Interim report
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Q3 REPORT 2026
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2 | Q3 Report 2026 THIRD QUARTER HIGHLIGHTS • Revenue of USD 34.3 million, an increase of 80.4% in Q3 2026 vs Q3 2025 • Gross margin of 49.5% (49.5%) • EBITDA of USD 8.1 (2.4) million equivalent to an EBITDA margin of 23.5% (12.6%), driven by strong revenue growth • Operating profit (EBIT) of USD 7.1 (1.6) million, equivalent to an operating margin (EBIT margin) of 20.6% (8.5%) • Operating cash flow of USD 7.6 (-0.4) million • Revenue over the last four quarters exceeded the USD 100 million target set at the listing in 2021 • Broad-based growth with all-time high revenue in all regions • Continued progress in the large account strategy – with growing repeat customers and engagement with even larger players – laying the foundation for the next step towards our new financial aspirations Q3 REPORT 2026 Amounts in USD 1,000 2026 Q3 2025 Q3 Change 2026 9M 2025 9M Change Jul - Sep Jul - Sep Jan - Sep Jan - Sep Total Revenue 34 278 19 000 80.4% 86 053 52 027 65.4% Gross Profit 16 983 9 413 80.4% 41 313 25 279 63.4% Gross margin % 49.5% 49.5% 0.0 p.p 48.0% 48.6% -0.6 p.p EBITDA 8 068 2 389 237.8% 15 212 6 161 146.9% EBITDA % 23.5% 12.6% 11.0 p.p 17.7% 11.8% 5.8 p.p Operating Profit (EBIT) 7 077 1 610 339.6% 12 502 4 030 210.2% Operating Margin % (EBIT margin) 20.6% 8.5% 12.2 p.p 14.5% 7.7% 6.8 p.p Net profit after tax 4 739 1 374 244.8% 7 756 1 879 312.8% Basic earnings per share NOK 0.458 0.139 230.0% 0.752 0.188 299.3% Diluted earnings per share NOK 0.458 0.139 230.0% 0.752 0.188 299.3% Basic earnings per share USD 0.048 0.014 244.8% 0.079 0.019 312.8% Diluted earnings per share USD 0.048 0.014 244.8% 0.079 0.019 312.8% Operating cash flow 7 616 -425 10 706 1 719 Full Time Equivalents (FTEs) 162 134 28 156 132 24
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3 | Q3 Report 2026 GEOGRAPHICAL SPLIT Q3 2026 58.8% 30.8% 10.4% Americas EMEA APAC 19.0 23.2 22.9 28.9 34.3 12.6% 15.3% 11.7% 15.5% 23.5% 0% 10% 20% 30% 40% 50% 0 5 10 15 20 25 30 35 40 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 MUSD Revenue EBITDA margin Q3 REPORT 2026 CONTINUED 70.8% 15.8% 13.5% Solutions Devices Software & Services BUSINESS AREA SPLIT Q3 2026
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4 | Q3 Report 2026 CEO COMMENTS The third quarter was the strongest in Smartoptics’ history. Revenue grew 80 percent to USD 34.3 milli- on, and EBIT grew by 340 percent to USD 7.1 million, equivalent to a margin of 20.6 percent. With revenue of approximately USD 109 million over the last four quarters, we have now passed the USD 100 million target we set when we listed the company in 2021. The growth was broad-based. All three regions delive- red all-time high revenue in the quarter. The Americas grew 86 percent to USD 20.2 million, EMEA grew 72 percent to USD 10.6 million, and APAC grew 75 percent to USD 3.6 million. Importantly this quarter shows that our momentum now extends across all our markets. Across our business areas, Solutions more than dou- bled, with revenue up 123 percent to USD 24.3 million, driven by large account deliveries. Software & Services grew 69 percent to USD 4.6 million, which aligns well with our aspirations. Devices was stable year on year. Profitability improved significantly. Gross margin was 49.5 percent, and EBITDA rose to USD 8.1 million, equivalent to a margin of 23.5 percent compared with 12.6 percent in the same period last year. We see clear evidence of the operating leverage in our model, as revenue grows faster than our cost base while we continue to invest in future growth. Ope- rating cash flow was strong at USD 7.6 million. The market backdrop remains highly supportive. Glo- bal data traffic continues to grow, and the demand for bandwith is broad-based. Investment in AI infra- structure is adding to the demand for optical networ- king. Network operators, enterprises and cloud & AI operators all need more capacity, longer reach and greater automation in their optical networks. Key ap- plications driving growth includes data center inter- connect, network modernization, broadband, financial services and government critical infrastructure. Our large account strategy continues to deliver. Repeat customers have grown significantly, and we are now engaging with even larger players, laying the foundati- on for the next step towards our financial aspirations. What got us here will take us further. We have broade- ned our hardware and software offering and our addres- sable market. We have built stronger processes, our strongest team ever and a wider geographic footprint. And we have preserved the challenger culture that ke- eps us nimble and responsive to our customers’ needs. We are investing in higher capacity, longer reach, agentic AI and software and automation. These in- vestments more than double our addressable market and position us to capture a growing share of it. Our mid-term financial aspirations remain unchan- ged: revenue of USD 300 million to 400 million and beyond, with average annual growth above 25 per- cent from 2026, and an EBIT margin above 16 percent in the second half of the planning period, with upsi- de potential as we scale. Our long-term direction is clear, with a proven playbook, a substantially larger market and strong momentum, we believe Smartop- tics is well positioned for the next phase of growth. For further information, please contact: Magnus Grenfeldt, CEO Phone: +46 733 668 877 E-mail: magnus.grenfeldt@smartoptics.com Stefan Karlsson, CFO Phone: +46 766 344 504 E-mail: stefan.karlsson@smartoptics.com
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5 | Q3 Report 2026 FINANCIAL REVIEW Q3 2026 REVENUE Revenue increased by 80.4% in Q3 2026 to USD 34.3 mil- lion compared to USD 19.0 million in Q3 2025, primarily driven by strong growth in Solutions across all regions and increased Software & Services sales. Revenue in the Americas increased by 86.3% to USD 20.2 (10.8) million. Revenue in EMEA increased by 72.0% to USD 10.6 (6.1) million. In APAC, revenue increased by 74.6% to USD 3.6 (2.0) million. Revenue split by business area for the quarter was Soluti- ons 70.8% (57.3%), Devices 15.8% (28.3%) and Software & Services 13.5% (14.4%). GROSS PROFIT Driven by higher revenue, gross profit increased to USD 17.0 (9.4) million, corresponding to a gross margin of 49.5% (49.5%). OPERATING EXPENSES Employee benefit expenses amounted to USD 6.3 (4.8) million in Q3 2026. The average number of employees (FTE) increased to 162 from 134 in Q3 2025 and from 160 in Q2 2026. The increase in expenses was primarily due to new hires, salary increases and movements in the USD exchange rate. Other operating expenses amounted to USD 2.6 (2.2) mil- lion. The comparative period included USD 0.7 million in costs related to the uplisting to Oslo Børs. EBITDA AND OPERATING PROFIT EBITDA amounted to USD 8.1 (2.4) million in Q3 2026, co- rresponding to an EBITDA margin of 23.5% (12.6%). The improvement compared to last year was driven by higher revenue, supported by a reduced OPEX share of revenue. Operating profit amounted to USD 7.1 (1.6) million, repre- senting an operating margin of 20.6% (8.5%). NET FINANCIAL ITEMS Net financial items amounted to USD -0.9 (0.2) million, including net foreign exchange losses of USD 0.8 million compared to gains of USD 0.2 million in Q3 2025. CASH FLOW Operating cash flow amounted to USD 7.6 (-0.4) million in Q3 2026, supported by strong operating profit. Working capital decreased slightly, while inventories increased to strengthen product availability and support future custo- mer deliveries. Net cash flow for the quarter amounted to USD 5.3 (-1.5) million, after net cash outflows of USD 1.7 million from in- vesting activities and USD 0.6 million from financing activi- ties. The closing cash balance was USD 7.5 million. BORROWINGS The Group fully repaid its remaining loan from Innova- sjon Norge in Q3 2026 and had no outstanding loan bor- rowings at quarter-end. During Q3 2026, the Group increased its credit facility with Nordea from NOK 75 million to NOK 200 million (USD 20.8 million), providing additional financial flexibility to support its long-term growth ambitions. The facility re- mained undrawn as of September 30, 2026 CURRENCY The Group experienced increased foreign exchange vola- tility during the past year. The impact on operating profit was mainly reflected in employee benefit expenses. The Group benefits from a natural hedge, as both revenue and direct cost of sales are largely USD-denominated. However, more than half of employee benefit expenses and other operating expenses are incurred in SEK, expo- sing operating profit primarily to fluctuations in the USD/ SEK exchange rate. OUTLOOK The Group targets revenue of USD 300 million to 400 million and beyond, with an average annual growth rate exceeding 25 percent from 2026. The Group further tar- gets an EBIT margin above 16 percent in the second half of the planning period, with potential for further margin expansion as the business continues to scale. These am- bitions are supported by a larger addressable market, con- tinued market share gains, and disciplined investments in growth. DIVIDEND POLICY When proposing a dividend for a financial year, the Bo- ard of Directors will seek a stable to growing dividend, and consider Smartoptics’ financial position, one-off items, growth trajectory, investment plans, flexibility, financial tar- gets and covenants.
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6 | Q3 Report 2026 FINANCIAL STATEMENTS CONSOLIDATED PROFIT AND LOSS STATEMENT Consolidated statement of profit or loss 2026 Q3 2025 Q3 2026 9M 2025 9M Amounts in USD 1.000 Notes Jul - Sep Jul - Sep Jan - Sep Jan - Sep Revenue from contracts with customers 1,2 34 278 19 000 86 053 52 026 Other operating income - - - 0 Total revenue and other operating income 1,2 34 278 19 000 86 053 52 027 Direct cost of sales - 17 295 - 9 586 - 44 740 - 26 748 Employee benefit expenses - 6 324 - 4 823 - 19 659 - 14 503 Other operating expenses - 2 591 - 2 202 - 6 441 - 4 615 Total operating expenses - 26 210 - 16 611 - 70 840 - 45 865 Depreciation 7 - 762 - 619 - 2 069 - 1 728 Amortization of intangible assets 7 - 228 - 160 - 642 - 403 Total depreciation and amortization 7 - 991 - 778 - 2 710 - 2 132 Operating profit/(loss) 7 077 1 610 12 502 4 030 Financial income 4 54 29 129 163 Financial expenses 4 -186 -59 -783 -173 Net foreign exchange gains (losses) 4 -787 180 -1 581 -1 510 Net financial items 4 -918 150 -2 235 -1 520 Profit/(loss) before income tax 6 159 1 761 10 267 2 509 Income tax -1 420 -386 -2 511 -631 Profit/(loss) for the period 4 739 1 374 7 756 1 879 Earnings per share in USD Basic earnings per share 0.048 0.014 0.079 0.019 Diluted earnings per share 0.048 0.014 0.079 0.019 Weighted average number of shares Basic 98 045 518 98 045 518 98 045 518 98 045 518 Diluted 98 045 518 98 045 518 98 045 518 98 045 518 Consolidated statement of comprehensive income Profit/(loss) for the period 4 739 1 374 7 756 1 879 Other comprehensive income: Items that might be subsequently reclassified to profit or loss: Exchange differences on translation of foreign operations 68 -108 95 -137 Items that are not reclassified to profit or loss: Exchange differences on translation to another presentation currency 761 363 1 681 3 486 Total comprehensive income for the period 5 569 1 629 9 531 5 228 Total comprehensive income is attributable to: Owners of the parent company 5 569 1 629 9 531 5 228
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7 | Q3 Report 2026 CONSOLIDATED STATEMENT OF FINANCIAL POSITION Consolidated statement of financial position 30.09.2026 31.12.2025 30.09.2025 Amounts in USD 1.000 Notes Assets Non-current assets Intangible assets 3,7 3 369 2 852 2 791 Property, plant and equipment 6,7 4 869 3 720 3 626 Right-of-use assets 6 073 621 809 Deferred tax assets 1 991 1 883 1 590 Total non-current assets 16 302 9 076 8 817 Current assets Inventories 22 822 18 668 20 022 Trade receivable 25 641 18 718 19 025 Other current assets 2 380 2 315 1 218 Cash and cash equivalents 7 507 7 337 1 662 Total current assets 58 350 47 039 41 927 Total assets 74 652 56 114 50 744 Equity and liabilities Equity Share capital 204 195 196 Share premium 15 516 14 779 14 914 Other paid in capital - - - Foreign currency translation reserves - 61 -156 156 Retained earnings 17 829 15 446 12 755 Total equity 33 488 30 264 28 022 Non-current liabilities Lease liabilities (non-current portion) 5 364 251 295 Contract liabilities (non-current portion) 2 7 123 5 614 5 360 Borrowings (non-current portion) - - - Total non-current liabilities 12 487 5 865 5 655 Current liabilities Lease liabilities (current portion) 760 411 567 Trade payable 12 288 5 630 6 011 Contract liabilities (current portion) 2 7 106 7 160 5 770 Tax payable 2 104 1 661 627 Public duties payable (VAT, Tax) 2 198 1 006 949 Other current liabilities 4 222 4 116 3 143 Total current liabilities 28 677 19 985 17 067 Total liabilities 41 164 25 850 22 722 Total equity and liabilities 74 652 56 114 50 744
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8 | Q3 Report 2026 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Consolidated statement of changes in equity Share capital Share premium Other paid in capital Translation difference reserves Retained earnings Total equity Amounts in USD 1.000 Balance at 1 January 2025 173 13 121 0 293 14 867 28 454 Profit/(loss) for the period 1 879 1 879 Exchange differences on translation of foreign operation -137 -137 Exchange differences on translation to another presen- tation currency 23 1 793 0 1 669 3 486 Total comprehensive income/(loss) for the period 23 1 793 0 -137 3 548 5 228 Dividend -5 660 -5 660 Balance at 30 September 2025 196 14 914 0 156 12 755 28 022 Balance at 1 January 2026 195 14 779 0 -156 15 446 30 264 Profit/(loss) for the period 7 756 7 756 Exchange differences on translation of foreign operation 95 95 Exchange differences on translation to another presen- tation currency 10 737 0 934 1 681 Total comprehensive income/(loss) for the period 10 737 0 95 8 690 9 531 Dividend -6 307 -6 307 Balance at 30 September 2026 204 15 516 0 -61 17 829 33 488 *The currency translation differences arising from the translation to the presentation currency is not included as a translation differences reserves, but presented as part of the different categories of the equity. These translation differences cannot be recycled through profit and loss.
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9 | Q3 Report 2026 CONSOLIDATED CASH FLOW STATEMENT Consolidated cash flow statement 2026 Q3 2025 Q3 2026 9M 2025 9M Amounts in USD 1.000 Notes Jul - Sep Jul - Sep Jan - Sep Jan - Sep Cash flows from operating activities Profit/(loss) before income tax 6 159 1 761 10 267 2 509 Adjustments for: - - - - Taxes paid -877 -162 -1 795 -1 140 Depreciation and amortization 7 991 778 2 710 2 132 Net interest expense 128 30 144 10 Change in inventory -1 496 -3 248 -4 154 -7 411 Change in trade receivable 755 798 -6 923 839 Change in contract liabilities (deferred revenue) 948 448 1 454 2 160 Change in trade payable -370 -1 697 6 658 963 Change in other current assets and other liabilities 5 1 324 838 2 215 1 492 Interest received 54 29 129 163 Net cash from operating activities 7 616 -425 10 706 1 719 Cash flows from investing activities Payment for property, plant and equipment -1 388 -484 -2 877 -1 246 Payment for development cost 3 -283 -193 -861 -654 Payment for other intangible assets -78 -32 -78 -330 Net cash from investing activities -1 749 -707 -3 817 -2 228 Cash flows from financing activities Dividend paid out - - -6 307 -5 660 Repayment of borrowing -67 -39 -529 -314 Paid interest -182 -59 -273 -173 Repayments of lease liabilities -337 -237 -800 -691 Net cash from financing activities -586 -336 -7 909 -6 838 Net increase/(decrease) in cash and cash equivalents 5 281 -1 467 -1 021 -7 347 Cash and cash equivalents beginning of period 2 140 3 064 7 337 7 972 Effects of exchange rate changes on cash and cash equivalents 84 62 1 189 1 033 Cash and cash equivalents end of period 7 506 1 659 7 506 1 659
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10 | Q3 Report 2026 TABLE OF THE 20 LARGEST SHAREHOLDERS AS OF 30TH SEPTEMBER 2026 # Shareholders Holding Stake 1 Coretech AS 28 883 599 29.46 % 2 Kløvingen AS 14 750 429 15.04 % 3 K-Spar Industrier AS 4 600 000 4.69 % 4 DNB Asset Management 4 479 882 4.57 % 5 Janus Henderson Investors 3 556 950 3.63 % 6 Nordnet Bank AB 3 432 444 3.50 % 7 Handelsbanken Fonder 3 130 375 3.19 % 8 Avanza Bank AB 2 656 660 2.71 % 9 Altitude Capital AS 2 375 675 2.42 % 10 Mirabaud Asset Management 2 182 115 2.23 % 11 Toluma Norden AS 1 391 659 1.42 % 12 Schroders 1 300 000 1.33 % 13 Magnus Grenfeldt 1 257 489 1.28 % 14 Varner AS 963 391 0.98 % 15 AS Straen 963 391 0.98 % 16 Danske Invest 814 614 0.83 % 17 Fidelity Investments (FMR) 798 694 0.81 % 18 John Even Øveraasen 750 000 0.76 % 19 Anchora Capital AS 656 000 0.67 % 20 Folketrygdefondet 655 996 0.67 % Other 18 446 155 18.81 % Total number of shares 98 045 518 100.00 % SHARE INFORMATION
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11 | Q3 Report 2026 NOTES GENERAL These interim condensed consolidated financial state- ments for the period ended 30 September 2026, have been prepared in accordance with IAS 34 Interim Finan- cial Reporting and are unaudited. The interim conden- sed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements for 2025, prepared in accordance with International Financial Re- porting Standards (IFRS). The same accounting prin- ciples and methods of calculation have been applied as in the financial statements for 2025 for the Group. Smartoptics Group ASA’s consolidated financial state- ments as at 31 December 2025 were approved at the Bo- ard of Directors’ meeting on 9 April 2026. The Group’s condensed consolidated financial statements as at 30 September 2026 were approved at the Board of Dire- ctors’ meeting on 28 October 2026. EXCHANGE RATES The interim financial statements are consolidated in NOK and translated to the presentation currency USD. For the Profit and Loss statement the monthly average exchange rate published by Norges Bank is used. For the balance sheet, the monthly ending exchange rate is used. NOTE 1 - REVENUE SPLIT Revenue split by geography Q3 2026 Q3 2025 Amounts in USD 1,000 Americas 20 151 10 818 EMEA 10 559 6 138 APAC 3 568 2 044 Total 34 278 19 000 Revenue split by Business Area Q3 2026 Q3 2025 Amounts in USD 1,000 Solutions 24 252 10 891 Devices 5 406 5 382 Software & Services 4 620 2 727 Total 34 278 19 000 NOTE 2 - DEFERRED REVENUE Service revenues are invoiced in advance and covers a contract period of typically 3 months to 6 years. The service revenue is recognized during the contract period. “Current Deferred Revenue” will be recognized within the next 12 months. Deferred Revenue 30 Sep 2026 30 Sep 2025 Amounts in USD 1,000 Contract Liabili- ties (Current) 7 106 5 770 Contract Liabilities (Non-current) 7 123 5 360 Total Contract Liabilities 14 229 11 130 NOTE 3 – RESEARCH AND DEVELOPMENT Expenditures on development activities are capitalized if certain conditions are fulfilled. Capitalized development includes costs directly attributable to development of the intangible asset, such as personnel expenses and consul- tancy services. Otherwise, such expenses are expensed as and when incurred. The intangible assets are amorti- zed over 5 years. Smartoptics has been approved government grants for one development project during 2026. The grant is recog- nized in the Profit and Loss statement as a reduction of payroll cost or as a reduction of capitalized development cost depending on the underlying accounting treatment of the cost that the grant is intended to cover. NOTE 4 – FINANCIAL ITEMS Currency effects come from the cash position, which is made of NOK, SEK and USD, Trade Receivables and Trade Payable which is predominantly in USD. NOTE 5 – OTHER WORKING CAPITAL CHANGES Other working capital changes relates to pre-pay- ments of certain components, inventory and pay-out of variable compensation related to Q2 2026.
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12 | Q3 Report 2026 NOTE 6 – PROPERTY, PLANT AND EQUIPMENT SPLIT Property, plant and equipment 30 Sep 2026 30 Sep 2025 Change Amounts in USD 1,000 R&D equipment 3 037 2 146 892 Production equipment 509 224 285 Office & warehouse fur- niture and fixtures 910 458 452 Demo pool equipment 413 799 -386 Total 4 869 3 626 1 243 NOTE 7 – DEPRECIATION AND AMORTIZATION SPLIT Fixed assets are depreciated over a period of 3 to 5 years. There is no goodwill in the group. Depreciation and amortization Q3 2026 Q3 2025 Amounts in USD 1,000 Property, plant and equipment 489 410 Product development and intangible assets 228 160 Right of use assets / leasing 273 209 Total 991 778
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13 | Q3 Report 2026 ALTERNATE PERFORMANCE MEASURES (APM’S) Amounts in USD 1,000 2026 Q3 2025 Q3 2026 9M 2025 9M Total revenue and other operating income 34 278 19 000 86 053 52 027 Gross profit 16 983 9 413 41 313 25 279 Gross margin 49.5 % 49.5 % 48.0 % 48.6 % GROSS MARGIN Gross profit divided by total revenue and other operating income Amounts in USD 1,000 2026 Q3 2025 Q3 2026 9M 2025 9M Operating profit/(loss) 7 077 1 610 12 502 4 030 Total depreciation and amortization 991 778 2 710 2 132 EBITDA 8 068 2 389 15 212 6 161 EBITDA Operating profit/(loss) adjusted for total depreciation and amortization Amounts in USD 1,000 2026 Q3 2025 Q3 2026 9M 2025 9M EBITDA 8 068 2 389 15 212 6 161 Total revenue and other operating income 34 278 19 000 86 053 52 027 EBITDA margin 23.5 % 12.6 % 17.7 % 11.8 % EBITDA MARGIN EBITDA divided by total revenue and other operating income Amounts in USD 1,000 2026 Q3 2025 Q3 2026 9M 2025 9M Total revenue and other operating income 34 278 19 000 86 053 52 027 Direct cost of sales 17 295 9 586 44 740 26 748 Gross profit 16 983 9 413 41 313 25 279 GROSS PROFIT Total revenue and other operating income deducted with direct cost of sales
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Smartoptics Group ASA Akersgata 32 NO-0180 Oslo, Norway www.smartoptics.com