Welcome to Tobii Q2 2026 report presentation. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by raising their hand or typing them in the form below. Now, I will hand the conference over to CEO Fadi Pharaon and Interim CFO Åsa Wirén. Please go ahead. Good morning, everybody. This is Fadi Pharaon, CEO of Tobii. I am joined today by Åsa Wirén, our interim CFO, and Henrik Wikström, our interim head of communications. Thank you all for joining our Q2 2026 earnings call. Let us start with the quarter. The market environment remained challenging during this quarter, Q2, and we continued to act decisively to strengthen Tobii's financial profile and also move towards a sustainable positive operating cash flow from 2027. The net sales were 154 million SEK, which compares with 284 million SEK for last year. This represents a reported decline of 46% and an organic decline of 39%. Obviously, the current level of sales is not sufficient, and improving our commercial performance is a clear priority. Having said that, Q2 last year also included a large pre-purchase deal as well as non-recurring revenue. Adjusted for these items, the underlying revenue growth was positive 7% in the quarter. The gross margin was 82% compared with 83% last year, despite the significantly lower revenue. The reported EBIT was positive 15 million SEK compared with 24 million SEK, and also included a positive non-cash remeasurement of contingent consideration of 49 million SEK. What does that mean? In plain term, this means it is a potential acquisition-related payment which is no longer expected to be made, and that has increased the reported EBIT, but it did not bring in cash. The underlying result was negatively affected by lower net sales, combined with increased amortization of development costs within Autosense. If you look at the cost reduction program that was initiated in the third quarter of 2025, it contributed 43 million SEK in quarter 2 and has delivered total savings of 163 million SEK over the past four quarters. This is clearly above our target of 100 million SEK. Cost efficiency remains a high priority for us. Against this backdrop, we are initiating a further cost reduction program which will focus on our Autosense business. It is expected to reduce the annual cost base by 50 million SEK. This will be incremental to the 163 million SEK, which we already achieved, and continues our group-wide work on cost efficiency. Together with sharper product priorities and increased focus on our commercial execution, these measures help lay a more stable foundation for the future and support our target of sustainable positive operating cash flow from 2027. The cash flow from the operating activities was positive at 22 million SEK. But after investing 32 million SEK, almost all in product development, the free cash flow was negative 10 million SEK in the quarter. While if you look at the free cash flow for the latest 12-month periods, that was positive 35 million SEK. The cash at the end of the quarter was 37 million SEK. Let us now review the performance of our three business segments. I will start with Products & Solutions, which represented 50% of the group net sales in Q2. The net sales amounted to 76 million SEK, which compares with 93 million SEK last year, and that corresponds to an organic decline of 16%. EBIT was negative 21 million SEK. At the same time, the gross margin improved to 68% from 64%, which reflects, among other things, a more efficient organization and also providing some resilience despite the lower revenue we saw. The revenue decline in Products & Solutions was mainly related to temporary procurement delays following China's new five-year plan, which we also discussed in the previous quarter, continued weakness in Japan, and longer contract negotiations in the U.S. We saw that EMEA delivered organic growth of 10%. During the quarter, we also launched Webcam Eye Tracking for Research, enabling remote and large-scale eye tracking studies using ordinary webcams. Let us move over to Integrations business unit, which represented 24% of the group net sales. Net sales were 37 million SEK compared with 178 million SEK last year. EBIT was achieved at 0 million SEK. As I noted before, the Q2 2025 included a significant pre-purchase deal for Dynavox, as well as one-off revenues from the acquired imaging business. These items together, they affected the net sales by around 114 million SEK in total in Q2 last year. Also, during the quarter, we have Tobii Nexus, which reached its first consumer product when Lenovo launched the Legion Y900 13 tablet. This was an important milestone for our webcam-based eye tracking software and for our ability to reach users through standard camera hardware. If I move to the third business unit, Autosense, it represented 26% of the group net sales. The net sales increased to 40 million SEK from 12 million SEK last year, and that corresponds to an organic growth of 230%. The increase was primarily driven by the previously announced license agreement for driver monitoring systems with a major automotive Tier 1. The reported EBIT was positive, 36 million SEK. Commercially, Autosense secured during the quarter a new driving monitoring program with a European premium sports car manufacturer, with start of production in 2026. We also extended an existing commercial vehicle design win by moving the program to a Qualcomm-based platform, with start of production in 2028. These wins are valuable validations of our technology and our relevance to automotive customers. However, I want to be clear that these are relatively small programs and are not expected to make a material contribution to group revenue. Let me move further in giving an update on Autosense. We are taking measures to evolve how Autosense operates. I already mentioned that we have decided to reduce costs by 50 million SEK. We are also broadening the commercial model to include licensing of software components and technology platforms, as well as support for customers that want greater control over integration and further development. This creates opportunities for earlier revenue and a more balanced allocation of investment and commercial risk between Tobii and the customer. In fact, this direction began in Q4 2025, when we announced a similar DMS licensing agreement with a major automotive Tier 1 supplier. We will continue to selectively pursue complete production-ready solutions where the terms and expected returns are attractive. As part of Tobii's strategic review, we are also considering different forms of partnership for Autosense. This could be potential partners who would add complementary technology, stronger access to customers and markets, or greater scale. Together, the cost actions, the broader commercial model, and the partnership alternatives are intended to build a more focused, flexible, and financially sustainable Autosense business. With that, I would like to invite Åsa to please walk us through the financials. Thank you, Fadi. Good morning, everyone. I will be presenting Tobii's financial results for the second quarter of 2026 and with some repetition from what you have already heard from Fadi. I would like to highlight three key areas being sales, EBIT, and cash flow. Net sales totaled SEK 154 million, which represents a significant decrease compared to the previous year. Last year included a volume deal with Dynavox, SEK 70 million, a one-off royalty, SEK 45 million, and non-recurring revenue of SEK 25 million. Adjusting for these items, we achieved organic growth of 7%, and the stronger Swedish krona had a negative impact on sales of SEK 4 million. Operating profit, EBIT, was SEK 15 million, down SEK 9 million from the same period last year. The decrease is primarily attributable to the previously mentioned revenue factors, but was also positively impacted by the reversal of a variable contingent consideration of actually SEK 55 million. The cost savings program launched in the third quarter last year reduced costs by SEK 43 million in the quarter compared to the base quarter in 2025. As mentioned, SEK 163 million over four quarters, significantly exceeding the target of SEK 100 million. The company's cost structure continues to improve and will further do. Depreciation, which does not affect cash flow, increased by SEK 22 million, and EBIT for the second quarter 2026 was negatively impacted by impairments of SEK 2 million compared to SEK 48 million in the same period last year. Free cash flow for the quarter was minus SEK 10 million, and I will come back to the financial position later in the presentation. A few words about the Products & Solutions business unit. As previously mentioned by Fadi, market developments are reflected in figures as continued lower sales. The gross margin stands at 68%, an improvement from last year's 64%. The implemented savings measures reduced OpEx by SEK 26 million compared to last year, and depreciation increased by SEK 4 million compared to last year. Last year was also impacted by impairments of SEK 33 million. Operating profit, EBIT, was minus SEK 21 million compared to minus SEK 59 million previous year. For Integrations, revenue decreased substantially as last year included both prepayment agreements and one-off revenue totaling SEK 104 million. Adjusted for these items, revenue is in line with the previous year. Depreciation, which does not affect cash flow, increased by SEK 2 million. In the second quarter of 2025, EBIT was negatively impacted by impairments of SEK 12 million. Operating profit EBIT was zero compared to SEK 112 million in the previous year. If we then go to Autosense, the Autosense business reported revenue of SEK 40 million, partly thanks to the DMS license agreement announced in the fourth quarter of 2025. All revenues attributable to this agreement have now been recognized. EBIT for the business area was positively impacted by the non-cash reversal of the variable contingent consideration amounting to SEK 51 million. Depreciation, which does not affect cash flow, increased by SEK 22 million compared to the previous year. In the second quarter of 2025, EBIT was negatively affected by impairments of SEK 3 million. Operating profit was SEK 36 million compared to minus SEK 28 million in the previous year. I would like to conclude with comments on cash flow and financial position. Free cash flow in the second quarter was negative at SEK 10 million. Cost savings cannot fully offset lower revenues. Our cash balance at the end of the quarter was SEK 37 million, and Tobii utilized SEK 14 million of the SEK 25 million credit facility obtained during the quarter. As mentioned in the report, our liquidity is strained, and together with the debt structure in the coming years, there remains a risk that Tobii may not have sufficient financing for the next 12 months. We are fully focused on resolving the situation, but are not providing any guidance for the second half of the year. By that, back to you, Fadi, for some final remarks. Thank you, Åsa. First, I would like to highlight one area of product innovation, and that is our work in XR machine learning. We have been keeping to improve our eye-tracking algorithms at all time, and now we are taking advantage of recent gains in energy-efficient machine learning silicon. In simple terms, this means our software can run all day on a single battery charge without losing any accuracy or performance. That is a big deal for devices like smart glasses, where battery life, weight, and cost all matter a lot. We have also made it easier for our customers to get started with our technology. We have launched new evaluation kits and integration services so that companies who are building consumer devices can move faster from testing to full production. Our eye tracking is getting more efficient, and it is getting easier for partners to build it into their products. Let me move on then and summarize the quarter. Market conditions remain challenging for the second quarter. The year-on-year sales movement was explained by an unusually strong comparison period. We continue to act decisively through cost discipline, sharper product priorities, and a stronger commercial focus. At the same time, the gross margin remained at 82%. The cost reduction program contributed SEK 43 million in Q2, and the savings reached SEK 163 million over four quarters against the target of 100. The cash flow from operating activities was positive SEK 22 million, while the free cash flow was negative SEK 10 million. Our financial position requires continued discipline and action. Besides the continued cost reviews, we are taking further action within Autosense. The new program targets additional annual cost reductions of SEK 50 million in the BU, and this is incremental to the SEK 163 million already achieved, which will also continue. We are also broadening the commercial model and evaluating partnerships. Together, these changes are intended to build a more focused, flexible, and financially sustainable Autosense business. Very importantly, let me also address financing directly. I understand that this is a central concern for our shareholders and our employees, and we take it very seriously. Lower than expected net sales and our strained liquidity have increased the risk of insufficient financing over the coming 12 months. The board and management's clear priority is to address our financing needs. With support from external advisors, we are actively pursuing the alternatives described in the report, including business divestments, partnerships, and capital raising. The process is ongoing. We cannot comment on individual discussions, counterparties, or which outcome is most likely before there is concrete information to disclose. We will update the market promptly when that point is reached. In parallel, we remain full on the actions within our control. That is protecting cash and improving commercial execution. Looking ahead, the market remains volatile, and the regional uncertainty continues. At the same time, we expect a gradual normalization of demand in China now that funding is available. Through cost discipline, strict priorities, and a more clearly focused Autosense, we are laying a stable foundation for our target of sustainably positive operating cash flow for 2027. Our ambitions extend beyond that. With a sharper commercial focus, we see potential for Tobii to drive profitable growth over time. Thank you. Henrik, let us please now open the Q&A. Thank you, Fadi and Åsa. Before we open up for questions, I would like to briefly set the expectations for the Q&A. We will, of course, welcome your questions as always, and we aim to be as transparent and helpful as possible in our answers. At the same time, there are certain areas where we will not be able to provide detailed information, such as customer relationships, specific project revenues, or other commercially sensitive details. This is to respect our confidentiality commitments and to ensure that we communicate in a consistent and fair manner to all stakeholders. Where we cannot go into that level of detail, we will do our best to provide relevant context at an aggregated level. With that, we are happy to take your questions. The next question comes from Daniel Thorsson from ABG Sundal Collier. Please unmute your microphone. Yes. Hi. Can you hear me? Yes. Excellent. Okay. First, a question on Autosense revenues in the coming quarters here. What level should we roughly expect when the last year deal now has been fully delivered in Q2, as you said? Is it back to the SEK 10 million-SEK 15 million level, or any better guidance? Well, as we previously communicated, as part of the deal we signed on the DMS was the Tier 1 automotive. Those revenues accrued in Q4 2025, as well as first half of 2025. That deal is basically finished, and moving forward, we will revert back to our normal business, which is based, of course, on what we do with the existing customers. But we do not provide explicit breakdown of the revenue per quarter moving forward per BU. Okay, let's move over to the written questions. Let's see. The first question is: how do you look upon consumer products in the future? I would say that Tobii has a history of working specifically in the XR dimension, where we embed our software in different types of consumer products, but as well as on screen-based. We are very happy to see now, for instance, the tablet coming from Lenovo as being the first implementation of Tobii Nexus. Clearly, we want to use that use case as a drive towards further other different types of brands. We are looking into new industries, such as smart glasses. There are, of course, ongoing progress, but we are not ready yet to announce anything particular in terms of contract emanating from all that effort. Next question. With competitors reporting installed bases of 8 million and 6 million DMS-equipped vehicles, what is Autosense's current deployment footprint? Autosense is present with a few customers in Asia, as well as a very large premium European automotive company. We are engaged today in lots of pre-sales. We are building up the pipeline. Those are forward-looking deals if they would materialize with startup production in the future, I would say 2029, 2030, and beyond. How are you going to reduce the annual cost base for Autosense by just over SEK 50 million? We're going to look at all avenues in order to achieve that target. That includes any kind of discretionary expenses and unfortunately, workforce planning as well. There will be a resizing of the organization. Next question is: 2023, you presented a design win with a Korean OEM expected to start in 2026. Has this program entered production? No, this program did not enter production. Okay. Next question relates to smart glasses. Looking at smart glasses and XR glasses, do you see a realistic opportunity in the near future for Tobii's technology to be integrated into a mass-market consumer product rather than mainly into high-end and relatively expensive XR devices? What would need to change in cost, form factor, power consumption, or customer demand for that market to become meaningful for Tobii? Thank you. It's a good, relevant question. I think what I just shared earlier today, the improvements of software moving into machine learning, the XR5 ML, is typically one that would drive higher power efficiencies and lower costs. We will continue working on these type of technologies that will enable us and partners to implement it into more mass consumer devices. Next question relates to Autosense. Recently, Magna, Seeing Machines, Forvia, and Smart Eye announced design wins for European mirror integrated DMS/OMS programs. Did Tobii participate in these RFQs, and if so, what were the key reasons that Tobii was not selected? There are many ongoing RFQs at all times. A lot of these companies that were mentioned have already also their own existing customer base, so I wouldn't know which deals they have been referred to. We are focused on being engaged with our customers, propelling the unique proposition of our products, and working on winning the upcoming deals, as I mentioned before. Okay, next question. Could you help us better understand the economics of adding OMS on top of DMS? I am not sure what it means by the economics, but basically, if we look at the requirements today that we see in the automotive market, although there is, of course, focus on DMS as a main safety element of designing cars, OMS is more and more required by many automotive. We also know that in regulation perspective, in a few years, OMS will be part of that as well. If you announce an automotive design win today, how far out are potential revenues and cash flow from that? Is it one, two, or three years? Typically, the business process, and this is nothing unique to Tobii, this is an industrial business model, is once you have an agreement, there might be, or there might not be some upfront payment, which we call non-recurrent engineering. But that is just to cover costs for initial customizations. The real payout is coming typically a few years later in the form of licensed revenues. That could be or not be related to how many cars are on the road. Yes, it will take normally, it could be a few years. It depends on the start of production. Depends when this commercial decision is taken by the automotive player. Could be two years, three years, four years ahead, and then it will accumulate over the years. Okay, so that concludes our questions. With that, I hand over to you, Fadi, for any closing remarks. Thank you very much. I would like to thank our customers and our team members for all the great work delivered during Q2. We still have a lot of work ahead of us. We still aim towards our positive operating cash flow for 2027, and we believe in the potential of this company. Thanks for everybody for the interaction today in the Q&A as well. I wish you all a great rest of the day.