Yubico (YUBICO) investor relations material

Executive summary

• Announced a long-term partnership with OpenAI, enabling ChatGPT users to purchase custom YubiKeys and expanding reach in AI-driven security, highlighting industry relevance amid rising AI-driven cyber threats.

• Completed a global reorganization, reducing workforce by about 10% (45 employees), incurring SEK 21 million in costs, and appointing Jerrod Chong as permanent CEO and a new CMO to accelerate go-to-market activities.

• Focused on deepening customer relationships, expanding product capabilities, and accelerating growth in regulated markets like Europe.

• Subscription sales and ARR grew, reflecting traction in recurring revenue and strong retention rates.

• Strategic partnerships with OpenAI, IBM, and Auth0 (Okta) reinforce product relevance and market expansion.

Financial highlights

• Net sales for Q1 ranged from SEK 391 million to SEK 479.3 million, declining 10–23.1% year-over-year, impacted by negative currency effects and weaker bookings.

• EBIT for the quarter was SEK 14.9 million (3.1%), down 83.9% year-over-year, affected by SEK 26.5 million negative currency impact and SEK 21 million in reorganization costs.

• Subscription net sales grew 29% year-over-year (currency-adjusted), with ARR up 11% to SEK 383.5 million.

• Gross profit margin was stable at 76.8%, within the expected 75%-80% range.

• Cash flow from operations improved, with SEK 70–87.2 million generated and net cash position rising to SEK 945.1–980 million.

Outlook and guidance

• Reorganization program expected to deliver SEK 95 million in annualized gross savings, with benefits starting in Q2 2026.

• Continued investment in next-generation products, certifications, and digital identity services, with more details to be shared in H2.

• Focus remains on accelerating product releases, deepening customer engagement, and disciplined growth.

• Gross margin guidance for 2026 remains at 75–80%.

• Anticipates further growth in subscription and YubiKey as a Service (YaaS), especially in Americas and Europe.