Interim report
Page 1
1 Q3 Report 2026 Q3 Report 2026
Page 2
2Q3 Report 2026 Highlights “Pexip continues to have strong momentum in secure and sovereign meeting solutions. We are proud to support our customers in making their collaboration solutions more modern, robust and compliant” . Trond K. Johannessen Chief Executive Officer Q3 2026 revenue of USD 32.9 million, up 25% y-o-y. Pexip’s subscription base measured in ARR was USD 143.5 million at the end of Q3 2026, up 17% y-o-y. Growth was driven by Secure and Custom where ARR grew 27% year-on-year. Connected Spaces ARR grew 10% year-on-year. Free cash flow of USD 8.6 million in the quarter, up from USD 2.8 million in Q3 2025, with a cash and money market fund position of USD 53.9 million and no material interest- bearing debt at the end of Q3 2026. EBITDA excluding other gains and losses amounted to USD 9.7 million, up from USD 5.2 million in the same quarter last year.
Page 3
3 Q3 Report 2026 Operational review • Secure & Custom remains the principal contributor to ARR growth. Secure & Custom ARR was USD 68.0 million at quarter-end (+27% y-o-y) and increased by USD 3.8 million q-o-q. This quarter the company saw several large wins in sovereign meetings within Justice and in tactical communication within Defense. • Connected Spaces ARR declined slightly on lower new sales. Business area ARR was USD 75.5 million at quarter-end (+10% y-o-y) and decreased by USD 0.6 million q-o-q, with improved net retention compared to Q3 2025. • Retention improved in both business areas. Connected Spaces delivered quarterly net retention of 98%, up from 96% in Q3 2025, and Secure & Custom delivered 104% (102% in Q3 2025). Combined net retention was 100% (99%). Net retention measures the development in ARR from existing customers in the quarter, taking into account upsell, downsell and churn. • Profitability continues to improve. EBITDA (excluding other gains/losses) increased to USD 9.7 million (30% margin) from USD 5.2 million (20% margin), while gross margin was 88%, down from 90% in the same quarter last year, driven by higher 3rd party license expenses in the quarter. The company continues to show operating leverage year-on-year. • Cash generation also improved, with free cash flow at USD 8.6 million in Q3 2026 (USD 2.8 million in Q3 2025). Cash and money market funds were USD 53.9 million at quarter-end. Business mix and growth drivers Customer retention and churn Profitability, operating leverage, and cash conversion
Page 4
4 Q3 Report 2026 Financial Review (Figures in brackets = same period prior year or relevant balance sheet date). Income statement Q3 2026 Consolidated revenue amounted to USD 32.9 million in Q3 2026 (USD 26.3 million in Q3 2025), representing a 25% increase year-on-year. Revenue growth was supported by both software and SaaS, with software revenues typically exhibiting higher quarter-to-quarter variability due to the immediate recognition of certain subscription software contracts. Pexip operates in two main product areas. Pexip self-hosted software, which mainly consists of sales from software licenses and related maintenance contracts, and Pexip as-a-Service, which consists of sales from Pexip’s public cloud service. Self-hosted software revenue accounted for USD 15.8 million in Q3 2026 (USD 12.1 million, +31%). Revenue from Pexip as-a-Service was USD 17.1 million in Q3 2026 (USD 14.3 million, +19%). Cost of sale consists mainly of network, data center and hosting for the Pexip as-a-Service, as well as 3rd party software licenses and sales cost. Cost of sale amounted to USD 4.0 million in Q3 2026 (USD 2.7 million). Gross margin was 88% in Q3 2026, down from 90% in the same quarter last year, related to higher 3rd party license expenses in the quarter. Operating expenses consist mainly of salary and personnel expenses and other operating expenses. Salary and personnel expenses amounted to USD 14.5 million in Q3 2026 (USD 14.6 million), which is 44% of the quarterly revenue (55%). Pexip had 291 employees at the end of Q3 2026 (285). Other operating expenses amounted to USD 4.6 million (USD 3.8 million), which reflects a level of 14% of the quarterly revenue (15%). Other gains and losses amounted to a loss of USD 0.0 million (loss of USD 0.5 million). Earnings before interest, tax, depreciation, and amortization (EBITDA) excluding other gains and losses was USD 9.7 million (USD 5.2 million), reflecting a 30% margin (20%). EBITDA including other gains and losses amounted to USD 9.7 million in Q3 2026 (USD 4.7 million), reflecting a 29% EBITDA margin (18%). Depreciation and amortization costs were USD 1.4 million in Q3 2026 (USD 1.4 million). Net financial items amounted to a loss of USD 1.1 million (loss of USD 0.0 million). Pexip had financial income of USD 0.5 million related to interest on cash holdings (USD 0.5 million), while the net impact of foreign exchange differences gave a loss of USD 1.6 million (loss of USD 0.5 million). Profit before tax was USD 7.2 million (USD 3.3 million). Profit after tax was USD 5.7 million (USD 2.5 million). First nine months of 2026 Consolidated revenue amounted to USD 105.9 million in YTD 2026 (USD 85.1 million in YTD 2025), representing a 24% increase year-on-year. Pexip operates in two main product areas. Pexip self-hosted software, which mainly consists of sales from software licenses and related maintenance contracts, and Pexip as-a-Service, which consists of sales from Pexip’s public cloud service. Self-hosted software revenue accounted for USD 56.2 million in YTD 2026 (USD 43.0 million, +31%). Revenue from Pexip as-a-Service was USD 49.7 million in YTD 2026 (USD 42.1 million, +18%). Cost of sale consists mainly of network, data center and hosting for the Pexip as-a-Service, as well as 3rd party commissions and software
Page 5
5 Q3 Report 2026 licenses. Cost of sale amounted to USD 10.4 million in YTD 2026 (USD 7.1 million in YTD 2025). Gross margin was 90% in YTD 2026, down from 92% in YTD 2025, partly related to one-time rebates received in Q2 2025. Operating expenses consist mainly of salary and personnel expenses and other operating expenses. Salary and personnel expenses amounted to USD 46.7 million in YTD 2026 (USD 46.0 million in YTD 2025), which is 44% of YTD revenue (54%). Pexip had 291 employees at the end of Q3 2026 (285 at the end of Q3 2025). Other operating expenses amounted to USD 13.2 million in YTD 2026 (USD 11.1 million in YTD 2025), which reflects a level of 12% of revenue (13%). Other gains and losses amounted to a gain of USD 0.5 million in YTD 2026 (loss of USD 0.3 million in YTD 2025). Earnings before interest, tax, depreciation, and amortization (EBITDA) excluding other gains and losses was USD 35.6 million in YTD 2026 (USD 20.9 million in YTD 2025), reflecting a 34% margin (25%). EBITDA including other gains and losses amounted to USD 36.1 million in YTD 2026 (USD 20.5 million), reflecting a 34% EBITDA margin (24%). Depreciation and amortization costs were USD 4.2 million in YTD 2026 (USD 3.8 million in YTD 2025). Net financial items amounted to a loss of USD 1.5 million in YTD 2026 (loss of USD 0.2 million in YTD 2025). Pexip had financial income of USD 1.6 million related to interest on cash holdings (USD 1.9 million), while the net impact of foreign exchange differences gave a loss of USD 3.0 million (loss of USD 1.9 million). Profit before tax was USD 30.4 million in YTD 2026 (USD 16.5 million in YTD 2025). Profit after tax was USD 24.2 million (USD 12.7 million). Financial position Unless otherwise stated, all comparative figures in this Financial position section are shown against the balance sheet position at 31 December 2025. Pexip continues to have a robust financial position, with no material interest-bearing debt. Total assets amounted to USD 199.4 million (USD 215.3 million at the end of 2025), and total equity amounted to USD 140.2 million (USD 149.9 million), with the reduction in the period mainly related to the dividend payment described below. Current assets amounted to USD 76.3 million (USD 94.5 million at the end of 2025). Cash and cash equivalents decreased to USD 34.9 million (USD 38.1 million) and financial investments (money market funds) decreased to USD 19.0 million (USD 21.5 million). Combined cash and money market funds decreased to USD 53.9 million (USD 59.6 million), mainly reflecting the dividend payment in Q2 2026. Trade and other receivables decreased to USD 19.0 million (USD 31.2 million) due to seasonality with a high volume of invoices sent at the end of the year, while contract assets increased to USD 1.0 million (USD 0.5 million). Non-current assets amounted to USD 123.1 million (USD 120.8 million at the end of 2025). Contract costs amounted to USD 29.5 million (USD 29.9 million). Total liabilities amounted to USD 59.2 million (USD 65.4 million). Borrowings amounted to USD 0.0 million (USD 0.2 million). Current liabilities decreased to USD 47.5 million (USD 57.6 million at the end of 2025). Non-current liabilities increased to USD 11.6 million (USD 7.8 million at the end of 2025). Cash flow Q3 2026 Net cash flow from operating activities was USD 10.0 million in Q3 2026 (USD 4.1 million in Q3 2025) compared to an EBITDA of USD 9.7 million. In addition, the Company had a positive fair value adjustment on its money market funds of USD 0.2 million (USD 0.2 million).
Page 6
6 Q3 Report 2026 Cash flow from investing activities was negative USD 1.2 million for Q3 2026 (negative USD 1.1 million for Q3 2025). Investments in own software development were USD 1.1 million compared to USD 1.0 million in Q3 2025. Cash flow from financing activities was negative USD 0.4 million for Q3 2026 (negative USD 4.7 million for Q3 2025). The main cash outflow in Q3 2025 was the purchase of treasury shares of USD 4.1 million. In total, Pexip had a free cash flow of USD 8.6 million (USD 2.8 million) including net change in money market funds. The combined cash and money market fund position was USD 53.9 million at the end of Q3 2026 (USD 52.7 million at the end of Q3 2025). First nine months of 2026: Net cash flow from operating activities was USD 41.0 million in YTD 2026 (USD 28.8 million in YTD 2025) compared to an EBITDA of USD 36.1 million. In addition, the Company had a positive fair value adjustment on its money market funds of USD 0.7 million (USD 0.7 million). Cash flow from investing activities was positive USD 0.4 million in YTD 2026 (negative USD 2.6 million in YTD 2025), mainly related to net proceeds of USD 4.3 million from a sale of money market funds in the second quarter. Investments in own software development were USD 3.2 million in YTD 2026 compared to USD 2.3 million in YTD 2025. Cash flow from financing activities was negative USD 45.6 million in YTD 2026 (negative USD 36.3 million in YTD 2025). The main cash outflow was the dividend payment of USD 44.4 million (USD 25.3 million in YTD 2025). In total, Pexip had a free cash flow of USD 36.6 million (USD 25.8 million) including net change in money market funds. Subsequent events There were no subsequent events after 30 September 2026 up to the release of this report. 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 2025 Annual Report contains detailed descriptions and mitigating actions. 2026 has seen continued 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. Outlook Pexip believes that the market for enterprise- grade video communication will continue to grow, driven by 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 and 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 & Custom and Connected Spaces. Going forward, the company’s long-term ambition is to consistently deliver double-digit ARR growth,
Page 7
7 Q3 Report 2026 with above 25% growth in the Secure & Custom area, together with an above 30% EBITDA margin. Short-term, the company’s outlook is to end Q4 2026 with ARR of USD 144–150 million. The company expects continued strong development in Secure & Custom with large opportunities under discussion. The outlook also includes the downside risk related to a possible one-off customer reduction in Connected Spaces of $3-4 million as a result of an adjusted customer strategy for collaboration platforms. Discussions are ongoing and not concluded. The Q3 2026 ARR of USD 143.5 million was within the previously communicated outlook range of USD 142–145 million at the end of Q3 2026. 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 place undue reliance on forward-looking statements.
Page 8
8 Q3 Report 2026 Board of Directors SIGNATURE PAGE Oslo, November 4, 2026 Board of Directors and CEO of Pexip Holding ASA Kjell Skappel Chair of the Board Trond K. Johannessen CEO Irene Kristiansen Board Member Erik Axelsson Board Member Jean Rosauer Board Member Geir Langfeldt Olsen Board Member
Page 9
9 Q3 Report 2026 Period January 1 - September 30 Consolidated statement of profit or loss The above consolidated statement of profit or loss should be read in conjunction with the accompanying notes. Notes Third Quarter Year to date (USD 1,000) Q3 2026 Q3 2025 YTD 2026 YTD 2025 Revenue 3 32 906 26 344 105 902 85 100 Cost of sale 4 040 2 715 10 436 7 147 Salary and personnel expenses 14 528 14 603 46 650 45 957 Other operating expenses 4 621 3 825 13 204 11 140 Other gains and losses -28 -481 495 -324 EBITDA 9 689 4 721 36 106 20 532 Depreciation and amortization 1 365 1 415 4 174 3 809 Operating profit or loss 8 324 3 306 31 932 16 723 Financial income 476 546 1 617 1 921 Financial expenses -58 -92 -194 -264 Net gain and loss on foreign exchange differences -1 553 -475 -2 952 -1 883 Financial income/(expenses) - net -1 134 -22 -1 529 -226 Profit or loss before income tax 7 190 3 284 30 402 16 497 Income tax expense 1 483 744 6 222 3 789 Profit or loss for the year 5 707 2 540 24 180 12 708 Profit or loss is attributable to: Owners of Pexip Holding ASA 5 707 2 540 24 180 12 708 Earnings per share Basic earnings per share 0.05 0.02 0.23 0.12 Diluted earnings per share 0.05 0.02 0.23 0.12
Page 10
10 Q3 Report 2026 Period January 1 - September 30 Consolidated statement of comprehensive income Third Quarter Year to date USD (1,000) Q3 2026 Q3 2025 YTD 2026 YTD 2025 Profit or loss for the year 5 707 2 540 24 180 12 708 Items that may be reclassified to profit or loss: Exchange difference on translation of foreign operations 4 482 6 801 8 052 16 383 Total comprehensive income for the year 10 189 9 341 32 232 29 091 Total comprehensive income is attributable to: Owners of Pexip Holding ASA 10 189 9 341 32 232 29 091
Page 11
11 Q3 Report 2026 Date as of September 30 Consolidated statement of financial position The above consolidated statement of financial position should be read in conjunction with the accompanying notes. (USD 1,000) Notes 09/30/2026 12/31/2025 1/1/2025 ASSETS Non-current assets Property, plant and equipment 1 654 1 598 1 773 Right-of-use assets 2 978 3 975 4 562 Goodwill 62 392 59 430 52 759 Other intangible assets 10 739 9 630 8 433 Deferred tax asset 15 325 15 765 12 351 Contract costs 4 29 542 29 945 28 633 Receivables 26 49 Other assets 438 473 426 Total non-current assets 123 094 120 816 108 987 Current assets Trade and other receivables 19 007 31 153 29 316 Contract assets 1 002 490 593 Other current assets 2 378 3 260 1 742 Financial Investments 5 19 025 21 455 18 150 Cash and cash equivalents 34 862 38 105 37 178 Total current assets 76 275 94 463 86 980 TOTAL ASSETS 199 369 215 279 195 966 (USD 1,000) 09/30/2026 12/31/2025 1/1/2025 EQUITY AND LIABILITIES Equity Total equity 140 208 149 889 141 627 Non-current liabilities Borrowings 175 Lease liabilities 2 102 3 192 3 832 Deferred tax liabilities 9 519 4 575 3 502 Other payables 2 Total non-current liabilities 11 621 7 767 7 511 Current liabilities Trade and other payables 11 900 17 955 13 787 Contract liabilities 34 131 37 461 31 259 Current tax liabilities 9 471 185 Borrowings 176 Lease liabilities 1 501 1 561 1 596 Total current liabilities 47 541 57 623 46 828 Total liabilities 59 161 65 390 54 339 TOTAL EQUITY AND LIABILITIES 199 369 215 279 195 966
Page 12
12 Q3 Report 2026 The above consolidated statement should be read in conjunction with the accompanying notes. Consolidated statement of changes in equity Share capital Share premium Other reserves Translation differences Retained earnings Total equity(USD 1,000) Balance at January 1, 2025 166 216 102 5 989 -21 977 -58 652 141 627 Profit or loss for the year 19 812 19 812 Other comprehensive income for the year 15 393 15 393 Total comprehensive income for the year 15 393 19 812 35 204 Buy/sell treasury share 1 -9 626 -9 625 Dividend paid to company’s shareholders -25 252 -25 252 Share-based payments, net of tax 7 935 7 935 Balance at December 31, 2025 166 190 849 4 299 -6 585 -38 841 149 889 Balance at January 1, 2026 166 190 849 4 299 -6 585 -38 841 149 889 Profit or loss for the period 24 180 24 180 Other comprehensive income for the year 8 052 8 052 Total comprehensive income for the year 8 052 24 180 32 232 Buy/sell treasury share 3 382 385 Dividend paid to company’s shareholders -44 377 -44 377 Share-based payments, net of tax 2 078 2 078 Balance at September 30, 2026 169 146 473 6 759 1 467 -14 660 140 208 Balance at January 1, 2025 166 216 102 5 989 -21 977 -58 652 141 627 Profit or loss for the period 12 708 12 708 Other comprehensive income for the year 16 383 16 383 Total comprehensive income for the year 16 383 12 708 29 091 Buy/sell treasury share 1 -9 626 -9 625 Dividend paid to company’s shareholders -25 252 -25 252 Share-based payments 1 444 1 444 Balance at September 30, 2025 166 190 849 -2 192 -5 594 -45 945 137 285
Page 13
13 Q3 Report 2026 Consolidated statement of cash flows Period January 1 - September 30 Third Quarter Year to date (USD 1,000) Q3 2026 Q3 2025 YTD 2026 YTD 2025 Cash flow from operating activities Profit or loss before income tax 7 190 3 284 30 402 16 497 Adjustments for Depreciation, amortization and net impairment losses 1 365 1 415 4 174 3 809 Non-cash - share based payments 886 616 2 382 1 307 Interest income/expenses - net -180 -209 -731 -903 Net exchange differences 952 302 2 297 565 Fair value on Financial Assets at fair value through profit and loss -216 -244 -670 -738 Other adjustments 27 -1 -29 -150 Change in operating assets and liabilities Change in trade, other receivables and other assets 2 519 -201 13 989 15 939 Change in trade, other payables and contract liabilities -2 670 -964 -11 200 -8 127 Interest received 238 301 922 1 151 Income taxes paid/refunded -121 -194 -555 -577 Net cash inflow/outflow from operating activities 9 989 4 103 40 982 28 774 Cash flow from investing activities Payment for property, plant and equipment -86 -73 -627 -267 Payment of software development cost -1 094 -983 -3 223 -2 348 Proceeds from sale of property, plant and equipment 1 1 5 14 Payment for financial assets at fair value through profit or loss* Proceeds from sale of financial assets 4 251 Net cash inflow/outflow from investing activities -1 179 -1 055 407 -2 601 Cash flow from financing activities Dividend paid to company’s shareholder 20 -44 377 -25 252 Proceeds from borrowings -0 9 Repayment of borrowings -0 -175 -6 Principal element of lease payments -390 -451 -1 243 -1 158 Interest paid -57 -93 -191 -262 Proceeds from release of Treasury shares 385 75 Acquisition of treasury shares -4 140 -9 700 Net cash inflow/outflow from financing activities -428 -4 683 -45 601 -36 294 Net increase/(decrease) in cash and cash equivalents 8 382 -1 635 -4 212 -10 121 Cash and cash equivalents start of the period 26 567 32 970 38 105 37 178 Effects of exchange rate changes on cash and cash equivalents -87 -67 969 4 211 Cash and cash equivalents end of the period 34 862 31 268 34 862 31 268
Page 14
14 Q3 Report 2026 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, 2026, authorized for issue by the board of directors on November 4, 2026. 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, 2026, 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 2025. All accounting principles applied in preparing this interim financial statement are consistent with the annual report as of 2025. The Group has not early adopted any new standards, interpretations or amendments issued but not yet effective. Rounding differences may occur. From January 2026, the Group has changed the presentation currency from NOK to USD. An additional ingoing balance has been presented in the balance sheet according to IAS 8. Equity is presented using historical exchange rates. Differences are reported in the Column ‘Translation differences’ in the Equity statement. Note that the Ingoing balances in the Equity statement in USD are unaudited. Note 3 - Revenue and segment information (USD 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 2026 EMEA1) Americas APAC2) Total Pexip as-a-Service 6 456 9 664 940 17 060 Self-hosted Software 6 635 8 281 930 15 846 Total revenue 13 090 17 946 1 870 32 906 Third quarter 2025 EMEA1) Americas APAC2) Total Pexip as-a-Service 6 079 7 294 907 14 279 Self-hosted Software 4 549 6 457 1 058 12 064 Total revenue 10 628 13 751 1 965 26 344
Page 15
15 Q3 Report 2026 Year-to-date 2026 EMEA1) Americas APAC2) Total Pexip as-a-Service 19 096 27 841 2 720 49 657 Self-hosted Software 23 288 28 132 4 824 56 245 Total revenue 42 384 55 973 7 545 105 902 Year-to-date 2025 EMEA1) Americas APAC2) Total Pexip as-a-Service 18 685 20 665 2 760 42 110 Self-hosted Software 19 095 19 214 4 681 42 990 Total revenue 37 780 39 879 7 441 85 100 Third quarter Third quarter Timing of revenue recognition 2026 2025 Products and services transferred at a point in time 12 238 8 722 Products and services transferred over time 20 669 17 622 Total revenue 32 906 26 344 Year to date Year to date Timing of revenue recognition 2026 2025 Products and services transferred at a point in time 44 543 33 104 Products and services transferred over time 61 359 51 996 Total revenue 105 902 85 100 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 on the LTM (Last-Twelve-Month) basis. Of the Group's total channel partner base as of 30 September 2026, the five largest represent approximately 45% (30% in Q3 2025) of total revenue in Q3 2026, and the ten largest represent about 61% (47% in Q3 2025) of total revenue in Q3 2026. Of the Group's total channel partner base as of the end of Q3 2026, the five largest represent approximately 38% of total revenue (31% as of Q3 2025), and the ten largest represent approximately 55% of total revenue (50% as of Q3 2025). Non-current assets The following geographic information of non-current assets is based on the geographic location of the assets. 9/30/2026 9/30/2025 Norway 14 669 15 610 Europe (other than Norway) 14 363 13 408 Americas 12 495 12 611 APAC 3 387 3 087 Total non-current operating assets 44 914 44 715 Non-current assets for this purpose consist of property, plant and equipment, right-of-use assets, other intangible assets and contract costs.
Page 16
16 Q3 Report 2026 Note 4 - Contract Costs (USD 1,000) Note 5 - Treasury Shares The change in contract costs in Q3 mainly relates to changes in additions of million USD -0.5 and changes in foreign currencies in foreign operations. Total commission costs activated in the third quarter in 2026 was 2.0 million USD (2.0 million USD in Q3 2025). Depreciated cost in the quarter was 2.5 compared to 2.5 in Q3 2025, which is mostly reflected in salary and personnel expenses. Contract costs Q3 movements 2026 2025 Balance at July 1 29 851 29 620 Additions 2 016 2 038 Depreciated during the year -2 473 -2 510 Translation differences 148 -33 Balance at September 30 29 542 29 116 Contract costs YTD movements 2026 2025 Balance at January 1 29 945 28 633 Additions 7 375 6 010 Depreciated during the year -7 803 -7 202 Translation differences 25 1 675 Balance at September 30 29 542 29 116 Q3 2026 Q3 2025 Total outstanding shares 104 588 153 104 429 671 Number of Treasury shares 39 242 1 953 472 Total external shares 104 548 911 102 476 199 Q3 2026 YTD 2026 Weighted average number of ordinary external shares 104 442 672 103 680 574 Effect of dilutive potential ordinary shares 2 022 734 2 362 553 Weighted average number of ordinary external shares including dilutions 106 465 406 106 043 127
Page 17
17 Q3 Report 2026 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 delivery of software licenses to customers, either on a termed subscription or as a perpetual license. This also includes maintenance 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 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 costs that are not related to the ordinary business and that are non-recurring costs. Third Quarter 2026 2025 Change Change in % EBITDA 9 689 4 721 4 968 105% Other gains and losses -28 -481 453 -94% Adjusted EBITDA for the quarter 9 717 5 201 4 515 87% Year to date 2026 2025 Change Change in % EBITDA 36 106 20 532 15 574 76% Other gains and losses 495 -324 819 -253% Adjusted EBITDA Year to Date 35 611 20 856 14 755 71%
Page 18
18 Q3 Report 2026 EBITDA- margin EBITDA in percentage of revenue in the same period. Third Quarter 2026 2025 Change Change in % EBITDA 9 689 4 721 4 968 105% Revenue 32 906 26 344 6 563 25% EBITDA Margin 29% 18% 12% 64% Year to date 2026 2025 Change Change in % EBITDA 36 106 20 532 15 574 76% Revenue 105 902 85 100 20 802 24% EBITDA Margin 34% 24% 10% 41% EBITDA margin excl other gains and losses Adjusted EBITDA as a percentage of revenues in the same period. Third Quarter 2026 2025 Change Change in % Adjusted EBITDA 9 717 5 201 4 515 87% Revenue 32 906 26 344 6 563 25% EBITDA margin excl other gains and losses 30% 20% 10% 50% Year to date 2026 2025 Change Change in % Adjusted EBITDA 35 611 20 856 14 755 71% Revenue 105 902 85 100 20 802 24% EBITDA margin excl other gains and losses 34% 25% 9% 37% Gross Profit Revenue less cost of goods sold. Third Quarter 2026 2025 Change Change in % Revenue 32 906 26 344 6 563 25% Cost of Goods sold 4 040 2 715 1 325 49% Gross Profit 28 866 23 629 5 237 22% Year to date 2026 2025 Change Change in % Revenue 105 902 85 100 20 802 24% Cost of Goods sold 10 436 7 147 3 289 46% Gross Profit 95 466 77 953 17 513 22% Gross Margin Gross Profit as a percentage of revenues in the same period. Third Quarter 2026 2025 Change Change in % Gross Profit 28 866 23 629 5 237 22% Revenue 32 906 26 344 6 563 25% Gross Margin 88% 90% -2% -2%
Page 19
19 Q3 Report 2026 Year to date 2026 2025 Change Change in % Gross Profit 95 466 77 953 17 513 22% Revenue 105 902 85 100 20 802 24% Gross Margin 90% 92% -1% -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 are included similar to interest income from cash in bank. The numbers can be derived from the cash flow statement. Third Quarter 2026 2025 Change Change in % Operating cash flow 9 989 4 103 5 886 143% Investing Cash flow -1 179 -1 055 -125 12% Principal element of lease payments -390 -451 61 -13% Fair value adjustment of financial investments at FVTPL 216 244 -28 -12% Net cash investment of Financial investments at FVTPL 0 - 0 0% Proceeds from sale of financial assets at fair value - - - 0% Free cash flow 8 636 2 842 5 794 204% Year to date 2026 2025 Change Change in % Operating cash flow 40 981 28 774 12 207 42% Investing Cash flow 407 -2 601 3 008 -116% Principal element of lease payments -1 243 -1 158 -85 7% Fair value adjustment of financial investments at FVTPL 670 738 -67 -9% Net cash investment of Financial investments at FVTPL - - - 0% Proceeds from sale of financial assets at fair value -4 251 - -4 251 -100% Free cash flow 36 564 25 752 10 812 42% Net debt Net debt consists 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. 2026 2025 Change Change in % Non Current Lease liability 2 102 3 384 -1 282 -38% Non Current Borrowings - 171 -171 -100% Current Lease liabilities 1 501 1 579 -78 -5% Current Borrowings - - - 0% Total interest bearing Liabilities 3 603 5 134 -1 531 -30% Cash in bank 34 862 31 268 3 593 11% Financial Investments 19 025 21 406 -2 381 -11% Net debt -50 284 -47 540 -2 744 6%
Page 20
20 Q3 Report 2026 Lilleakerveien 2A, 0283 Oslo, Norway www.pexip.com