Elliptic Labs (ELABS) investor relations material

Executive summary

• Q2 2026 revenue was NOK 12.9–13 million, down 48% year-over-year, with growth in laptop shipments but a decline in smartphone volumes due to memory and cost constraints.

• Strategic focus on expanding AI-based sensing into new verticals such as wearables, smart glasses, and smart TVs, supported by positive customer validation and industry engagement.

• Management team strengthened, organization streamlined, and cost efficiency measures implemented, reducing the operating cost base by 15%.

• Renewed a major smartphone contract, launched the AI Virtual Smart Sensor Platform on 15 smartphone and 15 laptop models, and continued operational momentum in core segments.

• Q2 marked by high activity, customer engagement, and industry event participation to validate new offerings.

Financial highlights

• Q2 2026 revenue was NOK 12.9–13 million, a 48% decrease year-on-year, mainly due to contract timing and lower incremental volume revenue.

• Operating expenses before depreciation/amortization decreased to NOK 18 million from NOK 23.9 million year-on-year.

• EBITDA for Q2 2026 was NOK -5.1 million, with a net loss of NOK 11 million.

• Cash and cash equivalents at quarter end were NOK 59 million, up from NOK 43.1 million at year-end 2025.

• Trade receivables and total liabilities declined year-on-year, reflecting improved working capital and financial position.

Outlook and guidance

• Revenue is expected to improve in H2 2026, with full-year revenue anticipated to be broadly in line with 2025.

• Cost reduction measures to have full cash effect from H2 2026, reducing the annualized operating cost base by about 15%.

• Commercial execution in new verticals and Edge AI targeted for H2 2026, with revenue from these initiatives expected in 2027.