Interim report
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1 sss INTERIM REPORT JUL–SEP 2025 INTERIM REPORT JUL–SEP 2025
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2 SIGNIFICANT PROGRESS IN PERFORMANCE AS MARKET ACTIVITY INCREASES SIGNIFICANT EVENTS DURING THE THIRD QUARTER 2025 (JUL – SEP) • The strategic organizational change announced in June, aimed at aligning the company’s resources and organizational structure with long-term business priorities, has been implemented • Mentice carried out a new rights issue amounting to 10% of the share capital, in accordance with the announcement made via press release in June. The allocation was published in a press release on August 21, and the new share issue was registered on September 3. • Mentice signed a multi-year renewal contract with one of the major global players in the Medical Device Industry (MDI). THIRD QUARTER 2025 (JUL – SEP) NINE MONTHS 2025 (JAN – SEP) • Order intake amounted to 57.6 (61.2) MSEK, a decrease of 5.9%, whereof -+0.4% organic and -6.2% currency effect • Net sales amounted to 70.6 (57.7) MSEK, an increase of 22.3%, whereof 30.2% organic and -7.9% currency effect. • Earnings before interest, tax, depreciation, and amortization (EBITDA) increased to 7.7 (-6.2) MSEK. • Net income for the period amounted to -0.3 (-13.1) MSEK. • Earnings per share (EPS) were -0.01 (-0.51) SEK. • Cash flow from operating activities amounted to -10.8 (-2.7) MSEK. • Order intake amounted to 159 (170) MSEK, a decrease of 6.6%, whereof -3.6% organic and -3% currency effect. • The order book by the end of the period was 97 (117) MSEK, a decrease of 16.7%, whereof -12.9% organic and -3.8% currency effect. • Net sales amounted to 188 (204) MSEK, a decrease of 7.7%, where of -3.8% organic and -4.0% currency effect. • Earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to -19.6 (-0.1) MSEK. • Expenses related to reorganization have affected EBITDA with -7.5 MSEK and Net income with -8.7 MSEK was taken during the year. EBITDA adjusted for these costs amounted to -12.1 (-0.1) MSEK. • Net income for the period amounted to -45.3 (-20.5) MSEK. • Earnings per share (EPS) were -1.61 (-0.80) SEK. • Cash flow from operating activities amounted to -21.8 (4.5) MSEK.
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INTERIM REPORT JUL–SEP 2025 3 COMMENTS BY THE CEO FRANS VENKER Significant progress in performance as market activity increases Mentice delivered solid revenue growth and a significantly improved EBITDA margin in the third quarter, despite continued macroeconomic uncertainty. Net sales in the quarter totaled SEK 70.6 million, up 22 percent year-over-year, of which 30 percent was organic growth and -8 percent related to FX. On a rolling twelve-month (R12M) basis, net sales are now in line with the same period last year. The increase was driven by positive development within the Medical Device Industry (MDI) business area, especially in the EMEA and North America regions. Order intake was slightly lower than the previous year mainly due to foreign exchange and continued headwinds in the Healthcare Systems business area (HCS), where hospital budgets in both North America and EMEA remain under pressure. We have also seen several larger orders moved out of the quarter by only a few days. Despite a lower order intake, we have seen an increase in market activity starting in the third quarter. The EBITDA margin reached expected 10.7 percent, reflecting the impact of the strategic changes implemented during the first half of the year. This includes the strategic workforce realignment announced in June and the consolidation of Mentice’s physical simulation operations to Denver, USA. We expect to see the full effects of these initiatives materialize in the first half of 2026. In addition to the organization-wide initiatives, we continue to streamline processes across sales, R&D and production, leading to greater speed, flexibility, and efficiency. Our cashflow in the first nine months was impacted by our restructuring cost, and in this third quarter by an increase in working capital due to our revenue growth. Completion of our rights issue In August, the company received the proceeds from our oversubscribed rights issue, totaling close to SEK 32 million. The proceeds will be used to support continued investments in product development with a focus on virtual reality realism and next- generation simulated medical device behavior. The funds will also be used for commercial initiatives in key markets, and the now- completed strategic workforce realignment, including one-time costs related to personnel transitions and facility consolidation. I’m pleased that many of our largest existing shareholders, together with several members of the board and management, participated in the rights issue, confirming their confidence in Mentice position and the strategy now being implemented. Pursuing our long-term strategy With the organizational changes and share issue behind us, Mentice continues to take important strategic steps toward further solidifying our unique position as a global leader in simulation solutions for Image-Guided Interventional Therapies (IGIT). We see strong potential in supporting entire interventional workflows, clinical decision-making, and improving procedural efficiency in hospitals. Simulation plays an increasingly important role in improving outcomes and lowering procedure costs, particularly in complex high-cost and high-risk therapy areas. Even with the general caution in the market, it’s encouraging that demand for our products and services remains high. I am confident in our ability to execute and that we can navigate through the current macroeconomic climate. The third quarter showed energy and momentum Since the start of the third quarter, we have seen continued momentum in our business both in our Virtual Simulation and Physical Simulation business. During the third quarter, our order book of development projects increased. We have significantly more development projects with our customers compared to the first half of the year. This is a positive sign and proof of increased market activity. In summary, I am encouraged by our progress in these recent months and the support and trust from our customers, and hard work of our employees. The feedback we receive from customers, healthcare providers, and industry leaders shows us that we are on the right path. Our mission to address global healthcare challenges remains a key priority which we achieve through sustaining good business practices, delivering next-generation realism in our simulation solutions, and continued development of our business propositions. Gothenburg, November 2025 Frans Venker, CEO Mentice
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INTERIM REPORT JUL–SEP 2025 4 KEY FIGURES Jul-Sep 2025 Jul-Sep 2024 Change Jan-Sep 2025 Jan-Sep 2024 Change RTM Full Year 2024 Order intake, MSEK 57.6 61.2 -5.9% 158.8 170.1 -6.6% 267.6 278.9 - whereof Medical Device Industry (MDI) 50.1 40.1 24.9% 138.7 133.7 3.8% 236.8 231.8 - whereof Healthcare systems (HCS) 7.5 21,1 -64.3% 20.1 36.4 -44.8% 30.8 47.2 Order book (end of period), MSEK 97.4 116.9 -16.7% 97.4 116.9 -16.7% 117.2 137.6 Net sales, MSEK 70.6 57.7 22.3% 188.3 204.0 -7.7% 274.5 290.3 Sales, MSEK 71.9 57.2 25.7% 191.6 205.0 -6.4 279.3 292.5 Gross margin, % 90.3% 89.5% 91.1% 88.6% 90.3% 88.7% Earnings before interest, tax, depreciation, and amortization (EBITDA), MSEK 7.7 -6.2 -19.6 -0.1 -3.0 16.6 EBITDA-margin, % 10.7% -10.8% -10.2% -0.0% -1.1% 5.7% Income before tax (EBT), MSEK 0.2 -12.4 -43.3 -18.6 -20.9 -13.5 Income for the period, MSEK -0.3 -13.1 -45.3 -20.5 -43.3 -18.4 Earnings per share, SEK -0.01 -0.51 -1.61 -0.80 -1.54 -0.72 Cash-flow from operations, MSEK -10.8 -2.7 -21.8 4.5 -8.0 17.9 Cash at the end of the period, MSEK 39.6 46.0 39.6 46.0 39.6 53.6 Equity/Asset ratio, % 45.2% 47.9% 45.2% 47.9% 45.2% 44.4% Average FTE for the quarter and full year 120.6 132.7 128.3 130.8 129.8 131.8
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INTERIM REPORT JUL–SEP 2025 5 FINANCIAL PERFORMANCE ORDER INTAKE PER BUSINESS AREA Mentice operates in two different business areas. Healthcare Systems (HCS) The HCS business area includes direct and indirect sales to hospitals, with the goal of implementing solutions that assist physicians in their daily clinical practice. The goal for Mentice is to offer solutions for the daily clinical practice before, during and after an interventional procedure, thus contributing to an increased quality of patient care. Medical Device Industry (MDI) The MDI business area includes solutions for the world’s leading manufacturers of medical devices. Mentice solutions are used by these customers for training, education, sales and marketing as well as to support medical device research. From 2025 Mentice has decided to integrate the Strategic Alliances (SA) business area into the Medical Device Industry (MDI) business area. Comparison figures for the previous year have been recalculated to reflect the current business area. Q3 ORDER INTAKE The order intake for the third quarter amounted to SEK 57.6 (61.2) million, a decrease of 5.9%, of which +0.4% was organic and -6.2% currency effect. For the first nine months, the order intake was SEK 159 (170) million, corresponding to a decrease of 6.6%, of which -3.6% was organic and -3% currency effect. Due to stronger Q3 compared to last year, particularly within the MDI business area, rolling 12 months (R12M) order intake is improving. Medical Device Industry (MDI) Order intake in Q3 amounted to SEK 50.1 (40.1) million, an increase of 25%. For the first nine months the order intake was 138.7 (133.7) million. On a R12M basis, the order intake is slightly lower than last year, but the quarter shows signs of recovery. Demand is mainly driven by our larger customers in the Americas region, where we see signs of improvement. Healthcare Systems (HCS) Order intake in Q3 amounted to SEK 7.5 (21.1) million, a decrease of 64%. For the first nine months the order intake was SEK 20.1 (36.4) million, corresponding to -45%. The weaker development is linked to lower activity in all regions. It is important to note that large orders can create a substantial variance in the distribution of order intake between business areas in individual quarters. Therefore, the Company is basing the evaluation of performance on rolling 12 months or full year figures. Order intake per business area KSEK Jul-Sep 2025 Jul-Sep 2024 Change Jan-Sep 2025 Jan-Sep 2024 Change RTM Full Year 2024 Medical Device Industry (MDI) 50,093 40,121 24.9% 138,731 133,669 3.8% 236,792 231,730 Healthcare systems (HCS) 7,535 21,090 -64.3% 20,109 36,477 -44.8% 30,783 47,151 Total 57,628 61,211 -5.9% 158,840 170,146 -6.6% 267,575 278,881 ORDER INTAKE PER BUSINESS AREA ROLLING 12 MONTHS (MSEK)
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INTERIM REPORT JUL–SEP 2025 6 ORDER BOOK The order book at the end of the period amounted to 97 (117) MSEK, corresponding to a decrease of 16.7%, of which -12.9% was organic and -3.8% related to currency effects. Of the order book, 37 MSEK is expected to generate revenue during 2025. The order book includes orders that will be recognized as net sales in upcoming periods. Order book by product segment KSEK 2025 2026- Mentice VIST® - Hardware - License/Software - Development 34,605 14,952 10,571 9,082 59,899 23,017 31,249 5,633 Physical Sim 1,157 ,350 Ankyras® 1,178 ,192 Total 36,940 60,441 ORDER BOOK PER QUARTER (MSEK)
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INTERIM REPORT JUL–SEP 2025 7 NET SALES The group’s net sales consist of sales of systems and software, service and support and sales from consultancy assignments referred to as development contracts. Software licenses sold as perpetual are recognized as net sales at delivery, together with hardware, while software licenses sold as a subscription model are recognized as net sales over time. Mentice also reports sales figures for the three geographic markets: EMEA (Europe, Middle East and Africa), APAC (Asia and the Asian Pacific Region) and Americas (North, Central and South America) and for three product areas, Mentice VIST® (including Mentice Live), Physical Sim and Ankyras®. NET SALES PER BUSINESS AREA Net Sales Quarter 3 Net sales during the third quarter amounted to 70.6 (57.7) MSEK, corresponding to an increase of 22.2% compared with the same period last year. Sales increased organically by approximately 30%, while currency changes had an impact of around -8%. For the period January to September (YTD), sales amounted to 188.3 (204.0) MSEK, corresponding to a decrease of 7.7%, of which -3.8% was organic and -4% currency effect. On a rolling 12-month basis (R12M), net sales amounted to 274.5 MSEK, and when comparing R12M with the same period in 2024, we see a positive development of 2.8%, of which 5.5% was organic and -2.7% currency effect. Medical Device Industry (MDI) MDI increased by 54.5% to 60.5 (39.1) MSEK during Q3 compared with the same period last year. Demand increased mainly among our larger customers in the Americas region. YTD, sales are slightly lower than last year (-2.6%). Healthcare Systems (HCS) HCS decreased by 45.6% to 10.1 (18.6) MSEK during Q3 and by 28.1% YTD compared with last year. The development is affected by lower order intake in all regions. Net sales per business area KSEK Jul-Sep 2025 Jul-Sep 2024 Change Jan-Sep 2025 Jan-Sep 2024 Change RTM Full Year 2024 Medical Device Industry (MDI) 60,456 39,134 54.5% 161,582 166,905 -2.6% 236,382 241,785 Healthcare Systems (HCS) 10,115 18,596 -45.6% 26,689 37,097 -28.1% 38,136 48,544 Total 70,571 57,730 22.2% 188,271 204,002 -7.7% 274,518 290,329 NET SALES BUSINESS AREA ROLLING 12 MONTHS (MSEK)
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INTERIM REPORT JUL–SEP 2025 8 NET SALES PER REGION Q3 net sales per region In Q3 2025, net sales increased by 22%, with growth in the Americas and EMEA regions. The APAC region showed weaker development, affecting the sales for the first nine months. The strong Q3, compared to previous period, gives a R12M showing growth compared to last year Americas Net sales in the Americas region increased in Q3 2025 by 33.0% to 37.5 (28.2) MSEK, mainly driven by demand within the Medical Device Industry (MDI). HCS remained at approximately the same level as before. R12M shows that the Americas region contributes positively to the Group’s performance by about 1.8%, of which 6.6% was organic and -4.8% currency effect. EMEA Net sales in the EMEA region increased by 52.7% to 23.5 (15.4) MSEK. Demand has been stable throughout the quarter from both larger and smaller customers within MDI and HCS. R12M shows that the quarterly increase strengthens the EMEA region’s development over time. 25%, of which 26.2% was organic and -1.2% currency effect. APAC Net sales in the APAC region decreased by 32.3% to 9.6 (14.2) MSEK, mainly due to lower demand within HCS. MDI shows positive signs, but this does not yet compensate for the total decline. R12M reflects that the APAC region remains below previous years’ levels by 32%, of which -19.5% was organic and -12.1% currency effect. Net sales per region KSEK Jul-Sep 2025 Jul-Sep 2024 Change Jan-Sep 2025 Jan-Sep 2024 Change RTM Full Year 2024 Americas 37,478 28,171 33.0% 105,907 109,525 -3.3% 146,642 150,257 EMEA 23,507 15,394 52.7% 54,413 49,659 9.6% 88,833 84,161 APAC 9,586 14,165 -32.3% 27,951 44,818 -37.6% 39,043 55,911 Total 70,571 57,730 22.2% 188,271 204,002 -7.7% 274,518 290,329 NET SALES REGION ROLLING 12 MONTHS (MSEK)
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INTERIM REPORT JUL–SEP 2025 9 NET SALES PER SEGMENT The Mentice product portfolio consists of four different product areas*, where Mentice VIST® accounts for the largest part of the company's turnover. The Mentice Live area is not reported separately but is included below in the Mentice VIST ® area. The Mentice VIST® product area is further divided into three sub- areas: Hardware, License/Software and Development. The Physical Sim area includes only Hardware, and the Ankyras® area only License/Software. Mentice VIST® – Immersive VR Simulation Mentice physics engine and anatomy model together with a haptics-enabled hardware solution creates an optimal environment for procedural training, patient-specific simulation and objective assessment of device knowledge and procedural practical ability. Mentice Live is a cloud-based learning platform aimed at MedTech companies and providers wanting to offer a broader and more accessible medical course catalogue, creating structured curricula and enable distributed distance learning. Physical Sim – physiological flow simulators With a unique production process and advanced 3D printers, Mentice creates high-quality artificial blood vessels that, together with heart and blood flow pumping platforms, are the perfect complement to VR simulation, especially when developing new medical devices or when training and planning for demanding high-cost and high-risk procedures. Ankyras® – decision support Ankyras® supports physicians determine size and location of medical device implants for brain aneurysms (flow diverters) to fit a specific patient’s anatomy. The solution is FDA cleared, and CE marked medically approved software with high accuracy that also simplifies communication between doctors and manufacturers during planning. Mentice VIST™ Net sales amounted to 61.8 (52.8) MSEK, which is an increase of 17.1%, compared with same period last year. Hardware net sales increased by 82.5% and accounted for most of the quarter’s same growth. Net sales for License/software decreased by 52.3% and net sales for Development increased by 38.0% Net Sales for the first nine months were 10.7% lower than corresponding quarter last year. The stronger Q3, compared to last year, gives a R12M 7.5% below last year, showing an increase due to the stronger quarter. The increase during the quarter was mainly driven by the regions Americas and EMEA. Physical Sim Net Sales amounted to 7.6 (4.0) MSEK, which is a strong increase of 92.5% compared with the same period last year, mainly due to increased performance in the regions EMEA and Americas. R12M shows a growth of 14%, compared to the same period last year. Ankyras™ Net sales increased to 1.2 (1.0) MSEK, an increase of 17.9% compared with Q3 last year, mainly within the EMEA and Americas regions. R12M shows an increase of 14%. Net sales per product segment KSEK Jul-Sep 2025 Jul-Sep 2024 Change Jan-Sep 2025 Jan-Sep 2024 Change RTM Full Year 2024 Mentice VIST™ - Hardware - Licenses/Software - Development 61,773 43,439 11,440 6,895 52,773 23,802 23,974 4,997 38.8% 32.6% -21.4% 50.1% 164,588 108,301 31,199 25,088 184,405 101,885 66,171 16,349 -10.7% 6.3% -52.9% 53.5% 242,442 157,687 53,559 31,196 262,239 151,313 88,494 22,432 Physical Sim 7,619 3,958 44.5% 20,144 16,625 21.2% 27,538 24,119 Ankyras™ 1,178 ,999 14.2% 3,540 2,972 19.1% 4,539 3,971 Total 70,571 57,730 22.2% 188,271 204,002 -7.7% 274,518 290,329 NET SALES SEGMENT ROLLING 12 MONTHS (MSEK)
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INTERIM REPORT JUL–SEP 2025 10 OTHER INCOME Other income was 1.3 (-0.5) MSEK for the quarter and for the nine months other income amounted to 3.3 (0.7) MSEK. It is related to exchange rate impact on the operating activities. GROSS PROFIT AND GROSS MARGIN The gross profit for the third quarter was 65.0 (51.2) MSEK and the gross margin at 90.3 (89.5) %. Gross margin for the period continues to be higher compared to previous year due to the mix of products and improved margin for the product area VIST related to Hardware. Gross margin is impacted by the mix between products sold and the level of support and service as well as the level of net sales from software licenses versus systems. The gross margin is also affected by the mix of regions for net sales. EBITDA AND EBITDA MARGIN Earnings before interest, tax, depreciation and amortization, EBITDA, amounted to 7.7 (-6.2) MSEK for the quarter. This corresponds to an EBITDA margin of 10.7 (-10.8) % for the third quarter. The reason for the third quarter's operating profit compared to last year is higher revenues and lower costs related to strategic realignment of the organization, taken during Q2. Earnings before interest, tax, depreciation and amortization, EBITDA, amounted to -19.6 (-0.1) MSEK for the first nine months. The costs for the strategic realignment amounted to -7.5 MSEK and are related to Personnel costs -4.3 MSEK and Other External Costs -3.2 MSEK. These costs were taken in Q2 in accordance with generally accepted accounting principles. EBITDA for the first nine months adjusted for these costs related to the reorganization was -12.1 MSEK. OTHER EXTERNAL COSTS Other external costs amounted to -20.0 (-20.1) MSEK during the third quarter. Other external costs amounted to -61.5 (-61.1) MSEK during the first nine months, which equals an increase of 0.6 % compared to the same period last year. During the first nine months costs of -3.2 MSEK were taken for strategic workforce realignment with the purpose of optimizing the organizational structure and aligning resources with long-term business priorities. PERSONNEL COSTS Personnel costs during the third quarter were -37.3 (-37.3) MSEK, which was unchanged compared to the same period last year. Personnel costs during the nine months were -132.8 (-118.8) MSEK, which equals an increase of 11.8 %. During the first nine months costs of -4.3 MSEK were taken for strategic workforce realignment with the purpose of optimizing the organizational structure and aligning resources with long-term business priorities Adjusted for the reorganization cost, the personnel costs for the first nine months amounted to -128.5 MSEK. Personnel costs include capitalized costs for development with 1.9 (3.3) MSEK for the quarter and with 4.2 (8.1) MSEK for the first nine months. The number of FTE, full-time equivalents average, amounted to 120.6 during the quarter, which is a decrease compared with the same period 2024 which amounted to 132. 7. CAPITALIZED EXPENSES FOR DEVELOPMENT COSTS Capitalized expenses for development costs during the third quarter amounted to 2.7 (5.4) MSEK and for the first nine months 8.0 (11.7) MSEK. This are mainly related to several ongoing projects for customers within the Medical Device Industry (MDI) The capitalization is accounted for as external costs if the original cost is for consultants for development and in personnel costs if the original cost is for own employees. AMORTIZATIONS During the year additional amortizations of -1.2 MSEK were taken due to the strategic workforce realignment related to lease contracts. FINANCIAL ITEMS Net financial items for the quarter amounted to -0.0 (-0.1) MSEK. Net financial items for the nine months amounted to -0.4 (-0.2) MSEK. INCOME BEFORE TAX, NET RESULT FOR THE PERIOD AND EARNINGS PER SHARE Tax on income for the third quarter was -0.5 (-0.6) MSEK. Net income for the quarter was -0.3 (-13.1) MSEK. Earnings per share were -0.01 (-0.51) SEK for the second quarter. Tax on income for the nine months was -1.7 (-1.9) MSEK. Net income for the nine months was -45.3 (-20.5) MSEK and earnings per share were -1.61 (-0.80) SEK CASH FLOW Cash flow from operating activities before changes in working capital was 8.9 (-4.1) MSEK for the third quarter. Cash flow from change in working capital was -19.7 MSEK compared to 1.4 MSEK in the same period last year. Cash flow from operating activities amounted to -10.8 (-2.7) MSEK. For the nine months Cach flow from operating activities amounted to -21.8 (4.5) MSEK. Cash from finance activities was 27.3 (-1.9), which 31.6 MSEK relates to a rights issue. CASH AND FINANCIAL POSITION Cash at the end of the period was 39.6 (46.0) MSEK. The group’s total assets amounted to 278.5 (289.6) MSEK. IFRS 16 affected
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INTERIM REPORT JUL–SEP 2025 11 total assets by 16.2 (3.0) MSEK. Accounts receivable decreased compared to the same quarter last year and amounted to 65.8 (73.7) MSEK. Inventories amounted to 18.0 (15.0) MSEK. Current liabilities were 143.4 (150.7) MSEK. The carrying amounts of financial assets and liabilities are considered to correspond essentially to fair value. The company also has an overdraft facility of 20 MSEK. INVESTMENTS Investments during the third quarter amounted to 2.7 (5.8) MSEK, whereof 2.7 (5.4) MSEK refers to the capitalization of development costs. The remaining 0.1 (0.4) MSEK refers to investments in tangible fixed assets. Investments during the nine months amounted to 10.2 (12.6) MSEK. PARENT COMPANY The parent company is an operating company based in Gothenburg, Sweden. Net sales for the third quarter for the parent company amounted to 47.0 (27.2) MSEK. The gross margin amounted to 86.3 (80.7) % for the quarter. The net income for the period was -3.7 (-25.0) MSEK. For the first nine months net sales amounted to 121.9 (132.9) MSEK with a gross margin of 87.3 (85.2) % and the net income for the period was -57.3 (-36.3) MSEK. SHARE CAPITAL During the period the number of shares increased by 2 556 885 shares through a rights issue. The total number of shares as of September 30, 2025, was 28,125,735 (25,568,850) and the share capital was 1,406 KSEK. All shares are ordinary shares with equal voting value. The shares have a quota value of 0.05 SEK. DISPUTES The group has no current disputes. TRANSACTIONS WITH RELATED PARTIES In addition to receiving board fees, Board member Denis Gestin through related company has acted on a consulting basis as advisor to the company, in connection with customer-related activities within the Medical Device Industry and other consultation. During the period July through September 2025, Denis Gestin received 0.3 (0.3) MSEK as fee in addition to board fee, and for the nine months 0.8 (0.8) MSEK. During the period a similar contract, for the business area HCS, was signed with the board member David Ballard. During the period an employment agreement was signed with a close relative to the board member Lawrence Howell. The above transactions were conducted based on market value. THE PURPOSE OF MENTICE The purpose of Mentice’s solutions is to support the healthcare professionals in their mission to ensure all patients have an optimal outcome, improve cost-effectiveness, and generally offer opportunities for the healthcare sector to better utilize its resources. RISKS Important risks and uncertainties for the group are primarily related to commercial risks with customers and suppliers, operational risks with regards to competence and security in the implementation of new medical equipment. The financial risks lie in the global operations that the company operates. This affects changes in exchange rates and interest rates, as well as liquidity, financing, and credit. Currency risk also arises when translating foreign net assets and earnings into Swedish kronor. Mentice overall goal is to avoid as far as possible financial risk taking, which can arise through changes in exchange rates, interest rates and market prices, as well as liquidity, financing, and credit risks. Exchange rate risk is divided into translation exposure and transaction exposure. Translation exposure refers to the exposure of net assets for foreign subsidiaries. Transaction exposure refers to the risks associated with purchases and net sales in foreign currency. The group’s external sales are made in the currencies EUR and USD. In the parent company, the external sales are in EUR or USD, and most of the operating costs are in SEK. Net sales and cost in the US subsidiary are exclusively conducted in USD. Net sales and costs in the other subsidiaries are mainly in EUR or USD. The full consequences of the implementation of tariffs by the new administration in the US will continuously be evaluated. For more information about the company’s risks, see the board of directors’ report in the annual report for 2024.
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INTERIM REPORT JUL–SEP 2025 12 THE SHARE AND OWNERSHIP Mentice AB (publ.) shares are traded on Nasdaq First North Growth Market since 2019 under MNTC. According to Euroclear’s official register of shareholders, Mentice had a total of 1,394 shareholders by September 30, 2025. FNCA is the company’s certified advisor. Largest shareholders (source Euroclear 2025-09-30) Name Number of shares Shareholding in % Karin Howell-Bidermann 8,718,422 31.00% Bure Equity 4,137,824 14.71% Fjärde AP-fonden 2,168,100 7.71% Gulf Offshore Limited 1,849,810 7.23% Avanza Pension 1,535,038 5.46% Medical Simulation Corporation 1,191,074 4.81% Göran Malmberg 782,837 2.78% Schroders 660,000 2.58% Andra AP-fonden 491,282 1.75% Handelsbanken Liv Försäkring AB 433,972 1.54% 10 largest shareholders total 21,968,359 79.57% Others 6,157,376 20.43% Total number of shares 28,125,735 100.00% EXAMINATION BY THE AUDITORS This report has been briefly reviewed by the company’s auditors. FINANCIAL REPORTS Interim reports and other financial reports are available on the company’s website. www.mentice.com.
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INTERIM REPORT JUL–SEP 2025 13 AFFIRMATION Mentice AB (publ)’s CEO hereby assures that this interim report gives a true and fair view of the Group’s business, financial position and performance and describes the essential risks and uncertainty factors that the company and the companies which are part of the Group are subjected to. In the event of any discrepancies between the English and Swedish versions of the report, the Swedish version shall prevail. Gothenburg, November 5, 2025 Mentice AB (publ) Magnus Nilsson Chairman of the Board Lawrence D. Howell Board member David J. Ballard Board member Denis Gestin Board member Gösta Johannesson Board member Johann Koss Board member Eola Änggård Runsten Board member Frans Venker CEO
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INTERIM REPORT JUL–SEP 2025 14 CONSOLIDATED INCOME STATEMENT KSEK Jul-Sep 2025 Jul-Sep 2024 Jan-Sep 2025 Jan-Sep 2024 Full year 2024 Net sales 70,571 57,695 188,271 204,112 290,329 Other income 1,336 -473 3,318 659 2,149 Operating income 71,907 57,222 191,589 204,771 292,478 Raw materials and consumables used -6,768 -5,662 -16,605 -23,349 -33,084 Depreciation of rented assets -103 -394 -250 -1,564 -1,627 Other external expenses -20,045 -20,063 -61,484 -61,129 -76,583 Personnel expenses -37,296 -37,298 -132,839 -118,798 -164,625 Depreciation of tangible assets -3,201 -2,225 -11,101 -6,882 -13,714 Amortization and write-down of intangible assets -4,261 -3,955 -12,570 -11,404 -15,242 Operating expenses -71,674 -69,597 -234,850 -223,126 -304,875 Operating profit (EBIT) 233 -12,375 -43,261 -18,355 -12,397 Financial income 242 397 371 1,326 1,562 Financial expenses -261 -461 -721 -1,556 -2,668 Net financial items -19 -63 -351 -230 -1,106 Earnings before tax (EBT) 214 -12,438 -43,611 -18,586 -13,502 Tax -483 -622 -1,732 -1,871 -4,918 Net result for the year -269 -13,061 -45,343 -20,457 -18,420 Net result for the year attributable to: Shareholders parent company -269 -13,061 -45,343 -20,457 -18,420 Earnings per share Basic (SEK) -0.01 -0.51 -1.61 -0.80 -0.72 Diluted (SEK) -0.01 -0.51 -1.61 -0.80 -0.72 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME KSEK Jul-Sep 2025 Jul-Sep 2024 Jan-Sep 2025 Jan-Sep 2024 Full year 2024 Net result for the year -269 -13,061 -45,343 -20,457 -18,420 Other comprehensive income Items can be transferred to profit or loss for the year: Translation difference on translation of foreign operations -353 -1,031 -3,457 -15 2,767 Total comprehensive income for the year -621 -14,091 -48,800 -20,472 -15,653
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INTERIM REPORT JUL–SEP 2025 15 CONSOLIDATED BALANCE SHEET KSEK 30 Sep 2025 30 Sep 2024 Full year 2024 Assets Goodwill 48,508 48,508 48,508 Patents 21,936 25,544 24,648 Trademarks 1,512 2,721 2,419 Internally developed intangible assets 40,380 40,708 41,527 Tangible assets 6,610 7,695 8,637 Right-of-use assets 17,523 3,830 7,727 Deferred tax assets 2,866 6,269 5,421 Total non-current assets 139,334 135,276 138,886 Inventories 18,026 14,960 17,419 Accounts receivables 65,779 73,722 97,492 Prepaid costs and accrued income 11,694 14,934 11,851 Current tax assets 1,576 1,742 1,045 Other receivables 2,485 2,978 3,620 Cash and cash equivalents 39,620 45,994 53,586 Total current assets 139,181 154,331 185,012 Total assets 278,515 289,607 323,899 Equity and liabilities Share capital 1,406 1,278 1,278 Other paid in capital 232,726 201,570 201,728 Retained earnings -108,144 -64,162 -59,344 Total equity attributable to parent company shareholders 125,989 138,686 143,663 Long term liabilities Leasing liabilities long-term 9,139 270 4,727 Total long-term liabilities 9,139 270 4,727 Accounts payable 8,349 12,547 12,940 Other liabilities 3,847 3,795 5,120 Current leasing liability 7,400 3,800 4,409 Accrued expenses and deferred income 123,792 130,509 153,041 Total current liabilities 143,387 150,651 175,510 Total equity and liabilities 278,515 289,607 323,899
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INTERIM REPORT JUL–SEP 2025 16 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY KSEK Share capital Other paid in capital Translation reserve Retained earnings Total equity At 1 January 2024 1,278 201,385 -1,431 -42,259 158,973 Transactions with owners in the group Issue of share options 343 343 Payment of share options Net result and other comprehensive income for the year Net result for the year -18,420 -18,420 Other comprehensive income for the year 2,094 673 2,767 Total comprehensive income for the year 2,094 -17,747 -15,653 Closing balance at 31 December 2024 1,278 201,728 663 -60,006 143,663 At 1 January 2025 1,278 201,728 663 -60,006 143,663 Transactions with owners in the group New share issue 128 30,408 30,536 Issue of share options 590 590 Payment of share options Net result and other comprehensive income for the year Net result for the year -45,343 -45,343 Other comprehensive income for the year -4,301 844 -3,457 Total comprehensive income for the year -4,301 -44,499 -48,800 Closing balance at 30 September 2025 1,406 232,726 -3,638 -104,505 125,989
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INTERIM REPORT JUL–SEP 2025 17 CONSOLIDATED STATEMENT OF CASH FLOWS KSEK Jul-Sep 2025 Jul-Sep 2024 Jan-Sep 2025 Jan-Sep 2024 Full year 2024 Operating activities Earnings before tax 214 -12,438 -43,611 -18,586 -13,502 Adjustment for Non-cash items 9,317 8,121 25,047 21,090 30,456 Income tax paid -625 209 -642 -2,473 -4,195 Cash flow from operating activities before changes in working capital 8,906 -4,108 -19,206 31 12,758 Change in trade receivables and other current assets -5,453 5,294 26,354 13,901 -3,881 Change in inventories 2,479 -1,696 -1,894 -879 -2,662 Change in trade payables and other current liabilities -16,768 -2,152 -27,039 -8,520 11,705 Change in working capital -19,743 1,446 -2,579 4,502 5,161 Cash flow from operating activities -10,836 -2,662 -21,784 4,534 17,919 Investing activities Acquisitions of tangible assets -59 -447 -2,151 -955 -1,283 Capitalisation of internally developed intangible assets -2,658 -5,402 -8,005 -11,674 -15,155 Cash flow from investing activities -2,717 -5,849 -10,156 -12,630 -16,438 Financing activities New share issue 31,628 31,961 New share issue cost -1,425 -1,425 Amortization of lease liability -2,882 -1,870 -9,449 -5,604 -9,312 Cash flow from financing activities 27,321 -1,870 21,087 -5,604 -9,312 Cash flow for the period 13,768 -10,381 -10,853 -13,700 -7,830 Opening cash balance 25,466 57,136 53,586 59,121 59,121 Translation difference on cash and cash-equivalents 386 -761 -3,113 574 2,295 Cash and bank balances at end of period 39,620 45,994 39,620 45,994 53,586
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INTERIM REPORT JUL–SEP 2025 18 PARENT COMPANY INCOME STATEMENT KSEK Jul-Sep 2025 Jul-Sep 2024 Jan-Sep 2025 Jan-Sep 2024 Full year 2024 Net sales 46,968 27,239 121,856 132,910 200,639 Capitalised expense for development 2,799 4,035 7,026 9,688 12,344 Other income 1,342 2,135 3,082 5,856 17,308 Operating income 51,109 33,409 131,965 148,454 230,291 Raw materials and consumables used -6,981 -6,436 -16,694 -22,032 -32,361 Other external expenses -17,027 -18,643 -58,293 -57,451 -75,049 Personnel expences -21,670 -23,921 -84,334 -78,133 -112,047 Depreciation of tangible assets -368 -455 -1,216 -1,352 -1,790 Amortization and write-down of intangible assets -6,743 -6,437 -20,015 -18,849 -25,169 Exchange losses on operating receivables and liabilities -680 -2,431 -7,394 -6,572 -16,550 Realization loss, fixed assets -1,369 -87 -1,369 -87 -87 Operating expenses -54,839 -58,410 -189,315 -184,476 -263,052 Operating profit (EBIT) -3,730 -25,000 -57,351 -36,022 -32,762 Financial income 179 369 415 1,220 1,447 Financial expenses -135 -382 -380 -1,475 -2,397 Net financial items 44 -12 35 -255 -951 Result after financial items -3,686 -25,012 -57,316 -36,277 -33,712 Earnings before tax (EBT) -3,686 -25,012 -57,316 -36,277 -33,712 Tax 0 0 0 0 -36 Net result for the year -3,686 -25,012 -57,316 -36,277 -33,748
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INTERIM REPORT JUL–SEP 2025 19 PARENT COMPANY BALANCE SHEET KSEK 30 Sep 2025 30 Sep 2024 Full year 2024 Assets Intangible and tangible assets Goodwill 3,689 13,482 11,034 Patents 21,888 25,679 24,731 Trademarks 1,512 2,721 2,419 Internally developed in-tangible assets 38,979 39,838 40,333 Tangible assets 2,467 5,078 4,958 Financial assets Shares in group companies 21,886 21,886 21,886 Receivables from group companies 999 1,021 1,037 Deferred tax assets 6,615 6,615 6,615 Total non-current assets 98,033 116,319 113,013 Inventories 9,725 9,853 9,633 Accounts receivables 33,263 42,064 50,868 Current receivables, group companies 1,277 -90 Prepaid expenses and accrued income 17,872 4,144 23,711 Current tax assets 2,794 2,162 2,486 Other receivables 1,863 2,376 2,892 Cash and cash equivalents 22,725 29,106 27,462 Total current assets 89,518 89,615 117,052 Total assets 187,552 205,934 230,065 Equity and liabilities Restricted equity Share capital 1,406 1,278 1,278 Fund for development costs 39,269 42,689 41,047 Non-restricted equity Other paid in capital 232,726 201,570 201,728 Retained earnings -136,429 -106,101 -104,458 Net result for the year -57,316 -36,277 -33,748 Total equity 79,656 103,159 105,846 Long term liabilities Liabilities to group companies 6,506 826 815 Total long-term liabilities 6,506 826 815 Accounts payable 7,345 10,640 11,619 Current liabilities, group companies 5,971 4,889 9,069 Other liabilities 2,197 1,708 1,623 Accrued expenses and deferred income 85,875 84,712 101,092 Total current liabilities 101,389 101,949 123,403 Total equity and liabilities 187,552 205,934 230,065
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INTERIM REPORT JUL–SEP 2025 20 NOTES ACCOUNTING POLICIES Mentice 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 and the Swedish Annual Accounts Act. The parent company’s interim report has been prepared in accordance with the Swedish Annual Accounts Act and RFR 2, Accounting for Legal Entities, issued by the Swedish Financial Reporting Board. The accounting policies are unchanged compared to 2024. Some minor structural adjustments were made in the financial tables in 2025. BASES OF VALUATION APPLIED IN THE PREPARATION OF THE FINANCIAL STATEMENTS Assets and liabilities are recognized at historical cost except for currency derivatives, which are measured at fair value. As per September 30, 2025, the total actual value of forward contracts was 24.7 (26.1) MSEK. ASSESSMENTS AND ESTIMATES IN THE FINANCIAL STATEMENTS Preparation of the financial statements in compliance with IFRS requires the company’s management to make assessments, estimates and assumptions that affect the application of the ac- counting policies and the carrying amounts of assets, liabilities, income, and expenses. Actual outcomes may deviate from these estimates and assessments. Assumptions are reviewed on a regular basis. Changes to estimates are recognized in the period. FINANCIAL INSTRUMENTS, CURRENCY EXPOSURE AND RISK MANAGEMENT Mentice uses forward exchange contracts to manage currency risk. Forward exchange contracts are used to hedge risk in accordance with the group financial policy. Mentice operations expose it to credit risk when selling to customers. Only advance payments or letters of credit are accepted for sales to new customers or to customers which are deemed to represent a high-risk exposure. ADJUSTMENTS, ROUNDING Some of the financial information provided in this report has been rounded, which may affect the totals in the tables. ABOUT THE PARENT COMPANY Mentice AB (publ.), company registration number 556556-4241, is a Swedish public company with its registered office in Gothen- burg, Sweden. WARRANT PROGRAM Mentice has three outstanding option programs for staff and external consultants, with the aim of stimulating increased commitment and interest in the business and its performance. Against this background, the programs are expected to have a positive impact on the company’s continued development and thus be good for the company and its shareholders.
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INTERIM REPORT JUL–SEP 2025 21 PRODUCT AREAS* Mentice’s business is divided into four product areas, which reflect the group’s operations, financial management and management structure. These four product areas are Mentice VIST®, Physical Sim, Mentice Live and Ankyras®. The Mentice Live area is not reported separately but is included in the Mentice VIST® area. OUTCOME PER PRODUCT AREA Q3 KSEK Mentice VIST™ Physical Sim Ankyras™ Total Jul-Sep 2025 Jul-Sep 2024 FY 2024 Jul-Sep 2025 Jul-Sep 2024 FY 2024 Jul-Sep 2025 Jul-Sep 2024 FY 2024 Jul-Sep 2025 Jul-Sep 2024 FY 2024 Hardware Licenses/Software Development 43,439 11,440 6,894 23,851 24,027 5,010 151,313 88,494 22,432 7,581 ,039 - 3,500 ,374 ,218 20,710 1,450 1,958 - 1,178 - - ,999 - 0 3,971 0 51,020 12,657 6,894 27,351 25,400 5,228 172,023 93,914 24,390 Total 61,773 52,888 262,239 7,620 4,092 24,119 1,178 ,999 3 971 70,571 57,979 290,329 Raw mtrl and consumables used -5,522 -5,111 -29,856 -1,290 -,895 -4,058 -,059 -,´050 -,199 -6,871 -6,056 -34,112 Gross profit 56,252 47,777 232,383 6,329 3,197 20,061 1,119 ,949 3,772 63,700 51,923 256,217 Gross profit % 89.4% 90.3% 88.6% 83.1% 78.1% 83.2% 95.0% 95.0% 95.0% 90.3% 89,6% 88.3% OUTCOME PER PRODUCT AREA YTD KSEK Mentice VIST™ Physical Sim Ankyras™ Total Jan-Sep 2025 Jan-Sep 2024 Helår 2024 Jan-Sep 2025 Jan-Sep 2024 Helår 2024 Jan-Sep 2025 Jan-Sep 2024 Helår 2024 Jan-Sep 2025 Jan-Sep 2024 FY 2024 Hardware Licenses/Software Development 108,301 31,199 25,088 101,933 66,224 16,362 151,313 88,494 22,432 19,820 ,116 ,207 14,183 1,103 1,473 20,710 1,450 1,958 - 3,540 - - 2,972 - 3,971 128,121 34,854 25,296 116,116 70,299 17,835 172,023 93,914 24,390 Total 164,588 184,519 262,239 20,144 16,759 24,119 3,540 2,972 3,971 188,271 204,250 290,329 Raw mtrl and consumables used -13,364 -22,099 -29,856 -3,315 -2,666 -4,058 -,177 -,149 -,199 -16,856 -24,914 -34,112 Gross profit 151,224 162,420 232,383 16,829 14,093 20,061 3,363 2,823 3,772 171,416 179,336 256,217 Gross profit % 91.9% 88.0% 88.6% 83.5% 84.1% 83.2% 95.0% 95.0% 95.0% 91.1% 87.8% 88.3%
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INTERIM REPORT JUL–SEP 2025 22 DEFINITION OF KEY PERFORMANCE INDICATORS REPORTED Alternative performance measures (APM) are financial measurements that cannot be directly discerned or ordered from financial statements. These financial measurements are intended to help the company management and investors to analyze the group’s performance. Investors should view these alternative key performance indicators as a complement to the financial statements prepared in accordance with IFRS. DEFINITION OF KEY PERFORMANCE INDICATORS REPORTED Order intake The value of orders received during the period. Net sales Sales of products and services are normally recognized in connection with delivery to customers, depending on the terms of delivery. Services, software, and projects that run over several periods are recognized as net sales over time. Order book Amount of not yet delivered products and services. Order intake rolling 12 months Mentice has had recurring growth phases, and it is important to view performance over time and not solely for an individual quarter as Mentice historically has had a strong first quarter. Net sales rolling 12 months Mentice has had recurring growth phases, and it is important to view performance over time and not solely for an individual quarter as Mentice historically has had a strong first quarter. Gross profit Net sales with deduction for raw materials and consumables used and depreciation of rented assets. Gross profit margin Gross profit as a part of net sales. EBITDA Mentice uses the key performance indicator EBITDA to demonstrate the earning power of the business from operating activities without considering the capital structure and tax situation and this is intended to make comparison easier with other companies in the same industry. EBITDA margin EBITDA as part of net sales. The measure is used to measure operating profitability, independent of financing, impairment and depreciation. EBITDA rolling 12 months Mentice has repeatedly had individual strong quarters, and it is therefore important to continuously see developments over time and not just focus on individual quarters. FTE (Full-time Equivalent) Full-time employee based on employment percentage and long-time sick leave. Includes consultants replacing a permanent position during recruitment. RTM Rolling Twelve Months.
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INTERIM REPORT JUL–SEP 2025 23 FINANCIAL TARGETS, SHORT TO MEDIUM TERM REVENUE GROWTH 20-30% annual growth in net sales. PROFITABILITY To reach a 20% EBITDA margin within three years with a longer-term target of 30%. ABOUT MENTICE BUSINESS OPERATIONS Mentice is a company that offers high-technology solutions for simulation to the medical sector with a focus on the fast-growing market for endovascular procedures. Mentice’s simulators are used to educate, train, and improve the practitioners’ skills in different types of interventions and when introducing new clinical instruments. The company offers “flight simulations” for physicians and clinical teams to provide practitioners with experiences as realistic as possible. Headquartered in Gothenburg, Sweden. Mentice has a strong global presence with companies established in the US, Japan, Spain, and China. BUSINESS IDEA Mentice business idea is to assist in the aim to reduce deaths, injuries and costs resulting from medical errors and inefficiencies and ultimately to reduce risk of harm to patients. By developing and providing innovative and realistic training tools, the company will help to improve the clinical skills of doctors and reduce the risk of needless errors. Medical errors are a major problem for society that come at a large cost and are the third most common cause of death in the USA, behind heart disease and cancer Close integration with health service and the rest of the medical device industry is vital to promote innovative solutions that enhance the simulation experience. Sustainability, social and environmental issues are a core element of Mentice code of conduct and its operations. Mentice has a strong focus on the continuing innovation of the products offered and on taking simulation to new heights to offer the best possible solutions for customers at hospitals, clinics, universities and in research groups as well as in the medical device industry. The company has clear ambitions and principles to take economic, social, and environmental responsibility. PURPOSE Mentice’s purpose is to reduce deaths. injuries and costs resulting from medical errors and inefficiencies by developing innovative and inspirational tools for the improvement of clinical skills. VISION Mentice’s vision is to lead endovascular care to the highest standards of patient safety and performance. MISSION We believe medical technology helps to improve patient outcomes and clinical performance. Our mission is to improve operational efficiency and patient outcomes by introducing innovative solutions that eliminate proficiency barriers. OUR RESULTS ARE GLOBAL Proud to be trusted by organizations worldwide 25+ Years of experience pioneering interventional simulation. 140+ Over 140 scientific papers reinforcing the value of simulation skills acquisition. Retention and assessment. 50+ Medical simulation patents across more than 30 different training procedures >50% Of global market share in endovascular simulation solutions.
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INTERIM REPORT JUL–SEP 2025 FINANCIAL CALENDAR YEAR END REPORT 2025 FEBRUARY 26, 2026 ANNUAL REPORT 2025 APRIL 23, 2026 INTERIM REPORT JAN - MAR 2026 MAY 7, 2026 ANNUAL GENERAL MEETING 2026 MAY 26, 2026 INTERIM REPORT APR - JUN 2026 JULY 23, 2026 INTERIM REPORT JUL - SEP 2026 NOVEMBER 10, 2026 Mentice’s interim reports and annual reports are available on www.mentice.com Mentice AB (publ) – Interim report Jul - Sep 2025