Interim report
Page 1
MSEK Net sales Sales growth % Gross profit Gross margin % Operating profit ( EBIT ) Operating margin ( EBIT ) % Profit for the period EBITDA EBITDA - margin % LTM EBITDA LTM EBITDA - margin % EQL PHARMA Interim Report April - June 2026 “ EQL is going through a challenging period , with supply disruptions and technically more complex products in the launch phase , which has caused delays . " Axel Schörling CEO EQL Pharma AB ( publ ) PRODUCTS 49 2 launched during Q1 PRODUCTS IN PIPELINE 44 3 added , 3 have been removed during Q1 Apr - Jun 2026 Apr - Jun 2025 Apr - Mar 2026 106.9 107.2 432.7 0 % 30 % 16 % 17.8 46.2 162.8 17 % 43 % 38 % -13.6 20.5 48.7 -13 % 19 % 11 % -16.8 9.8 12.5 -5.9 25.8 71.8 -6 % 24 % 17 % 40.0 107.1 * 71,8 9 % 25 % * 17 % * Pro - forma rolling 12 - month EBITDA , calculated as if the Medilink product portfolio had been owned for the full period and based on transaction - date cost assumptions . INTERIM REPORT , APRIL -JUNE 2026 RESULT PER SHARE FOR THE PERIOD -0.57 before dilution , ( 0.34 ) CASH , AT THE END OF PERIOD 61.1 SEK Millions , ( 56.1 ) Figures in parentheses refer to the same period last year .
Page 2
Comments from the CEO The first quarter of the new financial year was, as expected, weak. Sales amounted to SEK 106.9m (107.2m) and OPEX to SEK 31.5m (25.7m), both in line with expectations. The gross margin of 17% (43%) and EBITDA margin of -6% (24%) were exceptionally low due to inventory write-downs of SEK 20m. Adjusted for these, the gross margin was 35% and the EBITDA margin 12%. Two products were launched and three were added to the pipeline. Mellozzan received mar - keting authorization in Kazakhstan, and Spain was added as a new territory for Memprex, which has also been launched in Germany under EQL’s own brand Cystohipp. EQL is going through a challenging period, with supply disruptions and technically more complex products in the launch phase, which has caused delays. The sales forecast for the full year 2026/27 remains at around 15%. After the end of the quarter, Oskar Karmlid was presented as the new Chief Supply Chain Officer (CSCO). Financial overview for the first quarter Sales amounted to SEK 106.9m, essentially unchanged from the previous year. The risk of inventory write-downs, flagged in the Q4 report, unfortunately materialized in full at SEK 20m. It mainly relates to hospital products where procuring authorities did not call off the indicated volumes in the original contract. EQL has tried to mitigate this through sales in other channels. The company considers hospital products to remain structurally attractive, pro- vided inventory purchasing , supply and planning are improved. Operating profit (EBIT) decreased to SEK -13.7m (20.5m), and the EBITDA margin to -6% (24%). The adjusted EBITDA margin was 12%, far below the company’s ambition but representative of a quar- ter burdened by previous supply disruptions. Cash and cash equivalents amounted to SEK 61.1m (56.1m), and the unutilized working capital credit facility to SEK 26.6m (27.2m). CAPEX was SEK 16.2m (27.2m), and leverage was 9.8x EBITDA, above the target. This is mainly being addressed by temporarily slowing new pipeline products and ensuring that EBITDA recovers according to plan. Leverage is expected to remain above target for much of 2026/27 and then stabilize at lower levels. Financial targets and forecasts for the current financial year The sales forecast for the full year 2026/27, at around 15%, is below the long-term target of 30%, which remains unchanged. The situation regarding supply disruptions looks better ahead for Q2 and the rest of the year. If this continues, the remaining quarters will improve and Q1 will mark the low point in EQL’s challenging period. The Company continues to monitoring the valuation of inventories and other balance sheet assets to ensure that carrying values appropriately reflect cur- rent business conditions and available information. While these assessments remain ongoing, additional write-downs or impairment charges relating to inventories and other balance sheet items may be recognized during the remainder of the financial year should future developments or updated assumptions warrant such adjustments. Leverage will remain elevated relative to EBITDA until operating profit returns to healthy levels. This does not affect EQL’s ability to pay bond investors, provided liquidity is managed responsibly. The products in the launch phase are mainly the last development products created with Cadila. They are technically more complex, which has caused delays. The pipeline contains many newer prod- ucts for launch over the next two–three years, of a simpler technical nature. The delays are therefore considered temporary. The target remains seven launches in 2026/27 and then 10–15 per year. Product launches and market dynamics Two products were launched during the quar - ter, increasing the portfolio to 49 products. Three products were added to the pipeline and one was removed, bringing the total to 44 products. Since the company is closely monitor- ing liquidity, it is taking a cautious approach to new signings until the challenging period is over. At present, only products where the rights pay- ment model is back-end loaded are being signed. Expansion in Germany and the Netherlands is progressing according to plan, with evaluation of existing and new products. A number of niche generic products have now been signed for Germany, with a pilot launch planned during the current year. For Memprex, Spain has been added with partner Gebro. The application is expected to be submitted in the autumn, with expected approval and launch in 2027/28. Launch has been completed in Germany, and preparations are ongoing in France and Israel. Progress is also being made in the BeNeLux RUP procedure, where the national phases are complete and final approval is expected in the autumn. For Mellozzan, EQL has received marketing authorization in Kazakhstan, with launch expected in 2027/28. Applications are ongoing in the GCC, and launch preparations continue in Italy and Tur- key. Medice continues to increase sales, mainly in Germany. Discussions on additional territories are ongoing for both Mellozzan and Memprex. Other EQL delivered strong growth and good prof- itability from 2017 to September 2025. Since then, the company has been in a more challeng- ing period, which is natural for a growth com- pany. This challenging period had a beginning and will have an end. The focus is to emerge from it stronger and ready for the next phase of growth. Alongside urgent problem-solving, there is therefore a strong focus on structural mea- sures to create a robust and scalable platform. Axel Schörling VD i EQL Pharma AB (publ) 2COMMENTS fr OM T hE CEO INTERIM REPORT , APRIL – JUNE 2026
Page 3
Significant Events During the Quarter APRIL 27TH 2026 EQL Pharma is in the process of recruiting a new Chief Supply Chain Officer (CSCO). EQL Pharma is recruiting a new CSCO with a strong CMO/CDMO background. This means that the current Chief Supply Chain Offi - cer (CSCO), Magnus Erreth, will be leaving his position. The recruitment process for a new CSCO has been initi - ated, and the Company will provide more information as soon as possible. JUNE 15TH 2026 Methenamine hippurate (brand name Cystohipp©) has been launched in Germany EQL’s key product methenamine hippurate has now been launched in Germany by EQL’s license partner Dr Pfleger under the EQL-owned brand Cystohipp[©]. Cystohipp© is the only methenamine hippurate product that is registered in Germany. German patients with recurrent urinary tract infections will now, for the first time, have access to an equivalent alternative to antibiotics—an alternative that does not increase the risk of developing antibiotic-resistant bacte - ria. Since 2024, methenamine hippurate is recommended by The European Association for Urology to reduce recurrent UTI episodes in woman. After the Quarter JULY 13TH 2026 Memprex© (methenamine hippurate) license signed with partner for Spain. EQL’s key product Memprex[©] has now been licensed for sale in Spain with Gebro Holding GmbH (ltd), a leading local pharma - ceutical company specialising in women’s health, gynaecology and urology. There is currently no product with methenamine hippurate offered in Spain. Memprex© offers an alternative for treatment of recurring urinary tract infections which is both non-inferior to long-term antibiotics and which doesn’t increase the risk to develop antibiotic-resistant bacteria since it is an antiseptic treatment rather than an antibiotic. JULY 15TH 2026 Mellozzan® (melatonin) approved in Kazakhstan. EQL Pharma’s key product Mellozzan® (tablets) has been approved for sale in Kazakhstan. Approval has been obtained by EQL’s regional partner, Abdi Ibrahim. The approval currently covers the 3 mg strength. The Marketing Authorisation for the 5 mg strength is expected in December 2026. The launch of both strengths is expected in the fiscal year 2027/28. 17 JULY 2026 Notice of Annual General Meeting in EQL Pharma AB The shareholders of EQL Pharma AB (Reg. No. 556713-3425) are hereby given notice of the Annual General Meeting to be held on Thursday, 20 August 2026, at 4:00 p.m. at the Company’s prem - ises at Stortorget 1, Lund. 24 JULY 2026 EQL Pharma Annual Report 2025/26 The Company’s Annual Report is now available on the Company’s website. 27 JULY 2026 EQL Pharma appoints Oskar Karmlid as new Chief Supply Chain Officer (CSCO) EQL Pharma has appointed Oskar Karmlid as its new Chief Supply Chain Officer (CSCO). Oskar will assume the role in October 2026, succeeding Martin Kristofferson, who is currently serving as Interim Head of Supply Chain. 3SIGNI fICANT E vENTS INTERIM REPORT , APRIL – JUNE 2026
Page 4
Product Development Pipeline EQL Pharma reports its product development pipeline on an aggregate basis. Individual products in development are generally not named until marketing authorization has been secured, and product-level market potential is not disclosed. The purpose is to give share - holders a clear view of pipeline progress while protecting commercially sensitive information. This report covers Q1 of FY 2026/27, April-June 2026, and reflects the position at the end of the reporting period. The information does not constitute financial guidance or a forecast of future revenue or earnings. Quarter in Brief During the quarter, work continued across the development, review and launch phases. Major updates include the approval of Kollopan (calcium + colecalciferol film-coated tablets), Calcomben (calcium + colecalciferol chewable tablets), mycophenolate mofetil tablet (SE and NO), Propranolol SE and launch of Bimatoprost + Timolol single-dose eye drops (SE, DK, and NO) and Fluttasino (flucatisone nasal drops). Unfortunately, EQL Pharma has also faced some headwinds in securing approvals for two additional products with expected full-year budget impact. These delays have been driven by setbacks in analytical methods transfer and longer-than-expected queue times in regulatory bodies. Products in Different Phases Development phase: This phase includes products developed by EQL Pharma together with external partners, as well as products for which the company has entered into licens - ing or distribution agreements for selected geographic markets. A product remains in this phase until the relevant regulatory application has been submitted. At the end of Q1, there were 29 products in EQL Pharma’s develop - ment pipeline. Review phase: Once development is complete, applications are submitted to the relevant regulatory authorities in the markets where the product is intended to be sold. The review pro - cess includes scientific, quality and administra - tive assessment and may involve requests for supplementary information. At the end of Q1, there were nine products in the review phase as four products received marketing authori - zation, and we submitted applications for two products. Launch phase: Following regulatory approval, EQL Pharma prepares the product for com - mercial launch. Activities may include manu - facturing and supply planning, reimbursement and pricing applications, tender participation, packaging and artwork, and coordination with distribution partners. In Q1 of FY26/27, EQL achieved first commercial launch for two new products: Bimatoprost + Timolol single-dose eye drops and Fluttasino (flucatisone nasal drops). We also received marketing authoriza - tion for four new products (Kollopan, Calcon - Products in Different Phases Pipeline and Launch Outlook Figure 1. Products by phase of development at the end of Q1 FY2026/27 Figure 2. Expected product launches by fiscal year based on management’s assessment at the end of Q1 FY 2026/27 Products under Development (29) Review Phase (9) Launch Phase (6)44 29 9 6 0 5 10 15 20 29/3028/2927/2826/27 10 Executed Planned 10 17 11 4PrODu CT DE vELOPMENT INTERIM REPORT , APRIL – JUNE 2026
Page 5
ben, propranolol, and mycophenolate mofetil tablets). We expect to launch eight additional products throughout this fiscal year. Prepara - tions are also well underway with our commer - cial partners in Germany, France, and BeNeLux for the launch of methenamine hippurate throughout the rest of the fiscal year. Pipeline and Launch Outlook The timing of product launches is subject to uncertainty. Development, regulatory, manufacturing, reimbursement, tender and other commercial factors may bring launches forward, delay them or prevent them from taking place. The launch profile reflects man - agement’s current assessment at the end of Q1 FY 2026/27 and may change. It does not constitute financial guidance. EQL Pharma’s growth strategy is supported by new product launches and geographic expansion. The company primarily targets established molecules and formulations in mature markets where it believes it can build a competitive position. Our executed and planned FY26/7 launches include products for sale through our ‘traditional’ Nordic Pharmacy and Hospital channels, as well as entrants into new segments Specialty (non-substitutable gener - ics) and the German market. EQL sees growth in these new areas as critical to our ongoing trajectory. More information on our business units and channel strategy can be found below. Marketed Products For reporting purposes, a product is defined by its unique active substance and/or formulation. Different formulations are treated as separate products, while the same product sold across several markets or pack sizes is treated as a single product. EQL Pharma currently markets 49 unique products, accounting for the addition of Bimatoprost+Timolol and Fluttasino during the quarter. Geographic Markets EQL Pharma markets its portfolio directly under its own brand in the Nordics (SE, DK, NO, FI, and IS), along with a limited portfolio in Estonia, Latvia, Lithuania, Czechia, Austria and Portugal. In the rest of the world, our products are sold through our reputable network of com - mercial partners. Future expansion may use direct or partner-supported models, depending on regulatory requirements, market conditions and strategic fit. EQL Pharma regularly reviews their portfolio for opportunities to expand our footprint. Product Areas EQL Pharma develops and markets prescription medicines and rapid diagnostic tests across Pharmacy, Hospital, Tests, Brands and Spe - cialty Generics. Pharmacy: EQL Pharma’s core business unit, characterized by medicines that are dispensed at local pharmacies. Our strategy is to identify generic products that have been off patent for Marketed Products Figure 3. The company’s product launches for the current fiscal year and expected product launches up to and including Q1 2026/27. 0 10 20 30 40 50 26/2725/2624/2523/24 36 46 47 49 5PrODu CT DE vELOPMENT INTERIM REPORT , APRIL – JUNE 2026
Page 6
a long time, but given their market size have few competitors. We then work with partners to in-license or develop a new product These products have stable volumes and are sold via direct substitution systems in the Nordics, providing a predictable business model with healthy margins, while delivering cost savings to health systems. Hospital: Similarly to the Pharmacy portfolio, EQL Pharma seeks to fill underserved niches for generic medicines administered in hospi - tals. This segment now makes up a meaningful proportion of EQL Pharma’s annual sales and provides stable and predictable revenue as products are sold via 1-2 year tenders. Brands: EQL Pharma’s branded portfolio is made up of Mellozzan (melatonin) and methenamine hippurate (brand name varies by market). While their active ingredients have been on the market for 20+ years, these prod - ucts are able to be sold as branded given their unique regulatory indications. Our branded portfolio has been, and is projected to remain, a meaningful driver of sales growth as we continue to expand our geographic presence – largely through commercial partners. Specialty: The Specialty portfolio is EQL Phar - ma’s newest strategic addition. These products are essentially a hybrid between standard generic medicine and branded products which require promotion. From a regulatory perspec - tive, the products are not patent-protected but are not directly substitutable with other med - icines containing the same active ingredient. Instead, they provide attractive feature(s) such as a unique formulation, a narrow therapeutic window, or favorable price, which would cause a healthcare provider to write a prescription for the specific product. Limited promotion is required to drive growth, but not at the same intensity of traditional branded products. Tests: During the COVID-19 pandemic, the Tests portfolio made up a substantial portion of EQL Pharma’s sales and provided cash to invest entrance into the Hospital, Brands, and Specialty segments. However, under current market conditions, Tests are no longer a strate - gic focus of the company. 6PrODu CT DE vELOPMENT INTERIM REPORT , APRIL – JUNE 2026
Page 7
Figure 5. Operating profit trend (EBIT) for fiscal year 2023/24 through the reporting period for the current fiscal year, the bars are EBIT and the line is rolling 12-month EBIT. The left Y-axis EBIT per quarter expressed in SEK million and the right Y-axis is rolling 12-month EBIT expressed in SEK million. Figure 4. Net sales trend fiscal year 2023/24 through reporting period for the current fiscal year. Left Y-axis quarterly turnover in SEK million. Right Y-axis rolling 12-months sales expressed in SEK million. * Excluding non-recurring sales until 2023/24 Quarterly Operating Profit (EBIT) and EBIT Rolling 12 months (R12)Quarterly Net Sales and Rolling 12 months (R12)* -15 -10 -5 0 5 10 15 20 25 Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2 -20 -10 0 10 20 30 40 50 60 70 80 23/24 24/25 25/26 26/27 6,6 9,8 8,4 15,2 14,3 14,8 23,0 3,6 19,5 5,1 -13,6 20,5 36,1 30,4 32,6 40,0 47,7 52,8 67,4 72,6 61,9 66,5 48,7 14,6 0 20 40 60 80 100 120 140 Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2 23/24 24/25 25/26 26/27 0 50 100 150 200 250 300 350 400 450 59,6 70,2 78,1 82,8 85,2 92,2 113,3 107,2 86,4 0% 118,9 120,2 106,9 Sales and Operating Profit Sales Development In the first quarter of the financial year 2025/2026, our net sales amounted to SEK 106.9 (107.2) million, which corresponds to a growth of 0%. Profit Performance Operating profit for the first quarter amounted to SEK -13.6 (20.5) million. The operating margin (EBIT) was -13% (19%). The decrease in operating profit was attributable to inventory adjustments. 7SALES AND OPE rATING PrOf IT INTERIM REPORT , APRIL – JUNE 2026
Page 8
Cash Flow, Investments and Financing Gross Profit Gross profit decreased by 61 percent to SEK 17.8 (46.2) million during the first quarter, which corresponds to a gross margin of 17 (43) percent. The gross margin was affected by inven - tory adjustments, shipping costs, amorti - zation of capitalized development costs and currency effects. Cash Flow Negative cash flow from operations before changes in working capital of SEK -13.4 (17.7) million for the quarter. Change in working capital during the quarter amounted to SEK 3 (-20.9) million. The change is mainly due to increased accounts payable. The total cash flow from current opera - tions amounted to SEK -10.3 (-3.2) million for the quarter. Investments EQL Pharma continues to invest in new prod - ucts. During the quarter, SEK 16.2 (23.6) million was invested in both ongoing and new projects. Financing Cash flow from financing operations totaled SEK 0.2 (5.9) million for the quarter and the outcome is affected by a timing effect attrib - utable to customer payments having been received but not yet transferred from the fac - toring company to the company’s bank account. Financial Costs The quarter’s interest expenses attributable to loans amounted to SEK -7.5 (-8.1) million. In addition to interest costs for loans, financial costs are attributable to interest on leasing debt according to IFRS 16. Financial Position Cash and cash equivalents amounted to SEK 61.1 (56.1) million at the end of the quarter and unutilised working capital credit amounted to SEK 26.6 (27.2) million. Pledged invoice and inventory limits amounted to SEK 134 (134) million. Tax Tax according to the applicable tax rate of 20.6% during the quarter amounted to SEK 4.3 (-2.6) million. 8SALES AND OPE rATING PrOf IT INTERIM REPORT , APRIL – JUNE 2026
Page 9
FEB 4 2027 Interim r eport October - December 2026 (third quarter) NOV 5 2026 Interim r eport July - September 2026 (second quarter) MAY 5 2027 Year End report April 2026 - March 2027 (fourth quarter) Additional Information Parent Company EQL Pharma AB is the parent company of the EQL Pharma group. Net sales for the Parent Company during the fourth quarter amounted to SEK 106.9 (107.2) million. Operating profit totaled SEK -13.5 (20.5) million for the quarter. Personnel The number of full-time employees in the group is 25 (20), out of whom 15 (10) are women, at the Swedish parent company. In addition, the Group employs 40 (12) interna - tional employees, via a global platform for human resources management, who are mainly active in specialist functions and product and business development. In addition to the permanent staff, there are long-term consultants with expertise in GMP, pharmacovigilance, regulatory affairs, business development and wholesale operations tied to the parent company. Risk Factors This financial report includes statements that are forward looking but actual future results may differ materially from those anticipated. In addition to the factors discussed, the earnings can be affected by delays and difficulties in the various phases of development, such as formulation, stability, preclinical and clinical trials, but also potentially competition, eco - nomic conditions, patent protection and the exchange rate and interest rate fluctuations, and political risks. Several risk factors may have a negative impact on the operations of EQL Pharma. It is therefore important to consider the rele - vant risks alongside the Company’s growth opportunities. The following text describes risk factors in no particular order and with no claim to be exhaustive. Delays in launching new products can mean deterioration in earnings for the company and it cannot be excluded that the EQL Pharma in the future may need to raise additional capital. An aggressive investment strategy from competi - tion could pose risks in the form of slower sales and weaker profitability. Increased competi - tion could lead to negative sales and earnings effects for the Company in the future. External factors such as inflation, currency and interest rate fluctuations, supply and demand, booms and recessions as well as geo - political such as the unrest in the Middle East may have an impact on operating costs, freight costs, selling prices and equity valuations. EQL Pharma’s future revenues and valuation of shares may be adversely affected by these fac - tors, which are beyond the Company’s control. A large part of the purchases is made in euro whose value can change significantly. EQL Pharma will continue to develop new products in its field. Time and cost aspects of product development can be difficult to pre-de - termine with accuracy. This entails the risk that a proposed product is more costly than planned or takes longer than planned. Additional risks and uncertainties that are not currently known to EQL Pharma may be developed into important factors that affect the Company’s operations, results and financial position. For a more detailed list of risks, we refer to EQL’s Annual Report 2025/26, pages 45-47 and 61-62. Our Financial Goals For the new five-year plan, from 2024/25 to 2028/29, the goal is to grow by an average of 30%; stabilizing the EBITDA margin initially at around 25%; and at end of period above 25%. Our peak leverage shall be a maximum of 4.0x EBITDA, with a target at 2.5x. Sales growth for the current full year 2026/27 is forecast to around 15%. Upcoming reports Future reports for 2026/2027 will be published: 9ADDITIONAL INfOr MATION INTERIM REPORT , APRIL – JUNE 2026
Page 10
Christer Fåhraeus Chairman Linda Neckmar Member Anders Månsson Member Per Svangren Member Raymond De Vré Member Nikunj Shah Member Board of Directors EQL Pharma Lund, August 7, 2026 The Auditors’ Review This interim report has not been audited by the auditor. Proposed Dividend The Board of Directors proposes that no divi - dend be paid for the financial year 2025/26. Questions Regarding Year End Report For further information or questions, please contact: Axel Schörling President & CEO, EQL Pharma axel.schorling@eqlpharma.com +46 763 179 060 EQL Pharma is listed on Nasdaq Stock - holm, Small Cap list. The company is traded under the ticker symbol EQL and ISIN code SE0005497732. 10ADDITIONAL INfOr MATION INTERIM REPORT , APRIL – JUNE 2026
Page 11
The Group Consolidated Profit and Loss Statement KSEK Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 Net sales 106,908 107,215 432,661 Cost of goods sold -89,072 -61,063 -269,819 Gross profit 17,836 4 6,152 162,842 Gross margin 17% 43% 38% Sales and marketing expenses -21,820 -17,6 06 -80,445 Administration expenses -5,894 -6,254 -22,479 r&D expenses -4,269 -2,826 -14,328 Other operating income 530 995 3,095 Operating profit (EBIT) -13,617 20,460 48,686 Other financial items 1 2 5 Interest paid -7,4 82 -8,078 -30,487 Result before tax -21,098 12,384 18,205 Ta x 4,346 -2,556 -5,667 Net profit for the period -16,752 9,829 12,538 Other comprehensive income: Sum of other comprehensive income: 1 4 2 Sum of Components to be reclassified to net profit: 1 4 2 Sum of other comprehensive income: 1 4 2 COMPREHENSIVE RESULT FOR THE PERIOD -16,751 9,833 12,540 11Th E Gr OuP'S S TATEMENTS INTERIM REPORT , APRIL – JUNE 2026
Page 12
Per Share Data Per share data Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 Earnings per share, before dilution, SEK */ -0.57 0.34 0.42 Earnings per share, after dilution, SEK */ -0.57 0.33 0.42 Equity per share, SEK 8.48 7.94 9.04 Number of shares outstanding 29,529,610 29,063,610 29,529,610 Average number of shares outstanding, before dilution 29,529,610 29,063,610 29,529,610 Average number of shares outstanding, after dilution 3 0,169,610 29,895,610 3 0,169,610 Stock exchange rate, SEK 23.70 91.50 54.40 Dividend per share 0 0 0 * Based on the profit/loss for the period divided by the average number of shares in issue. Quarterly Earnings Trend KSEK Apr – Jun 2026 Jan – Mar 2026 Okt – Dec 2025 Jul - Sep 2025 Net sales 106,908 120,167 118,902 86,378 Sales growth -0.29% 6% 29% 1% Gross profit 17,836 33,989 50,291 32,411 Gross margin, % 17% 28% 42% 38% Operating profit (EBIT) -13,617 5,114 19,525 3,588 Operating margin, % -13% 4% 16% 4% Net profit for the period -16,752 -3,715 9,787 -3,364 Cash flow for the period -25,660 14,088 -5,592 22,15 6 12Th E Gr OuP'S S TATEMENTS INTERIM REPORT , APRIL – JUNE 2026
Page 13
Consolidated Balance Sheet KSEK 30-06-2026 30-06-2025 31-03-2026 Intangible assets 449,664 420,505 441,111 Tangible fixed assets 5,596 5,970 5,903 financial assets 1 1 1 Inventory 198,856 176,740 200,533 Trade receivables 82,152 123,349 92,744 Other receivables 22,15 4 14,610 23,837 Cash and bank 61,097 5 6 ,10 6 86,757 Total assets 819,521 797,279 850,887 Equity 250,305 230,868 267,056 Deferred Tax liability 24,082 27,892 28,428 Long-term debt, interest-bearing 345,616 342,557 3 45,173 Short-term debt, interest-bearing 114,077 10 9,169 103,227 Short-term debt, non interest-bearing 24,672 22,024 36,748 Trade payables 60,769 64,769 70,256 Total equity and liabilities 819,521 797,279 850,887 Consolidated Changes in Equity KSEK Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 Balance at beginning of period 267,056 221,034 221,034 Warrants 0 0 1,726 Profit for the period -16,752 9,829 12,538 Other comprehensive income 1 4 2 rights issue 0 31,755 Balance at end of period 250,305 230,868 267,056 13Th E Gr OuP'S S TATEMENTS INTERIM REPORT , APRIL – JUNE 2026
Page 14
Cash Flow KSEK Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 Operating profit (EBIT) -13,617 20,460 48,682 Interest paid -7,4 81 -8,076 -30,477 Adjustment for items not included in cash flow 7,714 5,357 23,091 Ta xes 0 0 0 Cash flow from operations before changes in working capital -13,384 17,741 41,300 Changes in inventory 1,680 2,295 -21,500 Changes in current receivables 11,843 863 22,240 Changes in current liabilities -10,432 -24 ,103 -13,678 Sum changes in working capital 3,091 -20,945 -12,939 Cash flow from operations -10,293 -3,204 28,361 Acquisitions of intangible non-current assets -16,226 -23,577 -61,797 Acquisitions of tangible non-current assets 698 -5,387 -5,444 Cash flow from investment activities -15,528 -28,963 - 67,241 rights issue 0 31,755 Amortization, raising of loans 861 6,868 12,537 Warrants program 0 0 1,726 Amortization, leasing debts -70 0 -995 -2,782 Cash flow from financing activities 161 5,873 43,237 TOTAL CASH FLOW DURING PERIOD -25,660 -26,294 4,357 Cash / cash equivalents at beginning of period 86,757 82,400 82,400 Cash / cash equivalents at end of period 61,097 56,10 6 86,757 14Th E Gr OuP'S S TATEMENTS INTERIM REPORT , APRIL – JUNE 2026
Page 15
Parent Company Profit and Loss Statement KSEK Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 Net sales 106,905 107,211 432,650 Cost of goods sold -89,071 -61,049 -269,798 Gross profit 17,834 4 6,162 162,852 Gross margin 17% 43% 38% Sales and marketing expenses -21,710 -17,577 -80,377 Administration expenses -5,912 -6,256 -22,588 r&D expenses -4,269 -2,826 -14,308 Other operating income 530 995 3,095 Operating profit (EBIT) -13,527 20,497 48,674 Other financial and interest income 1 1 3 Interest expenses and similar expenses -7,4 0 9 -8,016 -30,243 Profit before tax -20,935 12,482 18,434 Appropriations 0 0 -15,000 Ta x 4,347 -2,554 -2,578 NET PROFIT FOR THE PERIOD -16,588 9,928 856 15PArENT COMPANY S TATEMENTS INTERIM REPORT , APRIL – JUNE 2026
Page 16
Balance Sheet KSEK 30-06-2026 30-06-2025 31-03-2026 Intangible assets 269,839 231,018 258,870 Tangible fixed assets 419 584 459 financial assets 391 391 391 Inventory 198,817 176,695 200,494 Trade receivables 82,15 0 123,347 92,742 Other receivables 202,13 4 202,866 205,246 Cash and bank 60,284 55,938 86,361 Total assets 814,034 790,839 844,563 Equity 140,446 132,625 157,035 Long-term debt, interest-bearing 343,510 339,411 342,486 Short-term debt, interest-bearing 111,336 110,927 111,267 Short-term debt, non interest-bearing 19,980 20,116 25,498 Appropriations 138,000 123,000 138,000 Trade payables 60,762 64,759 70,278 Total equity and liabilities 814,034 790,839 844,563 16PArENT COMPANY S TATEMENTS INTERIM REPORT , APRIL – JUNE 2026
Page 17
Notes NOTE 1 Accounting Policies The Group applies International Financial Reporting Standards (IFRS), as adopted by the EU. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting; the Annual Accounts Act and the Nasdaq Stockholm Rule Book for Issuers. Disclosures in accordance with IAS 34 p. 16A appear not only in the financial statements and their accompanying notes but also in other parts of the interim report. For the Group, the same accounting policies as those adopted for this report are described on pages 55-60 of the company’s Annual Report for 2025/2026. The company has loans with variable interest rates and thus the fair value is deemed to be in line with the book value. The parent company applies the Annual Accounts Act and the Swedish Financial Reporting Board recommendation RFR 2 Accounting for Legal Entities. NOTE 2 Segment Reporting EQL Pharma’s operations only comprise one operating segment; generics for prescription pharmacy sales and hospital sales, and therefore reference is made to the income statement and balance sheet regarding operating segment reporting. NOT 3 Allocation of Sales Net sales divided in geographical markets. KSEK Apr – Jun 2026 Apr - Jun 2025 Apr 2025 – Mar 2026 Sweden 29,960 33,511 144,661 Other Scandinavia 45,15 8 49,120 196,010 Other Europe 31,424 24,0 41 91,155 Outside Europe 366 543 835 Total 106,908 107,215 432,661 NOT 4 Intangible Fixed Assets KSEK Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – mar 2026 Opening accumulated cost 510,974 45 0,142 45 0,142 Investments for the period 16,226 23,577 61,797 Write-down for the period -754 no impairments -965 Closing accumulated cost 526,447 473,719 510,974 Opening accumulated depreciation -69,864 -47, 8 96 -47, 8 96 Depreciation for the period -6,919 -5,318 -21,968 Closing accumulated depreciation -76,783 -53,214 -69,864 Total intangible fixed assets 449,664 420,505 4 41,110 The intangible fixed assets amounted to SEK 449,7 (420,5) million on the balance sheet date. Intangible assets are reported at the cost of acquisition minus accumulated depreciation and any write-downs. The useful life is reviewed at each accounting year-end. For the recently acquired product portfolio from Medilink, the useful life has been estimated at 20 years and the products are depreciated on a straight-line basis at 5% per year. NOTE 5 Transactions with Related Parties The nature and extent of related party transactions are described in the group’s annual report for 2025/26. Transactions with related parties arise in the day-to-day operations and are based on commer - cial terms and market prices. In addition to customary transactions between group companies and remuneration to management and the board, the following transactions with related parties have taken place during the period: Transactions with Cadila Pharmaceuticals Ltd regarding goods pur - chases and development costs have taken place with SEK 22,2 (8,8) million during the period April to June and with SEK 56,1 (66,6) million during the period April – March 2026. 17NOTES INTERIM REPORT , APRIL – JUNE 2026
Page 18
NOT 6 Share Option Programmes The Company did not grant any new warrants during the period from April to June 2026. The Company has five outstanding incentive programmes in the form of warrant programmes, under which a maximum of 640,000 new shares may be issued. If all warrants issued and held by participants are exercised in full for subscription of shares, a total of 640,000 new shares will be issued, corresponding to a total dilution of approximately 3.42 per cent of the Company’s share capi - tal and voting rights after full dilution. The vesting conditions provide that participants earn the right to the warrants annually over a period of 3.5 years, subject to continued employment during each respective vesting period. As the warrants were issued to participants at market value, it is the Company’s assessment that no social security costs have arisen as a result of the warrant programmes. A description of the complete terms and conditions of the incentive programmes is available on the Company’s website under Investor Relations. NOT 7 Events after Accounting Period On 13 July, EQL Pharma announced that it had entered into a licensing agreement for Memprex® (methenamine hippurate) for commercialisation in Spain. On 15 July, Mellozzan® (melatonin) was granted marketing authorisation in Kazakhstan. On 17 July, EQL Pharma announced the notice of the Annual General Meeting. On 24 July, EQL Pharma announced that the Company’s Annual Report for 2025/26 was available on the Company’s website. On 27 July, EQL Pharma announced the appointment of Oskar Karmlid as its new Chief Supply Chain Officer (CSCO). 18NOTES INTERIM REPORT , APRIL – JUNE 2026
Page 19
Reconciliation tables KPIs, non-IFRS measures The company presents certain financial measures in the interim report which are not defined according to IFRS. The company considers these measures to provide valuable supplementary infor - mation for investors and the company’s management as they enable the assessment of relevant trends. EQL Pharma’s definitions of these measures may differ from other companies’ definitions of the same terms. These financial measures should therefore be seen as a supplement rather than as a replacement for measures defined according to IFRS. Definitions of measures which are not defined according to IFRS and which are not mentioned elsewhere in the interim report are pre - sented below. Reconciliation of these measures is shown in the tables below. Key Performance Indicators Sales growth Net sales divided by net sales corresponding to the period last year. Gross profit Net sales less cost of goods sold. Gross margin Gross profit as a percentage of net sales. Operating profit (EBIT). Earnings before interest and tax. Operating margin (EBIT), %. Operating profit (EBIT) as a percentage of net sales for the period. EBITDA Operating profit (EBIT) before interest, taxes, depreciation and amortization. EBITDA margin % Operating profit (EBIT) adjusted for write-downs and amortization divided by net sales. Pro-forma adjusted EBITDA Pro-forma adjusted EBITDA as if acquired entities had been part of EQL Pharma during the last twelve-month period. Net debt through pro-forma adjusted EBITDA Short-term and long-term liabilities to credit institutions, bond loans less cash and cash equivalents divided by pro forma adjusted EBITDA. R12 EBITDA EBITDA for the rolling twelve-month period. R12 EBITDA margin EBITDA margin for the rolling twelve-month period. Shareholders’ equity per share Shareholders’ equity attributable to Parent Company shareholders divided by the number of outstanding shares at the end of the period. Equity/assets ratio Shareholders’ equity including non-controlling interests as a percentage of total assets. 19rECONCILIATION TABLES KPI S INTERIM REPORT , APRIL – JUNE 2026
Page 20
SALES GROWTH Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 A Net sales current period, KSEK 106,908 107,215 432,661 B Net sales last period, KSEK 107,215 82,789 373,516 (A-B)/B Sales growth, % 0 30 16 GROSS PROFIT / GROSS MARGIN Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 A Net sales, KSEK 106,908 107,215 432,661 B Cost of goods sold, KSEK -89,072 -61,063 -269,819 A-B Gross profit, KSEK 17,836 4 6,152 162,842 (A-B)/A Gross margin, % 17 43 38 OPERATING PROFIT (EBIT)/ OPERATING MARGIN Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 A Operating profit (EBIT), KSEK -13,617 20,460 48,686 B Net sales, KSEK 106,908 107,215 432,661 A/B Operating margin (EBIT), % -13 19 11 EBITDA Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 A Operating profit (EBIT), KSEK -13,617 20,460 48,686 B Write-downs and amortization, KSEK 7,714 5,357 23,095 A+B EBITDA, KSEK -5,903 25,817 71,782 EBITDA MARGIN, % Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 A Operating profit (EBIT) adjusted for write-downs and amortization, KSEK -5,903 25,817 71,782 B Net sales, KSEK 106,908 107,215 432,661 A/B EBITDA margin, % -6 24 17 20rECONCILIATION TABLES KPI S INTERIM REPORT , APRIL – JUNE 2026
Page 21
NET DEBT THROUGH PRO-FORMA ADJUSTED EBITDA* Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 A EBITDA, KSEK 40,034 88.216 71,782 B EBITDA required to complete LTM period prior to acquisition, KSEK N/A 18.847 N/A A+B Pro-forma adjusted EBITDA, KSEK N/A 107.063 N/A C Interest-bearing net debt, KSEK 398,596 395,621 356,056 C/(A+B) Interest-bearing net debt through pro-forma adjusted EBITDA, times 9.96 3.70 4.96 PRO-FORMA ADJUSTED EBITDA MARGIN, %* Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 A Pro-forma adjusted EBITDA, KSEK 40,034 107.063 71,782 B Net sales, KSEK 432,354 397,941 432,661 A/B Pro-forma adjusted EBITDA margin, % 9 25 17 SHAREHOLDERS’ EQUITY PER SHARE Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 A Profit/loss for the period, KSEK -16,752 9,829 12,538 B Number of shares 240,587 225,951 244,039 A/B Net earnings per share, % -7 4 5 EQUITY-ASSET RATIO Apr – Jun 2026 Apr – Jun 2025 Apr 2025 – Mar 2026 A Equity, KSEK 250,305 230,868 267,0 45 B Balance sheet total, KSEK 819,521 797,279 850,887 A/B Equity ratio, % 31 29 31 * Pro-forma adjusted EBITDA based on the product portfolio acquired by Medilink having been part of EQL Pharma for the twelve-month period ended March 31, 2026, and with assumptions regarding operating costs presented in connection with the signing of the asset transfer agreement on December 10, 2024. 21rECONCILIATION TABLES KPI S INTERIM REPORT , APRIL – JUNE 2026