Slides
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yubicoyubico Q4 25 presentation Rethink Cybersecurity Secure the Future © 2026 Yubico
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Speakers 2 Jerrod Chong Acting Chief Executive Officer Yubico Snejana Koleva Chief Financial Officer Yubico
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Agenda 3 ● Company overview ● Q4 25 Highlights ● Financial overview ● Concluding remarks ● Q&A
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Yubico at a glance 4,5OO+ Business customers + millions of consumers SEK2.2bn Net sales LTM Q4 2025 54O+ Employees +78% Gross margin LTM Q4 2025 3O% Net sales CAGR between 2020-2025 O account takeovers Global scale, trusted by enterprises 4 36% Growth in ARR in the last 2 years
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Source: IDC, Market Insights on Advanced Authentication, 2024 Current position in Advanced Authentication market Advanced Authentication(AA) USD 5.2 bn Yubico’s current market share approximately 5% 5 Expanding from Advanced Authentication into the broader Digital Identity market DIGITAL IDENTITY USD ~45 bn +18% IAM USD 19.3 bn +15% Advanced Authentication represents a focused high-assurance segment within the rapidly growing Digital Identity Market AA USD 5.2 bn +14% Yubico’s opportunity is a TAM of USD 5.2 bn today with scope to expand
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The YubiKey combines highest level of security with a user-friendly experience 6 DEVELOPER & ENCRYPTION TOOLS ONLINE SERVICES PRIVILEGED ACCESS PASSWORD MGMT REMOTE ACCESS & VPN COMPUTER LOGIN CMS IDENTITY ACCESS MGMT Integrated with +1,000 applications Strongest security Phishing-resistant Phishable Mobile applications Username and password Hardware passkeys YubiKey – most secure!Smartcard Security Ease of use Synced passkeys
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We continue to expand our reach into top industries Share of Bookings per industry, Percent 7
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Trusted Brands Trust Yubico 8Source: Selected approved logos
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Record bookings in the quarter amid currency headwinds: Largest bookings in a quarter in fixed currency in the history of Yubico, amounting to SEK 705m. However FX headwinds and late-quarter deal timing negatively impacted net sales, gross profit and EBIT. Highlights from Q4 25 9 Strong subscriptions and ARR growth: Subscription momentum continued, with YubiKey as a Service representing 28% of total bookings. ARR increased 21% year-on-year to SEK 391m, reflecting a growing, more durable recurring revenue base across priority verticals. Q4 example: 5-year subscription deal with global IT and systems integration provider in India and APJ. Clear strategy and priorities for the next phase: Investor Day hosted on November 19th outlined long-term strategy centered on security leadership, expanding subscription and digital identity services, strengthening go-to-market execution and simplifying the customer experience, with execution and profitability improvement in focus for 2026. Product launches in Q4: YaaS introduces self service, authentication with PQC
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New leadership priorities for 2026 10 Leadership transition with execution focus: Jerrod Chong appointed Acting CEO on December 18th, bringing over 12 years of experience at Yubico and continuity in strategy and execution. ● Product innovations with scale and quality ● Simplify how we engage with customers ● Know our customer journeys and amplify their voices ● Align execution with strategy ● Mission focus and keep our culture
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Gross profit, marginNet sales EBIT, margin ARR SEK Millions Q4 2025 Key figures 11* Excl. currency impact of -13.3% Bookings * Excl. currency impact of -10.7%
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● In fixed currency, this is the largest booking in a quarter in Yubico’s history ● Strong underlying activity, with broad-based demand across financial services, technology, retail and the public sector ● Americas were mostly impacted by the lower number of large orders, while EMEA and APJ delivered solid momentum ● Subscription bookings increased by 36.1% to SEK 198.7 (146.0)m, and correspond to a larger share of bookings at 28.2 (18.9)%. Renewals represented SEK 96.2m 12* Excl. currency impact of -13.3% Underlying bookings growth and increased share of subscriptions
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Order bookings driven by small and mid size deals in the quarter SEK Millions Orders Bookings (Total Contract Value) by By Deal Size (in USD equivalent) 13 +18% +7% -81% Y-o-Y Change, % ● Smaller and mid-size orders continue to grow ● The number and order size of large deals was considerable lower than exceptionally strong Q4 2024, which included several large government and enterprise contract in Americas
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● Net sales was impacted by late booking orders in the quarter, with delivery occurring after quarter-end. Growing share of subscription contracts spread out revenue recognition ● Subscription sales increased by 26.6% and amounted to SEK 94.1 (74.3)m representing 17.2 (11.9)% of net sales. Increase in subscription sales continues to strengthen our recurring revenue base ● Americas continues to have the highest share at 62.8 (66.9)% of net sales. EMEA remained stable at 28.2 (28.1)%. APJ showed momentum and now represents 9.0 (5.0)% of net sales, driven by growth in India 14* Excl. currency impact of -10.7% Net sales impacted by FX and timing, with strong growth in subscriptions
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● ARR growth driven by both adding new customers, as well as net retention rate above 100% ● From Q3 to Q4, ARR increased by 1.2% to SEK 391.1 (386.2)m, whereof 4.7% was underlying growth, and -3.5% relates to negative currency impact ● ARR growth in the quarter indicates continued growth in our subscription base going forward 15 Continued ARR growth driven by both new subscriptions and expansion
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● Gross profit decreased by -21.1% to SEK 413.9 (524.3)m, corresponding to a gross margin of 75.5 (84.1)% - driven by currency headwinds ● Given the current USD/SEK development, we expect the gross margin to be in the range of 75–80 percent for 2026 ● EBIT was negatively affected by the decline in gross profit, increase in overhead costs, but also negative currency impact of SEK 22.8 million and non-recurring expenses of SEK 6.6 million ● Total recognized expenses for the LTIP programs amounted to SEK 11.2 (21.4)m as part of employee costs * Adjusted EBIT 16 EBIT impacted by higher costs and currency headwinds
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Cash flow of SEK 28m supported by reductions of Working capital ● Lower operating cash flow before Working capital changes due to lower profitability in the quarter ● Working capital changes due to Inventory reduction driven by careful planning of sourcing and manufacturing volumes, expected to continue during 2026 ● Capex included investments in machinery and equipment SEK 13.9m and capitalized R&D SEK 6.6m ● Strong cash balance maintained, supporting continued growth in 2026 SEK Millions 17 2024 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Cash flow from operating activities before Working capital changes 432 109 45 42 106 16 209 Change in Working capital -88 19 -1 81 -69 35 45 Cash flow from operating activities 344 128 44 123 36 51 254 Cash flow from investing activities -60 -41 -4 -13 -9 -23 -48 Cash flow from Financing activities -22 1 -6 -4 -92 0 -102 Cash flow for the period 262 88 35 107 -65 28 104 FX differences 15 8 -7 -13 -6 -8 -33 Cash at the end of the period 824 824 852 946 875 895 895
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Advance the Secure Root of Trust YubiKey & Production: Continue to strengthen Yubico’s position as the world’s most robust, cryptographically verifiable hardware-backed authentication devices. Elevate YubiKey as a Service YubiKey as a Service: Accelerate the ability for organizations to benefit from value-added, continuous security for users across all business scenarios, devices, platforms and locations. Expand into Digital Identity Services Digital Identity Platform: Built on Yubico’s foundation, the platform protects user identities end-to-end, unlocks new use cases, to increase trust and privacy across the customer ecosystem. Drive Go-to-Market Expansion Go to market: Deepen footprint with existing customers, attract new customers and activate everyday users, across markets, by leveraging partner and alliances ecosystem. Simplify Customer Experience Frictionless engagement: Remove friction at every step, from how customers learn about, buy and deploy Yubico solutions at speed and scale, to empower strong customer voices. To achieve our goals we focus on five strategic areas 1 2 3 4 5 18
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Q&A 19
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Appendix 20
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YaaS vs Perpetual Model Financial Impact SEK Millions Perpetual YaaS Difference Order booking - Same scope, typically 25% replacements in Y2 and Y3 ca +20% higher TCV in YaaS Net sales - recognized at delivery for Perpetual, linear for YaaS ca +20% higher Revenue over 3 years in YaaS, but lower in Y1 Direct COGS - same for both models if same scope, expensed at time of delivery Same direct COGS in both models, lower as % of Revenue in YaaS Direct Gross profit Higher in YaaS Business models and pricing models: comparison of same scope at list prices 21
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yubico The Key to Trust