We welcome viewers to this broadcast, where you can ask your questions in the live chat during the length of this broadcast. Today, the company SmartCraft has published a report for the second quarter of 2026. With me, I have the company's CEO, Jeremias Jansson. Welcome. Thank you so much. You have a presentation of the quarter that you will give where you will be also joined by your CFO. Without further ado, I will simply hand over the word and return later to ask some questions. Thank you so much. Hello everyone, I am going to go through the Q2 report for SmartCraft, and it is going to be a pleasure to do that. First, a short disclaimer and then directly into the agenda. What we are going to cover today is first, this is SmartCraft a little bit shortly, for you who does not maybe know that much about our company. Then we are going to talk about a little bit the Q2 highlights, and then I am going to be joined by our CFO, Tobias, who is going to talk about the Q2 financials, and then we are going to do a summary. Then you have the opportunity to do a Q&A. Let us jump directly into it. First and foremost, this is SmartCraft. I normally start by saying, why do we exist and what we do, basically. What we do is that we basically put all our focus on helping smaller companies in the construction sector, handyman and similar, to fix their daily life. That is what we are trying to solve for most of our customers. By doing so, we hope that we help them to become more digitalized and actually give them a higher profit, of course, but also help them to make sure that what they do in their daily life has a high quality. That is basically SmartCraft. Now, SmartCraft, to support that, has a couple of software products. As you can see from this picture, we have also put those software products into different buckets. The reason for that is that we in SmartCraft believe that it is very important that our software are tailor-made for the end customer, so that they can really be efficient when using these ones. What that has led to for us in SmartCraft is a continuous growth over a very long period of time. Basically for SmartCraft, we have seen a growth in 15 years and continuing. That is, of course, the financial outcome of us delivering solutions to our customers that helps them in the daily life. That is basically SmartCraft in short. Now, going in and looking at Q2 highlights. What have we done in Q2? What has happened in the quarter? Basically, if we look at it and start from the top, we have had organic growth of about 7%, which is something that we have had for the last quarters. Even if that is a slight increase year-over-year from Q2 in 2025, it is still a growth that we want to be higher, and we will come back to that a little bit. The reason for the average growth as is in the company is basically a mixed performance around the four different business areas and also the geos where we are doing our daily business. The Swedish market has become a little bit better for us during the last year and also showed some good growth. So have also the business areas of the smaller construction companies, SMEC, and also the business area of Enterprise. While we have had a little bit more challenging times in Norway and Finland, and also therefore in the business area of HVAC. During this period of time and looking at one of the numbers that we worked very hard with is, of course, the churn number. About a year ago, we were up to 10% in churn, and we have managed to push that down both year-over-year, but also quarter-over-quarter. The churn number has gone down, but at the same time, we still have some downgrade on our existing customers, which is why our existing business part is not growing more. When it comes to the downgrade, if we look into that a little bit directly, you could say that it could be seen as a positive that the customers decide to not leave us, but instead decrease their cost for the software when they themself decrease in size as a company. What we also done during Q2, which I will deep dive into a little bit, is that we strengthen our executive team. We are moving in the direction of what we call One SmartCraft, where we try to become one company in all ways to support higher and faster growth. During the quarter, we also decided to do a change in our Enterprise area, which led to a cost saving that we will see from 2027 fully out of about SEK 15 million. I will also deep dive into that a little bit. As a headline, you can also say that we continue the strong cash generation from Q1 into Q2. If we go into a little bit and look at the numbers more or less, I normally use these ones when I present. What we have added as a fifth high-level number is the return of equity, which we will come back to a little bit in the presentation as well, how we work with that. If we look at the other ones, as I said, the share number was a very good number. We do decrease a little bit in margin for this quarter. The background of that is basically that we are continuing to invest in our products at the same time as we have done some extra work on the centralization of SmartCraft that short-term has costed some money as well. Good cash generation, as I said, and if we talk about a non-organic total growth, it is about 8% year-over-year on the annual recurring revenue. If we look into the change in Enterprise that I mentioned, we can say that what we are trying to do in SmartCraft is step by step, getting the company to a little bit of a different company. We are trying to make sure that we invest the money that we have into the right products in our product buckets, and that we make sure that when we see something in a business area that we think we have to change to make sure that we enable growth, then we push hard for that. In the case of Enterprise, the starting point of doing this change was actually about exactly that. We want to make the Enterprise business area more similar to the other business areas in the sense of their organization to create more common function within it, clearer ownership, and therefore get faster delivery and a better alignment between the teams in a couple of countries. Doing this change also gave us a financial benefit in the form of a saving of SEK 15 million on annual cost savings. It also gave us a one-off cost for doing this restructure of SEK 7.2 million, which is in the numbers of the quarter. During Q2, we also continued to build on ramping up our executive team. From the start, when I came into SmartCraft and started to talk about One SmartCraft, I also talked about the fact that we are going to take in good competencies into SmartCraft to make sure that we can grow the company in a faster way. Joining me today in the presentation is Tobias, who is our new Chief Financial Officer. He started in June, and I am very happy to have him on board. Then we also recruited Daniel Karlsen to work on the HVAC & Plumbing business area as leader for that. This is a very important hire for us because that business area, as you can see from the number, is a business area that has had a little bit less growth than the other one in the last year. What I am hoping, of course, and our plan is that together with Daniel and the build in that team to go back to a higher growth number in HVAC & Plumbing, which will then, of course, also affect, if you look from a country perspective, the Norwegian numbers that we have. Joining us also a little bit later this year is Thomas Staven. Thomas has had a long career in tech, and is a fantastic person when it comes to product and technology. Taking him into SmartCraft at the same time as we are putting Christian Saleki into a direct role to lead AI and technology part within SmartCraft, we are hoping will, of course, enhance our AI offering and our tech platform. We also invest into the company in trying to find the same platforms, same routine, and Karin, who is joining us as a Head of IT, is an example of a couple of coworkers that is joining us for this. One of the most important things still in our transformation as a company is to use the new technology at all time to become more efficient over time and also produce software to our end customers that they can use more and more. In the past, I have talked about why we think we have a unique position in this as a company that we can use to deploy different solutions to our customers. This one is not new. We are sticking to this idea. If we look into that one a little bit from what have we actually delivered, we, of course, deliver new features and functions within our products at all time. We basically have two different parts of this that is important. One part is how we make sure that in our solutions, we build capabilities that can make the customer get more efficient from our solutions. The other part is, of course, to use AI in our own production of software, which was a project that we ran through Q1 and Q2 to make sure that our development teams, especially from the beginning, are using AI to develop our products in a faster but also even more reliable and efficient way. To summarize the Q2 a little bit in headlines, we are continuing on the path that we have decided. That means transforming SmartCraft into One SmartCraft. We have a couple of different products, and we will continue to do that. They are niche for different areas. However, we want to run as one company and therefore get those scaling benefits for that. That is what we are trying to do with attracting new talent for our leadership, with making sure that if we are in a situation where we see that we need to change the structure of a business area like Enterprise, we do that. If we think that we have to make any part of SmartCraft more efficient, we do that as well. We will continue doing this also through Q3 and Q4. There are more things that we are of course planning to do as a company in making sure that we push ourself closer to become One SmartCraft. With that, I will hand over to my good colleague, Tobias, who will talk a little bit about the Q2 financials. Here you go, Tobias. Okay. Hello, everyone. My name is Tobias Lindquist. I joined as the CFO for SmartCraft in June, so this is my first quarter report to report, so happy to meet you all. I will go start with the ARR. We ended the quarter at SEK 514 million, which is up 8.1% compared to last year. We had an organic growth of 6.8%, which is slightly better than 6.0% we had in the Q2 last year. If we look at where the growth is coming from, it is very much from Enterprise, which was up 11.9% in organic growth, and SME Construction, which was up 8.7%. Sweden is especially interesting, and we look at the SME Construction, their ARR in Sweden is SEK 153 million, which is up more than 11% year-over-year. Almost all the increase from we have in ARR for SME Construction is from Sweden, SEK 15 million out of the SEK 17 million increase in ARR. We added SEK 10 million in net new ARR during the Q2, which is 14% more than we had last Q2. Our customer base has grown with 366 customers year-over-year. Churn, as we mentioned, is a particularly good improvement of 1.9 percentage point to 8.1%. What is important with the organic growth is that it is not only driven by price increases. Pricing is helping, but we are also seeing growth from upsells, new customers, and better retention. The mix of therebetween varies between the different business areas and markets. In some cases, there is some more price sensitivity, and where we are putting more focus on upsell and expanding our customer relationships. Finally, the quality of earnings has also improved. Our recurring revenue now equals 96% of the total revenues, up from 95% last year. Overall, I think the ARR looks quite healthy. Growth is holding up, and especially than Sweden SMEC is the most positive signs. If we are moving up over to revenue. Reported revenue was up 7.8% year-over-year with an organic growth of 6%. That is a clear improvement from 5.2% in Q1, and importantly from the - 0.2% that we had Q2 last year. So we are seeing a gradual improvement in the revenues and the underlying trend also. Also here it is SME Construction, which was the strongest contributor to the revenue with a revenue growth of 11.7% and organic growth of 10.3%. On cost, adjusted operating expenses increased by 9.8%, faster than the 7.8% in the revenue. So we are not seeing yet the operating leverage, which we normally would have expect. There are a few factors behind this development. As Jeremias mentioned, we are building One SmartCraft following the change into business area structure we did last year. With that, we are given opportunity to harmonize systems and processes across the group, which includes areas such as CRM, ERP, et cetera. At the same time, we are also continuing to strengthen the organizations with the relocations from key personnel to Sweden. Looking at the result, the EBITDA result adjusted EBITDA was SEK 2.2 million improvement from last year, reaching SEK 52.6 million. Despite the high cost, we have a better adjusted EBITDA result. However, development of Capex increased with SEK 3 million. As a result, the adjusted EBITDA was SEK 0.8 million lower than the last year. The focus is now to making sure that we can leverage on the investments that we have done in development and also in the organization. If we are looking at this slide showing then the development between the different areas, the development in revenues, organic growth, and adjusted EBITDA. The development, as you can see, is different amongst the business areas, and that also leads to that we see different opportunities for moving ahead. SME Construction is the standout. We have good growth in both ARR, revenues, and also high profitability. This is driven by, as mentioned before, Sweden. Here is a continued growth journey that we have had. Enterprise is different. We have a good ARR development, slower in revenue, and also the margins are lower than other business areas within the group. This is also why the restructuring that we have made or are putting in place now is important for reaching uplift in the margins to similar levels as group level. Electro remains positive, but there is room for improvement. ARR is growing slowly, 4%, and organic revenue is up 6.5%. Margins is stable but lower than average. Here we have improvement possibilities both in sales and the margins. HVAC & Plumbing, here we have revenues, slight improvements top line, but very good profitability. Here it is for us to focus on driving top line. Moving to the next slide, the cash generation. We had a good cash generation in the quarter, SEK 8 million improvement from Q2 last year, ending at SEK 33 million. We were helped with the cash flow by lower tax payments this year compared to last year. We were SEK 4.5 million compared to SEK 14.2 million last year. At the same time, we also saw improvements in working capital and higher customer prepayments, which is also encouraging and evidence that are supporting our ARR growth. ROE was 9%, and this is an area where we see a clear upside, both in terms of improving the result, but also say to more capital efficiencies ahead. In terms of capital efficiencies, we are having an ambition to act on the share buyback that was decided by the AGM in May. Continuing on the capital allocation, and so forth. We have a very solid cash positions of SEK 140 million. We have positive net interest-bearing assets of SEK 180 million, so we are in a good cash position. That give us flexibility to first, of course, invest in our existing business, investing in product development and growth top line. Secondly, when it comes to M&A, we are actively working, focusing on finding selective M&A opportunities which supports to expand our offerings and footprint. Thirdly, it is ambition to act on the share buyback program, the mandate that we were given by AGM in May. Overall, we have a strong capital base, which should give us rooms for not only acting in one area, but in all the three areas simultaneously. With that, I am returning back to Jeremias. Thank you, Tobias. To summarize a little bit then. We had organic growth for Q2 on 6.8%, which is a little bit down from Q1, and we want to do better than that. How is that then going to happen, basically, somehow? We have to continue with the good work that we have done in churn and try to push that number down a little bit more, even if 8.1% is better than Q1 and better than last year. At the same time, we need to make sure that our existing customers, of course, find solutions and interest in our products enough that even if they are pressed by low growth themselves, that they keep the number of users in our system. There we have some way to go, in all honesty. Thirdly, we have to continue with the push on the net new business and always be smart on what we are doing there concretely. We did see okay-ish, I put it like that, net new business, but I think that the existing business could be improved from our part. That is about the growth part. If we look at the efficiency part, we will continuously look into how we do similar things as what we did in Enterprise when it is needed. Of course, what we want to create is scalable internal solutions. As mentioned by Tobias, we have invested in some of those system that is supporting us for the future growth. The third part is that we actively, with the help of Tobias and other ones, are trying to make sure that the return on investment on our capital increases. That is a sort of new focus, even if of course we always had that focus, but to really make sure that we find ways of spending our good capital that we have in the best way for the company so that we can get more growth. We hope that by doing that, we will move towards our ambition in the midterms more and more, despite the market that we are into. With that, we will end our presentation, and we will go over to Q&A. Yes. Thank you very much, Jeremias, and Tobias will also be joining us here on the stage. I thought we could begin with talking about the ARR growth organically. That increased to 6.8%, and you execute to with SEK 514 million in annual recurring revenue. As you described in the presentation, it is below your expectations. Where would you want to be? Well, we have given the market, of course, a midterm idea of where we want to go, and what I have said since I started is that we take quarter by quarter, of course. I do not want to give exact numbers on next quarters or anything like that. But for sure, we have ambitions of getting up to a higher point than that. Of course, we have given a traction on where we want to be in a good market at the longer period of time. Sweden is clearly recovering. Your other markets are still soft. But apart from factors that are market related, what are holding you back? Yeah. First and foremost, we also have to set it in perspective. I think that, for example, the construction industry in some part grow with 5%, and electricians in 2%, the number of. We can see that in Sweden, the bankruptcies goes down a little bit while it does not in other countries. As you say, that is the market. We cannot do much about that. What we are trying to do is, as I said, we are trying to handle, of course, the churn factor, which I think we have increased even if the market has not become better. Then what we have to do, as I said, was to make sure that our existing customers feel that using a little bit more of our software tools give them a good advantage, and that is really what we are pushing for. And then thirdly, we are doing changes, as I said. When we struggled in Finland, for example, we now did this change in Enterprise, a little bit in the structure, partly because also trying to get better in that market. In Norway, we of course have put in a new leader for the HVAC part to drive more when it comes to net new sales as well. Mm-hmm. And that's internal, how do you say it? Internal efforts to sort of meet the softer markets. Yes, exactly. Mm-hmm. It's always fun to see an active chat, and this chat is very active, and there are two questions here regarding the ARR growth here. Could you quantify the contribution on ARR growth from price increases, up-sale, and downgrading, and compare it to Q1? Yeah. We haven't given out those numbers, so I think we have to come back with the exact different numbers on that one. We have given, trying to give to the market a little bit of a bridge on the different elements. In some cases, for example, an up-sell and a price increase can go hand in hand, but what I can say and share is that we see that we mainly get more money from sales than price increases. But as Tobias said, it is a little bit variance between the different business areas and countries. Torbjørn also asks, "Is price sensitivity limited to certain business areas, or is it broad based? How has the reception of the 10% Bygglet price increase been?" It is correct, as he says, that it is a little bit different on different products, and that is of course pretty natural. It depends on how the products are priced from the beginning compared to the market, of course, but also in what market you are, which country, and what sub-market. So yes, that is a difference for sure. It is different in different one. For the SMEC area, which we comment on, of course, which Bygglet is the biggest part on, you can see that they have managed to have a pretty good growth, which then tells you that so far that price increase has gone down in a positive way. We also try to give our customers, as I said, more solutions, more software for the money in those ways we can. Tobias, Jørgen Weidemann from Pareto has also asked a few questions here in the chat regarding markets. First and foremost, you mentioned that the market traction in Sweden is improving. Could you elaborate on what you're seeing currently? Well, we have seen overall the market output within the construction sector has increased for six months during the year, as well as also when it comes to bankruptcies has decreased in comparison to last year, even though being on high historical levels. However, it is quite fragile with the July output, where the bankruptcies actually increased compared to a year ago. So it is improvement, but it is fragile in that sense. I would say that varies from month to month. Mm-hmm. You cannot concretely expect that recovery to continue throughout 2026. Am I interpreting you correctly? I think what we see that it is a slow positive development. That is I think what we can expect to say, but not any major uplift in demand during this year. Mm-hmm. What signs are you seeing in your other markets for potential recovery? Well, the market in Norway and Finland and U.K. are more challenging than in Sweden. They have higher interest rates. Their residential has been quite heavily affected and so forth. We see slower recovery in those markets than in Sweden. On the subject of markets, here's a fun one. Some of the markets in the E.U., like Poland, Ireland, Netherlands, are growing much faster than Norway and Finland. Would you like to have your footprints in these markets, too? Well, I think we are focusing on our current markets and so forth. But if we were to expand in a new market, we will let you know. Jeremias looked excited to jump in there. No, I think that was a question for Tobias, but I would say that we have our core markets, as we have said repeatedly, and that's where we mainly try to grow our business. If there are opportunities in other markets, we could, of course, have a look at that. But today, we are trying to run our business where we are. More questions regarding ARR. Jørgen asks, "ARR from existing customers is down SEK 2.7 million in the quarter. In light of recent price increases, how should we interpret this? Are customers not willing to pay the higher prices, or are there some other effects in this number?" I think that mainly, of course, the churn goes down. As I tried to allude on, if you're positive, and I don't want to be over-positive, which I think the audience know by now, but if you are a little bit positive, you can say that the customer is choosing to stay instead of leaving in that case. That I think is a trend that's going on. However, I still think that the customers are very pressed. If you have a growth number yourself of 1.5%-2%, which big parts of our markets has, they, of course, are trying to hold back on all the costs that they have. Therefore, if they used to be 10 persons working in a firm and now there are six people, of course, that will mean a reduction of four people, regardless of what we do. Mm. Clients downgrading, do you expect them to later upgrade when recovery is more, how do you say it, concrete? That is, of course, the idea, and that could be the positive interpretation. What is important then is, of course, that when they feel that their market will come back, that they also feel that we are the solution for them into the future, because then they will probably do a new decision. Of course, we believe that that is the case. Jørgen has also sent the following question, "In Q4 2025, you reported more than 14,000 customers, which has now fallen to 13,400. What is the reason for this?" We did send out the adjustment of this in the Q1 report that we actually calculate in a different way. I think that all that information is in that report, and then we put clearly that last year was 13,000 in Q2 in this way of calculating. You also have a little bit of asterisk there in the report, I think, in Q1, if I remember correctly. More questions from Jørgen from Pareto. "OPEX spiked this quarter on what is said to be paid development costs. Is this external consultants? Is this a level you expect to continue? If so, how should we read this in connection to your SEK 5 million OPEX cost cut?" First and foremost, we have a split in our development team, and we have had that for a pretty long time, where we do use our own people, of course, which is the minority, but we also have consultants in to do special tasks for us in the development team. Basically, that is the split if we start with that. Second of all, it's not directly related to that OPEX part in that sense, but what we're trying to achieve is, of course, to have the flexibility to make decisions. If we have our own staff, well, then, of course, that is more long-term planning in general. A question from Torbjørn here, "How is the development of Spark and Flow progressing? What feedback are you getting from the customers?" As I mentioned as well, I think that still we are in the early phase, as I see it in the market part. We do have good feedback from the customers who's using the first modules that has been there. Especially it's the offering module that has been out on the market, and that one we have sold both in Sweden and in Norway when it comes to Spark. When it comes to Flow, we also have launched that product in Norway in a smaller scale, so that's more or less where we stand. Dafina asks the following from ABG, "What effects do you expect from using AI internally on your cost base, and is any of that visible in the margin yet?" I wouldn't say that we have seen those effects yet. I think we will have effect, but that effect will also be in combination of the One SmartCraft part, where we try to scale things and do it more efficient in total. That's a way to do that. As always with AI, if it's within development, if it is within admin, or if it is within the products, you can decide what you're going to use that efficiency for. Reduce the cost part of it, so to speak, reduce your cost on personnel, or if you want to produce more. I think that is a decision that we will take case by case. In Enterprise, it stands out as being the growth engine in your ARR, where upselling was an important factor. What makes Enterprise clients scale up where they scale down in other segments? Yeah. I don't think that is a general thing that I can say that is the case. That is what has happened for us. I also think that we have done a pretty good job in Enterprise and continue to do that also with the change that we're doing now, to become even better at handling our existing customers. That has been a very positive journey that we are on. Adding to that also, within Enterprise, the customer are larger by definition. When we are achieving upsells within Enterprise, it gives higher leverage also in terms of amount. The restructuring program, then SEK 15 million annual cost saving from 2027. You described these efforts to create a significant margin uplift, but specifically by how much? Well, last year Enterprise had sales of a little bit less than SEK 150 million. SEK 15 million out of that, of course, we have increasing revenues, but it is a substantial uplift in margin. There are some M&A related questions as well that I will take from the chat. It has been over two years since the acquisition of Clixifix in May 2024. Could you elaborate on why M&A activity has paused for this relatively long period? Sure. First and foremost, as I've been very clear on also from when I entered SmartCraft, we want to do M&A, so that's important to say. Doing M&A, there are a couple of things that we think are very important in that. First and foremost, we want to have a software that is within the boundaries of our company. So that's number one. Number two, we want to find software that has growth and that we believe can continue to grow. But we also want them to have some margin, given how the software industry looks today. On top of that, we mainly want to find solutions that are also in the markets that we are today. If we find something that ticks those boxes, then we really want to do M&A. For a period of time, there's been a difference between, because, sorry, it's a fourth one. We want it for the right price as well. Yeah. That has, of course, been something where because of the changes in the market, there has been a situation where the entrepreneurs who own software, because we normally invest between probably EUR 1 million - EUR 6 million, something like that, in sizes of companies. Those one has still calculated with a higher idea than what public market is. I think if we can find something that ticks those four boxes, then we are really interested. I think that also answers the follow-up question that the viewer had regarding how the sort of landscape looks like. But you have mentioned for the right price, and the viewer wants to know if there is a significant gap between your value expectations and that of the sellers, and how big that gap is. I think it has been a bigger gap in it. I do think that I see some trends, without saying that is a factor everywhere, where the gap is getting smaller and smaller over time, which is also, if you look at history, when something has changed in the public market, then the private market is a little bit behind. But then over time, the gap gets smaller and smaller. I can see that trend a little bit, which is very exciting for us, of course. Tobias, in allocating capital between potential M&A prospects and your share buyback mandate, how do you balance those two? Well, as I mentioned, we have a very strong balance sheet, and we are generating cash. So we have opportunities to do both. One doesn't necessarily out count the other. A question from the chat regarding the markets. You mentioned about increasing the footprints in the future. If it's not geographical expansion, would it be items of product expansion. I'm sorry. In terms of product expansions, in terms of targeting different industries. It could be as well, but of course, we are a company which has found our niche, so to speak. So we want to, as I said, find opportunities within those niche. And just to be clear, I didn't disclaim that anyone could be in another market either, but I'm just saying that our main target is to find companies that are working in our verticals in the four countries that we are currently existing into. I have a final viewer question here, which I think it'll be a great question to sort of end things off of. So I'll ask this openly to the both of you. What is it that excites you most right now? And on the other side of that, what is currently keeping you up at night? Okay. Do you want to start, Tobias, or should I take that one? No, you can. Okay, I take it. I think what is exciting me is that we are on this journey towards One SmartCraft, and I feel that we are making progress, even if I would like it to be faster, and I can see some positive index on that. What I think is the challenging thing that we have to overcome, of course, is that still the market is not moving that much, and we have to become even better of handling that. And Tobias? Yeah. First of all, we are in a market that has good future possibilities. Being in a tech industry, focusing on construction, that is very exciting. For me personally, learning SmartCraft and how we operate, that is, of course, I enjoy that very much as well. Jeremias and Tobias, thank you very much for being here, presenting and answering our questions. Thank you so much.