Surgical Science Sweden : Interim Report Q1 2026

Interim report January-March 2026

Surgical Science is a global leader in evidence-based medical simulation. The company's virtual reality simulators and customized training solutions enable surgeons and healthcare professionals

to practice and improve their skills outside the operating room

- enhancing patient safety and clinical outcomes. Also, Surgical Science partners with medical device and robotics companies to integrate tailor-made simulation technology into their devices, helping them accelerate innovation and gain a competitive edge.

Surgical Science has approximately 320 employees. The company is headquartered in Gothenburg, Sweden, and has operations in

Tel Aviv, Israel; Stockholm, Sweden; Cleveland, US; and Cardiff, UK. Through sales offices in these markets and in Shenzhen, China, as well as a global network of distributors, Surgical Science maintains a presence in most markets. Shares in Surgical Science Sweden AB (publ) are traded on Nasdaq First North Growth Market, Stockholm, Sweden. Certified Adviser is DNB Carnegie Investment Bank AB.

A solid start to the year

First quarter 2026 (Jan-Mar)

Net sales amounted to SEK 235.5 (250.7) million, a decrease of 6 percent compared with the

corresponding period in the preceding year. Calculated in local currencies, sales increased by 4 percent.

License revenue amounted to SEK 67.6 (83.8) million and accounted for 29 (33) percent of net sales.

The gross margin was 66 (69) percent.

Operating profit amounted to SEK 22.9 (23.9) million.

Net profit amounted to SEK 18.6 (33.2) million, corresponding to earnings per share of SEK 0.37 (0.65).

Cash flow from operating activities amounted to SEK 65.3 (-5.0) million. As at March 31, 2026, cash

and cash equivalents amounted to SEK 667.7 (612.9)

million.

Key figures January-March Full year

2026 2025 2025

For definitions, see page 19.

A message from the CEO

Q1 was a quarter of stable financial performance, with the underlying business growing despite headwinds from currency fluctuations. Sales amounted to SEK 236 million, a 6 percent decrease on a reported basis but a 4 percent increase on a currency-adjusted basis. License revenue amounted to SEK 68 million, representing 29 percent of total revenue. Adjusted EBIT amounted to SEK 28 million (12 percent) and cash flow from operating activities was a healthy SEK 65 million.

Operational performance was positive, and we are

continuing to pursue the strategy presented at the Capital

Markets Day in December 2025, with financial targets of 10-15 percent annual growth and an adjusted EBIT margin of at least 15 percent. For 2026, we are maintaining our outlook of profitability and a degree of growth, although not at the level of our targets, which we expect to be achieved in 2027.

Educational Products grew by 6 percent during the quarter, 14 percent on a currency-adjusted basis. EMEA had a very strong quarter, with revenue growth of just over 80 percent, driven primarily by strong performance in several Eastern

European countries.

The UK posted its strongest quarter in a long time, with sales in GBP exceeding the total sales for the whole of the preceding year. This is a clear sign that the establishment of Surgical Science UK is beginning to bear fruit. The Americas region

declined by approximately 10 percent on a currency-adjusted basis. This market is currently characterized by an increased inertia in investment decisions. At the same time, activity

levels remain high, particularly in Ultrasound and Robotics, which supports our positive outlook for the future. In China, the market is undergoing structural changes as the Chinese government actively supports companies that operate and

manufacture in China. This is affecting our simulator business

in particular, where a local presence and local development are becoming increasingly important, and we are taking several steps to address these challenges.

Our strategic efforts to increase selling prices continue to yield results, and we implemented another price increase in April.

The effects are expected to be gradually positive over the course of the year as sales cycles come to an end.

During the quarter, we also launched new products in our

endovascular simulation portfolio, for pulmonary embolism and ICE 3D (three-dimensional intracardiac ultrasound).

The Ultrasound segment posted strong growth. We are seeing increased demand for our ultrasound simulation solutions as this technology becomes increasingly common in the healthcare sector. Women's health remains a priority focus area,

where we see that our solutions add significant value in

enabling earlier diagnosis and better healthcare outcomes.

The first products based on the shared technology platform from Surgical Science and Surgical Science UK (formerly

Intelligent Ultrasound) were launched during the quarter, and we are taking gradual steps toward realizing the full synergies of the acquisition.

Sales in the Industry segment declined by 17 percent during

the quarter (a 7-percent decline on a currency-adjusted basis). License revenue amounted to SEK 68 million, compared with SEK 84 million in Q1 2025. The decline was expected and is

primarily attributable to Surgical Science and Intuitive reverting to their existing agreement, following the Memorandum of Understanding announced in January 2025. We maintain our previous estimate of a negative impact on license revenue of

SEK 60-90 million for 2026 compared with 2025. Our partnership with Intuitive continues as strong as ever. We are more

"Cash flow from operating activities was SEK 65 million, which was strong."

convinced than ever that Surgical Science's simulation solu-

tions will be a central component of the digital offerings in the robotic platforms of the future.

The Robotics market continued its rapid growth during the

quarter. Intuitive received FDA approval for cardiac procedures and posted strong Q1 sales, with a 17-percent increase in the number of procedures. During the quarter, Johnson & Johnson received de novo classification from the FDA in the US for its Ottava system, and Medtronic received FDA approval to begin selling its Hugo robot in the US for specific urological proce-

dures. This means that Intuitive now faces commercial competition in its largest market, the United States, and that the rate of adoption of robotic surgery in markets where competition is emerging will increase more rapidly than before.

It is also encouraging to see continued growth in other robot-

ics customers. License revenue for the quarter includes orders from several of our other robotics customers, which is a clear

indication that more market players are now installing robots in significant numbers and that this, in turn, is driving license

revenue for Surgical Science. We are currently developing simulation solutions for most of the top 20 robotics companies and are in ongoing discussions with several new customers. Our outlook on the long-term potential of the Robotics segment

remains unchanged positive, and we are confident in our ability to deliver increased value over time to the leading robotics companies.

This segment had a weaker quarter in financial terms, with development revenue of SEK 14 (11) million, which is lower

than the average for each quarter of 2025. Sales of simulators to medical device companies totaled SEK 20 (31) million. The

2025 benchmark was challenging, as several customers undertook major fleet upgrades and platform investments. This business is also inherently uneven, with longer lead times between development projects and subsequent hardware deliveries for next-generation products. Underlying demand remains strong, with more than 70 percent of clients in development projects

returning for repeat business and a steady influx of new clients.

Part of the new strategy is aimed at improving the gross margin for our simulator business. The gross margin for the quarter

was 66 (69) percent. The margin was negatively impacted by a lower proportion of license revenue compared with the very strong comparative quarter in the preceding year, as well as by

currency effects. However, we see that the price increases and other initiatives we have implemented are now having a clear

positive impact on the gross margin. Excluding license revenue and currency effects, the gross margin improved during the

quarter. We expect this positive trend to continue in the coming quarters.

We place a strong emphasis on cost and productivity internally. However, the quarter saw continued investment in R&D to meet the generally rising customer demand we are seeing across all segments.

Adjusted EBIT amounted to SEK 28 million (12 percent), which

is slightly below our profitability target of more than 15 percent.

Adjusted for currency effects, however, adjusted EBIT was around 16 percent, meaning that currency effects had an impact on profit of just over SEK 10 million.

Cash flow from operating activities was SEK 65 million, which was strong and significantly higher than in the same quarter of the preceding year, when the majority of the acquisition costs for Intelligent Ultrasound were paid.

Operational performance during the quarter was positive, and we are continuing to pursue the strategy presented at the Capital Markets Day in December 2025, all with the aim of

unlocking the full potential of every healthcare professional and contributing to better healthcare outcomes and more lives saved.

In the second quarter, we will also focus on developing our

operational and production structure. The aim with this work is to be able to handle significantly higher production volumes at a lower cost per unit, as well as to create production systems that are resilient to changing conditions in the world around us.

Surgical Science is in a strong position - we hold a market-

leading position in medical simulation and have a solid balance sheet with no debt financing. This enables us to invest capital in the business to generate a good return, actively pursue an acquisition strategy, and return capital to shareholders, such

as by way of future share buybacks. Our strategy targets five segments with low to very low penetration. Demand for medical simulation in these segments is growing steadily, driven by aging populations, increasing complexity in healthcare, and higher standards for quality and patient safety. The increasing digitalization of healthcare, combined with AI, presents significant opportunities for Surgical Science. I am confident in our ability to continue generating profitable growth and to achieve our financial goals.

Gothenburg, May 2026

Tom Englund, CEO

First quarter 2026 (January - March)

Net sales for the first quarter of the year amounted to

SEK 235.5 (250.7) million, a decrease of 6 percent compared with the same period in the preceding year. Calculated in local currencies, sales increased by 4 percent.

Of the sales for the quarter, SEK 130.0 (122.9) million consisted of sales within the Educational Products business area and SEK

105.5 (127.7) million within the Industry business area.

As of 2026, note 2 on page 17 has been revised. The geographic regions have been slightly adjusted, and sales by product segment have replaced sales by product group, in line with the segments presented in Surgical Science's new strategy.

The Emergency Medicine segment is currently too small to be reported separately and is included in the Medical Device segment.

Sales within Educational Products increased by 6 percent. Adjusted for currency fluctuations, sales increased by 14 percent. Simulator sales amounted to SEK 111.2 (103.9) million and service revenue to SEK 18.8 (19.1) million.

Sales in EMEA increased by 82 percent. Eastern European countries accounted for the majority of the increase. The UK posted a quarter that was stronger than any quarter in 2025.

Revenue in the Americas region decreased by 24 percent compared with the same quarter last year, primarily related to the US. Excluding currency effects, sales for the region decreased by 10 percent.

The APAC region saw a 25-percent decline compared with the same quarter last year, primarily attributable to China and a large order for Pakistan in the prior-year quarter. India posted strong sales.

In terms of sales per region, in general these vary markedly between different countries and periods within Educational Products - when a major procurement is completed in one country, it is quite natural for there to be lower sales in that market in subsequent periods. It can therefore be difficult to draw general conclusions from comments for individual countries between periods.

The Minimally Invasive Surgery product segment reported sales in line with the comparative quarter in the preceding year, while the Ultrasound segment posted strong growth.

Sales in the Industry business area declined by 17 percent. Excluding currency effects, sales decreased by 7 percent.

License revenue for the first quarter amounted to SEK 67.6 (83.8) million, which is a decrease of 19 percent compared with the same period in the preceding year. Sales accounted for 29

(33) percent of the company's total revenue.

On November 25, 2025, Surgical Science announced that

the Memorandum of Understanding with Intuitive, signed on January 15, 2025, did not materialize into a signed agree-

ment. This meant that the parties reverted to their existing

agreement, effective January 1, 2026. Surgical Science previously estimated that this will have a negative impact on the company's license revenues to the tune of SEK 60-90 million for 2026, compared to 2025. This remains the company's best estimate.

Customers who have just started selling the products from which Surgical Science earns license revenue buy the licenses in packages, which means that this revenue varies more between quarters. Revenues for the first quarter include

orders from several of Surgical Science's other robotics customers.

Development revenue, which generates simulator revenue and license revenue at a later stage, was weaker during the quarter. However, it was higher than in the first quarter of the preceding year (SEK 14.3 million compared with SEK 10.5 million). These revenues include revenue from robotics projects, as well as from the adaptation or development of software linked to the sale of simulators, see below. Revenue for the quarter

includes amounts attributable to the order to deliver products to a defense ministry in a Southeast Asian country, totaling SEK 1.9 million (the total value of the order is approximately SEK 52 million), which meant a weaker quarter due to a minor restructuring of one of the project's milestones. This proj-

ect will be fully recorded under Industry, while the EmergeX products sold to hospitals will continue to be recorded under Educational Products.

Sales of simulators to medical device companies for product-specific training amounted to SEK 19.9 (30.6) million. Revenues vary significantly more between quarters than the corresponding sales within Educational Products. These projects have longer lead times and usually include a number of simulators where adaptations for product-specific training

of, for example, an OEM company's specific instrument are included.

Service revenue for the installed base, which is mainly linked to longer agreements with specific Industry customers where Surgical Science takes care of the shipping and servicing of their simulators (currently primarily in the US), amounted to SEK 3.7 (2.8) million.

The cost of goods sold amounted to SEK 80.5 (78.1) million corresponding to a gross margin of 66 (69) percent. License revenue made up a lower share of total sales than the corresponding period in the preceding year, which had a negative effect on the margin. Currency effects also had a negative

impact on the margin of approximately 2.2 percentage points. The lower USD exchange rate has less impact on the cost of goods sold than on other cost items, as input goods are pri-

marily purchased in currencies other than USD. Production and associated wage costs are also not in USD. The proportion

of direct sales within Educational Products (primarily in the

US) was also lower. The price increases implemented in 2025 continue to have a positive impact on margins. Another price increase took place in April.

Sales costs amounted to SEK 48.4 (53.1) million corresponding to 21 (21) percent of sales. In the comparative quarter, restructuring costs of SEK 3.8 million were attributable to the acqui-

sition of Intelligent Ultrasound (now Surgical Science UK). As of the fourth quarter of 2025, the reductions in the sales force implemented following the acquisition have taken full effect.

Starting in the second quarter of 2025, additional costs were incurred for customs duties on simulators distributed from

production units outside the US. These amounted to approximately SEK 2.4 million in the first quarter of 2026. In January, Surgical Science participated in IMSH, the biggest trade fair of the year for medical training. The event takes place in the US at this time every year.

Administration costs amounted to SEK 18.9 million, com-

pared with SEK 21.1 million in the comparative quarter in the

*Excluding acquisition and restructuring costs related to IU in Q1 and Q3 2025 and Seattle in Q4 2025.

preceding year (excluding acquisition costs for Intelligent Ultrasound of SEK 22.6 million), which corresponds to 8 (8) percent of revenue.

Research and development costs amounted to SEK 58.0 (55.2) million, corresponding to 24 (22) percent of sales. Of the development costs, SEK 9.0 (10.0) million has been capitalized as intangible assets. The costs on this line also vary depending

on how much development revenue there is for the quarter, as salaries for the portion of development department staff who have worked on projects that generated development revenue are transferred to the cost of goods sold.

Outstanding warrants programs have been charged to other operating costs in the quarter in the amount of SEK 1.6 (1.6)

million. For further information, see Note 4 on pages 17 and 18.

The amount represents a calculation of IFRS 2 regarding the parts of the programs attributable to Israel, the US, and the UK and is allocated across each program's term.

Other items under "Other operating income and operating costs" are mainly attributable to the revaluation of operat-

ing assets and operating liabilities in a foreign currency. The comparative quarter also includes income of a one-off nature of SEK 5.8 million in Surgical Science UK related to a replacement program for older products. The cost of these items is shown on the same line (SEK 2.9 million).

Operating profit (EBIT) for the first quarter amounted to SEK

22.9 (23.9) million, corresponding to a margin of 10 (10) percent. Excluding acquisition and restructuring costs in the comparative figure, EBIT amounted to SEK 50.4 million, corresponding to a margin of 20 percent.

Currency-adjusted EBIT amounted to SEK 35.8 million, or 14 percent. Currency-adjusted EBIT has been restated using the

average exchange rates for Q1 2025. Balance sheet items and their impact on the "Other operating income and expenses"

line have not been restated.

Depreciation and amortization burdened profit by SEK 20.2

(18.8) million in total. Depreciation and amortization burdened the cost of goods sold by SEK 0.8 (0.6) million, sales costs

by SEK 4.6 (4.9) million, administration costs by SEK 7.1 (6.6) million, and research and development costs by SEK 7.7 (6.8) million. Sales costs include amortization of SEK 3.6 (4.0) million on those parts of the company's acquisitions that are classified as customer contracts, while research and development costs include amortization of SEK 1.8 (2.1) million on those parts of the company's acquisitions that are classified as technology. Amortization attributable to the application of

IFRS 16 amounts to SEK 6.2 (5.5) million, this being included in its entirety under administration costs.

Adjusted EBIT (EBIT excluding amortization of surplus values related to acquisitions) amounted to SEK 28.3 (30.1) million, corresponding to a margin of 12 (12) percent. Adjusted for

acquisition and restructuring costs, adjusted EBIT amounted to SEK 56.6 million in the comparative quarter, corresponding to a margin of 23 percent.

Currency-adjusted adjusted EBIT amounted to SEK 42.0 million, or 16 percent, and is calculated in the same way as EBIT above.

EBITDA amounted to SEK 43.0 (42.7) million, corresponding to a margin of 18 (17) percent. Adjusted for acquisition and re-

structuring costs, EBITDA amounted to SEK 69.2 million in the comparative quarter, corresponding to a margin of 28 percent.

* Excluding acquisition and restructuring costs related to IU in 2025

Surgical Science has no loan financing, net financial items for the quarter amounted to SEK -1.2 (22.3) million and mainly

consisted of interest income on bank deposits of SEK 2.3 (7.3) million, the revaluation of internal loan liabilities to subsidiaries of SEK -3.3 (6.6) million, and the effect of IFRS 16 of SEK -0.8 (-0.8) million. The comparative period includes items related to the acquisition of Intelligent Ultrasound totaling SEK 8.3

million.

Net profit for the quarter amounted to SEK 18.6 (33.2) million. The tax expense for the quarter of SEK 3.0 (13.0) million consists of estimated tax on profit for the period and a change

in deferred tax assets. For 2026, there are tax-loss carry-

forwards in the US attributable to Mimic Technologies, and in the UK attributable to Surgical Science UK.

During the period January-March 2026, cash flow from operating activities amounted to SEK 65.3 million compared with SEK -5.0 million for the corresponding period in 2025, when the majority of the acquisition costs related to the acquisition of Intelligent Ultrasound were paid. Cash flow from changes in

working capital amounted to SEK 35.6 (-34.1) million. Inventory remained largely unchanged, while accounts receivable

decreased. Current receivables, including accrued income

(which mainly relates to accrued license revenue that is invoiced and paid in the following quarter), have also decreased as at the balance sheet date, compared with December 31,

2025.

Cash flow from investing activities amounted to SEK -18.0

(-95.6) million, mainly comprising investments in development related to the company's software. SEK 5.7 million (total SEK

10.4 million) was invested in the company's ongoing construction of new production facilities in Tel Aviv, which are expected to be commissioned in the second quarter. For the comparative period, SEK -84.9 million is attributable to the acquisition of Intelligent Ultrasound.

Cash flow from financing activities amounted to SEK -3.9

(-234.5) million, where SEK -3.9 (-4.4) million was attributable to changes in lease liabilities in accordance with IFRS 16. In

connection with the offer to acquire Intelligent Ultrasound in

December 2024, a short-term loan of GBP 17 million was taken out. This was repaid during the first quarter of 2025, which negatively impacted cash flow from financing activities by SEK

235.4 million in the comparative period.

The exchange rate difference in cash and cash equivalents amounted to SEK 7.9 (-20.2) million. Net cash flow for the

quarter, including currency effects in liquid assets, was SEK

51.3 (-355.3) million.

Surgical Science's operations are structured into two business areas; Educational Products and Industry.

Sales within Educational Products consist of sales of the company's proprietary simulators (hardware and software) to the hospital market, as well as of service revenue related to the

installed base of these simulators. The revenue from simulators is mainly of a one-off nature, while service revenue recurs throughout the term of each contract.

Sales within Industry consist in part of license revenue from the company's software, which is primarily attributable to

the robotic surgery area. Revenue consists partly of revenue linked to each robot's serial number (fixed for each unit) and partly of recurring revenue linked to the installed base or use of the software, for example. Development revenue is also

included, which is obtained when Surgical Science works to adapt the company's software to the customer's hardware

platform. The area also includes the sale of simulators to medical device customers, primarily in the vascular area but also in ultrasound, for example, as well as service revenue related to the installed base of these simulators.

Pages 17 to 19 of Surgical Science's annual report for 2025

provides a detailed account of the company's business model

and the various revenue streams. Pages 36 and 37 provide a general description of the customer journey with the robotics companies.

The gross margin is affected by the distribution of revenues, as the different revenue streams, "proprietary simulators con-

taining hardware", "service revenues", "development revenues" and "license revenues", have different gross margins. A higher share of license revenue has a positive impact on the gross

margin.

Surgical Science applies a functionally arranged income statement in which the gross margin also includes the salaries

of employees working with production, quality control, and support, in addition to direct materials and spare parts. In

addition, the salaries of development department employees working on development revenue-generating projects are

included. Shared costs, such as premises and IT, are distributed in accordance with an allocation template for all the

different functions.

Other operating income and operating costs consist predominantly of exchange rate fluctuations on operating assets and operating liabilities in foreign currencies.

As Surgical Science has no loan financing, net financial items

consist mainly of interest on bank balances and revaluations of internal loan receivables/liabilities in respect of subsidiaries, as well as the effect of IFRS 16.

For 2026, there are tax-loss carry-forwards in the US attributable to Mimic Technologies, and in the UK attributable to Surgical Science UK.

Surgical Science's sales of simulators to the US are affected by tariffs. With a 15-percent tariff rate, the impact is estimated at approximately SEK 15 million per year. Since the second

half of 2025, these costs have been added to the price of the products.

Surgical Science is mainly exposed to USD, ILS, EUR, and GBP. Exposure varies depending on how large a proportion of the revenues and costs are made up of these currencies in relation to the company's total revenues and costs. The company has not hedged its flows by way of hedging agreements.

In 2025, the USD weakened by 7 percent based on the

average exchange rate for the year (9.82 vs. 10.56) and by 16 percent based on the exchange rate as of December 31, 2025 (9.20) compared to December 31, 2024 (11.00). This had a

significant impact on Surgical Science's sales and earnings.

For the first quarter of 2026, an average exchange rate of 9.14 (10.68) and a balance sheet date exchange rate of 9.52 (10.03) have been used for USD.

Surgical Science's revenue for 2025 as a whole had the

following approximate distribution in different currencies: USD 77 (83) percent, EUR 17 (14) percent, SEK 3 (2) percent, GBP 2

(0) percent, other (e.g. ILS) 1 (1) percent.

Costs for 2025 as a whole had the following approximate distribution in different currencies: ILS 43 (49) percent, USD 26

(29) percent, SEK 20 (18) percent, GBP 7 (0) percent, other

(e.g. EUR) 4 (4) percent.

As at March 31, 2026, the group's cash and cash equivalents amounted to SEK 667.7 million, equity to SEK 4,415.5 million, and the equity/assets ratio was 92 percent. As at March 31,

2025, the group's cash and cash equivalents amounted to SEK

612.9 million, equity to SEK 4,476.6 million, and the equity/ assets ratio was 91 percent. As at March 31, 2026 equity per share amounted to SEK 86.53 (87.73).

The parent company, Surgical Science Sweden AB, holds shares in subsidiaries and the portion of Surgical Science's

operations that are conducted in Sweden. Several group-wide functions are also organized within the parent company. Due to internal transactions between the various group companies, it is not possible to draw general conclusions from the parent company's figures regarding sales and operating costs.

The company in brief

Surgical Science was founded in 1999 and works with simulation technologies. The foundation of the company is its

proprietary software and hardware for simulating interactions between instruments and anatomy. Based on its proprietary technology, Surgical Science develops and sells turnkey simulation systems used to train surgeons and other medical specialists. The operations are conducted within the framework of the Educational Products business area. Surgical Science also works with simulation solutions for medical device companies that develop surgical instruments for clinical applications (such as robot-assisted surgery) - this work is conducted within the Industry business area.

Surgical Science's purpose is to empower all healthcare

professionals to reach their full potential in order to improve healthcare outcomes and save lives. The company's vision

is a world where all healthcare personnel have been trained

and objectively certified in a safe and lifelike simulation environment.

On December 8, 2025, Surgical Science announced new

financial targets. Annual growth shall amount to 10-15 percent with an adjusted EBIT of at least 15 percent. Profitability and

some growth is expected for 2026, although not in line with the targets. The targets are expected to be met in 2027.

The targets are based on organic growth. Acquisitions will

continue to be an important part of Surgical Science's strategy going forward and, in addition to this plan, may contribute to

further growth.

Surgical Science's strategy is based on the idea that simulation will become a central part of healthcare going forward.

With a long-term perspective, guided by the purpose and

vision, the strategy outlines how Surgical Science will create value for customers and patients through disciplined execution and targeted investments in expertise and capacity.

To clearly align the work with the company's vision and mission, four strategic pillars have been established: Amazing

customer experience, Insights drive performance, Authenticity and clinical accuracy, and Simulation is core to medical train-

ing. These pillars form a common foundation for how the company is creating value for its customers and building long-term success. The development of products, services, and value delivery in line with these pillars strengthens customer value

and the conditions for long-term growth.

Six long-term strategic objectives have been established to guide the operational and commercial priorities:

1. Deliver world-class products and increase sales and recurring revenue

2. Ensure successful customer relationships and increase the use of simulation

3. Drive ecosystem engagement and make simulation a standard practice

4. Build strong positions in new business segments to drive long-term value creation

5. Maximize efficiency and scalability across the organization

6. Build a great company powered by exceptional people

The strategic objectives are supported by a number of priority initiatives that guide implementation throughout the organization and ensure progress toward long-term value creation for customers, patients, and shareholders.

By establishing leading positions in two main business areas -Educational Products and Industry - Surgical Science ensures a balanced and synergy-driven platform for growth. Within

each area, the company focuses on a number of simulation areas that are important for future growth: minimally invasive

surgery, ultrasound, emergency medicine, robotic surgery, and medical device.

The demand for medical simulation is driven by several interacting factors: aging populations and an increased number of medical procedures, increased complexity in

healthcare as a result of minimally invasive and robot-assisted surgery becoming more common, as well as a shortage of healthcare personnel and limited opportunities for traditional clinical training. At the same time, requirements in respect of

quality, patient safety, and verified training are becoming more stringent, which - in combination with digitalization and VR -makes simulation an effective and scalable method for training and certifying healthcare personnel.

Other information

At the end of the period, there were 317 (336) employees, of whom 89 (103) were women. Of the employees, 71 (70) were

employed in Sweden, 155 (146) in Israel, 40 (63) in the US, 29

(39) in the UK, and the remaining 22 (18) mainly in Germany and China.

No transactions materially impacting the company's earn-

ings or financial position were conducted with related parties during the quarter.

The board has proposed to the annual general meeting held on May 21, 2026 that no dividend should be paid for the 2025 financial year, i.e. SEK 0.00 per share.

Surgical Science works on an ongoing basis to identify,

assess and manage risks in various systems and processes. Risk analyses of day-to-day operations are performed on an ongoing basis and in connection with major activities.

The most significant strategic and operational risks affecting Surgical Science's operations and industry are described on pages 75 and 76 of the company's 2025 annual report. The

principal risks and uncertainties include IP, cybersecurity risks, market risks, competitors and technological development,

industrial partnerships, employees, acquisitions, access to capital, and geopolitical risks. To all intents and purposes,

the risks reported by the company and outlined in the annual report, are judged to have remained unchanged.

Surgical Science's sales within the Educational Products business area can fluctuate between quarters, with the fourth

quarter of the year having usually been the strongest. This is because many major hospitals use the calendar year as their budget year and hold off on purchases until they can see what funds remain in the budget toward the end of the year. In re-

cent years, this effect has not been significant. In the US, this effect is not found to the same extent as in countries that are more heavily reliant on public funding.

In the Industry business area, there is no significant seasonal effect, as clinical products such as those used in robotic

surgery, are less influenced by whether there is any budget remaining at the end of the year.

In connection with the announcement of the new financial targets on December 8, 2025, it was also announced that a process to switch to the Nasdaq Main Market would be

initiated. The change of listing is expected to take place in 2027.

The annual general meeting of Surgical Science Sweden AB

(publ) will be held on May 21, 2026. For more information, see https://www.surgicalscience.com.

Surgical Science's 2025 annual report is available to download from Surgical Science's website and is sent on request to shareholders who provide their postal address. The annual report is available in Swedish and English.

There have been no significant events to report following the end of the period.

The board and CEO provide their assurance that this interim report provides a fair overview of the company's operations, position, and earnings and describes any significant risks and uncertainties that the company may face.

Gothenburg, May 20, 2026

Board of directors

Interim reports and other financial reports are available at

https://www.surgicalscience.com.

Shares in Surgical Science Sweden AB (publ) have been traded on Nasdaq First North Growth Market since June

19, 2017. The company's Certified Adviser is DNB Carnegie Investment Bank AB.

Interim report January-June 2026: Wednesday, August 19 Interim report January-September 2026: Thursday,

November 12

Year-end report 2026: Tuesday, February 23, 2027

Tom Englund, CEO

Phone: +46 (0)70 916 16 81

[email protected]

Annual general meeting 2026: Thursday, May 21

Anna Ahlberg, CFO

Phone: +46 (0)70 855 38 35

[email protected]

This is information that Surgical Science Sweden AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was

submitted for publication through the agency of the contact persons above, on May 20, 2026 at 7:30 a.m. (CET).

This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.

Condensed consolidated income statements

January-March Full year

SEK thousands 2026 2025 2025

* After dilution. See Note 4 for information regarding warrants programs.

Consolidated statement of income and other comprehensive income

January-March Full year

SEK thousands 2026 2025 2025

Condensed consolidated statement of financial position

Consolidated changes in equity

Condensed consolidated cash flow statements

January-March Full year

SEK thousands 2026 2025 2025

Key figures, group

January-March Full year 2026 2025 2025

* After dilution. See Note 4 for information regarding warrant programs. | ** Proposal by the board to the 2026 annual general meeting. | See page 19 for definitions of key figures.

Consolidated income statements by quarter

* After dilution. See Note 4 for information regarding warrants programs.

Parent company income statements

January-March Full year

SEK thousands 2026 2025 2025

Because the parent company has no items to report under Other comprehensive income, no statement of comprehensive income has been prepared.

Condensed parent company balance sheets

Note 1. Accounting principles

As regards the group, this interim report has been prepared in accordance with the Annual Accounts Act and IAS 34 Interim Financial Reporting and, as regards the parent company, in accordance with the Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. Unless stated otherwise below, the accounting principles applied for the group and the parent company are the same as those applied

in preparing the most recent annual report.

Disclosures in accordance with IAS 34.16A appear not only in the financial statements and the accompanying notes, but also in other parts of the interim report.

Note 2. Group operating segments

Note 3. Financial instruments

The group's financial assets and liabilities are valued at amortized cost, with

the exception of the deferred contingent consideration recognized as a liability and measured at fair value. The carrying amount is considered to be a reasonable approximation of the fair value of the group's assets and liabilities in the

balance sheet.

Note 4. Warrants programs

Surgical Science's annual general meeting on May 17, 2023 resolved to establish an incentive program for company employees. Each warrant entitles the holder to subscribe for one share in the company for SEK 294.70 during the period June 15 to July 15, 2026. The company subsidizes the warrants program so that participants receive warrants as a benefit. Participants are

required to pay tax on this benefit, with the premium being calculated at SEK

36.43 per warrant.

During the current period, the average share price for the period, the closing price on the balance sheet date, and the average share price for the rolling 12-month period were all below the exercise price for the warrant program, whereby the program did not entail any dilution effect. Fully exercised, the

incentive program will increase Surgical Science's share capital by SEK 13,000 and the number of shares by 260,000, corresponding to the dilution of the total number of shares and votes by about 0.5 percent.

For the period January to March 2026, the program has burdened profits by SEK 0.6 (0.6) million. The amount comprises the IFRS 2 cost attributable to Israel and the US and is distributed across the term of the program until July 2026. Cumulatively, the program has impacted profits negatively by SEK 7.3 million.

Surgical Science's annual general meeting on May 16, 2024 resolved to establish two incentive programs for company employees. Each warrant entitles the holder to subscribe for one share in the company for SEK 170.50 during the period June 14 to July 14, 2027. The company subsidizes the warrants

programs so that participants receive warrants as a benefit. Participants are required to pay tax on this benefit, with the premium being calculated at SEK

33.31 per warrant.

During the current period, the average share price for the period, the closing price on the balance sheet date, and the average share price for the rolling 12-month period were all below the exercise price for the warrant program,

whereby the program did not entail any dilution effect. Fully exercised, the two incentive programs will increase Surgical Science's share capital by SEK 16,400 and the number of shares by 328,000, corresponding to the dilution of the total number of shares and votes by about 0.6 percent.

For the period January to March 2026, the program has burdened profits by SEK 0.4 (0.6) million. The amount comprises the IFRS 2 cost attributable to Israel and the US and is distributed across the term of the program until July 2027. Cumulatively, the program has impacted profits negatively by SEK 6.1 million.

Surgical Science's annual general meeting on May 15, 2025 resolved to establish two incentive programs for company employees. Each warrant entitles the holder to subscribe for one share in the company for SEK 173.90 during the period June 14 to July 14, 2028. The company subsidizes the warrants

programs so that participants receive warrants as a benefit. Participants are required to pay tax on this benefit, with the premium being calculated at SEK

36.42 per warrant.

During the current period, the average share price for the period, the closing price on the balance sheet date, and the average share price for the rolling 12-month period were all below the exercise price for the warrant program,

whereby the program did not entail any dilution effect. Fully exercised, the two incentive programs will increase Surgical Science's share capital by SEK 20,100 and the number of shares by 402,000, corresponding to the dilution of the total number of shares and votes by about 0.8 percent.

For the period January to March 2026, the programs have burdened profits by SEK 0.6 (-) million. The amount comprises the IFRS 2 cost attributable to Israel, the US, and the UK and is distributed across the term of the program until July 2028. Cumulatively, the program has impacted profits negatively by SEK 5.5 million.

The board is authorized to adjust the program in response to organizational changes and to specific rules or market conditions in other countries. Most of the company's employees are employed outside Sweden, in the US and in

Israel. For tax reasons, these employees are contractually entitled to subscribe for shares (Non-Qualified Stock Options) rather than warrants. In accordance with generally accepted practices in these markets, participants receive these shares free of charge.

Definitions of key figures

Surgical Science believes that the key figures

reported facilitate an understanding of the company's financial trends.

Operating profit less depreciation, amortization, and impairment of tangible and intangible assets as a percentage of net sales. Over time, this key figure conveys a deeper understanding of the

company's profitability.

Reported equity divided by the number of shares outstanding at the end of the period. The key

figure gives an idea of how much capital per share is attributable to shareholders.

The weighted average number of shares outstanding during the period.

effect from warrants.

Operating profit less depreciation, amortization, and impairment of surplus values related to ac-

quisitions as a percentage of net sales. Over time, this key figure conveys a deeper understanding of the company's profitability.

The number of employees recalculated as full-time positions per month divided by the number of months in the period.

Percentage change in net sales between two periods. This key figure conveys a view of the sales trend between periods.

Profit for the period in relation to the weighted average of the number of shares during the period.

Earnings after tax per share adjusted for any dilution effect from warrants.

Profit before financial items and tax. This key

figure shows the operating profit regardless of the financing structure and tax rate.

Operating profit as a percentage of net sales. Over time, this key figure conveys a deeper understanding of the company's profitability.

Equity as a percentage of total assets. This key figure conveys a view of the extent to which the total assets have been financed by the owners.

Dividend for the year divided by the number of

shares outstanding on the date of payment of the dividend. Provides a picture of the value per share transferred to shareholders.

Profit for the year as a percentage of net sales. Over time, this key figure conveys a deeper understanding of the company's profitability.

Surgical Science Sweden AB (publ) Drakegatan 7A

SE-412 50 Gothenburg Sweden

Phone: +46 31 741 65 60

E-mail: [email protected]

Borgarfjordsgatan 6B SE-164 55 Kista

Sweden

Phone: +46 31 741 65 60

3 Golan Street

Airport City, 7019900 Israel

Phone: +972 3 911 44 44

23500 Mercantile, Suite F Beachwood, Ohio 44122 USA

Phone: +1 800 918 1670

Hodge House

114-116 St Mary Street Cardiff, CF10 1DY United Kingdom

Phone: +44 29 2075 6534

T2-1402, Lijincheng Center Jihua Road, Longhua District, Shenzhen, Guangdong

China 518109

Phone: +86 755 23985994

https://www.surgicalscience.com