK 52.4 million, up from NOK 18.1 million in the same quarter last year. EBITDA including other gains and losses amounted to NOK 47.6 million, up from NOK 14.6 million in the same quarter last year. • Free cash flow of NOK 28.9 million in the quarter, up from NOK 7.2 million in Q3 2024, with a cash and money market fund position of NOK 526.1 million and no material interest- bearing debt exiting Q3 2025. In Q3 2025 Pexip bought back shares for NOK 42.1 million. “Secure and Custom video continues to drive Pexip’ business forward, with growth of 30% year-on-year. Together with continued overall cost control this resulted in a significant margin expansion, taking another step towards reaching our mid-term ambition of Rule of 40 performance. ” Trond K. Johannessen Chief Executive Officer Q3 2025 Q3 2024 YTD 2025 YTD 2024 Revenue NOK million 265.6 228.5 894.7 786.0 Cost of Sale NOK million 27.3 24.8 74.8 78.9 Salary and Personnell expenses NOK million 147.3 151.0 481.3 476.3 Other operating expenses NOK million 38.6 34.6 116.5 112.3 Adjusted EBITDA NOK million 52.4 18.1 222.1 118.6 Other gains/losses NOK million (4.8) (3.4) (3.0) (13.2) EBITDA NOK million 47.6 14.6 219.2 105.3 EBITDA-margin % 18% 6% 24% 13% Free cash flow NOK million 28.9 7.2 281.8 176.0 Reported profit for the period NOK million 25.6 5.8 135.9 58.2 Earnings per share NOK per share 0.25 0.06 1.32 0.57 ARR USD million, end of period USD million 122.2 109.5 Number of employees end of period # 285 286
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3 Operational Review Key Wins European Government Agency A European State Government Agency has chosen Pexip for Secure Meetings. Pexip was chosen for the ability to keep data within the organisation’s control, as well as for the ability to integrate the software to fit their existing work process. Global Law Firm Pexip was selected to provide its Connected Spaces offering to a leading global law firm. The firm has a wide variety of meeting rooms technologies, and Pexip is providing both its Connect Standard for Microsoft Teams for standards-based meeting rooms and its Connect for Zoom Rooms for the firm’s Zoom Room estate. They chose Pexip for the flexibility to join any type of digital meeting from any type of room with a great user experience. Q3 2025 summary Pexip’s subscription base measured in Annual Recurring Revenue (ARR) amounted to USD 122.2 million at the end of Q3 2025, representing a year- on-year increase of 12%. Pexip grew its overall ARR base by USD 3.2 million in the quarter. Connected spaces ARR amounted to USD 68.8 million at the end of Q3 2025, up 0% from Q3 2024 and up 1% year-to-date. The net revenue retention rate, reflecting the percentage of retained revenue from existing customers, was 96% in Q3 2025. Secure and Custom ARR amounted to USD 53.4 million at the end of Q3 2025, up 30% from Q3 2024. The net revenue retention rate was 102% in Q2 2025. Q3 Report 2025
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4 Q3 Report 2025 Financial Review (Figures in brackets = same period prior year or relevant balance sheet date). Income statement Revenue amounted to NOK 265.6 million in Q3 2025 (NOK 228.5 million in Q3 2024), representing a 16% growth year-on-year. The increase is driven by continued ARR growth across both product areas. Pexip operates in two main product areas: Pexip self-hosted software, which includes software licenses and related maintenance contracts, and Pexip as-a-Service, which includes sales from Pexip’s public cloud service. • Self-hosted software revenue was NOK 121.4 million in Q3 2025 (NOK 87.7 million, +38%). The increase is due to higher license sales and maintenance renewals. • Pexip as-a-Service revenue was NOK 144.2 million in Q3 2025 (NOK 140.8 million, +2%). Americas was the largest sales region with NOK 138.7 million in revenue (NOK 99.1 million, 40%), followed by EMEA with NOK 106.5 million (NOK 112.2 million, -5%), and Asia-Pacific (APAC) with NOK 20.5 million (NOK 17.2 million, +19%). Cost of sale amounted to NOK 27.3 million in Q3 2025 (NOK 24.8 million), resulting in a gross margin of 90%, slightly up from 89% the prior year. The increase in cost is primarily due to higher cloud usage and sales of third-party software licenses for bundled products. Operating expenses consist mainly of salary and personnel expenses and other operating expenses: • Salary and personnel expenses were NOK 147.3 million in Q3 2025 (NOK 151.0 million), representing 55% of quarterly revenue (down from 66%). The decrease is due to lower share-based compensation costs. • Other operating expenses were NOK 38.6 million (NOK 34.6 million), or 15% of revenue, with increases across marketing, software costs and external services. Other gains and losses amounted to a loss of NOK 4.8 million (loss of NOK 3.4 million), primarily related to restructuring. EBITDA excluding other gains and losses was NOK 52.4 million (NOK 18.1 million), reflecting a 20% margin (8%). EBITDA including other gains and losses was NOK 47.6 million (NOK 14.6 million), reflecting a 18% margin. Depreciation and amortization costs were NOK 14.2 million in Q3 2025 (NOK 18.6 million), reflecting lower amortization of intangible assets. Net financial items amounted to a loss of NOK 0.2 million (gain of NOK 13.0 million), with interest income of NOK 5.5 million and foreign exchange losses of NOK 4.8 million. Profit before tax was NOK 33.1 million (NOK 9.0 million), and profit after tax was NOK 25.6 million (NOK 5.8 million). Year to date 2025 Revenue amounted to NOK 894.7 million in the first nine months of 2025 (NOK 786.0 million in the same period of 2024), representing a 14% growth year-on-year, driven by ARR growth across both product areas. • Self-hosted software revenue was NOK 453.7 million (NOK 385.3 million, +18%). The increase is due to higher license sales and maintenance renewals. • Pexip as-a-Service revenue was NOK 441.0 million (NOK 400.7 million, +10%). Americas is the largest revenue contributor with NOK 420.1 million (NOK 352.1 million, +19%), followed by EMEA with NOK 395.5 million (NOK 369.6 million, +7%), and APAC with NOK 79.1 million (NOK 64.4 million, +23%). Cost of sale was NOK 74.8 million (NOK 78.9 million), resulting in a gross margin of 92% (up from 90%). The improvement is due to cloud platform rebates and operational efficiencies.
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5 Q3 Report 2025 Operating expenses: • Salary and personnel expenses were NOK 481.3 million (NOK 476.3 million), representing 54% of revenue (down from 61%). The increase is mainly due to share-based compensation. • Other operating expenses were NOK 116.5 million (NOK 112.3 million), with no significant changes across the main cost categories. Other gains and losses amounted to a loss of NOK 3.0 million (loss of NOK 13.2 million), mostly related to restructuring costs. EBITDA excluding other gains and losses was NOK 222.1 million (NOK 118.6 million), reflecting a 25% margin (15%). EBITDA including other gains and losses was NOK 219.2 million (NOK 105.3 million), reflecting a 24% margin (13%). Depreciation and amortization costs were NOK 40.0 million (NOK 58.0 million), reflecting lower amortization of intangible assets. Net financial items amounted to a loss of NOK 2.8 million (gain of NOK 34.5 million), with interest income of NOK 20.2 million and foreign exchange losses of NOK 20.2 million. Profit before tax was NOK 176.4 million (NOK 81.9 million), and profit after tax was NOK 135.9 million (NOK 58.2 million). Financial position Pexip continues to have a very robust financial position as the company has a solid cash buffer, no material interest bearing debt and a positive cash flow. Total assets amounted to NOK 1,877 million (NOK 2,225 million at the end of 2024), and total equity amounted to NOK 1,371 million (NOK 1,608 million). Current assets amounted to NOK 715 million (NOK 988 million at the end of 2024). Cash and cash equivalents decreased to NOK 312 million (NOK 422 million) and Financial assets (money market funds) increased to NOK 214 million (NOK 206 million). Combined cash and money market funds decreased to NOK 526 million (NOK 628 million). Trade and other receivables decreased to NOK 163 million (NOK 333 million), while Contract Assets decreased to NOK 5 million (NOK 7 million). Non-current assets amounted to NOK 1,162 million (NOK 1,237 million at the end of 2024). Contract costs decreased to NOK 291 million (NOK 325 million), with the decrease coming from a NOK 13 million in net negative additions and NOK 21 million from foreign exchange translation differences. Total liabilities were at NOK 506 million (NOK 617 million). NOK 2 million are borrowings (NOK 2 million). Current liabilities decreased to NOK 424 million (NOK 532 million at the end of 2024), with the decrease being mainly related to a decrease in contract liabilities and trade and other payables. Non-current liabilities amounted to NOK 82 million (NOK 85 million at the end of 2024), from a reduction in lease liabilities and increase in deferred tax liabilities. Cash flow Q3 2025 Net cash flow from operating activities was NOK 41.6 million in Q3 2025 (NOK 18.8 million in Q3 2024) compared to an EBITDA of NOK 47.6 million. In addition, the Company had a positive fair value adjustment on its money market funds of NOK 2.5 million (NOK 2.6 million). The increase compared to 2024 is due to higher profits, partly offset by a reduction in trade payables and contract liabilities. Cash flow from investing activities was negative NOK 10.7 million for Q3 2025 (negative NOK 11.0 million). Investments in own software development are NOK 10.0 million compared to NOK 10.6 million in Q3 2024. Cash flow from financing activities was negative NOK 47.6 million in Q3 2025 (negative NOK 4.0 million). The main cash outflow was related to the share buyback of NOK 42.1 million. In total, Pexip had a free cash flow of NOK 28.9 million (NOK 7.2 million) including net change in money market funds. The combined cash and money market fund position was NOK 526.1 million at the end of Q3 2025 (NOK 628.2 million at the end of Q3 2024).
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6 Q3 Report 2025 First nine months of 2025 Net cash flow from operating activities was NOK 313.3 million year-to-date of 2025 (NOK 208.9 million) compared to an EBITDA of NOK 219.2 million. In addition, the Company had a positive fair value adjustment on its money market funds of NOK 7.7 million (NOK 3.7 million). The increase compared to 2024 is due to improved profitability and better working capital development. Cash flow from investing activities was negative NOK 27.1 million year-to-date 2025 (negative NOK 226.9 million), mainly due to NOK 200 million in money market funds investments in 2024. Investments in own software development is NOK 24.4 million (NOK 24.6 million). Cash flow from financing activities was negative NOK 372.4 million year-to-date 2025 (negative NOK 123.9 million). The main cash outflow was related to the dividend of NOK 259.8 million and the share buyback of NOK 100.1 million. Subsequent events There were no subsequent events after September 30, 2025. Risk and uncertainty Risk management in Pexip is based on the principle that risk evaluation is an integral part of all business activities and is a part of the annual strategy review. Pexip has developed its approach to risk assessment and risk mitigation within financial reporting and information security, where Pexip holds ISO 27001 and 27701 certifications as external recognition of its approach. Pexip is exposed to several risk factors related to operational and market activities, customer relationships and third parties, laws, regulations, and compliance, financial and market, among others. The Risk and Risk Management section in the 2024 Annual Report contains detailed descriptions and mitigating actions. 2025 has seen increased uncertainty in trade policies across countries and some instability in currency exchange rates. As a company operating in multiple countries, this may have an impact on Pexip’s business although software and services are not product categories that so far have been impacted. The Company is continuously monitoring the situation and will seek to adapt to any changes in trade regulations. Pexip has not identified any further significant risk exposures beyond the ones described in the 2024 Annual Report. Outlook Pexip believes that the market for enterprise-grade video communication will continue to increase due to the increased adoption and usage of video communication, and increased awareness of sustainability. Pexip has unique video technology with capabilities within security, interoperability, and flexible deployments. This makes the company well-positioned as enterprises and public sector organizations continue to adopt hybrid working models. Furthermore, Pexip believes in the increased use of video in organizations’ workflows with their clients/customers, creating additional new and significant market opportunities. In particular, the use of video for mission-critical, high-security meetings has increased. This is the foundation of the focused strategy Pexip is executing, pursuing market- leading positions in Secure and Custom Video and Connected Spaces. Pexip’s near-term financial targets are to consistently deliver above 10% growth in annual recurring revenues and have an EBITDA margin above 20% with a high cash conversion. The company aims to do this by focusing on niches where Pexip has a unique competitive advantage and a path to become the clear market leader. Long-term the company aims to deliver Rule of 40 performance, with a combined ARR growth rate and EBITDA margin excluding other gains and losses of 40% or more. The company’s outlook is to end 2025 with an ARR of USD 124-127 million from USD 122.2 million at the end of Q3 2025. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties, and other factors, many of which are beyond our control, and which may cause actual results to differ materially from those expressed in the statements contained in this section. Readers are cautioned not to put undue reliance on forward-looking statements.
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7Q3 Report 2025 Board of Directors SIGNATURE PAGE Oslo, November 5, 2025 Board of Directors and CEO of Pexip Holding ASA Kjell Skappel Chair of the Board Trond K. Johannessen CEO Irene Kristiansen Board Member Phillip Austern Board Member Silvija Seres Board Member Geir Langfeldt Olsen Board Member
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8 Period July 1 - September 30 Consolidated Statement of Profit or Loss The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. Notes Third Quarter Year (NOK 1,000) Q3 2025 Q3 2024 YTD 2025 YTD 2024 Revenue 3 265 632 228 482 894 702 786 042 Cost of sale 27 347 24 782 74 817 78 890 Salary and personnel expenses 147 321 151 018 481 267 476 278 Other operating expenses 38 580 34 598 116 474 112 320 Other gains and losses 4 782 3 441 2 973 13 226 EBITDA 47 602 14 643 219 172 105 328 Depreciation and amortization 14 242 18 628 40 004 57 973 Operating profit or loss 33 360 -3 986 179 167 47 355 Financial income 5 509 6 631 20 185 19 644 Financial expenses -932 -639 -2 754 -2 359 Net gain and loss on foreign exchange differences -4 794 6 997 -20 185 17 237 Financial income/(expenses) - net -217 12 989 -2 754 34 521 Profit or loss before income tax 33 142 9 003 176 413 81 876 Income tax expense 7 501 3 208 40 527 23 641 Profit or loss for the year 25 642 5 795 135 886 58 235 Profit or loss is attributable to: Owners of Pexip Holding ASA 25 642 5 795 135 886 58 235 Earnings per share Basic earnings per share 0.25 0.06 1.32 0.57 Diluted earnings per share 0.24 0.06 1.28 0.56 Q3 Report 2025
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9 Q3 Report 2025 Consolidated Statement of Comprehensive Income The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. Period July 1 - September 30 Third Quarter Year (NOK 1,000) Q3 2025 Q3 2024 YTD 2025 YTD 2024 Profit or loss for the year 25 642 5 795 135 886 58 235 Items that may be reclassified to profit or loss: Exchange difference on translation of foreign operations -3 385 7 694 -29 012 7 694 Total comprehensive income for the year 22 257 13 489 106 874 65 929 Total comprehensive income is attributable to: Owners of Pexip Holding ASA 22 257 13 489 106 874 65 929
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10 Q3 Report 2025 Consolidated Statement of Financial Position Date as of september 30 (NOK 1,000) Notes 09/30/2025 12/31/2024 ASSETS Non-current assets Property, plant and equipment 16 607 20 124 Right-of-use assets 41 943 51 793 Goodwill 598 998 598 998 Other intangible assets 97 253 95 749 Deferred tax asset 112 116 140 225 Contract costs 4 290 801 325 086 Receivables 551 554 Other assets 4 189 4 841 Total non-current assets 1 162 458 1 237 369 Current assets Trade and other receivables 163 337 332 832 Contract assets 5 147 6 737 Other current assets 20 302 19 778 Financial Investments 5 213 792 206 066 Cash and cash equivalents 312 300 422 100 Total current assets 714 879 987 514 TOTAL ASSETS 1 877 336 2 224 882 (NOK 1,000) 09/30/2025 12/31/2024 EQUITY AND LIABILITIES Equity Total equity 1 371 158 1 607 952 Non-current liabilities Borrowings 1 707 1 984 Lease liabilities 33 799 43 510 Deferred tax liabilities 46 545 39 755 Other payables 14 28 Total non-current liabilities 82 065 85 277 Current liabilities Trade and other payables 120 255 156 534 Contract liabilities 288 088 354 892 Current tax liabilities 2 104 Lease liabilities 15 771 18 123 Total current liabilities 424 114 531 653 Total liabilities 506 179 616 930 TOTAL EQUITY AND LIABILITIES 1 877 336 2 224 882
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11 Q3 Report 2025 Consolidated Statement of Changes in Equity Share capital Share premium Other reserves Translation differences Retained earnings Total equity(NOK 1,000) Balance at January 1, 2024 1 523 2 115 938 56 186 14 977 -633 803 1 554 823 Profit or loss for the year 117 905 117 905 Other comprehensive income for the year 20 301 20 301 Total comprehensive income for the year 20 301 117 905 138 206 Buy/sell treasury share 4 605 609 Dividend paid to company’s shareholders -111 745 -111 745 Share-based payments 26 060 26 060 Balance at December 31, 2024 1 527 2 004 193 82 851 35 277 -515 898 1 607 952 Balance at January 1, 2025 1 527 2 004 193 82 851 35 277 -515 898 1 607 952 Profit or loss for the period 135 886 135 886 Other comprehensive income for the year -29 012 -29 012 Total comprehensive income for the year -29 012 135 886 106 874 Buy/sell treasury share 10 -97 745 -97 735 Dividend paid to company’s shareholders -259 799 -259 799 Share-based payments 13 866 13 866 Balance at September 30, 2025 1 537 1 744 393 -1 028 6 266 -380 012 1 371 158
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12 Q3 Report 2025 Consolidated Statement of Cash Flows Period July 1 - September 30 Third Quarter Year to date (NOK 1,000) Q3 2025 Q3 2024 YTD 2025 YTD 2024 Cash flow from operating activities Profit or loss before income tax 33 142 9 003 176 413 81 876 Adjustments for Depreciation, amortization and net impairment losses 14 242 18 628 40 004 57 973 Non-cash - share based payments 6 228 6 667 13 866 20 673 Interest income/expenses - net -2 113 -6 112 -9 541 -17 355 Net exchange differences 3 057 -5 190 6 034 -12 027 Fair value on Financial Assets at fair value through profit and loss -2 468 -2 639 -7 725 -3 668 Other adjustments -13 -1 108 -1 707 2 698 Change in operating assets and liabilities Change in trade, other receivables and other assets -1 513 -1 980 173 805 46 386 Change in trade, other payables and contract liabilities -10 030 -1 773 -84 173 18 632 Interest received 3 037 6 738 12 131 19 682 Income taxes paid/refunded -1 933 -3 446 -5 844 -5 941 Net cash inflow/outflow from operating activities 41 636 18 789 313 263 208 928 Cash flow from investing activities Payment for property, plant and equipment -733 -1 135 -2 795 -3 341 Payment of software development cost -9 958 -10 640 -24 409 -24 640 Proceeds from sale of property, plant and equipment 11 823 153 1 078 Payment for financial assets at fair value through profit or loss* -200 000 Net cash inflow/outflow from investing activities -10 680 -10 952 -27 050 -226 903 Cash flow from financing activities Dividend paid to company’s shareholder -259 799 -111 745 Proceeds from borrowings 104 301 Repayment of borrowings -22 -90 -417 Principal element of lease payments -4 569 -3 305 -12 103 -10 324 Interest paid -935 -626 -2 730 -2 327 Proceeds from release of Treasury shares 2 324 609 Aquisition of treasury shares -42 074 -100 059 Net cash inflow/outflow from financing activities -47 578 -3 953 -372 353 -123 904 Net increase/(decrease) in cash and cash equivalents -16 622 3 884 -86 139 -141 877 Cash and cash equivalents start of the period 332 919 385 477 422 100 522 692 Effects of exchange rate changes on cash and cash equivalents -3 997 200 -23 659 8 746 Cash and cash equivalents end of the period 312 300 389 561 312 300 389 560
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13 Q3 Report 2025 Note 1 - General Pexip Holding ASA is the parent company of the Pexip Group. The Group includes the parent company Pexip Holding ASA and its wholly owned subsidiary Pexip AS, which have the wholly owned subsidiaries Pexip Inc, Pexip Ltd, Pexip Australia Pty Ltd, Pexip Japan GK, Pexip Singapore Pte Ltd, Pexip Germany GmbH, Pexip France SAS, Pexip Netherlands B.V, Pexip Belgium NV, Pexip Italy S.R.L and Pexip Spain SL. The Group`s head office is located at Lilleakerveien 2a, 0283 OSLO, Norway. Pexip Holding ASA is listed on the Oslo Stock Exchange (Norway) under the ticker PEXIP. The consolidated condensed interim financial statements comprise the financial statements of the Parent Company and its subsidiaries as of September 30, 2025, authorised for issue by the board of directors on November 5, 2025. The condensed interim financial statements are unaudited. Note 2 - Basis of preparation The condensed interim financial statements for the three months ending on September 30, 2025, have been prepared according to IAS 34 Interim Financial reporting. This quarterly report does not include the complete set of accounting principles and disclosures and should be read in conjunction with the Annual Financial Statement for 2024. All accounting principles applied in preparing this interim financial statement are consistent with the annual report as of 2024. The Group has not early adopted any new standards, interpretations or amendments issued but not yet effective. Rounding differences may occur. Note 3 - Revenue and segment information (NOK 1,000) The Group has one segment, sale of collaboration services.The market for Pexip’s software and services is global. The chief decision maker will therefore follow up revenue and profitability on a global basis This is consistent with the internal reporting submitted to the chief operating decision maker, defined as the Management Group. The Management Group is responsible for allocating resources and assessing performance as well as making strategic decisions. Principles of revenue recognition are stated in accounting principles to consolidated financial statements, section 2.3.5 Revenue from contracts with customers. Disaggregation of revenue In the following table, revenue is disaggregated by primary service line, geography and timing of revenue recognition. In presenting the geographic information, revenue has been based on the geographic location of customers. Third quarter 2025 EMEA1) Americas APAC2) Total Pexip as-a-Service 61 431 73 583 9 207 144 221 Self-hosted Software 45 036 65 128 11 246 121 411 Total revenue 106 468 138 711 20 453 265 632 Third quarter 2024 EMEA1) Americas APAC2) Total Pexip as-a-Service 71 649 59 988 9 121 140 759 Self-hosted Software 40 560 39 090 8 073 87 723 Total revenue 112 209 99 078 17 194 228 482
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14 Q3 Report 2025 Full year (YTD) 2025 EMEA1) Americas APAC2) Total Pexip as-a-Service 194 458 217 630 28 916 441 003 Self-hosted Software 201 068 202 436 50 195 453 699 Total revenue 395 526 420 066 79 111 894 702 Full year (YTD) 2024 EMEA1) Americas APAC2) Total Pexip as-a-Service 198 021 177 316 25 396 400 733 Self-hosted Software 171 531 174 773 39 005 385 309 Total revenue 369 552 352 090 64 400 786 042 Third quarter Third quarter Timing of revenue recognition 2025 2024 Products and services transferred at a point in time 86 324 65 606 Products and services transferred over time 179 308 162 877 Total revenue 265 632 228 482 Year to date Year to date Timing of revenue recognition 2025 2024 Products and services transferred at a point in time 351 402 303 904 Products and services transferred over time 543 300 482 139 Total revenue 894 702 786 042 1) Europe, Middle East and Africa 2) Asia Pacific (East and South Asia, Southeast Asia and Oceania) Information about major customers The Group conducts its sales through channel partners. No channel partner represents more than 10% of the Group’s revenue. Of the Group’s total channel partner base as of September 30, 2025, the five largest represent approximately 30% (23% in Q3 2024) of total revenue in Q3 2025, and the ten largest represent about 47% (38% in Q3 2024) of total revenue. Of the Group’s total channel partner base per end of Q3 2025, the five largest represent approximately 31% of total revenue (25% per Q3 2024), and the ten largest represent approximately 50% (41% per Q3 2024). Non-current assets The following geographic information of non-current assets is based on the geographic location of the assets. 9/30/2025 9/30/2024 Norway 158 875 193 318 Europe (other than Norway) 133 914 107 999 Americas 125 956 135 642 APAC 30 858 32 815 Total non-current operating assets 449 602 469 773 Non-current assets for this purpose consist of property, plant and equipment, right-of-use assets, other intangible assets and contract costs.
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15 Q3 Report 2025 Note 4 - Contract Costs (NOK 1,000) Note 5 - Treasury Shares The decrease of contract costs in Q3 relates to negative net additions of million NOK -5.0 and changes in foreign currencies in foreign operations of million NOK -3.3. Total commission costs activated in the third quarter in 2025 was 20.4 million NOK (27.9 million NOK in Q3 2024). Depreciated cost in the quarter was 25.3 compared to 24.2 in Q3 2024, which is mostly reflected in salary and personell expenses. Contract costs Q3 movements 2025 2024 Balance at July 1 299 095 304 608 Additions 20 389 27 917 Depreciated during the year -25 344 -24 203 Translation differences -3 338 2 706 Balance at September 30 290 801 311 028 Contract costs YTD movements 2025 2024 Balance at January 1 325 086 299 000 Additions 61 901 72 686 Depreciated during the year -75 377 -71 462 Translation differences -20 808 10 805 Balance at September 30 290 801 311 028 Q3 2025 Q4 2024 Total outstanding shares 104 429 671 104 429 671 Number of Treasury shares 1 953 472 2 588 729 Total external shares 102 476 199 101 840 942 Q3 2025 YTD 2025 Weighted average number of ordinary external shares 102 624 741 102 926 644 Effect of dilutive potential ordinary shares 3 061 968 3 340 630 Weighted average number of ordinary external shares inkl dilutions 105 686 709 106 267 274
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16 Q3 Report 2025 Note 6 - Reclassification of comparable numbers in the cash flow statement Pexip has reclassified the presentation of the investment in money market fund done in May 2024 from cash to financial investment. This reclassification was first done in the Q4 2024 Financial report. The following cash flow line items are reclassified from Q3 2024 report: Third quarter 2024 Year to date 2024 Q3 2024 report Q3 2025 report change Q3 2024 report Q3 2025 report change Items within cash flow from operating activities Fair value on Financial Assets at fair value through profit and loss -2 639 -2 639 -3 668 -3 668 Total effect on cash flow from operating activities -2 639 -2 639 -3 668 -3 668 Items within cash flow from investing activities Payment for financial assets at fair value through profit or loss -200 000 -200 000 Total effect on cash flow from investing activities -200 000 -200 000 Net increase/(decrease) in cash and cash equivalents 6 522 3 884 -2 638 61 791 -141 877 -203 668 Cash and cash equivalents start of the period 586 506 385 477 -201 030 522 692 522 692 Cash and cash equivalents end of the period 593 228 389 561 -203 669 593 228 389 560 -203 669
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17 Q3 Report 2025 Appendix — Definitions Appendix — Alternative performance measures (APMs) The Group uses the following terms in the definition of APMs in this Report: EBITDA Profit/(loss) for the period before net financial items, income tax expense, depreciation, and amortization and impairment. This number can be directly read out of the Consolidated statement of profit or loss. Adjusted EBITDA EBITDA adjusted for cost that are not related to the ordinary business and that are non-recurring costs. Third Quarter 2025 2024 Change Change in % EBITDA 47 602 14 643 32 960 225% Other gains and losses 4 782 3 441 1 341 39% Adjusted EBITDA for the quarter 52 384 18 084 34 300 190% Year to date 2025 2024 Change Change in % EBITDA 219 172 105 328 113 844 108% Other gains and losses 2 973 13 226 -10 253 -78% Adjusted EBITDA Year to Date 222 145 118 554 103 590 87% Revenue - Pexip as a service Revenue from Pexip as a service is the revenue stream for all Pexip products that are delivered to customers as Software as a service. The customer is given access to Pexip Products on a subscription basis. Revenue - Self hosted Software Self-Hosted software revenue is revenue from delivering of software licenses to customers, either on a termed subscription or as a perpetual license. This also includes maintanence and installation services or other related consultancy services. ARR - Contracted Annual Recurring Revenue Annualized sales from all active subscriptions/contracts and ordered subscriptions with a future start date where the subscription is time-limited and recurring in nature. This corresponds to Pexip’s order backlog. Delta Annual Recurring Revenue (DARR) The difference in ARR from one period to another NRR - Net Revenue Retention Rate The percentage of annual recurring revenue retained from customers’ existing in the prior year, including upsell, downsell and churn. FVTPL Fair Value through profit or loss
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18 Q3 Report 2025 EBITDA-margin EBITDA in percentage of revenue in the same period. Third Quarter 2025 2024 Change Change in % EBITDA 47 602 14 643 32 960 225% Revenue 265 632 228 482 37 150 16% EBITDA Margin 18% 6% 12% 180% Year to date 2025 2024 Change Change in % EBITDA 219 172 105 328 113 844 108% Revenue 894 702 786 042 108 660 14% EBITDA Margin 24% 13% 11% 83% EBITDA margin excl other gains and losses Adjusted EBITDA as a percentage of revenues in the same period. Third Quarter 2025 2024 Change Change in % Adjusted EBITDA 52 384 18 084 34 300 190% Revenue 265 632 228 482 37 150 16% EBITDA margin excl other gains and losses 20% 8% 12% 149% Year to date 2025 2024 Change Change in % Adjusted EBITDA 222 145 118 554 103 590 87% Revenue 894 702 786 042 108 660 14% EBITDA margin excl other gains and losses 25% 15% 10% 65% Gross Profit Revenue less cost of goods sold Third Quarter 2025 2024 Change Change in % Revenue 265 632 228 482 37 150 16% Cost of Goods sold 27 347 24 782 2 566 10% Gross Profit 238 285 203 700 34 584 17% Year to date 2025 2024 Change Change in % Revenue 894 702 786 042 108 660 14% Cost of Goods sold 74 817 78 890 -4 073 -5% Gross Profit 819 886 707 153 112 733 16% Gross Margin Gross Profit as a percentage of revenues in the same period. Third Quarter 2025 2024 Change Change in % Gross Profit 238 285 203 700 34 584 17% Revenue 265 632 228 482 37 150 16% Gross Margin 90% 89% 1% 1%
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19 Q3 Report 2025 Year to date 2025 2024 Change Change in % Gross Profit 819 886 707 153 112 733 16% Revenue 894 702 786 042 108 660 14% Gross Margin 92% 90% 2% 2% Free cash flow The sum of operating cash flow, investing cash flow tied to the operations of the company and principal lease payments. This represents the free cash flow from the business, excluding potential equity or debt financing cash flows as well as potential cash flows related to company acquisitions/divestitures or financial investments. Fair value changes to money market funds held for short-term cash needs is included similar to interest income from cash in bank. The numbers can be derived out from the cash flow statement Third Quarter 2025 2024 Change Change in % Operating cash flow 41 636 18 789 22 848 122% Investing Cash flow -10 680 -10 952 272 -2% Principal element of lease payments -4 569 -3 305 -1 264 38% Fair value adjustment of financial investments at FVTPL 2 468 2 639 -170 -6% Free cash flow 28 856 7 170 21 686 302% Year to date 2025 2024 Change Change in % Operating cash flow 313 263 208 928 104 335 50% Investing Cash flow -27 050 -226 903 199 853 -88% Principal element of lease payments -12 103 -10 324 -1 779 17% Fair value adjustment of financial investments at FVTPL 7 725 3 668 4 057 111% Net cash investment of Financial investments at FVTPL 200 000 -200 000 -100% Free cash flow 281 835 175 370 106 466 61% Net debt Net debt consist of both Non current and Current interest bearing liabilities less Financial Investments and Cash and Cash equivalents. The numbers can be derived from the balance sheet statement. 2025 2024 Change Change in % Non Current Lease liability 33 799 43 510 -9 712 -22% Non Current Borrowings 1 707 1 984 -276 -14% Current Lease liabilities 15 771 18 123 -2 353 -13% Total interest bearing Liabilities 51 276 63 617 -12 341 -19% Cash in bank 312 300 422 100 -109 800 -26% Financial Investments 213 792 206 066 7 725 100% Net debt -474 816 -564 549 89 734 -16%
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20 Q3 Report 2025 Declaration in Accordance with 5-5 of the Securities Trading Act We confirm that the financial statements for the period January 1 to September 30, 2025, have, to the best of our knowledge, been prepared in accordance with applicable accounting standards and give a true and fair view of the assets, liabilities, financial position and profit or loss of the company and the Group. We also hereby declare that the annual report provides a true and fair view of the financial performance and position of the company, as well as a description of the principal risks and uncertainties facing the company. Oslo, November 5, 2025 Board of Directors and CEO of Pexip Holding ASA Kjell Skappel Chair of the Board Trond K. Johannessen CEO Irene Kristiansen Board Member Phillip Austern Board Member Silvija Seres Board Member Geir Langfeldt Olsen Board Member
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Lilleakerveien 2A, 0283 Oslo, Norway www.pexip.com