Huddly (HDLY) investor relations material

Executive summary

• Q2 2026 revenue was NOK 50–50.4 million, down 11% year-over-year, but organic growth was 13% after adjusting for one-offs, tariff stocking, and FX effects.

• Gross margin improved to 49% from 43% year-over-year, driven by price increases, favorable product/customer mix, and despite higher component prices.

• Strategic partnerships with Lenovo, Microsoft, Jabra, Barco, and Shure were strengthened, though ramp-up and scaling were delayed, impacting revenue targets.

• Product innovation continued with the launch of the AI data channel for Microsoft Teams and the upcoming Huddly Crew+ system.

• Shipments to end-customers began for selected products and regions, with gradual ramp-up expected.

Financial highlights

• Q2 2026 revenue: NOK 50–50.4 million (down 11% YoY); YTD revenue: NOK 98.9 million (down 3% YoY); adjusted organic growth of 13%.

• Gross profit stable year-over-year at NOK 24.5 million (up 1% YoY); gross margin: 49% (up from 43%).

• Operating expenses increased 17% YoY, mainly due to higher amortization, depreciation, and R&D capitalization.

• Operating loss (EBIT) widened to NOK -34.7 million; loss before tax: NOK 41.1 million, mainly due to FX losses and higher amortization.

• Cash at quarter-end: NOK 62–62.3 million, down from NOK 110 million, mainly due to inventory build-up.

Outlook and guidance

• 2026 revenue guidance revised to NOK 230–300 million, with gross margin 45–50%.

• 2027 revenue expected at NOK 500–600 million; 2028 at NOK 650–800 million, with similar margins.

• Cash flow positivity projected from H2 2027.

• Crew+ product launch in 2027 expected to drive higher revenue and margin growth.

• Strategic partner volumes expected to ramp up from H2 2026.