Interim report
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WITCHSPIRE ENVAR Interim report Second quarter 2026 Envar Holding AB
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 2 Financial highlights | Q2 2026 *A 20,000:1 share split and a quota value issue of 2,500,000 shares were registered in the fourth quarter of 2024. For definitions of key performance indicators go to page 22 in the report. 27 248 20 905 25 760 53 672 6 033 -323 3 344 19 344 -10 000 0 10 000 20 000 30 000 40 000 50 000 60 000 Q3 2025 Q4 2025 Q1 2026 Q2 2026 SEK Thousand Net sales & EBIT Net Sales Operating profit (EBIT) Trend net sales Trend EBIT FINANCIAL OVERVIEW SEK thousand Q2 2026 Q1 2026 Q4 2025 Q3 2025 Q2 2025 Net sales 53,672 25,760 20,905 27,248 24,368 EBITDA 20,993 3,535 -74 6,240 6,222 EBITDA margin (%) 39.11 13.72 -0.35 22.90 25.53 Operating profit (EBIT) 19,344 3,344 -323 6,033 6,045 EBIT margin (%) 36.04 12.98 -1.55 22.14 24.81 Sales growth (%) 120.26 13.60 -11.75 22.78 50.75 Equity ratio (%) 77.38 81.64 83.42 83.32 83.19 Earnings per share, basic (SEK) 1.19 0.23 -0.04 0.37 0.38 Earnings per share, diluted (SEK) 1.14 0.22 -0.03 0.35 0.37 Average number of shares, basic* 12,500,000 12,500,000 12,500,000 12,500,000 12,500,000 Average number of shares, diluted* 13,014,780 13,014,780 13,014,780 13,014,780 13,014,780 Number of shares at balance sheet date* 12,500,000 12,500,000 12,500,000 12,500,000 12,500,000
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 3 Interim report Second quarter │April – June Accumulated │January – June ● Net sales amounted to SEK 53,672 thousand (24,368), of which SEK 16,760 thousand (0) relates to revenue from game sales, representing a total increase in revenue of 120.26% compared with the same period last year. ● Net sales amounted to SEK 79,432 thousand (47,044), of which SEK 16,760 thousand (0) relates to revenue from game sales, representing a total increase in revenue of 68.85% compared with the same period last year. ● Operating profit before depreciation (EBITDA) totaled SEK 20,993 thousand (6,222), representing an operating margin of 39.11 percent (25,53) before depreciation. ● Operating profit (EBIT) totaled SEK 19,344 thousand (6,045) representing an operating margin of 36,04 percent (24.81). ● Earnings per share, basic, amounted to SEK 1.19 (0.38). ● Cash and cash equivalents totaled SEK 39,528 thousand (54,324). Cash flow from operating activities amounted to SEK 10,503 thousand (7,475). ● Net cash totaled SEK 39,528 thousand. The Company has no interest-bearing liabilities. (Figures for comparison in parentheses refer to the corresponding period of the previous year). ● Operating profit before depreciation (EBITDA) totaled SEK 24,529 thousand (11,283), representing an operating margin of 30.88 percent (23.98) before depreciation. ● Operating profit (EBIT) totaled SEK 22,688 thousand (10,928), representing an operating margin of 28.56 percent (23.23). ● Earnings per share, basic, amounted to SEK 1.42 (0.65). ● Cash and cash equivalents totaled SEK 39,528 thousand (54,324). Cash flow from operating activities amounted to SEK 6,244 thousand (2,922). ● Net cash totaled SEK 39,528 thousand. The Company has no interest-bearing liabilities. Comments on the second quarter of 2026 During the second quarter of the year, Envar continued to deliver very strong sales. Compared with the same period in the previous year, net sales increased by SEK 29,304 thousand to SEK 53,672 thousand, corresponding to an increase of 120.26%. Operating profit amounted to SEK 19,344 thousand for the quarter, an increase of SEK 13,299 thousand, corresponding to an increase of 220.00%. The strong increase in sales and earnings during the second quarter of 2026 was generated by the business areas outsourcing and game development. Within Entertainment, which represents Envar’s consulting operations, customer relationships have deepened and customers have continued to demonstrate a greater need for high-quality consulting services, which has generated increased sales. Envar Games launched the game Witchspire in Early Access on 10 June, and during the first 20 sales days, which fall within the Q2 reporting period, the business area contributed with approximately SEK 6,370 thousand to EBIT for the period. Net sales for the quarter amounted to SEK 53,672 thousand (24,368), of which SEK 16,760 thousand (0) relates to revenue from game sales. Operating profit (EBIT) amounted to SEK 19,344 thousand (6,045), corresponding to an EBIT margin of 36.04% (24.81%).
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 4 COMMENT FROM THE CEO As I now summarise the second quarter of the 2026 financial year, I can conclude that Envar continues to develop strongly, both financially and organisationally. During the first half of the year, our focus has been on what became a successful launch of Witchspire, as well as on shaping the newly established business area Envar Publishing and the start-up of Envar Blue. The second quarter of the year was the financially strongest quarter in Envar’s history, with net sales amounting to SEK 53,672 thousand (24,368), of which SEK 16,760 thousand (0) related to revenue from game sales. Operating profit (EBIT) amounted to SEK 19,344 thousand (6,045), corresponding to an operating margin of 36.04% (24.81%). Compared with Q2 2025, revenue increased by 120.26% and operating profit by 220%. Envar Entertainment During the year, we have seen continued change in the gaming industry, particularly in the United States, where many companies have reduced their staffing levels. The focus is increasingly on cost efficiency and measurable results, which has increased demand for flexible consulting solutions rather than permanent employment. This development strengthens Envar’s position and confirms the value of our business model, and it is also a development that has been in line with our expectations. At the same time, our Entertainment business area delivered record revenue during the second quarter, even excluding revenue from Witchspire. Deeper collaborations with our customers are a clear sign that the business has entered a new phase of growth. To meet the increased demand and create the conditions for continued expansion, we have strengthened the organisation with an additional recruiter and a business developer. We also continue to be active at relevant gaming fairs and industry events, where we build relationships, follow market developments and create new business opportunities. Envar Games One of the most important focus areas during the first half of the year has been to create the very best gaming experiences in Witchspire, which was released on Steam on 10 June. The successful launch demonstrates that Envar is not only a strong consulting company, but that we also have the ability to develop and launch our own attractive, high-quality games. Many consulting companies have tried over the years to take the step into game development, but few have succeeded. I am convinced that our success is based on having focused on the right things from the start: building the right team, creating clear processes and maintaining an uncompromising focus on quality and the player experience. At the same time, we are looking ahead. Our primary focus is now to take Witchspire all the way to version 1.0, while laying the foundation for the development of our next AA title. In parallel, we are evaluating various alternatives for what will become Envar’s next major game project, with the ambition of continuing to build a long-term sustainable game portfolio. To create a more even pace in our game releases without compromising on quality, we have taken important strategic initiatives during the year. The launch of Envar Publishing and the Envar Blue initiative are two
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 5 central parts of this strategy. Through Envar Blue, a business branch within Games, we will launch a smaller indie title in 2027. For us, an indie title is not about lower quality, but about a more cost- efficient development model that enables us to reach a broader audience while also expanding our game portfolio. The successful launch of Witchspire has also opened new doors. We have noticed growing interest from entertainment giants in opportunities to develop games based on well-known brands and IPs. This is a testament to the trust we have built and to opportunities that may further strengthen Envar’s position in the coming years. Envar Publishing During Q2, the establishment of Envar Publishing was announced through a press release. This is a business area in which we act as a full-service publishing and development partner, supporting game projects at every stage of development. Envar Publishing has already received more than one hundred game pitches from developers around the world - something that clearly demonstrates the strong interest in the opportunity to collaborate with Envar. Our ambition is not to publish many games - but the right games. When we find projects with a clear vision, high quality and a team that shares our values, we will invest and contribute the experience and resources required to give players new and memorable experiences. Yours sincerely, Atey Ghailan CEO Envar Holding AB
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 6 About Envar Holding Envar Holding is an outsourcing and development studio focusing on graphic design, 3D graphics, animations and illustrations mainly on behalf of world-leading game development companies and other companies active in the entertainment industry. The Company has established itself as a provider of graphics and development services to some of the biggest brands in the gaming industry, incl uding companies such as Riot Games, Netflix, EA Games, Nickelodeon, NetEase, Blizzard, 2K, Hasbro, Sony, Tencent and EPIC Games. Envar Holding today consists of two wholly -owned subsidiaries: Envar Entertainment AB and Envar Games AB. Historically, Envar Entertainment has constituted the main business but at the end of 2022 the Company established Envar Games for in- house game development and IP ownership. Envar Entertainment Envar Entertainment is a leading player in outsourcing and co-development in the gaming and entertainment industry. Through its expertise, wide-ranging services and high quality, the Company has established strong relationships with several of the largest players in the market, including industry giants such as Riot Games, Tencent and Blizzard. The size of the team varies, depending on the nature of client assignments, and consists of mainly freelancers in more than 20 countries. Envar Games Envar Games is the Group’s game development studio and is responsible for the development of Envar’s self-produced games. The business combines creative excellence, technical expertise and experience from international game productions to create engaging gaming experiences with high visual quality. The studio’s first internally developed title, Witchspire, was launched in June 2026. Publishing Envar Publishing will operate as a full-service publishing and development partner, supporting game projects at every stage of development. This may include technical support in the development of the game’s systems, mechanics and performance, as well as graphics, branding and marketing resources ahead of launch.
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 7 History 2020 Envar Entertainment is founded by Atey Ghailan in Stockholm 2021 Revenue: SEK 20,225 thousand EBIT: SEK 10,435 thousand 2022 Number of co-workers reaches 60 Atey Ghailan establishes game development activities Revenue: SEK 54,944 thousand EBIT: SEK 20,689 thousand 2023 Envar Games is established to separate the Group's two business areas Investment in game development increased via cash flows from Envar Entertainment Revenue: SEK 75,214 thousand EBIT: SEK 2,030 thousand 2024 130 co-workers in more than 20 countries Listed on Nasdaq First North Growth Market Revenue: SEK 87,204 thousand EBIT: SEK 13,340 thousand 2025 160 co-workers in more than 20 countries Envar Games announces its debut title Witchspire, bringing a world of magic to the survival-crafting adventure genre. Revenue: SEK 95 197 thousand EBIT: SEK 16,638 thousand
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 8 SIGNIFICANT EVENTS DURING THE QUARTER In April, Envar Games announced in a press release that Witchspire had more than 300,000 wishlists on Steam. In In May, it was announced in a press release that Envar is strengthening its position in the gaming industry by launching Envar Publishing, a new business area in which Envar acts as an active publishing and development partner for smaller games under development. In June, Envar Games launched its first internally developed game title, Withspire, in Early Access on Steam. In June, it was announced that Witchspire had surpassed 100,000 copies sold one week after launch, marking a commercially strong start for Envar Games’ first internally developed title. SIGNIFICANT EVENTS AFTER THE QUARTER In July, Envar Holding announced a positive profit warning due to a significant increase in operating profit (EBIT) in Q2. MATERIAL RISKS AND UNCERTAINTIES Envar Holding AB's operations and performance are affected by a number of external and internal factors. Management works continuously to identify risks and assess how each risk should be managed. Risks may be categorized as financial, market and operational risks. The risks identified include the Group’s dependence on certain key customers and the need to attract the right talent to maintain the company’s growth and profitability. In the game development industry, where Envar operates, there is a risk that the market will not receive the company’s game developments as expected. At present, the risks are considered limited, but company management continuously monitors market developments. When long-term customer contracts are signed, there is a potential risk that projected direct costs may become higher than expected. Careful project monitoring helps minimize these risks. The Group invoices customers primarily in USD, while part of the cost base is in SEK, which exposes the Group to currency risk that may affect profit and cash flow.
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 9 EMPLOYEES AND ORGANIZATION At the end of the period, the Group had 32 employees. The Company also engages external consultants for individual projects. Number of employees at the end of the period Total, Group Number of employees Q2 2026 40 Number of employees Q2 2025 32 Number of consultants Q2 2026 142 Number of consultants Q2 2025 155 NUMBER OF SHARES At the end of the period the Company has 12,500,000 (12,500,000) shares in issue. The average number of shares is shown below. Q1 Q1 FULL YEAR 2026 2025 2025 Average number of shares, basic 12,500,000 12,500,000 12,500,000 Average number of shares, diluted 13,014,780 13,014,780 13,014,780 FINANCIAL POSITION│GROUP SALES, EXPENSES AND OPERATING PROFIT SECOND QUARTER │APRIL - JUNE Net sales totaled SEK 53,672 thousand (24,368), representing growth of 120,26 percent compared with the same period last year. Research and development expenses during the period totaled SEK 5,913 thousand (5,913). Game development costs are capitalized on an ongoing basis over the quarter. The costs capitalized are those linked to direct salary and consultancy fees for the in-house developed game. Following the launch of the game on 10 June 2026, the Company amortizes the internally generated asset over an estimated useful life of three years. Operating profit (EBIT) totaled SEK 19,344 thousand (6,045). Operating profit increased by SEK 13,299 thousand, compared to the same period last year. The strong increase in sales and earnings during the second quarter of 2026 was generated by the business areas Outsourcing and Games. Within Entertainment, which represents Envar’s consulting operations, customer relationships have deepened and customers have continued to demonstrate a greater need for high-quality consulting services, which has generated increased sales. Envar Games launched the game Witchspire in Early Access on 10 June, and during the first 20 sales days, which fall within the Q2 reporting period, the business area contributed with approximately SEK 6,370 thousand to EBIT for the period.
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 10 ACCUMULATED│JANUARY – JUNE Net sales totaled SEK 79,432 thousand (47,044), representing growth of 68,85 percent compared with the same period last year. Research and development expenses during the period totaled SEK 14,631 thousand (8,381). Game development costs are capitalized on an ongoing basis over the quarter. The costs capitalized are those linked to direct salary and consultancy fees for the in-house developed game. Following the launch of the game on 10 June 2026, the Company amortizes the internally generated asset over an estimated useful life of three years. Operating profit (EBIT) totaled SEK 22,688 thousand (10,928). Operating profit increased by SEK 11,760 thousand, compared to the same period last year. The main reason for the significant improvement in profitability is substantially higher net sales compared with the same period in the previous year, partly related to the Group’s launch of the game Witchspire and expanded collaborations with customers. Profitability has also continued to improve due to sales of the game Witchspire, which contributed approximately SEK 6,370 thousand to EBIT for the period. Only 20 sales days for Witchspire fall within the reporting period. CASH FLOW, INVESTMENTS AND FINANCIAL POSITION SECOND QUARTER│APRIL - JUNE Cash flow from operating activities during the quarter totaled SEK 10,503 thousand (7,475). The significant change in current receivables in cash flow from operating activities is explained by deferred payments from third-party providers relating to game sales. The Company's cash and cash equivalents totaled SEK 39,528 thousand (54,324). During the quarter, investments affected cash flow in the amount of SEK -7,656 thousand (-6,039). These investments consisted for the most part of capitalization of costs incurred in in-house game development. Cash flow from financing activities was SEK -2 thousand (0). ACCUMULATED│JANUARY – JUNE Cash flow from operating activities during the quarter totaled SEK 6,244 thousand (2,922). The significant change in current receivables in cash flow from operating activities is explained by deferred payments from third-party providers relating to game sales. The Company's cash and cash equivalents totaled SEK 39,528 thousand (54,324). During the period, investments affected cash flow in the amount of SEK -15,422 thousand (-8,901). These investments consisted for the most part of capitalization of costs incurred in in-house game development. Cash flow from financing activities was SEK -2 thousand (0).
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 11 CONSOLIDATED INCOME STATEMENT SEK thousand NOTE APR 2026- APR 2025- JAN 2026- JAN 2025- FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2025 Net sales 8 53,672 24,368 79,432 47,044 95,197 Research and development expenses 7,322 5,913 14,631 8,381 21,126 Other operating income 2,761 2,184 5,309 4,413 9,050 Total revenue 63,755 32,465 99,372 59,838 125,373 Operating expenses Raw materials and consumables -24,101 -13,229 -38,798 -23,598 -52,785 Other external costs -8,497 -5,276 -15,988 -10,112 -23,119 Personnel costs -9,420 -7,359 -18,765 -13,635 -29,710 Depreciation and amortization -1,649 -177 -1,841 -355 -811 Other operating expenses -744 -377 -1,292 -1,209 -2,310 Operating profit/loss 19 344 6,045 22,688 10,928 16,638 Net financial items Financial income 9 39 228 1,268 229 893 Financial expenses 10 -633 -211 -1,538 -1,091 -2,152 Profit/loss after financial items 18,750 6,063 22,418 10,066 15,379 Tax on profit for the period 11 -3,883 -1,267 -4,656 -1,991 -3,132 Profit/loss for the period 14,867 4,796 17,762 8,075 12,247 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME SEK thousand NOTE APR 2026- APR 2025- JAN 2026- JAN 2025- FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2024 Profit/loss for the period 14,867 4,796 17,762 8,075 12,247 Profit/loss for the period 14,867 4,796 17,762 8,075 12,247
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 12 CONSOLIDATED BALANCE SHEET SEK thousand NOTE 30/06/2026 30/06/2025 31/12/2025 ASSETS Non-current assets Intangible non-current assets 2 51,592 25,621 38,365 Property, plant and equipment 3 3,093 1,780 2,738 Financial non-current assets 4 2,000 2,000 2,000 Total non-current assets 56,685 29,401 43,103 Current assets Trade receivables 5,830 4,294 8,692 Current tax assets - - - Other receivables 472 132 356 Revenue earned but not invoiced 31,417 10,631 1,403 Prepaid expenses and accrued income 5,060 4,129 5,103 Total current assets 42,779 19,186 15,554 Cash and cash equivalents 39,528 54,324 48,960 TOTAL ASSETS 138,992 102,911 107,617 EQUITY AND LIABILITIES Equity 107,549 85,616 89,789 Non-current liabilities Deferred tax liability 6 1,590 1,590 1,590 Other liabilities 7 1,198 1,198 1,198 Total non-current liabilities 2,788 2,788 2,788 Current liabilities Accounts payable 7,681 5,584 4,452 Current tax liabilities 6,300 3,582 3,835 Other liabilities 2,583 1,471 1,852 Accrued expenses and prepaid income 12,091 3,870 4,901 Current liabilities 28,655 14,507 15,040 TOTAL EQUITY AND LIABILITIES 138,992 102,911 107,617
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 13 KEY PERFORMANCE INDICATORS – GROUP SEK thousand APR 2026- APR 2025- JAN 2026- JAN 2025- FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2025 Net sales 53,672 24,368 79,432 47,044 95,197 EBITDA 20,993 6,222 24,529 11,283 17,449 EBITDA margin (%) 39.11 25.53 30.88 23.98 18.33 Operating profit (EBIT) 19,344 6,045 22,688 10,928 16.638 EBIT margin (%) 36.04 24.81 28.56 23.23 17.48 Sales growth (%) 120.26 50.75 68.85 72.77 12.06 Equity ratio (%) 77.38 83.19 77.38 83.19 83.43 Earnings per share, basic (SEK) 1.19 0.38 1.42 0.65 0.98 Earnings per share, diluted (SEK) 1.14 0.37 1.36 0.62 0.94 Average number of shares, basic* 12,500,000 12,500,000 12,500,000 12,500,000 12,500,000 Average number of shares, diluted* 13,014,780 13,014,780 13,014,780 13,014,780 13,014,780 Number of shares at balance sheet date* 12,500,000 12,500,000 12,500,000 12,500,000 12,500,000 *For definitions of key performance indicators go to page 22 in the report. STATEMENT OF CHANGES IN CONSOLIDATED EQUITY SEK thousand Share capital Other contributed capital Retained earnings incl. profit/loss for the year* Equity attributable to shareholders in Parent Company Total Equity Opening Equity 01/04/2025 625 44,692 35,503 80,821 80,821 Profit/loss for the period 4,796 4,796 4,796 Equity 30/06/2025 625 44,692 40,299 85,616 85,616 Opening Equity 01/01/2025 625 44,692 32,225 77,542 77,542 Profit/loss for the period 8,075 8,075 8,075 Equity 30/06/2025 625 44,692 40,299 85,616 85,616 Opening Equity 01/01/2025 625 44,692 32,225 77,542 77,542 Profit/loss for the period 12,247 12,247 12,247 Equity 31/12/2025 625 44,692 44,472 89,789 89,789 Opening Equity 01/04/2026 625 44,692 47,367 92,684 92,684 Repurchase of warrants -2 -2 -2 Profit/loss for the period 14,867 14,867 14,867 Equity 30/06/2026 625 44,690 62,234 107 549 107,549 Opening Equity 01/01/2026 625 44,692 44,472 89,789 89,789 Repurchase of warrants -2 -2 -2 Profit/loss for the period 17,762 17,762 17,762 Equity 30/06/2026 625 44,690 62,234 107,549 107,549 * Retained profit includes ongoing allocations to the development reserve representing the entry for capitalized work for own account under intangible non-current assets on the balance sheet.
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 14 CONSOLIDATED STATEMENT OF CASH FLOWS SEK thousand APR 2026– APR 2025– JAN 2026– JAN 2025– FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2025 Operating activities Operating profit/loss 19,344 6,045 22,688 10,928 16,638 Adjustments for non-cash items 1,649 -64 1,570 506 1,087 Interest received 39 229 1,268 229 893 Interest paid -79 186 -1,286 -12 -270 Income tax paid -503 -86 -2,192 -111 -998 Cash flow from operating activities before changes in working capital 20 450 6,310 22,048 11,540 17,350 Change in trade receivables 2,214 685 2,811 2,584 -2,253 Change in current trade receivables -19,375 -1,479 -30,087 -9,792 -1,762 Change in trade payables 564 1,302 3,551 -2,012 -2,830 Change in current liabilities 6,650 657 7,921 602 2,014 Cash flow from operating activities 10,503 7,475 6,244 2,922 12,519 Investing activities Acquisitions of intangible non-current assets -7,321 -5,913 -14,631 -8,381 -21,126 Acquisitions of property, plant and equipment -335 -126 -791 -520 -1,934 Cash flow from investing activities -7,656 -6,039 -15,422 -8,901 -23,060 Financing activities New share issue during the year - – - - - Repayment of warrants -2 - -2 - - Loans raised - – - - - Cash flow from financing activities -2 - -2 - - CASH FLOW FOR THE PERIOD 2,844 1,436 -9,180 -5,979 -10,541 Cash and cash equivalents at the beginning of the period 37,238 53,285 48,960 61,383 61,383 Exchange rate difference in cash and cash equivalents -554 -397 -251 -1,080 -1,882 Cash and cash equivalents at the end of the period 39,528 54,324 39,528 54,324 48,960
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 15 PARENT COMPANY INCOME STATEMENT SEK thousand NOTE APR 2026– APR 2025– JAN 2026– JAN 2025– FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2025 Net sales 8 - - - - - Other operating income - - - - - Total revenue - - - - - Operating expenses Other external costs -329 -468 -690 -525 -1,025 Other operating expenses - - - - - Operating profit/loss -329 -468 -690 -525 -1,025 Net financial items Interest income and similar items 8 - 228 22 228 633 Interest expense and similar items 9 - 186 - - -0 Profit/loss after financial items -329 -54 -668 -297 -392 Group contribution - - - - 392 Tax on profit for the period 10 - - - - - Profit/loss for the period -329 -54 -668 -297 0 PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME SEK thousand NOTE APR 2026– APR 2025– JAN 2026– JAN 2025– FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2025 Profit/loss for the period -329 -54 -668 -297 0 Profit/loss for the period -329 -54 -668 -297 0
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 16 PARENT COMPANY BALANCE SHEET SEK thousand NOTE 30/06/2026 30/06/2025 31/12/2025 ASSETS Financial non-current assets Shares in Group companies 5 3,493 3,493 3,493 Total non-current assets 3,493 3,493 3,493 Current assets Receivables from Group companies 39,413 11,800 23,587 Other receivables - - - Prepaid expenses and accrued income 202 158 455 Total current assets 39,615 11,957 24,042 Cash and cash equivalents 10,001 38,026 26,241 TOTAL ASSETS 53,110 53,477 53,776 EQUITY AND LIABILITIES Equity 53,103 53,477 53,773 Current liabilities Accounts payable - 1 - Other liabilities - - 3 Accrued expenses and prepaid income 7 - - Current liabilities 7 1 3 TOTAL EQUITY AND LIABILITIES 53,110 53,477 53,776
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 17 STATEMENT OF CHANGES IN EQUITY IN PARENT COMPANY SEK thousand Share capital Other contributed capital Retained earnings incl. profit for the year Equity attributable to shareholders in Parent Company Total Equity Opening Equity 01/04/2025 625 44,692 8,213 53,530 53,530 Profit/loss for the period -54 -54 -54 Equity 30/06/2025 625 44,692 8,159 53,476 53,476 Opening Equity 01/01/2025 625 44,692 8,456 53,773 53,773 Profit/loss for the period -297 -297 -297 Equity 30/06/2025 625 44,692 8,159 53,476 53,476 Opening Equity 01/01/2025 625 44,692 8,456 53,773 53,773 Profit/loss for the period 0 0 0 Equity 31/12/2025 625 44,692 8,456 53,773 53,773 Opening Equity 01/04/2026 625 44,692 8,117 53,434 53,434 Repurchase of warrants -2 -2 -2 Profit/loss for the period -329 -329 -329 Equity 30/06/2026 625 44,690 7,788 53,103 53,103 Opening Equity 01/01/2026 625 44,692 8,456 53,773 53,773 Repurchase of warrants -2 -2 -2 Profit/loss for the period -668 -668 -668 Equity 30/06/2026 625 44,690 7,788 53,103 53,103
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 18 PARENT COMPANY STATEMENT OF CASH FLOWS SEK thousand APR 2026- APR 2025- JAN 2026– JAN 2025– FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2025 Operating activities Operating profit/loss -329 -468 -690 -525 -1 025 Adjustments for non-cash items - - - - - Interest received - 228 22 228 632 Interest paid - 186 - -0 -0 Cash flow from operating activities before changes in working capital - -54 -668 -297 -393 Change in current trade receivables -6,931 -4,266 -15,574 -6,715 -18,406 Change in trade payables - - - -1,852 -1,853 Change in current liabilities - - 4 - 3 Cash flow from operating activities -7,260 -4,320 -16,238 -8,864 -20,649 Investing activities Acquisitions of Group companies - - - – - Cash flow from investing activities - - - – - Financing activities New share issue - - - - - Repayment of warrants -2 - -2 - - Group contribution - - - - - Loans raised by Group companies - - - - - Repayment of loans to Group companies - - - - - Cash flow from financing activities -2 - -2 - – CASH FLOW FOR THE PERIOD -7,262 -4,320 -16,240 -8,864 -20,649 Cash and cash equivalents at the beginning of the period 17,263 42,346 26,241 46,890 46,890 Cash and cash equivalents at the end of the period 10,001 38,026 10,001 38,026 26,241
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 19 NOTES TO THE FINANCIAL STATEMENTS Note 1 Accounting policies This condensed interim report has been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Accounting Standards Board's general recommendation BFNAR 2012:1 Annual Report and Consolidated Accounts (K3). PREPARATION OF THE COMPANY'S FINANCIAL STATEMENTS The Company's functional currency is the Swedish krona, which is also the Company’s reporting currency. The financial statements are thus presented in Swedish kronor. Unless otherwise stated, all amounts are rounded off to the nearest thousand. The financial statements are prepared in accordance with BFNAR 2012:1 (K3), which requires management to make assessments, estimates and assumptions that affect the application of accounting policies and the amounts reported regarding assets, liabilities, revenue and expenses. Actual outcomes may differ from these estimates and assessments. The estimates and assumptions are reviewed regularly. Changes in accounting estimates are recognized in the period in which the change is made if the change affects only that period, or in the period in which the change is made and in future periods if the change affects both the current period and future periods. CONSOLIDATED ACCOUNTS Method of consolidation The consolidated accounts are prepared using the purchase method of accounting. Under the acquisition method, the acquisition of a subsidiary by an entity is regarded as a transaction whereby the Parent Company indirectly acquires the assets and assumes the liabilities of the subsidiary. The costs of acquisition are expensed as incurred. The consolidated accounts include the companies in which the Parent Company directly or indirectly holds more than half of the votes for all shares, or otherwise has a controlling influence as defined in section 1:4 of the Swedish Annual Accounts Act. The results of subsidiaries are included in the consolidated results from the date of acquisition until the date of disposal. Goodwill Goodwill consists of the amount by which the cost of an acquisition exceeds the fair value of the Group's share of the net identifiable assets of the acquired entity at the date of acquisition. Goodwill is amortized on a straight-line basis over the estimated useful life. Goodwill is amortized over 10 years, in view of the fact that the acquisitions made by the Parent Company are regarded as long-term holdings and will contribute value over a long period of time within the Group. Intra-Group transactions Intra-Group receivables and liabilities, intra-Group transactions and unrealized gains are eliminated in full. Unrealized losses are also eliminated unless the transaction represents an impairment loss. Any change in internal gains over the financial year has been eliminated in the consolidated income statement.
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 20 Revenue recognition Sales of goods or services are recognized when material risks and rewards are transferred from the seller to the buyer in accordance with the terms of the sale. Sales are recorded net of VAT and discounts. Income from assignments on a current account basis is recognized as revenue as work is performed and materials are delivered or consumed. Interest income and dividends Compensation in the form of interest or dividends is recognized as revenue when it is probable that the entity will receive the economic benefits associated with the transaction and when the amount of income can be measured reliably. Dividends are recognized when the competent body has resolved that the dividend should be paid. Interest income is recognized over the period to maturity using the effective interest method. FINANCIAL INSTRUMENTS Financial non-current assets are measured at cost less and impairment and financial current assets at the lower-of-cost-principle. The cost of interest-bearing instruments is adjusted for the accrued difference between what was originally paid, net of transaction costs, and the amount paid at maturity (premium or discount). A financial asset is derecognized from the statement of financial position when the rights in the contract are realized, expire or the Company loses control over them. The same applies to part of a financial asset. A financial liability is derecognized from the statement of financial position when the contractual obligation is discharged or otherwise extinguished. The same applies to part of a financial liability. CLASSIFICATION Non-current assets and non-current liabilities consist essentially of amounts expected to be recovered or paid after more than 12 months from the balance sheet date. Current assets and current liabilities consist essentially of amounts expected to be recovered or paid within 12 months of the balance sheet date. Shares and participations in subsidiaries Shares and participations in subsidiaries are recognized at cost, less any write-downs. The cost includes the purchase consideration paid for the shares and acquisition costs. Any capital contributions are added to the cost as they are made. Dividends from subsidiaries are recognized as revenue. In the case of investments in subsidiaries, the value of the asset is assessed annually on the basis of the forecast earnings of the subsidiaries. Intangible non-current assets Other intangible assets acquired by the Company are recognized at cost less accumulated amortization and impairment losses. Expenditure on internally generated goodwill and trademarks is recognized in the income statement as an expense as incurred.
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 21 Amortization is calculated using the straight-line method over the estimated useful life of the asset and begins when the asset becomes available for use. The amortization items are recognized as an expense in the income statement. Intangible non-current assets Year Capitalized expenditure on development and similar work 5 Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses. In addition to the purchase price, the cost includes expenditure directly attributable to the acquisition. Depreciation is applied on a straight-line basis over the estimated useful life of the asset as it reflects the expected consumption of the asset's future economic benefits. The depreciation amount is recognized as an expense in the income statement. Property, plant and equipment Year Expenditure on leasehold property 3 Machinery, computers and other technical equipment 3 Equipment, tools and installations 5 Tax Tax on profit for the year in the income statement consists of current tax and deferred tax. Current tax is income tax for the current financial year relating to the taxable profit for the year and the part of the previous financial year's income tax that has not yet been recognized. Deferred tax is income tax on taxable profits of future financial years arising from past transactions or events. Deferred tax liabilities are recognized for all taxable temporary differences, except for temporary differences arising from the initial recognition of goodwill. Deferred tax assets are recognized for deductible temporary differences and for the possibility of future utilization of tax loss carryforwards. The calculation is based on how the carrying amount of the corresponding asset or liability is expected to be recovered or settled. The amounts are based on the tax rates and tax rules enacted before the balance sheet date and have not been discounted. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of available balances at banks and balances at securities depositories. SHARE CAPITAL Ordinary shares are classified as equity. Transaction costs directly attributable to the issue of new shares or options are recognized, net of tax, in equity as a deduction from the issue proceeds. CONTINGENT LIABILITIES A contingent liability is recognized when there is a possible obligation that arises from past events and whose existence will be confirmed only by one or more uncertain future events or multiple uncertain future events, or when there is an obligation that is not recognized as a liability or provision because it is not probable that an outflow of resources will be required.
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 22 EARNINGS PER SHARE Profit for the year in SEK in relation to the average number of shares in issue on the balance sheet date. STATEMENT OF CASH FLOWS The statement of cash flows is prepared using the indirect method. The recognized cash flow includes only transactions resulting in cash receipts or payments. In addition to cash and cash equivalents, the Company classifies as cash and cash equivalents balances with banks and other credit institutions and short-term liquid investments that are quoted in an active market and have a maturity of less than three months from the date of acquisition. Changes in restricted funds are reported in investing activities. DEFINITIONS OF KEY PERFORMANCE INDICATORS Net sales The principal items of operating income, invoiced expense, ancillary revenue and revenue adjustments of the business. EBITDA* The Company's operating profit before interest, tax, impairment losses, depreciation and amortization. EBITDA margin, (%)* Operating profit before depreciation, amortization and impairment losses, as a percentage of net sales. Operating profit (EBIT)* Profit before financial income and expenses, and before extraordinary income and expenses. EBIT margin (%)* Operating profit as a percentage of net sales. Sales growth (%)* Change in net sales for the period in relation to the comparison period, expressed as a percentage Equity ratio (%)* Equity as a percentage of total assets. Net cash* Cash, cash equivalents and short-term investments less interest-bearing liabilities. Earnings per share, SEK Profit for the year in SEK in relation to the average number of shares in issue on the balance sheet date. Number of shares The number of shares in the Company *Alternative key performance indicators not defined according to BFNAR 2012:1 Annual Report and Consolidated Financial Statements (K3), which are thus not necessarily comparable with key performance indicators with similar names used by other companies.
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 23 Note 2 Intangible non-current assets GROUP Q2 30/06/2026 Q2 30/06/2025 FULL YEAR 31/12/2025 Capitalized development expenditure Accumulated cost At beginning of period 45,674 17,239 17,239 In-house developed assets 7,322 8,382 21,126 At end of period 52,996 25,621 38,365 Accumulated amortization At beginning of period - - - Amortization for the year -1,404 - - At end of period -1,404 - - 51,592 25,621 38,365 Note 3 Property, plant and equipment GROUP Q2 30/06/2026 Q2 30/06/2025 FULL YEAR 31/12/2025 Expenditure on improvements to leasehold property Accumulated cost At beginning of period 418 418 418 Purchases for the year - – - At end of period 418 418 418 Accumulated depreciation At beginning of period -418 -406 -406 Depreciation for the year - -12 -12 At end of period -418 -418 -418 Equipment, tools and installations Accumulated cost At beginning of period 5,351 2,962 2,962 Purchases for the year 335 519 1,933 At end of period 5,686 3,481 4,895 Accumulated depreciation At beginning of period -2,348 -1,358 -1,358 Depreciation for the year -245 -343 -799 At end of period -2,593 -1,701 -2,157 3,093 1,780 2,738
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 24 Note 4 Financial non-current assets GROUP Q2 30/06/2026 Q2 30/06/2025 FULL YEAR 31/12/2025 Other long-term receivables Accumulated cost: At beginning of period 2,000 2,000 2,000 Additional receivables – – – Claims settled – – – At end of period 2,000 2,000 2,000 Note 5 Participations in Group companies PARENT COMPANY Share of equity Share of votes Number of participations Book value 30/06/2026 Book value 30/06/2025 Book value 31/12/2025 Envar Entertainment AB 100% 100% 500 3,446 3,446 3,446 Envar Games AB – Class A 100% 100% 5,000 25 25 25 Envar Games AB – Class B 100% 100% 45,217 22 22 22 3,493 3,493 3,493 Note 6 Deferred tax liability GROUP Q2 30/06/2026 Q2 30/06/2025 FULL YEAR 31/12/2025 Deferred tax liability on untaxed reserves At beginning of period 1,590 1,698 1,698 Change for the year - -108 -108 At end of period 1,590 1,590 1,590 Note 7 Other long-term liabilities GROUP Q2 30/06/2026 Q2 30/06/2025 FULL YEAR 31/12/2025 Rent deposits 1,198 1,198 1,198 1,198 1,198 1,198
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 25 Note 8 Net sales by business segment GROUP APR 2026- APR 2025- JAN 2026- JAN 2025- FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2025 Net sales by business segment Games 16 760 - 16 760 - - Outsourcing 36 912 24 368 62 672 47 044 95 197 53 672 24 368 79 432 47 044 95 197 Note 9 Interest income and similar items GROUP APR 2026– APR 2025– JAN 2026– JAN 2025– FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2025 Foreign exchange gains, unrealized 40 - 1,246 - 257 Other interest income -1 228 22 229 636 39 228 1,268 229 893 PARENT COMPANY APR 2026– APR 2025– JAN 2026– JAN 2025– FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2024 Other interest income - 228 22 228 633 - 228 22 228 633 Note 10 Interest expense and similar items GROUP APR 2026– APR 2025– JAN 2026– JAN 2025– FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2026 Exchange rate losses -594 -396 -1,498 -1,079 -2,140 Other interest costs -39 -1 -40 -12 -12 Other financial costs* - 186 - - - -633 -211 -1,538 -1,091 -2,152 PARENT COMPANY APR 2026- APR 2025- JAN 2026- JAN 2025- HELÅR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2024 Other financial costs* - 186 - -0 -0 - 186 - -0 -0
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 26 Note 11 Tax on profit for the year GROUP PERCENT APR 2026- APR 2025- JAN 2026- JAN 2025- FULL YEAR JUN 2026 JUN 2025 JUN 2026 JUN 2025 2025 Current tax 20.60% -3,883 -1,267 -4,656 -2,099 -3,251 Reconciliation of effective tax Profit before tax 18,750 6,063 22,418 10,066 15,379 Tax at the rate applicable to the Parent Company 20.60% -3,863 -1,249 -4,618 -2,073 -3,168 Non-deductible expenses -12 -18 -22 -26 -41 Non-taxable income 0 0 0 0 0 Non-deductible expenses not entered in the accounts - - - - - Standard interest rate on tax allocation reserve -8 - -16 - -31 Utilization of non-capitalized loss carryforwards - - - - 108 -3,883 -1,267 -4,656 -2,099 -3,132 Note 12 Transactions with related parties None of the shareholders, directors, senior executives, auditors or related parties in the Envar Group has had any direct or indirect involvement in any business transactions with the companies that are or were unusual in nature or as regards terms. The Group’s Chief Executive Officer is employed by the subsidiary Envar Entertainment AB, and all remuneration and board fees are paid from the same company. Nor has the Company granted any loans, guarantees or sureties to or for the benefit of any of the shareholders, directors, senior executives, auditors or related parties of the companies. Agreements on services with related parties are entered into on an arm's length basis. There were no transactions between Envar and related parties that materially affected the Group's financial position and performance during the reporting periods.
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ENVAR HOLDING AB ∙ INTERIM REPORT JANUARY 2026 - JUNE 2026 ∙ ORG. REG. NO. 559407–6563 27 OTHER INFORMATION REVIEW This interim report has not been reviewed by the Company's auditor. COMMUNICATION LANGUAGE The board has decided that the communication language for the company shall be Swedish and English, with the Swedish version taking precedence. THE COMPANY'S OPERATIONS AND RISK FACTORS The Board of Directors and the CEO certify that the interim report gives a true and fair view of the Company's and the Group's operations, financial position and performance, and describes the material risks and uncertainties faced by the Company and the companies included in the Group. CERTIFIED ADVISER Amudova AB is the Company's Certified Adviser and may be contacted at info@amudova.se or +46 8 545 017 58. UPCOMING REPORT DATES Interim report January–September 2026 November 11, 2026 Year-end report January-December 2026 February 16, 2027 Interim report January–March 2027 May 11, 2027 Stockholm August 11, 2026 Atey Ghailan Emil Daugaard Ewelina Pettersson CEO Chair of the Board of Directors Member of the Board of Directors Amanda Bergerståhl Member of the Board of Directors FOR FURTHER INFORMATION, PLEASE CONTACT Atey Ghailan, CEO info@envarstudio.com Envar Holding AB Org. reg. no. 559407-6563 Götgatan 78 SE-118 20 STOCKHOLM, SWEDEN This information is information that ENVAR HOLDING AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-08-11 08:00 CEST.