Interim report
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1 Interim report Upsales Technology AB (publ) July - September 2026 (compared to the same period last year, Upsales group) ● Net sales increased by 10.9% to MSEK 42.3 38.2 ● EBITDA increased to MSEK 19.5 13.4 ● EBITDA margin increased to 46.1% 35.1% ● Annual recurring revenue ARR at the end of the quarter was MSEK 154.6, an increase of 4.7% during the last 12 months. ARR increased by MSEK 0.6 during the quarter ● Operating profit EBIT increased to MSEK 16.4 10.9 ● Net income increased to MSEK 13.1 8.8 ● Cash flow from operating activities increased to MSEK 4.9 2.1 January - September 2026 (compared to the same period last year, Upsales group) ● Net sales increased by 11.5% to MSEK 124.5 111.7 ● EBITDA increased to MSEK 37.5 28.2 ● EBITDA margin increased to 30.2% 25.3% ● Operating profit EBIT increased to MSEK 27.9 20.8 ● Net income increased to MSEK 21.4 16.7 ● Cash flow from operating activities increased to MSEK 23.7 13.3 Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026 Annual recurring revenue ARR MSEK The chart displays the value of annual recurring subscription revenues at the end of each quarter. 154.6 MSEK Annual recurring revenue ARR 4.7% ARR growth TTM 29.1% EBITDA margin TTM
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2 CEO LETTER Solid earnings and building a foundation for future growth This is my first CEO letter from Upsales and I want to share some of my impressions from my first quarter being in charge, as well as commenting on the financial results and priorities going forward. I have spent the first months collecting feedback from customers and prospects, getting to know the product better and assessing the team and the company culture. I have also had the opportunity to touch base with most of our larger investors and all of our major partners. The third quarter is slow due to vacations both internally and at our customers and therefore it has been relatively easy finding the time to interact with the relevant parties. My general impression is that Upsales has built a team with a lot of autonomy and the organization is well functional for all operational matters. I also want to take the opportunity to thank my predecessor Daniel for his availability and his continued engagement on the board of the company. The financial results for Q3 2026 are very strong, with an organic revenue growth of 11% year over year and net sales of 42.3 38.2 MSEK. ARR-growth was 5% year over year. Strong cost control and the Lex ASEA distribution of the subsidiary AIRA in Q2 has created a solid earnings foundation, and we did execute on this with an EBITDA of 19.5 MSEK and a margin of 46%, the highest margin ever in a quarter. EBIT is also high at 16.4 MSEK, a margin of 39%. Going forward my view is that EBITDAC is the most relevant profitability metric for us, so expect us to switch to that as primary earnings metric for 2027. Earnings in the quarter include a non-recurring income from one of our partnerships that improved revenue and cash flow with 1.6 MSEK. We do feel that the business climate is slowly improving but the market is still hesitant, so it is the strong cost discipline in a scalable saas-business model that created the financial improvements. Margins in Q3 are higher than what should be expected for other quarters, since the vacation period brings down personnel cost compared to other periods. Still, it is very satisfying that the strong discipline on the cost side along with a return to growth is showing up as strong margins and cash flow. Our long term ambition is to increase ARR-growth, but at the same time Q3 is the slowest business quarter of the year so this is not the quarter where we expected a lot of growth. My view on the limited ARR-growth over the last few years is that it is caused by several factors - a slow business environment in our key segments leading to many “no decisionsˮ and cost saving initiatives, some lack of execution and focus in sales and marketing, and a strong competition. At Upsales we have relied on organic growth and on direct sales as our only sales channel, which is good for margins but of course limits growth. Over the last year there have been a lot of theories circulating about what AI will do for businesses like ours. My personal view is that AI has not slowed our growth - rather the opposite - our AI powered functionality is a reason for why we win new business and our internal usage of AI is one of the keys to our cost control. The company is obviously in a very strong position financially, debt free with a high level of recurring and predictable revenue and solid cost discipline. What I really want to do with the team is to build a strong foundation for future growth. We intend to do that in three dimensions. First , we already have a very competitive offering for our main market - medium and large sized business based in the nordics - and we are doubling down on this. Our Q4 product release is targeted at our core users where we have had one singular focus - make sales work more efficient. The user interface gives the user four times faster load times, and makes the software easier to use, with the functionality right on your fingertips without deep menu systems, pre-loaded with data for customer analysis augmented with AI. Over time an obsession with customer success is what gives us a stable foundation. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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3 Second , In re-engineering our platform we have created the ability for customers to create their own experience and functionality. We use this capacity ourselves to pre-configure five vertical solutions based on where we have our largest customer bases. The five core verticals are Tech/Saas, Industrial Manufacturing, Financial Services, Business Services and Wholesale / Logistics. Having our sales efforts focused around verticals means we can create demo environments and configure the software to both make it easier for us to communicate to the market, and for the customer to understand and thereby shortening the time for onboarding and shortening time to value. These vertical solutions will be released in Q4 and rolled out during 2027. Third , sales metrics show a strong LTV/CAC-ratio, indicating an opportunity to increase growth by investing in organic sales. As always these metrics do not prove the linear scalability of future investments and my prior experience is that you need to be patient - investments in a mature sales organization can often take 12 to 18 months to recoup. The first prerequisite is to not lower hiring standards and making sure lead generation capacity also grows. We are taking on some additional headcount but in a very focused way, by adding some capacity in direct sales and in marketing, with the ambition to grow ARR in 2027 the old fashioned way - with quality execution in sales and marketing. In addition to this we are exploring several other growth vectors, including geographic expansion, partner driven sales and selective M&A. This is in a very early stage, and we cannot do everything at once so we will make sure to get the basics right first. Building long term quality growth is not a quick fix, but fortunately with the quality of our earnings time is on our side. In terms of guiding for the future, we intend to publish new long term financial goals when we release the year-end report for FY 2026. We are very proud to deliver what clearly is the best software tool for the sales professional, and to deliver in a financially disciplined way. I invite everybody that takes sales seriously to try out Upsales! //Johan Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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4 FINANCIAL INFORMATION The Upsales group All comparative figures refer to the Upsales group. The parent companyʼs operations are focused on group-wide management whilst the operations are conducted in the wholly owned subsidiary Upsales Nordic AB. Following the distribution of Aira to shareholders on 22 May 2026, the groupʼs results for January - September 2026 include Aira up to and including 21 May 2026. The results for July - September 2026 do not include Aira. Prior period comparatives include Aira for the full periods presented. July - September 2026 (compared to the same period last year) Net sales The Upsales groupʼs net sales during the period amounted to MSEK 42.3 38.2, which corresponds to a 10.9% increase compared to the same period last year. Profit ● EBITDA during the period increased to MSEK 19.5 13.4 ● EBIT during the period increased to MSEK 16.4 10.9 ● Profit before tax increased to MSEK 16.5 10.9 and net income increased to MSEK 13.1 8.8 Cash flow and investments Cash flow from operating activities during the period increased to MSEK 4.9 2.1. Investments in tangible assets during the period amounted to MSEK 0.0 1.1. Investments in intangible assets amounted to MSEK 1.0 4.6. Investments in intangible assets consist of capitalised development costs. Depreciation of tangible and intangible assets during the period amounted to MSEK 3.1 2.5. January - September 2026 (compared to the same period last year) Net sales The Upsales groupʼs net sales during the period amounted to MSEK 124.5 111.7, which corresponds to an 11.5% increase compared to the same period last year. Profit ● EBITDA during the period increased to MSEK 37.5 28.2 ● EBIT during the period increased to MSEK 27.9 20.8 ● Profit before tax increased to MSEK 28.2 21.2 and net income increased to MSEK 21.4 16.7 Cash flow and investments Cash flow from operating activities during the period increased to MSEK 23.7 13.3. Investments in tangible assets during the period amounted to MSEK 0.0 2.4. Investments in intangible assets amounted to MSEK 7.0 12.2. Investments in intangible assets consist of capitalised development costs. Depreciation of tangible and intangible assets during the period amounted to MSEK 9.7 7.4. Liquidity and financial position As of 30 September 2026, net cash amounted to MSEK 36.4 20.5. Total equity at the end of the period amounted to MSEK 17.0 12.6. Employees The number of employees in the Upsales group at the end of the period was 48 69. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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5 FINANCIAL INFORMATION Other information Warrant-based incentive programs The company has four outstanding warrant-based incentive programs under which warrants can be issued and transferred to participants: ● The extraordinary general meeting on 22 September 2026 decided on a warrant-based incentive program for the Chief Executive Officer where a maximum of 348,132 warrants can be issued and transferred to the participant, implying a dilution of approximately 2.1 percent. As of the date of this report, the warrants have not yet been transferred to the Chief Executive Officer. ● The annual general meeting on 15 May 2026 decided on a warrant-based incentive program where a maximum of 250,000 warrants can be issued and transferred to participants, implying a dilution of approximately 1.5 percent. ● The annual general meeting on 8 May 2025 decided on a warrant-based incentive program where a maximum of 150,000 warrants can be issued and transferred to participants, implying a dilution of approximately 0.9 percent. ● The annual general meeting on 25 April 2024 decided on a warrant-based incentive program where a maximum of 150,000 warrants can be issued and transferred to participants, implying a dilution of approximately 0.9 percent. None of the outstanding warrants had a dilutive effect on earnings per share for the period, as the subscription prices exceed the average share price during the period. The share Upsales groupʼs shares have been listed on Nasdaq First North Growth Market since 24 April 2019. Companies listed on Nasdaq First North are required to have a Certified Adviser, which is, among other things, responsible for supervision and compliance. Upsales groupʼs Certified Adviser is DNB Carnegie Investment Bank AB. The share is traded under the trading symbol UPSALE and has the ISIN code: SE0011985514. Accounting standard The Upsales group and the parent company apply The Swedish Accounting Standards Boardʼs BFNAR 20121 K3, Årsredovisning och koncernredovisning. Disclosure of report This report was submitted for publication on 20 October 2026 at 0830. The report was published on the Upsales website at the same time. Financial calendar Year-end report 2026 17 February 2027 Interim report Q1 2027 21 April 2027 Annual report 2026 28 April 2027 Annual general meeting 2026 13 May 2027 Interim report Q2 2027 21 July 2027 For more information contact: Kristina Fridheimer Chief Financial Officer 08505 806 00 ir@upsales.com Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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6 Significant events during the quarter On 31 July 2026, Johan Kallblad took office as Chief Executive Officer of Upsales, succeeding founder Daniel Wikberg, who continues as a member of the Board of Directors. The extraordinary general meeting that had been convened for 7 August 2026 was cancelled, and an extraordinary general meeting was instead held on 22 September 2026. The meeting resolved to authorise the Board of Directors to resolve on the repurchase and transfer of own shares. The meeting also resolved on a warrant program for the Chief Executive Officer, corresponding in all material respects to the program resolved by the annual general meeting on 15 May 2026, comprising a maximum of 348,132 warrants of series 2026/20292. Each warrant entitles the holder to subscribe for one new share at a subscription price corresponding to 200 percent of the volume-weighted average price of the share during the period 10 to 24 September 2026. The issue of the warrants was registered with the Swedish Companies Registration Office on 23 September 2026. Significant events after the quarter On 7 October 2026, the Board of Directors resolved to extend the deadlines in the warrant program for the Chief Executive Officer, as the Chief Executive Officer is subject to a closed period until the publication of this report. The warrants are to be transferred at market value no later than 26 October 2026. Auditor Upsales groupʼs auditor is Helene Andersson, certified auditor at BDO Mälardalen AB. This report has not been subject to review. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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7 GROUP FINANCIAL STATEMENT Income Statement Amount in KSEK Jul-Sep 2026 Jul-Sep 2025 Jan-Sep 2026 Jan-Sep 2025 Jan-Dec 2025 Operating income Net sales 42,308 38,161 124,516 111,652 152,031 Capitalised development costs 963 2,547 7,023 8,202 17,057 Other operating income 67 59 181 297 303 Total operating income 43,339 40,766 131,720 120,152 169,390 Operating expenses Other external expenses 10,845 12,818 45,579 40,304 60,679 Personnel costs 12,911 14,520 48,412 51,443 69,847 Depreciation, amortisation and impairment of tangible and intangible assets 3,102 2,518 9,659 7,399 10,380 Other operating expenses 93 21 180 181 262 Total operating expenses 26,951 29,877 103,830 99,328 141,167 Operating profit EBIT 16,388 10,889 27,890 20,824 28,223 Financial items Financial income 142 37 430 356 486 Financial expenses 48 0 153 0 105 Total financial items 93 37 277 356 381 Profit before tax 16,481 10,926 28,166 21,181 28,604 Income tax 3,424 2,155 6,753 4,488 6,149 Net income 13,057 8,772 21,413 16,692 22,455 Earnings per share, SEK 0.78 0.52 1.27 0.99 1.33 Earnings per share after dilution, SEK 0.78 0.52 1.27 0.99 1.33 Average number of shares 16,838,375 16,838,375 16,838,375 16,838,375 16,838,375 Number of shares at the end of the period 16,838,375 16,838,375 16,838,375 16,838,375 16,838,375 Rounding differences may affect the summations. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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8 GROUP FINANCIAL STATEMENT Balance Sheet Amount in KSEK 30 September 2026 30 September 2025 31 December 2025 ASSETS Non-current assets Capitalised development costs 24,826 29,381 32,244 Tangible assets 5,182 6,186 9,068 Deferred tax assets 716 363 0 Other long-term receivables 0 5 0 Total non-current assets 30,723 35,935 41,312 Current assets Accounts receivable 14,873 14,830 21,888 Current tax claim 0 3,555 1,749 Other current receivables 259 71 8 Prepaid expenses and accrued income 6,415 7,475 8,041 Cash and cash equivalents 36,371 20,512 36,965 Total current assets 57,918 46,443 68,652 TOTAL ASSETS 88,642 82,378 109,963 EQUITY AND LIABILITIES Equity Equity 16,967 12,602 18,333 Total equity 16,967 12,602 18,333 Long-term liabilities Long-term lease liabilities 1,332 0 2,780 Total long-term liabilities 1,332 0 2,780 Current liabilities Accounts payable 3,292 4,055 5,394 Income tax liabilities 1,263 0 0 Other current liabilities 4,444 3,715 7,035 Accrued expenses and prepaid income 61,345 62,005 76,421 Total current liabilities 70,343 69,775 88,851 Total liabilities 71,675 69,775 91,631 TOTAL EQUITY AND LIABILITIES 88,642 82,378 109,963 Rounding differences may affect the summations. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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9 GROUP FINANCIAL STATEMENT Changes in Equity Amount in KSEK Jan-Sep 2026 Jan-Sep 2025 Jan-Dec 2025 Opening balance 18,333 21,914 21,914 Dividend 23,144 25,258 25,258 Issued shares - - - Change of warrants 365 705 737 Foreign currency translation differences - 42 41 Net income 21,413 16,692 22,455 Closing balance 16,967 12,602 18,333 Rounding differences may affect the summations. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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10 GROUP FINANCIAL STATEMENT Cash Flow Amount in KSEK Jul-Sep 2026 Jul-Sep 2025 Jan-Sep 2026 Jan-Sep 2025 Jan-Dec 2025 Operating activities Operating profit 16,388 10,889 27,890 20,824 28,223 Adjustments for non-cash items 3,156 2,540 9,672 7,104 10,158 Interest received 61 37 350 356 486 Interest paid 48 0 153 0 105 Income tax paid 2,151 2,230 4,458 6,139 5,631 Cash flow from operating activities before changes in working capital 17,406 11,236 33,300 22,146 33,131 Changes in working capital Changes in current receivables 2,813 2,248 7,481 3,640 3,979 Changes in current liabilities 9,655 11,337 17,101 12,473 6,053 Total change in working capital 12,468 9,089 9,619 8,834 2,075 Cash flow from operating activities 4,938 2,147 23,681 13,312 35,205 Investing activities Investments in intangible assets 963 4,628 7,023 12,184 17,057 Investments in tangible assets 0 1,086 47 2,385 2,564 Acquisition of shares in group companies 0 0 13 0 0 Disposal of financial assets 0 0 0 354 358 Cash flow from investing activities 963 5,714 7,083 14,216 19,263 Financing activities Change of warrants 0 32 365 705 737 Amortisation of leasing debt 138 0 408 0 343 Dividend paid to the parent company's shareholders 0 0 17,229 25,258 25,258 Cash flow from financing activities 138 32 17,272 25,962 26,338 CASH FLOW FOR THE PERIOD 3,837 3,535 674 26,866 10,396 Cash and cash equivalents at the beginning of the period 32,496 24,069 36,965 47,434 47,434 Exchange rate differences in cash and cash equivalents 39 22 80 56 73 Cash and cash equivalents at the end of the period 36,371 20,512 36,371 20,512 36,965 Rounding differences may affect the summations. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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11 GROUP FINANCIAL STATEMENT KPI summary Amount in KSEK Jul-Sep 2026 Jul-Sep 2025 Jan-Dec 2025 Net sales 42,308 38,161 152,031 Net sales growth % 10.9% 7.0% 5.0% Subscription revenue % of total net sales 92.4% 95.9% 95.0% Annual recurring revenue ARR end of period 154,593 147,718 153,009 ARR change during the period 578 1,047 11,127 ARR growth during the period % 0.4% 0.7% 7.8% EBITDA 19,489 13,407 38,603 EBITDA margin % 46.1% 35.1% 25.4% EBIT 16,388 10,889 28,223 EBIT margin % 38.7% 28.5% 18.6% Net income 13,057 8,772 22,455 Operating cash flow 4,938 2,147 35,205 Net cash 36,371 20,512 36,965 Rounding differences may affect the summations. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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12 PARENT COMPANY FINANCIAL STATEMENT Income Statement Amount in KSEK Jul-Sep 2026 Jul-Sep 2025 Jan-Sep 2026 Jan-Sep 2025 Jan-Dec 2025 Operating income Net sales 1,510 720 4,150 2,160 2,880 Other operating income 0 0 0 0 0 Total operating income 1,510 720 4,150 2,160 2,880 Operating expenses Other external expenses 1,002 601 3,639 1,680 2,594 Personnel costs 1,364 512 3,659 2,237 2,876 Other operating expenses 0 0 0 0 0 Total operating expenses 2,365 1,113 7,298 3,917 5,470 Operating profit EBIT 855 393 3,148 1,757 2,590 Financial items Profit from participations in group companies 0 0 0 0 13,000 Financial income 0 0 1 1 7 Financial expenses 165 0 328 4 0 Total financial items 165 0 328 3 13,007 Profit after financial items 1,020 392 3,476 1,760 10,417 Received group contributions 0 0 0 0 2,584 Profit before tax 1,020 392 3,476 1,760 13,001 Income tax 210 81 716 363 0 Net income 810 311 2,760 1,397 13,001 Rounding differences may affect the summations. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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13 PARENT COMPANY FINANCIAL STATEMENT Balance Sheet Amount in KSEK 30 September 2026 30 September 2025 31 December 2025 ASSETS Non-current assets Shares in group companies 129,232 29,232 29,232 Deferred tax assets 716 363 0 Other long-term receivables 0 5 0 Total non-current assets 129,948 29,600 29,232 Current assets Current tax claim 36 31 36 Other current receivables 84 0 8 Prepaid expenses and accrued income 176 165 88 Cash and cash equivalents 480 962 1,171 Total current assets 776 1,158 1,303 TOTAL ASSETS 130,724 30,758 30,535 EQUITY AND LIABILITIES Equity Equity 86,275 816 15,183 Total equity 86,275 816 15,183 Long-term liabilities Long-term liabilities to group companies 13,928 0 0 Total long-term liabilities 13,928 0 0 Current liabilities Accounts payable 198 313 230 Liabilities to group companies 29,061 29,145 14,561 Other current liabilities 933 190 160 Accrued expenses and prepaid income 328 294 402 Total current liabilities 30,521 29,941 15,352 Total liabilities 44,449 29,941 15,352 TOTAL EQUITY AND LIABILITIES 130,724 30,758 30,535 Rounding differences may affect the summations. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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14 PARENT COMPANY FINANCIAL STATEMENT Changes in Equity Amount in KSEK Jan-Sep 2026 Jan-Sep 2025 Jan-Dec 2025 Opening balance 15,183 28,176 28,176 Dividend 26,513 25,258 25,258 Issued shares - - - Revaluation of shares in Upsales Nordic AB 100,000 - - Bonus issue 100,000 - - Reduction of share capital 100,000 - - Change of warrants 365 705 737 Net income 2,760 1,397 13,001 Closing balance 86,275 816 15,183 Rounding differences may affect the summations. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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15 PARENT COMPANY FINANCIAL STATEMENT Cash Flow Amount in KSEK Jul-Sep 2026 Jul-Sep 2025 Jan-Sep 2026 Jan-Sep 2025 Jan-Dec 2025 Operating activities Operating profit 855 393 3,148 1,757 2,590 Interest received 0 0 1 1 7 Interest paid 0 0 0 4 0 Income tax paid 7 5 1 14 19 Cash flow from operating activities before changes in working capital 862 397 3,148 1,774 2,601 Changes in working capital Changes in current receivables 206 182 164 76 145 Changes in current liabilities 308 56 15,168 27,789 26,200 Total change in working capital 102 126 15,004 27,865 26,345 Cash flow from operating activities 964 271 11,856 26,091 23,744 Investing activities Acquisition of shares in group companies 0 0 26,513 0 0 Disposal of financial assets 0 0 0 353 358 Cash flow from investing activities 0 0 26,513 353 358 Financing activities Change of warrants 0 32 365 705 737 Received group contributions 0 0 0 0 2,584 Loan from group company 600 0 13,600 0 0 Dividend 0 0 0 25,258 25,258 Cash flow from financing activities 600 32 13,965 25,962 23,411 CASH FLOW FOR THE PERIOD 364 239 691 482 691 Cash and cash equivalents at the beginning of the period 844 1,201 1,171 480 480 Exchange rate differences in cash and cash equivalents 0 0 0 0 0 Cash and cash equivalents at the end of the period 480 962 480 962 1,171 Rounding differences may affect the summations. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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16 FINANCIAL INFORMATION Definitions Annual recurring revenue ARR Annual recurring revenue is the sum of the annual value of all customer contracts at the end of the period. New contracts are included from the start date on the contract. Cancelled agreements are included until the end date of the contract. ARR change during the period ARR at the end of the period minus ARR at the end of the previous period. ARR growth during the period % ARR change during the period as a percentage of ARR at the end of the previous period. ARR growth TTM ARR at the end of the period compared with ARR at the end of the same period the previous year, as a percentage. Earnings per share Net income divided by average number of shares in the period. Earnings per share after dilution Net income divided by average number of shares in the period after potential dilution. EBIT Earnings before interest and tax. EBIT margin EBIT as a percentage of net sales. EBITDA Earnings before interest, taxes, depreciation and amortisation. EBITDA margin EBITDA as a percentage of net sales. EBITDA margin TTM EBITDA for the last twelve months as a percentage of net sales for the last twelve months. Net cash Cash and bank balances minus interest-bearing liabilities, excluding lease liabilities. Net sales growth % Net sales compared with the same period the previous year, as a percentage. Operating cash flow Cash flow from operating activities. Subscription revenue % of total net sales Recurring revenue (revenue from subscriptions) as a percentage of net sales. Upsales Technology AB (publ) . Org nr: 559060-1372 . Interim report July - September 2026
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