Napatech (NAPA) Q3 2026 earnings summary

Executive summary

• AI Infrastructure entered commercial production with initial shipments, alongside continued Core Infrastructure growth and a profitable core foundation.

• Q3 revenue reached a third-quarter record of $10.3M, up 64% YoY in USD; 2026 guidance remained unchanged.

• AI Infrastructure customer engagements and technical qualifications are building; converting opportunities into design wins remains a priority.

Financial highlights

• Q3 revenue was $10.3M (DKK 66.9M), up 64% YoY in USD and 67% in DKK; 9M revenue was $23.4M (DKK 151.6M), up 62% and 59%, respectively.

• Q3 gross margin was 55.4%, versus 70.5% YoY; 9M margin was 62.6%, versus 69.3%.

• Q3 EBITDA was near break-even, versus negative DKK 6.1M YoY; 9M EBITDA improved to negative DKK 24.8M from negative DKK 54.8M.

• 9M staff and other external costs were DKK 124.2M, down 1.9% YoY; 9M free cash flow was negative DKK 58.0M versus negative DKK 52.3M.

• Q3 gross profit was DKK 37.0M, up 31% YoY; Q3 EBIT was negative DKK 2.5M versus negative DKK 11.1M.

Outlook and guidance

• FY 2026 guidance remained unchanged: revenue DKK 200–240M, 7,700–9,700 units sold, and gross margin 60%–70%.

• Staff and external cost guidance was DKK 170–180M; staff costs transferred to capitalized development were guided at DKK 5–8M.

• At guidance midpoints, EBITDA would be negative DKK 25M; Q4 is expected to be cash positive.

• Revised AI Infrastructure pricing takes effect in Q4 and is expected to improve gross margin considerably.

• Potential AI program orders exceeding 100,000 units from 2027 were illustrative, not a forecast; 2027 guidance was deferred to a later update.