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yubicoyubico Q3 26 presentation 5 Nov 2026 Rethink Cybersecurity Secure the Future © 2026 Yubico
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Speakers 2 Jerrod Chong Chief Executive Officer Yubico Snejana Koleva Chief Financial Officer Yubico
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Yubico at a glance 4,5OO+ Business customers + millions of consumers SEK2.3bn Net sales LTM Q3 2026 5OO+ Employees 78.7% Gross margin LTM Q3 2026 3O% Net sales CAGR between 2020-2025 O account takeovers Global scale, trusted by enterprises 3 49% Growth in ARR in the last 2 years
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Market update | Q3 2026 Cyberattacks surged 48% year-on-year in September Organizations experienced an average of 2,803 cyber attacks per week, up 48% year-on-year. Phishing activity also increased, reinforcing the need to protect identities against credential theft and impersonation. Japan Declares Emergency As It Falls Under Sustained Cyber Attack Japan's ruling party officials declared a "state of emergency in cyberspace" following an unprecedented wave of ransomware and supply-chain cyber attacks impacting major enterprises, rail operators, and cloud providers. AI and machine identities expose a major security gap A September study found that 91% of surveyed organizations use AI tools or agents with internal access, but only 36% actively monitor non-human identities. As AI agents gain access to enterprise systems, identity governance is becoming a critical security priority. Critical PHP vulnerabilities expose much of the web Two critical flaws in PHP, which powers around 70% of the web-facing internet, let attackers run code on servers without logging in, and both are now exploited in the wild (CISA, October 26). Breached servers can leak passwords and sessions, reinforcing the need for hardware-backed credentials that cannot be copied. Rising cyber threats, critical software vulnerabilities, mainstream passkey adoption and emerging AI identity risks are expanding the market for trusted, hardware-backed security 5Source: PHP Security Team advisory, 21 Oct 2026; Canadian Centre for Cyber Security alert AL26-026; CISA Known Exploited Vulnerabilities catalog; TechCrunch, 24 Oct 2026.
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Key findings: 2026 Global State of Authentication 43% High awareness, low adoption 43% of security and IT professionals still rely on passwords at work, despite 31% naming hardware passkeys the gold standard for security. The barrier is friction, not expertise. 52% Onboarding defaults set long-term habits 52% inherited passwords on their first day. Legacy onboarding defaults establish password dependency from the outset and perpetuate it, pointing to enrollment as the point of intervention. 44% AI-driven attacks are already landing 44% suffered an AI-driven attack in the last 12 months, and 39% could not distinguish AI-generated text from human writing. User vigilance alone is no longer a reliable control. 91% AI agents need verified human approval 91% want a human-in-the-loop approval step before autonomous AI agents execute critical actions, which requires a reliable way to confirm a real person is behind the request. 5 © 2026 Yubico Source: 2026 Global State of Authentication, Yubico and Okta. Talker Research surveyed 1,890 security and IT professionals at 500+ employee organizations across nine markets, 2-16 July 2026.
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Product & technology Expanding into digital services ● Introduction of YubiID, Yubico's new identity lifecycle platform, at our inaugural customer event YubiNation.* ● Next-generation, Post-quantum-ready YubiKey introduced in beta.* Sales execution Strong bookings and broad-based demand ● Order bookings of SEK 949 million, up 88% year-on-year. ● Strong demand from the technology, public and financial services sectors. ● Bookings excluding orders above USD 1 million increased by 40%. Long term strategy Updated financial targets through 2031 ● On November 5, Yubico’s Board adopted targets for the period 2027-2031:* - 15–20% average annual Net sales growth, - sustainable EBIT margin moving towards 20% by 2031 ● Capital Markets Day on November 19, 2026.* 6 Recent Highlights from Yubico * Event after the quarter Commercial news Expanding reach across enterprise and consumer markets ● Expanded retail distribution through Best Buy* in the US. ● Expanding market presence via e-commerce in Japan ** Set end of 2026 and apply 2027-2031.
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Expansion in top industries Share of Bookings per industry, Q3 2026, Percent 7 Some of our customers
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Gross profit, marginNet sales EBIT, margin ARR SEK Millions Q3 2026 Key figures 8* Excl. currency impact of 3% Bookings * Excl. currency impact of 1% +28%* +13%* * Excl. currency impact of 0.4% 79% 81% 15% 25%+85%*
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Summary of Q-o-Q development 9 © 2026 Yubico Q3 2025 Currency impact Organic change Q3 2026 Q3 YTD Order Booking 504.2 +15.6 +429.1 949.0 1,917 Order booking development +3.1% +85.1% +88.2% +20.9%* Net sales 547.5 +5.5 +155.0 708.0 1,731 Net sales development +1.0% +28.3% +29.3% +9.0*% EBIT 79.6 +19.9 +79.8 179.3 272.7 EBIT Margin% (Accretion/Dilution) 14.5% +3.4ppt +7.3ppt 25.3% 15.7% * Excl. currency impact
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10 Strong bookings, with growth across perpetual, subscription and e-commerce Bookings by order size in USD equivalent SEK Millions ● Bookings increased 88 percent to SEK 949m (504), of which 85 percent was organic; YTD growth is 16% ● Several large customer orders, developed over an extended period, materialized in the quarter ● Excluding orders above USD 1 million, bookings grew 40 percent year on year with particularly strong growth in e-commerce ● Americas drove the increase; EMEA recorded its strongest third quarter to date ● YubiKey as a Service represented 22.2 (17.1) percent of total bookings
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11 Perpetual bookings and sales reach record levels Perpetual Bookings by order size in USD equivalent SEK Millions Perpetual Net sales SEK Millions ● Perpetual bookings increased to SEK 738m (418), driven by large enterprise orders and continued e-commerce strength ● Technology was the largest contributor to perpetual bookings, with public sector and financial services following ● Perpetual net sales increased to SEK 595m (461) on the back of booking growth, with deliveries to continue in the next periods * Excl. currency impact of +3% * Excl. currency impact of +1% +28%*+77%*
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12 Subscription bookings more than doubled year on year ● xxx ● xxx● Subscription bookings increased 144 percent to SEK 211m (87), supported by large enterprise renewals and new customer agreements. Renewals represented SEK 106.3m ● Subscription represented 22.2 (17.1) percent of total bookings ● Subscription net sales increased 31 percent to SEK 113m (87), or 15.9 (15.8) percent of net sales YaaS Bookings by order size in USD equivalent SEK Millions Subscription Net sales, and Annual Recurring Revenue SEK Millions * Excl. currency impact of +4% * Excl. currency impact of +1%
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13 ARR growth accelerates, supported by new contracts and expansions ● Annual Recurring Revenue increased 13% year on year to SEK 436.9m (386.2) ● Sequentially ARR grew 6.1% from Q2, of which 5.8% organic and 0.4% positive currency impact ● New contracts and customer expansions supported growth ● Gross retention rate of 93.9 ● Net retention rate of 107.5 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 Profitability driven by volume, mix and operating leverage ● Gross margin of 81.3 (78.6) percent, supported by strong volumes and a favourable product and channel mix, particularly high-margin e-commerce ● EBIT of SEK 179.3m (79.6), an EBIT margin of 25.3 (14.5) percent - the highest in Yubico's history ● Revenue growth substantially exceeded the increase in operating expenses; selling and marketing costs of SEK 234.1m (202.1) reflect higher commissions and marketplace fees
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Positive operating cash flow and a strengthened cash position SEK Millions 15 ● Operating cash flow of SEK 227m (36), supported by strong profitability and reduction of working capital ● Working capital contributed SEK 54m (-69), driven by lower inventory, partly offset by higher receivables following strong sales ● Inventory declined to 27.4 percent of LTM sales, from 31.6 percent in Q2 ● Investing activities include capitalized development costs of SEK 15.8m ● Cash and cash equivalents of SEK 1,238m 2025 2025 Q3 2026 Q3 2025 YTD 2026 YTD Cash flow from operating activities before Working capital changes 209 106 173 193 266 Change in Working capital 45 -69 54 11 100 Cash flow from operating activities 254 36 227 204 366 Cash flow from investing activities -48 -9 -21 -26 -54 Cash flow from Financing activities -102 -92 -4 -102 -12 Cash flow for the period 104 -65 201 76 300 FX differences -33 -6 17 -25 43 Cash at the end of the period 895 875 1,238 875 1,238
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New financial targets On 5 November , Yubico's Board of Directors adopted updated long-term financial targets for the five-year period 2027 –2031. Net sales 15–20% ANNUAL AVERAGE NET SALES GROWTH Average annual net sales growth of 15–20 percent over the five-year period. Profitability Towards 20% EBIT MARGIN BY 2031 Sustainable EBIT margin moving towards 20 percent by 2031. Reinvestment in the business is prioritized to support long-term growth. Dividends will be considered when financial position and liquidity exceed operational needs and planned investments.
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Capital Markets Day 2026 - November 19th 17 VENUE Location Epicenter Stockholm and livestream TIME & DATE 19th November: 15:00–18:30 CET Registration Secure your spot for the event. Register here → PROGRAMME Speakers ● Jerrod Chong, CEO ● Albert Biketti, CPTO ● Poupak, CMO ● Snejana Koleva, CFO Moderated by Alexandra Barganowski, Investor Relations © 2026 Yubico CUSTOMERS Customer Voice Insights and testimonials from global leaders
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Q&A 18
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yubico The Key to Trust