Slides
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yubico Rethink Cybersecurity Secure the Future Q2 26 presentation 6 Aug 2026 C Y
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Speakers 2 Jerrod Chong Chief Executive Officer Yubico Snejana Koleva Chief Financial Officer Yubico
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Agenda 3 ● Company overview ● Q2 26 Highlights ● Financial overview ● Concluding remarks ● Q&A
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Yubico at a glance 4,5OO+ Business customers + millions of consumers SEK2.1bn Net sales LTM Q2 2026 51O+ Employees 77.8% Gross margin LTM Q2 2026 3O% Net sales CAGR between 2020-2025 O account takeovers Global scale, trusted by enterprises 4 43% Growth in ARR in the last 2 years
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Market trends AI: larger threats and productivity gains, two sides of the same coin AI-enhanced fraud is growing rapidly, with agentic systems able to run complete campaigns. Meanwhile, companies are applying AI to accelerate productivity. Post-quantum moving from planning to piloting Government mandates and Big Tech roadmaps, including Microsoft's timeline, are setting deadlines for PQC readiness. Customers are also engaging on migration ahead of any requirement, treating readiness as a competitive differentiator. Compliance becoming a differentiator Governments and regulated industries increasingly require independently validated security, making compliance a key factor in vendor selection and long-term customer trust. Identity lifecycle becomes a strategic priority The market is moving beyond authentication toward securing the full identity lifecycle, including verification, enrollment, recovery, governance, and assurance. At the same time, digital identity initiatives are accelerating globally. AI, post-quantum readiness and validated compliance are increasing demand for hardware-backed trust across the identity lifecycle. 5 © 2026 Yubico
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Product & technology Launch of YubiKey 5.8 & FIPS validation ● YubiKey 5.8 extends hardware-backed auth to verified authorization (payments, signing, AI agents)* ● Completed FIPS 140-3 validation across YubiKey 5 FIPS portfolio & YubiHSM 2 Operational efficiency Strong net sales and reorganization delivers savings ● Strong net sales growth of 12% in the quarter as well as an EBIT margin of 14% vs 4% in Q2 25. ● Headcount reduced to 507 (-4% YoY) as the reorganization is executed, delivering ~SEK 95 million in annualized savings from Q2. Highlights from Q2 26 CMD 2026 November 19th, 2026 Capital Markets Day hosted in Stockholm to deep dive into our strategy, priorities, and future opportunities. Further details will follow. * Event after the quarter 6 Commercial news OpenAI and Google expand hardware auth ● Beginning Sept 1, OpenAI will require Trusted Access for Cyber members to use hardware-backed passkeys to access frontier models. ● On July 1, Google added NFC passkey support on Android. Yubico's Passkey Enabler is now generally available.
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Expansion in top industries Share of Bookings per industry, Q2 2026, Percent 7 Some of our customers
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Gross profit, marginNet sales EBIT, margin ARR SEK Millions Q2 2026 Key figures 8* Excl. currency impact of -2% Bookings * Excl. currency impact of -3% +12%* +12%* * Excl. currency impact of -7% 79% 80% 4% 14% -5%*
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Summary of Q-o-Q development 9 © 2026 Yubico Q2 2025 Currency impact Organic change Q2 2026 Order Booking 621.8 -14.9 -29.8 577.1 Order booking development -2% -5% -7% Net sales 499.1 -13.7 58.5 543.9 Net sales development -3% 12% 9% EBIT 21.2 -10.6 67.9 78.5 EBIT Margin% (Accretion/Dilution) 4.2% -2.1 ppt 12.3 ppt 14.4%
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10 Bookings declined against tough comps; small and mid-sized grew well Bookings by order size in USD equivalent SEK Millions ● Bookings declined against the prior-year comparison due to a large subscription order in Q2 2025 ● Small and mid-sized deals under USD 3m grew 18% y-o-y ● Strong EMEA growth, led by a well established channel ecosystem and a high volume of smaller deals. Deals led by defense and public sector ● YubiKey as a Service represented 24 percent of total bookings
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11 Perpetual bookings and sales show strong growth Perpetual Bookings by order size in USD equivalent SEK Millions +7%* +9%* Perpetual Net sales SEK Millions ● Perpetual bookings increased to SEK 437.1m with very strong growth in e-commerce and smaller contracts ● Public sector remains the largest contributor to perpetual bookings, with defense as part of it and high-tech also active ● Perpetual net sales increased to SEK 446.1m driven by growth in bookings * Excl. currency impact of -5% * Excl. currency impact of -3%
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12 YaaS bookings showed healthy development in the small-to-mid size orders ● xxx ● xxx -29%* +27%* ● A large multi-year contract in Q2 2025, while Q2 2026 was primarily small-to-mid size contracts ● The quarterly net sales increase 27% organically, driven by strong development of Annual Recurring Revenue YaaS Bookings by order size in USD equivalent SEK Millions Subscription Net sales, and Annual Recurring Revenue SEK Millions * Excl. currency impact of -1% * Excl. currency impact of -3%
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13 ARR growth supported by new contracts and expansions Annual recurring revenue SEK Millions ● Annual Recurring Revenue increased 4.4% year on year to SEK 412m ● New contracts and customer expansions supported growth ● Gross retention rate of 98.1 ● Net Retention rate of 107.1 +12% GRR = (Starting ARR LfL-Contractions-Not renewed)/Starting ARR LfL NRR = (Starting ARR LfL+Expansions-Contractions-Not renewed)/Starting ARR LfL
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14 EBIT impacted by higher sales volumes and executed reorganization Gross profit SEK Millions EBIT SEK Millions ● Gross profit of 80.1%, at the higher end of the guided range of 75-80% - impacted by higher volume of net sales ● EBIT impacted by higher sales volume, SEK -10.6m negative currency impact, ● The cost savings program has been fully executed, and the annualized savings of SEK 95 million as compared to the end of 2025 is realized.
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Positive operating cash flow and a strengthened cash position SEK Millions 15 ● Operating cash flow of SEK 52m, impacted by higher working capital ● Working capital increase mainly driven by higher current receivables, while inventory continues to decrease ● Investing activities include capitalized development costs of SEK 17m ● Cash position strengthened to SEK 1,020m 2025 2025 Q2 2026 Q2 2025 YTD 2026 YTD Cash flow from operating activities before Working capital changes 209 42 85 88 94 Change in Working capital 45 81 -33 80 46 Cash flow from operating activities 254 123 52 167 139 Cash flow from investing activities -48 -13 -19 -17 -33 Cash flow from Financing activities -102 -4 -4 -10 -8 Cash flow for the period 104 106 29 141 99 FX differences -33 -13 11 -20 26 Cash at the end of the period 895 946 1,020 946 1,020
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Yubico Strategic Areas 1 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. FIPS 140-3 Validation 2 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. Continuous ARR growth 16 3 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. Yubico 5.8 authorization 4 Drive Go-to-Market Expansion Go to market: Deepen footprint with existing customers, attract new customers and activate everyday users across markets. Open AI Partnership 5 Simplify Customer Experience Frictionless engagement: Remove friction at every step, from how customers learn about, buy and deploy Yubico solutions. E-commerce growth
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Q&A 17
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yubico The Key to Trust