InCoax Networks (INCOAX) Q2 2026 earnings summary

Executive summary

• Net sales for Q2 2026 were SEK 4,492 thousand, down 44% year-over-year, with product sales increasing sequentially due to Nokia deliveries.

• Gross margin improved to 73% (from 70%), despite lower sales, due to favorable product and revenue mix.

• Operating loss (EBITA) narrowed to SEK -6,090 thousand from SEK -11,357 thousand year-over-year, reflecting lower costs.

• Structural transformation completed, reducing ongoing cost level by 40% and monthly costs by over SEK 3 million compared to end of 2025.

• Focus remains on converting technical and financial improvements into recurring orders and revenue growth.

Financial highlights

• Net sales Q2 2026: SEK 4,492 thousand (Q2 2025: SEK 8,072 thousand).

• Gross profit: SEK 3,283 thousand (Q2 2025: SEK 5,654 thousand); gross margin: 73% (70%).

• Operating profit (EBITA): SEK -6,090 thousand (Q2 2025: SEK -11,357 thousand).

• Profit after tax: SEK -9,806 thousand (Q2 2025: SEK -11,503 thousand); EPS: SEK -0.08 (SEK -0.09).

• Cash flow for the quarter: SEK 3,468 thousand (Q2 2025: SEK -11,069 thousand).

Outlook and guidance

• Commercial activities intensified with Nokia, targeting global operator markets; D2508 product completion expected late summer.

• Direct sales focus in Germany and neighboring markets, with ongoing projects and technology selection with Deutsche GigaNetz.

• US market expansion through partners, with initial rollout phase underway with Underline and agreement with a US Tier 1 operator.

• Continued cost discipline and focus on converting opportunities into recurring revenue and sustainable positive cash flow.