Elliptic Labs (ELABS) investor relations material

Executive summary

• Implemented targeted cost measures and organizational changes, resulting in a leaner cost structure and strengthened leadership team, including new CEO, CFO, CTO, CPO, and CCO appointments.

• Successfully completed a NOK 60 million private placement and rights issue, ensuring full funding and financial flexibility for strategic priorities.

• Achieved strong operational momentum in laptops, with 41% year-over-year shipment growth and record model launches across 17 laptop and 22 smartphone models.

• Early but positive traction in adjacent verticals such as smart TVs, smart glasses, smart watches, and wearables, leveraging existing technology and partnerships.

• Strategic and financial reviews initiated, focusing on scalable growth, long-term value creation, and expansion into new verticals.

Financial highlights

• Q1 2026 revenue was NOK 17.0 million, down 37% year-over-year due to contract timing, phasing, and lower incremental volume revenue.

• EBITDA for Q1 2026 was -NOK 12.5 million, impacted by one-off restructuring costs of NOK 4.5 million.

• Cash flow from operating activities was -NOK 17.6 million, with cash and cash equivalents at quarter end of NOK 74.0 million.

• Trade receivables ended at NOK 82.8 million, with days sales outstanding at 326 days.

• No financial debt exposure; equity ratio remains strong, supporting operational flexibility.

Outlook and guidance

• 2026 is a transition year focused on operational efficiency, execution in core and new strategic areas, and positioning for renewed growth.

• Annualized operating cost base targeted to be reduced by 15%, with full effect from H2 2026.

• Expect continued shipment momentum in laptops and smartphones, with gradual revenue improvement in H2 2026 as incremental volume revenue normalizes.

• Initial commercial execution in edge AI and adjacent verticals targeted for H2 2026, with revenue contributions from 2027.