Elliptic Labs (ELABS) investor relations material

Executive summary

• Full-year 2025 revenue was NOK 102.7 million, down 23% year-over-year, impacted by revised milestone revenue recognition and restated Q3 results following the audit process.

• Q4 2025 revenue reached NOK 42.3 million, down 12% year-over-year, with milestone laptop contract revenues recognized in the quarter.

• EBITDA for 2025 was NOK -20.7 million, including NOK 11 million in one-off items in Q4; Q4 EBITDA was NOK 1.4 million.

• Strategic review led to targeted cost reductions, a focus on leveraging the existing portfolio, expanding into new verticals, and productizing the AI platform for embedded devices.

• Leadership transition occurred in November 2025, with Ola Sandstad appointed as interim CEO.

Financial highlights

• Q4 2025 revenue: NOK 42.3 million, including NOK 16.1 million from milestone laptop contracts; full-year revenue: NOK 102.7 million, down NOK 31 million from 2024.

• Operating loss for Q4 was NOK 5.9 million; net loss after tax was NOK -95.1 million for Q4 and NOK -138.2 million for 2025, mainly due to derecognition of deferred tax assets.

• Operating costs in Q4 totaled NOK 41 million, with NOK 25.3 million in employee benefits and NOK 15.7 million in other expenses; trade receivable losses were NOK 7.7 million.

• Cash and cash equivalents at year-end were NOK 43.1 million, with negative operating cash flow of NOK 3.3 million in Q4.

• Equity at year-end was NOK 189.8 million, down from NOK 325.3 million, mainly due to derecognition of deferred tax assets and net loss.

Outlook and guidance

• Backlog of NOK 31.8 million from multi-year laptop contracts to be recognized evenly over 2026-2027.

• Cost efficiency initiatives implemented to reduce personnel and operating costs by around 15% and capitalized development costs by 12%.

• Focus on profitable growth in laptops and smartphones, expansion into adjacent verticals, and productization of the AI platform for embedded edge AI markets.