Slides
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© 2025 Yubico Q3 report, 2025
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© 2025 Yubico Today’s presenters 2 Snejana Koleva Chief Financial Officer Mattias Danielsson Chief Executive Officer
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© 2025 Yubico Agenda 3 • Company overview • Q3 25 Highlights • Financial overview • Concluding remarks • Q&A
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© 2025 Yubico 4 4,5OO+ Business customers + millions of consumers +81% Gross margin LTM Q3 2025 4O% net sales CAGR between 2020-2024 +4Om YubiKeys sold SEK2.3bn Net sales LTM Q3 2025 52O+ Employees O account takeovers Yubico at a glance – A global authentication leader
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© 2025 Yubico Yubico’s estimated market share in Advanced Authentication market Yubico’s opportunity – a TAM of USD 5.2 bn 5 Source: IDC, Market Insights on Advanced Authentication, 2024 Advanced Authentication USD 5.2 bn Yubico’s current market share approximately 5% 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 2020 2021 2022 2023 2024 2025 2026 2027 Advanced Authentication market grows with ca 14% p.a. USD Millions
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© 2025 Yubico Combines highest level of security with a user- friendly and seamless experience 6 Yubico offer highest level of security Works with +1,000 applications Source: Company information Smartcard Mobile application Username and password
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© 2025 Yubico …continuously landing new key accounts… …while diversifying across verticals …and expanding with current accounts Source: Company information …with a clear go-to-market strategy Build accounts from a smaller group of influential privileged users 1 Expand from the initial footprint to other user groups and use-cases 2 Easy access of buying keys simplifies the decision process and deployment of additional keys3 Land and Expand 2019 Q3 2025 14% 32% 2.3x Presence among G2000 companies 2019 2024 +115% Bookings in 2019 and 2024 from the top 25 customers 2024 2019 2024 Bookings from Tech Bookings from Financial Services Avg. annual repurchase rate 2019-24 Manufacturing, telecom, media and entertainment, government, retail, transport, energy and other 7 Bookings from Public Service Bookings from other industries
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© 2025 Yubico8 • Short-term softness, underlying growth: The quarter was impacted by delayed larger deals, with order bookings down with 17% YoY (−9% underlying, −8% FX) and net sales down with −7% YoY. Subscription sales grew 22%, reinforcing the recurring revenue base • Currency headwinds: A stronger SEK (≈10% vs USD) affected reported results, as ~80% of revenue is USD-denominated • Innovation driving adoption: Next-gen YubiKey firmware development is on track, and enterprise and public sector clients continue adopting hardware-based and passwordless security, supporting long-term growth • Market expansion: Investments in new geographies, with a new hub in Singapore, sales channels, and recurring revenue models lay the foundation for sustainable growth despite near-term delays in larger orders Highlights from the quarter
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© 2025 Yubico Trusted by leading organizations worldwide 9 Highlighted collaboration in Q3 • Yubico expands retail presence & digital safety impact: YubiKeys now available in 350+ BestBuy stores across the U.S., one of the nation’s largest electronics retailers. Trusted brands trust us
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© 2025 Yubico Q3 2025 Key figures 10 519 461 71 87 Q3 2024 Q3 2025 590 548 -7.1% +0.1%, excl. FX Subscription Sales Perpetual sales 81% Q3 2024 79% Q3 2025 478 430 -10.0% 19% Q3 2024 15% Q3 2025 111 80 -28.1% 293 386 Q3 2024 Q3 2025 +31.7% Gross profit, margin (%)Net sales Perpetual and Subscription EBIT, margin (%) ARR SEK Millions
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© 2025 Yubico Bookings declined 17%, Subscriptions growing as share of Bookings 11 Bookings, Perpetual and Subscription ● Bookings -17% vs last year, whereof of -9% was underlying change, and -8.0% was negative currency impact ● The year-over-year decline driven by fewer high-value perpetual bookings, vs very strong Q3 2024, which included multiple large government and enterprise contracts ● Subscription bookings amounted to SEK 86.5m (89.3), a decline of -3.2% but now corresponding to a larger share of bookings at 17% (15%). Renewals represented SEK 42.8m ● While there was fewer large subscription deals compared to last year, the overall subscription activity reflects broadening adoption Comments 81% Q4 23 18% 82% Q1 24 21% 79% Q2 24 15% 85% Q3 24 19% 81% Q4 24 11% 89% 14% 32% 68% Q2 25 17% 83% Q3 25 86% Q3 23 19% 400 684 579 673 610 771 524 622 504 Q1 25 -17% Subscription bookings, % Share of Perpetual bookings, % SEK Millions
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© 2025 Yubico ● ARR increased by 32% driven by high renewal rate and adding new customers Net sales impacted by negative currency development, ARR increasing with 32% 12 1) Total contract value related to subscription contracts as of the end of the reporting period, excluding one -time fees, divided by the term of the contract, translated based on the average foreign exchange rate on a rolling 12 -month basis Net sales ● Net sales decreased by -7% driven by negative currency impact ● Subscription sales increased by 22% in the same period and amounted to SEK 86.7m (71.2), 16% (12)% of net sales ● Americas is 64% (67%), EMEA is 25% (24%) and Asia Pacific is 10% (9%) of net sales ARR1 SEK Millions 87% Q4 23 11% 89% Q1 24 10% 90% Q2 24 12% 88% Q3 24 12% 88% Q4 24 13% 87% 14% 16% 84% Q2 25 16% 84% Q3 25 86% Q3 23 13% 407 555 499 614 590 623 623 499 548 Q1 25 -7% Subscription sales Perpetual sales R12M Sales 255 287 277 288 292 324 345 394 386 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 +32%
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© 2025 Yubico EBIT impacted by higher costs 13 EBIT and EBIT Margin, % ● Gross profit decreased by -10.0% to SEK 430.2m (478.0), corresponding to a Gross margin of 78.6% (81.0%). Currency exchange rate development had a negative impact on the gross margin ● EBIT margin decreased with 4.3ppt vs last year. Costs in the quarter were driven by higher personnel costs, reflecting the company’s continued expansion ambition ● LTIP programs costs in the quarter amounted to SEK SEK 29.5m (23.2) in the quarter ● Unrealized currency effects are affecting EBIT with net amount SEK 0.3m (-9.3) Comments SEK Millions 16 84 85 111 111 93 21 80 244 266 283 316 411 438 445 335 304 Q3 23* Q4 23* Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 131 EBIT LTM EBIT 14.1% Q3 23 14.6% Q4 23 14.8% Q1 24 15.2% Q2 24 18.2% Q3 24 18.8% Q4 24 18.2% Q1 25 14.4% Q2 25 13.3% Q3 25 4.0% 15.2% 17.1% 21.3% 18.8% 17.8% 14.9% 4.2% 14.5% EBIT % LTM EBIT % * Adjusted EBIT
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© 2025 Yubico Cash flow and financial position ● Cash flow before changes in Working capital amounted to SEK 105.6m (142.2) ● Cash flow from changes in Working capital amounted to SEK -69.4m (-74.5) ● Cash and cash equivalents at the end of the period amounted to SEK 874.7m (727.6) ● Net cash at the end of the period SEK 835.7 (676.1) million ● Interest bearing liabilities of SEK 39.0m (51.5), whereof leases of SEK 39.0m (22.2) ● Inventory as a percentage of LTM sales increased to 33.1%, compared to 29.5% in Q2 Comments 14 Cash flow from operating activities SEK Millions -34 -4 33 119 68 128 44 123 36 100 101 348 359 363 332 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 114 -33 216 Cash flow from operating activities R12M Cash flow
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© 2025 Yubico Key takeaways ● Delay in large orders impacted order bookings this quarter Large order delays impacted Q3 results, mainly due to prolonged purchasing processes among enterprise customers and budget constraints in the U.S. public sector. Despite this, fundamentals remain solid as Yubico expands across markets and customer segments ● Continuous growth in Subscription Subscription revenue grew 22% year over year, now representing 16% of total sales ● Collaboration with BestBuy Partnership with BestBuy expands YubiKey availability to 350 U.S. stores. The collaboration increases reach and awareness among consumers seeking trusted authentication tools ● Investments in innovation & future growth Continued investment in innovation with next-generation YubiKey firmware, passkey development, and quantum-resilient authentication. Expansion into new geographic markets and sales channels positions Yubico for long-term growth and broader customer reach ● Investor Day 19 November 2025 - in Stockholm and remote. The event will provide a deep dive into Yubico’s business model, growth drivers, and strategic priorities 15
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© 2025 Yubico Q&A
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© 2025 Yubico Thank You
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© 2025 Yubico© 2025 Yubico yubico The Key to Trust