Interim report
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Interim Report Q2 January - June 2026 Bridging the gap between humans and machines for a safer future 2026
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INTERIM REPORT Q2 202602 | SMART EYE Strong royalty revenue drives growth Business Highlights April - June 2026 During the quarter, Smart Eye received an additional Interior Sensing AI order from a major Japanese vehicle manufacturer. The order is for two existing DMS models and has an estimated value of at least SEK 60 million over the product life cycle. Smart Eye secured four new DMS Design Wins from a leading global automotive manufacturer. The order comprises four vehicle models and has an estimated value of SEK 50 million over the product life cycle. The Smart Eye presented new technology for contactless monitoring of vital parameters, including heart and respiratory rate, integrated into the company’s existing DMS platform. April - June 2026 Organic growth amounted to 54% Net sales increased by 53% Organic growth in Automotive 128% Gross margin improved as a result of high growth in royalty income. EBITDA improved by SEK 26.4 million compared to same period last year. Free cash flow improved by SEK 14.1 million. Available cash and cash equivalents, including credit facilities, amounted to SEK 117.7 (93.8) million. Earnings after tax per share were -0.69 (-1.00) and after full dilution -0.69 (-1.00). The company will comment on its quarterly results during the earnings call hosted by Redeye, taking place live online at 11:00 on August 26, where the CEO and CFO will present the results and answer questions. April - June Q2 2026 Q2 2025 Change Net sales KSEK 140,877 92,123 53% Organic growth % 54 7 44% Organic growth Automotive KSEK 128 27 95% Gross margin % 90 90 0% EBITDA KSEK 27,443 1,013 26,430 Operating result EBIT KSEK -20,526 -40,559 49% Result after tax KSEK -27,013 -37,442 28% Free cash flow KSEK -23,820 -37,939 14,119 January - June 2026 Organic growth amounted to 52% Net sales increased by 47% Organic growth in Automotive 125% The gross margin improved as a result of high growth in royalty income. EBITDA improved by SEK 71.2 million. Earnings after tax per share were -1.27 (-2.50) and after full dilution -1.27 (-2.50). After the period On July 7, 2026, the EU’s requirements for driver monitoring and distraction warning came into force for new vehicle models, reinforcing the long-term demand for Smart Eye’s DMS solutions. On July 17, 2026, Smart Eye received an additional order for Interior Sensing to three existing DMS programs, with an increased estimated order value of SEK 15 million over the product lifecycle. On August 13, 2026, Smart Eye secured a Design Win for a rear-view mirror-integrated Interior Sensing program for three new car models, with an estimated order value of approximately SEK 100 million. January - June Q1-Q2 2026 Q1-Q2 2025 Change Net sales KSEK 267,346 182,192 47% Organic growth % 52 7 44% Organic growth Automotive KSEK 125 27 95% Gross margin % 91 89 1% EBITDA KSEK 54,312 -16,879 71,191 Operating result EBIT KSEK -36,490 -101,939 64% Result after tax KSEK -49,833 -92,545 46% Free cash flow KSEK -56,118 -85,878 29,760 Financial highlights
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SMART EYE | 03INTERIM REPORT Q2 2026 Financial Summary Apr-Jun Jan-Jun Full year 2026 2025 2026 2025 2025 Net sales KSEK 140,877 92,123 267,346 182,192 403,672 Gross profit KSEK 126,832 82,792 242,315 162,738 350,598 Gross margin % 90.0 89.9 90.6 89.3 86.9 EBITDA KSEK 27,443 1,013 54,312 -16,879 4,856 Operating profit/loss KSEK -20,526 -40,559 -36,490 -101,939 -163,498 Operating margin % neg. neg. neg. neg. neg. Profit/loss after tax KSEK -27,013 -37,442 -49,833 -92,545 -172,759 Earnings per share SEK -0.69 -1.00 -1.27 -2.50 -4.55 Return on total capital % -1.98 -2.69 -3.85 -5.81 -10.84 Equity per share SEK 34.83 37.13 33.04 43.06 34.13 Equity per share after full dilution SEK 34.26 36.25 32.50 42.03 33.68 Equity ratio % 66.52 77.75 68.17 83.09 68.20 Number of shares 39,198,762 37,456,653 39,198,762 36,995,768 37,953,933 Number of shares after full dilution 39,850,762 38,362,714 39,850,762 37,901,829 38,453,666 Average number of shares before full dilution 38,941,478 37,456,653 38,590,539 37,423,367 37,663,786 Average number of shares after full dilution 39,593,478 38,362,714 39,242,539 38,329,427 38,163,519 This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins
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INTERIM REPORT Q2 202604 | SMART EYE This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins Comments From the CEO The strong development continued and accelerated in the second quarter. Smart Eye grew organically by 54%, with Automotive delivering a record 128% organic growth. Group revenues reached SEK 141 million, compared to SEK 92 million last year. Even more importantly, we are now seeing the operational leverage that we have been working towards for many years. The strong growth in high- margin software license revenues lifted gross profit by SEK 44 million and EBITDA reached SEK 27 million, an improvement of SEK 26 million compared to the same quarter last year. For the first six months, EBITDA amounted to SEK 54 million, an improvement of SEK 71 million. Automotive is clearly the engine behind this development. Behavioral Research, on the other hand, had another challenging quarter, declining organically by 7%, mainly due to lower sales of hardware. iMotions software-based offering developed considerably better, growing organically by 7%. Overall, Q2 provides further evidence that Smart Eye is entering a fundamentally different phase as years of Automotive Design Wins increasingly translate into production volumes, software license revenues and earnings. Automotive Automotive had a very strong quarter. Revenues increased from SEK 42 million to SEK 93 million, corresponding to organic growth of 128%. The main driver was software license revenues from increasing vehicle production, while NRE and AIS grew, albeit at a slightly lower pace. The production ramp up is increasing rapidly. License revenues grew by over 200% in the quarter. The number of car models in production increased from 155 to 175, while 20 of our 24 OEM customers now have Smart Eye software in production, compared to 15 one quarter ago. As more of our 379 Design Wins enter production, the impact of high-margin license revenues on growth and profitability becomes increasingly significant. July 7 marked a major milestone as EU requirements for driver monitoring and distraction warning came into force for all newly registered cars. Smart Eye started investing in DMS more than a decade ago, and the rapid royalty growth we see today is the result of that long-term investment. With existing programs ramping and new models entering production, we see this as the beginning of the next phase of DMS growth. Interior Sensing, our next growth vector, is also gaining momentum. During Q2, a major Japanese OEM expanded two existing DMS programs with Interior Sensing AI, adding at least SEK 60 million in estimated lifetime value. In August, a major European OEM selected Smart Eye for a combined DMS and OMS program for three new models, integrated into the rear-view mirror and valued at approximately SEK 100 million. Interior Sensing has now been selected for 18 car models by four OEMs. These wins demonstrate that existing DMS customers select Smart Eye for OMS (Occupant Monitoring System) as well, expanding our value per vehicle. This also demonstrates the versatility of our technology across different camera positions, including the increasingly important rear-view mirror. Together with new capabilities such as vital signs monitoring, intoxication detection, iris authentication and child presence detection, Interior Sensing represents an important next growth vector alongside our rapidly expanding DMS business.
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This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins Behavioral Research Behavioral Research had a more challenging quarter. Revenues amounted to SEK 48 million compared with SEK 50 million last year, corresponding to an organic decline of 7%. The weakness mostly comes from hardware, where sales remained below last year’s level. We are not satisfied with this development and are working actively to improve performance. iMotions, including the former Media Analytics business, developed considerably better and delivered organic growth of 7% during the quarter. This is encouraging given the continued cautious market environment and confirms the strength of our multimodal research software offering. Sightic, which joined Smart Eye earlier this year, also contributed positively to the business area. Beyond its immediate revenue contribution, the acquisition gives us technology and expertise that are strategically important for our Automotive intoxication roadmap. Our priority in Behavioral Research remains profitable growth. We will continue to maintain cost discipline while strengthening the parts of the portfolio where we see the greatest long-term potential. Final Words The first half of 2026 demonstrates the transfor- mation taking place in Smart Eye. Group organic growth reached 52%, Automotive grew organi- cally by 125%, and our gross margin increased to 91%, mainly because of the growing contribution from software royalties. Twenty of our 24 automotive OEM customers are now in production. Smart Eye technology is in production in 175 of 379 Design Wins, with an estimated remaining lifetime order value exceeding SEK 7.6 billion. The EU DMS regulation is fully in force. Royalty revenues are growing rapidly, and the operating leverage of our software business is increasingly visible. And while DMS continues to scale, the next growth vector is already emerging. Interior Sens- ing has now been selected for 18 models across four OEMs, with several recent orders demon- strating how our established DMS position can expand into broader and higher-value cabin monitoring. We are anticipating further such nominations in the near future. For many years, we have talked about the har- vest that would come when our large portfolio of Design Wins reached production. We are now harvesting – while planting the seeds for the next generation of growth. Martin Krantz Founder and CEO, Smart Eye SMART EYE | 05INTERIM REPORT Q2 2026
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INTERIM REPORT Q2 202606 | SMART EYE This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins Estimated Order Value development 2015 – August 2026 Smart Eye has since 2018 disclosed information on the estimated order value of obtained Design Wins as of the time the report is published. The figures in brackets indicate the levels at the time of the previous report’s publication, which in this case was May 18, 2026. The estimated order value of the company’s 379 (372) Design Wins to date amount to SEK 9,015 (8,850) million over the product life cycle. The estimated order value is based on the exchange rates of when announcing the Design Wins. The calculations are based on the company’s estimates of OEM production volumes for different vehicle models. These production volumes may change if the underlying conditions for the life cycle assumptions of the vehicle platforms change. The Estimated Order Value on future deliveries refers to order value from vehicle models that have entered production or will enter production. The estimated order value on future deliveries included Design Wins from Q2 2026 and onwards amounted to approximately SEK 7.6 (7.5) billion, based on the average exchange rates in Q1 2026 (EUR/SEK 10,70 and USD/SEK 9,15). Today, Smart Eye assesses to have 175 (+20) Design Wins that have entered production of which 160 are actively in production. Another 204 vehicles will enter production in the coming years. The calculations are based on the company’s estimates of OEM production volumes for different vehicle models. These production volumes may change if the underlying conditions for the life cycle assumptions of the vehicle platforms change. Going forward, the estimated order value on future deliveries will be updated as new Design Wins are added or old ones subtracted, or if FX changes materially. Estimated Order Value on Future Deliveries 8 235 8 725 9 015 2024 2025 2026 Design Wins Estimated Order value, MSEK North America 3 OEMs | 126 Design Wins Entered production 2 OEM | 28 Design Wins Europe 13 OEMs | 156 Design Wins Entered production 12 OEMs | 94 Design Wins Asia 8 OEMs | 97 Design Wins Entered production 6 OEMs | 53 Design Wins 24 OEMs | 379 DMS Design Wins | 18 Interior Sensing Design Wins | 2 Impairment Design Wins
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SMART EYE | 07INTERIM REPORT Q2 2026 This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins The Group Second quarter 2026 Revenue Net sales for the period April-June 2026 amounted to SEK 140.9 (92.1) million, which is an increase of 53%. Organic growth, excluding both exchange rates effects and the acquisition of Sightic, amounted to 54%. Gross Profit improved with SEK 44.0 million and gross margin amounted to 90% (90%). Net sales for the Automotive business area (Automotive Solutions and Fleet & Aftermarket) amounted to SEK 93.2 million in the second quarter, compared with SEK 41.6 million in the corresponding quarter of the previous year. Organic growth was 128%, primarily driven by increased royalty revenues as new vehicle models equipped with Smart Eye’s DMS solutions entered production. This development is supported by the EU regulatory requirement for driver monitoring systems (DMS), which, as of July 7, 2026, applies to all new cars registered in the EU. NRE revenues and sales of AIS products also increased during the quarter. For the Behavioral Research business area (Applied AI, iMotions and Sightic), net sales during the second quarter amounted to SEK 47.6 (50.5) million. Organic growth amounted to -7%, excluding exchange rates effects and the acquisition of Sightic, and is driven by less sales within Applied AI (previous Research Instruments). iMotions (merged with Media Analytics) reports an organic growth of 7%. The newly acquired Sightic impact positively and contribute to growth for the business area, +5%. Results EBITDA amounted to SEK 27.4 (1.0) million. The improvement was primarily driven by higher gross profit in Automotive, which more than offset the increase in operating expenses. The higher cost level was mainly attributable to investments in sales and marketing, salary revisions, and higher IT and other administrative expenses. The operating result, EBIT, amounted to SEK -20.5 (-40.6) million, an improvement with SEK 20.1 million. Depreciation and amortization increased during the quarter, primarily as a result of the acquisition of Sightic and investments in finance leases since February. Amortization of the excess values arising from the acquisitions of Affectiva, iMotions and Sightic Analytics amounted to SEK 27.9 million during the quarter. Depreciation of tangible fixed assets had a negative impact on earnings of SEK 2.9 (2.2) million. Earnings before tax, EBT, amounted to SEK -30.1 (-44.1) million, an improvement with SEK 14.0 million. Financial expenses increased during the quarter, primarily due to the bond issued in December 2025 and higher interest expenses related to finance lease agreements. Interest expense on the bond amounted to SEK 6.9 million during the quarter. Result after tax amounted to SEK -27.0 (-37.4) million. Deferred tax income of SEK 3.1 million was recognized during the quarter. Revenue Q2 2026 Q2 2025 Net Sales KSEK 140,877 92,123 Growth % 53 5 Organic growth % 54 7 Automotive Solutions KSEK 93,240 41,597 Organic growth Automotive Solutions % 128 27 Behavioral Research KSEK 47,636 50,527 Organic growth Behavioral Research % -7 -5 Results Q2 2026 Q2 2025 EBITDA KSEK 27,443 1,013 Operating result EBIT KSEK -20,526 -40,559 EBT KSEK -30,060 -44,065 Amortization surplus value KSEK -27,860 -28,891 Depreciation financial leasing KSEK -2,851 -2,210
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January – June 2026 Revenue Net sales for the period January-June 2026 amounted to SEK 267.3 (182.2) million, which is an increase of 47%. Organic growth, excluding both exchange rates effects and the acquisition of Sightic, amounted to 52%. Gross Profit improved with SEK 79.6 million and gross margin amounted to 91% (89%), mainly driven by higher royalty revenue. Net sales for the Automotive business area (Automotive Solutions and Fleet & Aftermarket) during January-June were SEK 175.3 million, compared with SEK 80.8 million in the same period previous year. Organic growth amounted to 125%, driven by higher royalty revenues related to the legislation requiring Driver Monitoring Systems (DMS) in all new cars, which was implemented across the EU from July 7, 2026. Automotive’s NRE revenue and AIS product sales increased as well. For the Behavioral Research business area (Applied AI, iMotions and Sightic), net sales during the second quarter amounted to SEK 92.0 (101.4) million. Organic growth amounted to -10% and is driven by less sales within Applied AI (previous Research Instruments). iMotions (merged with Media Analytics) reports revenue growth with 4% excluding exchange rates effects. The newly acquired Sightic impact positively and contribute to growth for the business area, +5%. This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins INTERIM REPORT Q2 2026SMART EYE | 08 Results EBITDA amounted to SEK 54.3 (-16.9) million, an improved profitability with SEK 71.2 million. The improved result is driven by higher Automotive contribution, offsets, OPEX increased due to investment in sales and marketing, salary review, IT and other administrative expenses. The operating result, EBIT, amounted to SEK -36.5 (-101.9) million, an improvement with SEK 65.4 million. Amortization of the surplus value created in conjunction with the Affectiva, iMotions and Sightic Analytics acquisitions amounted to SEK -53.4 (-55.4) million. The depreciation of financial leasing affected the result with SEK -4.9 million. Earnings before tax, EBT, amounted to -53.4 (-109.3) MSEK, an improvement with SEK 56.0 million. Interest expense on the bond amounted to SEK 13.5 million. Result after tax amounted to SEK -49,8 (-92.5) million. Deferred tax has been posted in the period amounting to SEK 3.6 million. Results Q1-Q2 2026 Q1-Q2 2025 EBITDA KSEK 54,312 -16,879 Operating result EBIT KSEK -36,490 -101,939 EBT KSEK -53,366 -109,328 Amortization surplus value KSEK -53,430 -55,412 Depreciation financial leasing KSEK -4,869 -4,825 Revenue Q1-Q2 2026 Q1-Q2 2025 Net Sales KSEK 267,346 182,192 Growth % 47 8 Organic growth % 52 7 Automotive Solutions KSEK 175,331 80,794 Organic growth Automotive Solutions % 125 27 Behavioral Research KSEK 92,015 101,399 Organic growth Behavioral Research % -10 -5 The Group
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Financial position Cash and cash equivalents at the end of June amounted to SEK 85.9 (Opening balance in the quarter 100.0) million. Available cash ending balance including overdraft facilities amounted to SEK 117.7 (93.8) million. Cash flow during the quarter amounted to SEK -15.6 million. Free cash flow amounted to SEK -23.8 million. An amount of SEK 10.3 million relating to Q1 has been reclassified from Non-cash items to Other current liabilities. The reclassification only affects the cumulative figures for the first half of the year and has no impact on Q2 on a standalone basis. During the quarter, the Company issued shares to cover increased social security contributions related to the 2023 share-based incentive program, which was vested on May 15. The share issue amounted to approximately SEK 8 million and is reported within financing activities in the cash flow statement. However, as the share issue relates to costs associated with the share-based incentive program and is therefore considered operating in nature, adjusted free cash flow amounted to SEK -16 million. Investment activities affected the cash flow with SEK -33.3 million and was mainly driven by investments in product development that amounted to SEK -31.3 million. Investment in IT and other tangible assets amounted to SEK -2.0 million. The company continuously evaluates its cash flow position and the expected timing of becoming cash flow positive. This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins Four new Design Wins from leading global vehicle manufacturer At the end of the quarter, Smart Eye announced four new Design Wins for the Driver Monitoring System from a leading global vehicle manufacturer. The design win strengthens the company’s already extensive order backlog and expands the long-term revenue potential in the Automotive segment. New technology for monitoring vital signs was presented During the quarter, Smart Eye presented new technology for contactless monitoring of vital signs, including heart rate and respiratory rate. The technology is built on the company’s existing DMS platform and demonstrates the potential to expand the functionality of Interior Sensing with additional in-cabin features that can support future safety and comfort applications. Events after the end of the period New EU regulations drive demand for driver monitoring systems On 7 July 2026, the EU’s requirements for driver monitoring and distraction warning came into force for all new vehicle models introduced to the market. The regulatory framework represents an important milestone for the European market for Driver Monitoring Systems and supports the long-term development in the area where Smart Eye is the market leader. Another Interior Sensing order from global vehicle manufacturer After the end of the period, Smart Eye announced another order for Interior Sensing from a major global vehicle manufacturer. The order strengthens the company’s position in advanced cabin monitoring and contributes to expanding Smart Eye’s presence in the next generation of safety and comfort systems for the automotive industry. Smart Eye secures New Mirror-Integrated Interior Sensing Program with Global OEM Smart Eye has received a new Design Win from a global European automotive manufacturer covering three new vehicle models. The order includes a rearview mirror- integrated Interior Sensing solution combining Driver Monitoring System (DMS) and Occupant Monitoring System (OMS) functionalities. Based on projected production volumes over the product lifecycle, the estimated order value amounts to approximately SEK 100 million. SMART EYE | 09INTERIM REPORT Q2 2026 Financial position Q2 2026 Q2 2025 Cash ending balance incl. credit facilitites KSEK 117,749 93,752 Free cash flow KSEK -23,820 -37,939 Important events during the period Smart Eye secured another Interior Sensing AI order In April, Smart Eye received an additional order for Interior Sensing AI from a major Japanese vehicle manufacturer. The order strengthens the company’s position in advanced cabin monitoring and confirms the growing interest in intelligent safety and comfort solutions in vehicles.
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INTERIM REPORT Q2 2026SMART EYE | 10 This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins The Parent Company Second quarter 2026 Revenue Net sales for the second quarter amounted to SEK 100.1 (55.3) million, which amounted to an increase of 81% compared with the same period last year. The growth is mainly driven by income from royalties in Automotive linked to the recently implemented legislation that mandates mandatory DMS in all new cars. Gross margin improved to 91% (90%) and gross profit increased with SEK 41.3 million compared to the same period previous year. Results The operating result, EBIT, for the second quarter totaled to SEK 3.7 (-24.2) million, an improved profitability with SEK 27.9 million. The higher sales in Automotive offset the higher cost in OPEX linked to investments in sales and marketing, salary review, IT and other administrative costs. Earnings before tax, EBT, amounted to SEK -5.2 (-27.3) million, an improvement with SEK 22.2 million. January – June 2026 Revenue Net sales for the period January-June amounted to SEK 192.0 (107.3) million, which amounted to an increase of 79% compared with the same period last year. The growth was mainly driven by the recently implemented legislation mandating DMS in all new cars, which supported Automotive royalty revenue. The company also recorded growth in Automotive NRE sales and AIS product sales. Gross margin improved to 92% (90%) and gross profit increased with SEK 79.3 million. Results The operating result, EBIT, for the period January-June 2026 totaled to SEK 13.0 (-64.1) million, an improved profitability with SEK 77.1 million. Earnings before tax, EBT, amounted to SEK -2.8 (-70.6) million, an improvement with SEK 67.8 million. Financial costs have increased linked to the bond subscribed in December 2025. Q2 2026 Q2 2025 Net Sales KSEK 100,104 55,335 Growth % 80.9 15.7 Operating result EBIT KSEK 3,677 -24,209 Result before tax EBT KSEK −5,162 -27,330 Net income KSEK −4,099 -21,700 Q1-Q2 2026 Q1-Q2 2025 Net Sales KSEK 191,991 107,312 Growth % 78.9 8.4 Operating result EBIT KSEK 13,039 -64,080 Result before tax EBT KSEK −2,765 -70,602 Net income KSEK −2,196 -56,058
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This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins 11 | SMART EYEINTERIM REPORT Q2 2026 Significant risks and uncertainties in summary Operational risks The Group’s operations are dependent on access to qualified and experienced personnel. The ability to retain existing employees and recruit new talent is critical to the Group’s continued development, and a loss of key personnel or difficulties in hiring may adversely affect operations and execution capacity. Maintaining competitiveness requires continuous product development and the ability to adapt to technological advances and changing market conditions. Initiatives such as the acquisition of Sightic, which expands the Group into a new market through ILE (Industry & Law enforcement), and the establishment of an AI innovation team are intended to support innovation and mitigate risks related to technological shifts. The Group operates in an environment affected by geopolitical uncertainties, including conflicts in the Middle East, which may indirectly influence market conditions and business development. The group have no operation or experience any direct effect from the war in the Middle East. The Group products are subject to several regulations, and the company mitigates this in its compliance process. To mitigate regulatory and execution-related risks, the company ongoing monitoring this via the group product compliance matrix. Financial risks A positive cash flow is essential for long-term investment in the competitiveness of the Group. Demand and production of car models related to the Group’s Design Wins significantly impact on the company’s license revenues and ultimately when the company reaches profitability and a positive cash flow. The company is currently financed through share capital and credit pending a positive cash flow. As sales increase, the company will face an increased currency exposure since most of the company’s sales will be denominated in a currency other than Swedish kronor. Market risks Eye tracking is an emerging technology, whereby the company’s products are currently used in behavioral research and as integrated products in the automotive industry. Regarding the Automotive business area, a delay or the non-materialization of an eye tracking launch in the automotive industry could entail a risk of a lower-than-expected growth rate. The future growth rate is strongly connected to the introduction of legislation in the European Union. In the Behavioral Research business area, the biggest market risk is the availability of funding in the academic field. A general decline in funding could be partly offset by an increased penetration of the market as the presence of the group’s technology is still emerging. More details regarding risks and uncertainties, refer to the 2025 Annual Report, page 65-66. Transactions with related parties Except for shared-based incentive programs and intercompany transactions there were no transactions with related parties during the period. Share Information The Company is listed on Nasdaq First North Growth Market. Certified Adviser is Bergs Securities. Number of shares The number of shares as of June 30, 2026 totals 39,198,762. In May 520,285 shares were issued through the implementation of the share program 2023. Share-based incentive scheme At the Extraordinary GM 29th June 2026, it was resolved on the adoption of a longterm incentive program in the form of performance-based share options directed at employees within the Smart Eye group. The maximum number of performance shares will amount to 680,000. The company has previously adopted two incentive programs, approved by the AGM on 17 May 2024 and the AGM on 13 May 2025. Total number of shares referring to the abovementioned programs amounts to 1,968,800, with a maximum expected dilution of 5.0%. Dividend policy The Company is in a development phase, and any surpluses are planned for reinvestment in the Company’s development. The Board of directors do not intend to submit a dividend proposal. Accounting policies The interim report has been prepared in accordance with the Annual Accounts Act and the general advice and guidelines of the Swedish Accounting Standards Board, BFNAR 2012:1, Annual Reports and Consolidated Financial Statements (K3).
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INTERIM REPORT Q2 2026SMART EYE | 12 Financial Reports Group This is Smart Eye The Group The Parent Company Other InformationCEO CommentsFinancial Summary Design Wins Condensed Consolidated Statement of Income Apr - Jun Jan - Jun Full year KSEK 2026 2025 2026 2025 2025 Net sales 140,877 92,123 267,346 182,192 403,672 Cost of goods sold -14,045 -9,331 -25,031 -19,454 -53,074 Gross Profit 126,832 82,792 242,315 162,738 350,598 Sales expenses -48,831 -35,811 -96,004 -77,488 -153,462 Administrative expenses -38,455 -35,673 -72,030 -79,714 -156,891 Research and development expenses -66,060 -48,572 -119,565 -107,411 -205,905 Other operating income 8,226 4,314 14,296 9,533 17,565 Other operating expenses -2,238 -7,609 -5,502 -9,597 -15,403 Operating profit/loss -20,526 -40,559 -36,490 -101,939 -163,498 Financial income and expenses Interest income and similar profit items 250 38 545 68 228 Interest expenses and similar loss items -9,784 -3,544 -17,421 -7,457 -31,282 Total financial income and expenses -9,534 -3,506 -16,876 -7,389 -31,054 0 Profit/loss after financial items -30,060 -44,065 -53,366 -109,328 -194,552 Tax on the result for the period -29 6,623 -49 16,783 -244 Deferred tax 3,076 - 3,582 - 22,037 Result for the period -27,013 -37,442 -49,833 -92,545 -172,759
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13 | SMART EYEINTERIM REPORT Q2 2026 Condensed Consolidated Balance Sheet KSEK 30/06/2026 30/06/2025 31/12/2025 ASSETS Intangible assets 1,416,086 1,318,718 1,271,233 Tangible assets 29,568 27,448 22,006 Deferred tax asset 264,003 243,649 255,469 Other longterm assets 200 - - Total fixed assets 1,709,857 1,589,815 1,548,708 Inventories 25,064 28,835 27,414 Trade receivables 73,859 55,680 77,141 Current tax receivables 5,766 4,650 4,553 Other current receivables 4,371 6,505 8,331 Prepaid expenses and accrued income 147,580 91,440 98,964 Current receivables 231,576 158,275 188,989 Cash and cash equivalents 85,875 11,770 134,812 Total current assets 342,515 198,880 351,215 TOTAL ASSETS 2,052,373 1,788,695 1,899,923 Financial Reports Group This is Smart Eye The Group The Parent Company Other InformationCEO CommentsFinancial Summary Design Wins
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INTERIM REPORT Q2 2026SMART EYE | 14 Condensed Consolidated Balance Sheet Financial Reports Group This is Smart Eye The Group The Parent Company Other InformationCEO CommentsFinancial Summary Design Wins KSEK 30/06/2026 30/06/2025 31/12/2025 Shareholders’ equity Share Capital 3,920 3,746 3,795 Other contributed Equity 2,507,625 2,434,810 2,439,148 Other Equity -1,146,270 -1,047,880 -1,147,701 Total shareholders’ equity 1,365,275 1,390,676 1,295,242 Deferred tax liabilities 123,620 107,974 104,278 Other provisions 2,288 - - Provisions 125,908 107,974 104,278 Other long-term debt 69,659 28,717 28,662 Other debt to credit institutions 6,985 108,017 4,416 Bond loan 294,406 - 293,425 Non-current liabilities 371,050 136,734 326,503 Other debt to credit institutions 12,857 8,680 10,280 Advance payments from customer 1,613 1,068 4,066 Trade payables 34,310 23,266 44,519 Tax liabilities 1,006 624 907 Other current debt 22,291 7,265 9,558 Accrued expenses and prepaid income 118,064 112,408 104,570 Current liabilities 190,141 153,311 173,900 TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 2,052,373 1,788,695 1,899,923
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KSEK Share capital Other contributed Equity Other Equity Total equity Opening balance 2025-01-01 3,700 2,406,106 -816,787 1,593,019 Set-off issue 46 28,704 28,750 Incentive program 2022 49 4,338 5,743 10,130 Incentive program 2023 3,108 3,108 Incentive program 2024 4,546 4,546 Incentive program 2025 4,106 4,106 Translation difference -175,658 -175,658 Profit/loss for the year -172,759 -172,759 Shareholders’ equity 2025-12-31 3,795 2,439,148 -1,147,701 1,295,242 Opening balance 2026-01-01 3,795 2,439,148 -1,147,701 1,295,242 Set-off issue* 72 68,477 68,549 Incentive program 2023** 52 1,152 1,204 Incentive program 2024 2,462 2,462 Incentive program 2025 4,128 4,128 Translation difference 43,522 43,522 Profit/loss for the year -49,833 -49,833 Shareholders’ equity 2026-06-30 3,920 2,507,625 -1,146,270 1,365,275 15 | SMART EYEINTERIM REPORT Q2 2026 Condensed Consolidated Change in Shareholders’ Equity Financial Reports Group This is Smart Eye The Group The Parent Company Other InformationCEO CommentsFinancial Summary Design Wins The share capital consists of 39,198,762 shares with a quota value of SEK 0.1 per share. * Acquisition of Sightic Analytics AB. The share capital increased by a total of SEK 72,454 in Q1 2026. **Costs attributable to the 2023 Incentive Program. The share capital increased by SEK 52,029 in Q2 2026 as a result of shares issued.
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INTERIM REPORT Q2 2026SMART EYE | 16 Condensed Consolidated Cash Flow Analysis Apr - Jun Jan - Jun Full year KSEK 2026 2025 2026 2025 2025 Operating activities Operating profit/loss after depreciation -20,526 -42,803 -36,490 -104,183 -163,498 Adjustment for non-cash items* 44,869 42,692 89,900 83,446 175,411 Interest paid/received -7,123 -6,007 -13,848 -9,670 -28,406 Tax paid -234 -27 -298 -50 - Cash flow from operating activities before changes in working capital 16,986 -6,144 39,264 -30,456 -16,493 Change in working capital Inventory 2,812 319 2,350 -69 1,352 Accounts receivable -21,285 -3,572 3,282 -2,127 -23,588 Other current assets -12,092 -2,938 -45,869 5,638 -11,181 Trade payables 2,621 -2,739 -10,209 -3,928 16,293 Other current liabilities* 20,448 9,020 24,523 1,247 -5,497 Cash flow from changes in working capital -7,496 90 -25,923 761 -22,621 Cash flow from operating activities 9,490 -6,054 13,341 -29,695 -39,114 Investment activities Investments in intangible assets -31,284 -30,723 -66,624 -54,388 -114,940 Investments in tangible assets -2,042 -1,161 -2,746 -1,795 -2,256 Investment in business 16 - -89 - - Cash flow from investment activities -33,310 -31,885 -69,459 -56,183 -117,196 Financing activities Change in long-term liabilities 97 - -1,672 - 293,986 Change in short-term credit facilities - 39,658 - 75,000 -25,000 Proceeds from issue of shares 8,136 - 8,136 - - Cash flow from financing activities 8,233 39,658 6,464 75,000 268,986 Cash flow for the period -15,587 1,719 -49,654 -10,878 111,845 Opening cash and cash equivalents 99,962 9,610 134,812 22,402 22,402 Exchange-rate differences in cash and cash equivalents 1,501 441 717 246 -265 Closing cash and cash equivalents 85,875 11,770 85,875 11,770 134,812 Financial Reports Group This is Smart Eye The Group The Parent Company Other InformationCEO CommentsFinancial Summary Design Wins *SEK 10.3 million relating to Q1 has been reclassified between Non-cash items and Other current liabilities and only affects the cumulative figures for the first half of the year.
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17 | SMART EYEINTERIM REPORT Q2 2026 Condensed Parent Company’s Statement of Income This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins Parent Company Apr - Jun Jan - Jun Full year KSEK 2026 2025 2026 2025 2025 Net sales 100,104 55,335 191,991 107,312 243,226 Cost of goods sold -8,917 -5,470 -15,744 -10,336 -29,509 Gross profit 91,187 49,865 176,247 96,976 213,717 Sales expenses -25,453 -19,354 -53,273 -41,060 -79,533 Administrative expenses -29,649 -25,081 -53,985 -59,811 -116,533 Research and development expenses -37,015 -25,896 -63,409 -59,334 -106,893 Other operating income 7,859 3,370 13,796 8,031 15,193 Other operating expenses -3,252 -7,113 -6,337 -8,882 -13,445 Operating profit/loss 3,677 -24,209 13,039 -64,080 -87,494 Financial income and expenses Interest income and similar profit items 215 39 527 57 197 Interest expenses and similar loss items -9,054 -3,160 -16,331 -6,579 -29,713 Total financial income and expenses -8,839 -3,121 -15,804 -6,522 -29,516 Profit/loss after financial items -5,162 -27,330 -2,765 -70,602 -117,010 Tax on the result for the period - 5,630 - 14,544 20,729 Deferred tax 1,063 - 569 - - Result for the period -4,099 -21,700 -2,196 -56,058 -96,281
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INTERIM REPORT Q2 2026SMART EYE | 18 This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins Condensed Parent Company’s Balance Sheet Parent Company KSEK 30/06/2026 30/06/2025 31/12/2025 ASSETS Intangible assets 382,311 328,632 358,203 Tangible assets 6,550 7,055 6,056 Financial assets 1,584,462 1,454,040 1,470,511 Total fixed assets 1,973,323 1,789,727 1,834,770 Inventories 24,138 27,726 26,439 Trade receivables 36,587 27,582 43,672 Receivables from Group companies 571 588 615 Current tax receivables 5,766 4,650 4,553 Other current receivables 2,825 3,051 5,494 Prepaid expenses and accrued income 141,603 89,743 93,779 Current receivables 187,352 125,614 148,113 Cash and cash equivalents 67,450 5,226 119,802 Total current assets 278,940 158,566 294,354 TOTAL ASSETS 2,252,263 1,948,293 2,129,124
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19 | SMART EYEINTERIM REPORT Q2 2026 Condensed Parent Company’s Balance Sheet This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins Parent Company KSEK 30/06/2026 30/06/2025 31/12/2025 Shareholders’ equity Share capital 3,920 3,746 3,795 Share premium fund 21,914 21,914 21,914 Fund for development costs 374,691 324,218 346,325 Restricted equity 400,525 349,879 372,034 Share premium fund 2,485,803 2,412,896 2,417,326 Retained profit -1,146,054 -1,018,402 -1,029,149 Profit/loss for the year -2,196 -56,058 -96,281 Unrestricted equity 1,337,553 1,338,436 1,291,896 Total shareholders’ equity 1,738,078 1,688,315 1,663,930 Other long term-debt 64,694 28,546 28,546 Bond loan 294,406 100,000 293,425 Non-current liabilities 359,100 128,546 321,971 Advance payments from customer 3 1,068 4,066 Trade payables 25,365 18,743 36,129 Debt to Group companies 49,370 46,471 42,060 Other current debt 19,427 6,978 9,082 Accrued expenses and prepaid income 60,919 58,172 51,886 Current liabilities 155,085 131,432 143,223 TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 2,252,263 1,948,293 2,129,124
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INTERIM REPORT Q2 2026SMART EYE | 20 Condensed Parent Company’s Change in Shareholders’ Equity This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins Parent Company KSEK Share capital Share premium fund (restricted) Fund for develop- ment costs (restricted) Share premium fund (un- restricted) Other un- restricted equity Profit/loss for the year Total equity Opening balance 2025-01-01 3,700 21,914 253,917 2,384,192 -825,646 -128,598 1,709,479 Appropriation of profit -128,598 128,598 - Set-off issue 46 28,704 28,750 Issue costs 92 92 Incentive program 2022 49 4,338 5,743 10,130 Incentive program 2023 3,108 3,108 Incentive program 2024 4,546 4,546 Incentive program 2025 4,106 4,106 Fund for development costs 137,357 -137,357 - Reversal of fund for development costs -44,949 44,949 - Profit/loss for the year -96,281 -96,281 Shareholders’ equity 2025-12-31 3,795 21,914 346,325 2,417,326 -1,029,149 -96,281 1,663,930 Opening balance 2026-01-01 3,795 21,914 346,325 2,417,326 -1,029,149 -96,281 1,663,930 Appropriation of profit -96,281 96,281 - Set-off issue* 72 68,477 68,549 Incentive program 2023** 52 1,152 1,204 Incentive program 2024 2,462 2,462 Incentive program 2025 4,128 4,128 Fund for development costs 47,665 -47,665 - Reversal of fund for development costs -19,298 19,298 - Profit/loss for the year -2,196 -2,196 Shareholders’ equity 2026-06-30 3,920 21,914 374,691 2,485,803 -1,146,054 -2,196 1,738,078 The share capital consists of 39,198,762 shares with a quota value of SEK 0.1 per share. * Acquisition of Sightic Analytics AB. The share capital increased by a total of SEK 72,454 in Q1 2026. **Costs attributable to the 2023 Incentive Program. The share capital increased by SEK 52,029 in Q2 2026 as a result of shares issued.
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21 | SMART EYEINTERIM REPORT Q2 2026 Condensed Parent Company’s Cash Flow Analysis This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins Parent Company Apr - Jun Jan - Jun Full year KSEK 2026 2025 2026 2025 2025 Operating activities Operating result after depreciation 3,677 -26,453 13,039 -66,324 -87,494 Adjustment for non-cash items 14,316 11,754 29,709 23,149 56,260 Interest paid/received -6,869 -6,028 -13,662 -9,675 -28,409 Cash flow from operating activities before changes in working capital 11,124 -20,727 29,086 -52,850 -59,643 Change in working capital Inventory 2,821 592 2,301 24 1,310 Accounts receivable -9,287 716 6,515 -2,650 -19,173 Other current assets -11,570 -3,669 -45,753 3,325 -8,985 Trade payables -843 -1,565 -10,764 -2,196 15,166 Other current liabilities 14,078 12,432 22,627 12,336 10,870 Cash flow from changes in working capital -4,801 8,506 -25,074 10,839 -812 Cash flow from operating activities 6,323 -12,221 4,012 -42,011 -60,455 Investment activities Investments in intangible assets -22,285 -23,841 -48,015 -42,324 -90,838 Investments in tangible assets -1,073 -144 -1,716 -511 -960 Shareholder contributions to subsidiaries -7,484 - -15,090 - - Cash flow from investment activities -30,842 -23,985 -64,821 -42,835 -91,798 Financing activities Change in non-current liabilities - - - - 287,861 Change in short-term credit facilities - 39,658 - 80,881 -25,000 Proceeds from issue of shares 8,139 8,139 Cash flow from financing activities 8,139 39,658 8,139 80,881 262,861 Cash flow for the period -16,380 3,452 -52,670 -3,965 110,608 Opening cash and cash equivalents 82,917 1,774 119,802 9,192 9192 Exchange-rate differences in cash and cash equivalents 913 - 318 - - Closing cash and cash equivalents 67,450 5,226 67,450 5,226 119,802
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Free cash flow Cash flow from operating activities after capital expenditures. EBT Earnings before tax. Organic Growth Excluding exchange rate variance and items affecting comparability. Equity Ratio Equity and untaxed reserves (less deferred tax) as a ratio of total assets. Operating Profit/Loss Profit/loss before financial items, costs and tax. Operating Margin Operating profit as a ratio of net operating revenue. EBITDA Operating profit before depreciation and amortization. Return on Total Capital Profit after tax as a ratio of average total capital during the period. Earnings per Share Profit for the period divided by the number of outstanding shares at the end of the period. Earnings per Share After Full Dilution Profit for the period divided by the number of outstanding shares after full dilution at the end of the period. Performed only when result is positive. Equity per Share Equity divided by the number of shares at the end of the period. Equity per Share After Full Dilution Equity divided by the number of shares after full dilution at the end of the period. Definition of Key Ratios INTERIM REPORT Q2 2026SMART EYE | 22 This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins Definitions and Abbreviations DMS Driver Monitoring System, a technology that monitors driver attention and condition to detect distraction, drowsiness, and other safety risks. In the money The criterion or criteria of the options or performance shares are fully or partially met. NRE Non-recurring Engineering, customer project revenue, common terminology in Automotive. OMS Occupant Monitoring System, a technology that mon- itors occupants and activities within the vehicle cabin, sometimes called CMS (Cabin Monitoring System). Interior Sensing Collective term for DMS, CMS, OMS, ODMS and other in-cabin sensing functions that use cameras and AI to understand and analyze people and activities inside the vehicle. ILE Business unit in Sightic, Industry and law enforcement.
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23 | SMART EYEINTERIM REPORT Q2 2026 This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins This interim report has not been reviewed by the company’s auditor. Signing of the Report The Board of Directors and the CEO assure that the interim report provides a fair overview of the Parent Com- pany’s and the Group’s operations, position and results and describes the significant risks and uncertainties in the Parent Company and the companies included in the Group. Gothenburg, August 26, 2026 Maria Hedengren Board Member Anders Jöfelt Chairman of the Board Lars Olofsson Board Member Martin Krantz CEO Cecilia Wachtmeister Board Member Mats Krantz Board Member Andreas Anyuru Board Member Magnus Jonsson Board Member Smart Eye Aktiebolag (publ)
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INTERIM REPORT Q2 2026SMART EYE | 24 This is Smart Eye The Group The Parent Company Other InformationFinancial ReportsCEO CommentsFinancial Summary Design Wins Calendar • Interim report Jul-Sep, November 17th, 2026 Contact Martin Krantz, CEO Tel no. + (46) (0)70-329 26 98 Martin.Krantz@smarteye.se Mats Benjaminsson, CFO Tel no. + (46) (0)70-535 36 17 Mats.Benjaminsson@smarteye.se This information is information that Smart Eye AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 7:00 am CET on August 26, 2026. About Smart Eye Smart Eye is the leading provider of Human Insight AI, technology that understands, supports and predicts human behavior in complex environments. The company is on a mission to bridge the gap between humans and machines for a safe and sustainable future. Supported by Affectiva and iMotions – companies it acquired in 2021 – Smart Eye’s multimodal software and hardware solutions provide unparalleled insight into human behavior. Founded in 1999, Smart Eye is a global company headquartered in Sweden, with customers including NASA, Nissan, Boeing, Honeywell, Volvo, GM, BMW, Polestar, Geely, Harvard University, 26 percent of the Fortune Global 500 companies, and over 1,300 research organizations around the world.
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Smart Eye AB Masthamnsgatan 3, level 3 SE-413 29 Gothenburg, Sweden Phone +46 31 60 61 60 org. nr 556575-8371 www.smarteye.ai