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Napatech A/S : Presentation (Napatech Q1 2026 IMS Presentation)
Napatech A/S : Presentation (Napatech Q1 2026 IMS
About this update from Napatech A/s
Interim Management Statement Q1 2026 Kartik Srinivasan, CEO Klaus H. Skovrup, CFO May 7, 2026 Q1 2026 INVESTOR PRESENTATION © NAPATECH 2026 Q&A Session Following the presentation DK: +45 32 74 07 10 NO: +47 57 98 92 37 US: +1 646 307 1963 UK: +44 20 3481 4247 Participant Access Code: 4566992 To ask a question, press *1 on your telephone keypad. To withdraw your question, press *2 Texted questions can be submitted using the button on the website Safe Harbor Statement This presentation has been prepared by Napatech A/S solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Certain statements included in this presentation contain various forward-looking statements that reflect management's current views with respect to future events and financial and operational performance. The words "believe," "expect," "anticipate," "intend," "may," "plan," "estimate," "should," "could," "aim," "target," "might," or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include but are not limited to the Company's ability to operate profitably, maintain its competitive position, to promote and improve its reputation, to successfully operate its strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, neither the Company nor its subsidiary undertakings or any of such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. Executive Summary Strengthening Financial Performance Strong growth in Q1 with signs of demand recovery Disciplined execution driving improved operating leverage Accelerating Business Momentum Design win traction across Core and AI Infrastructure Progressing toward production revenue with improving pipeline quality Differentiated Product Positioning Network has emerged as a critical bottleneck in AI workloads Deterministic, programmable architecture aligned with requirements Q1 2026 - Strong Financial Performance Revenue: $5.7M (+69% YoY) Driven by Core Infrastructure demand Gross margin: 70% Reflecting product mix and execution Guidance for 2026 is unchanged Quarterly Revenue Trend ($M) 6.3 0.2 5.7 4.8 3.4 0.4 4.8 0.0 5.7 0.0 7.6 0.3 6.0 3.0 7.9 2025-Q1 2025-Q2 2025-Q3 2025-Q4 2026-Q1 AI Infrastructure Core Infrastructure Business Momentum Design Win Momentum Solid Q1 Activity 5 new Q1 design wins Pipeline expansion across verticals New customers and use cases Key Design Win in FinTech Production-oriented engagement >$3M lifetime opportunity $1.5M expected in 2026 400G SmartNIC application Repeatable across other customers AI Inference Engagement Transitioning to Production Technical deliverables on track Validation and testing on track Advancing towards production readiness per plan Tier-1 Server OEM Progressing though Qualification Use case defined and aligned Product deliverables identified and aligned Commercial discussions underway Core Infrastructure Spotlight: Financial Trading Networks Mission-critical, latency-sensitive workloads require deterministic performance Napatech enables realtime trading infrastructure with ultra-low latency and zero packet loss Proven, repeatable deployments across leading financial institutions Solving the Networking Bottleneck in AI Infrastructure AI performance is constrained by network bottlenecks, not compute Deterministic networking unlocks compute utilization and performance Programmable acceleration enables scale at lower cost Financial Review and Outlook Quarterly Revenue and OPEX development 11.3 48.9 -9.1% 13.8 35.1 13.2 12.2 9.6 25.5 28.2 29.4 33.1 Revenue $M & GM% OPEX MDKK 69% 7.9 70.3% 66.9% 70.5% 6.3 69.8% 5.7 4.8 3.4 69.9% 42.6 35.1 40.4 44.5 2025-Q1 2025-Q2 2025-Q3 2025-Q4 2026-Q1 2025-Q1 2025-Q2 2025-Q3 2025-Q4 2026-Q1 GM% Revenue Other external costs Staff costs Consolidated Income Statement Q1 2026 DKK'000 2026 2025 Revenue Cost of goods sold 36.588 (11.065) 23.849 (7.078) Gross profit 25.523 16.771 GM% 69,8% 70,3% Staff costs (33.143) (35.059) Other external costs (11.322) (13.846) EBITDAC (18.942) (32.134) Transferred to capitalized development costs 810 3.083 EBITDA (18.132) (29.051) Depreciation, amortization and impairment (3.301) (6.457) Operating result (EBIT) (21.433) (35.508) Finance income 317 27 Finance costs (299) (1.334) Result before tax (21.415) (36.815) Income tax (3) 6 Result for the period (21.418) (36.809) 1st quarter Q1 Revenue in Q1 in USD was up 69% compared to Q1'25 (up 53% in DKK) GM in Q1 of 69.8%, down 50 basis points compared to Q1'25 due to the mix of customers and products sold Staff costs and Other external costs in Q1 were down 9.1% compared to Q1'25 Q1 EBITDA was negative of DKK 18.1M - up DKK 10.9M compared to Q1'25. Key Developments ∆ 53% 52% -5% -18% -41% -74% -49% 0% -78% -42% Quarterly movements in cash and Net Working Capital Cash & Cash equivalents, MDKK Net Working Capital, MDKK -15.6 10.9 0.0 -1.0 Cash beginning of Q Net cash adjusted EBT 127.5 83.2 WC adjustments Interest, tax, & currency gain/loss Investing activities -1.3 72.8 -13.5 4.4 Financing & foreign exch. diff. -22.6 Cash end of Q 99.1 Undrawn comitted facilities 21.5 Cash available 120.6 NWC Q4-25 Inventories Receivables Payables and provisions NWC Q1-26 Consolidated Cash Flow Statement Q1 2026 Net Cash flow from operating activities in Q1 was negative DKK 4.8M - Q1'25 negative DKK 25.7M Net working capital end of Q1 was DKK 72.8M Free cash flow in Q1 was negative DKK 5.8M -up DKK 23.6M compared to Q1'25. Cash and cash equivalents of DKK 99.1M end of Q1 2026. Incl. unused credit facilities DKK 120.6M Key Developments 1st quarter DKK'000 2026 2025 Earnings before tax (EBT) Adjustments to reconcile profit before tax to net cash flows Working capital adjustments (21.415) (36.815) 10.530 1.083 5.779 10.879 Cash flows from operating activities (4.757) (25.202) Interest and tax (36) (472) Net cash flows from operating activities (4.793) (25.674) Net cash used in investing activities (1.000) (3.746) Free cash flow (5.793) (29.420) Net cash flows used in financing activities (22.656) 535 Net change in cash and cash equivalents Net foreign exchange difference Cash and cash equivalents at the beginning of the period (28.449) 32 127.470 (28.885) (858) 64.341 Cash and cash equivalents at the end of the period 99.053 34.598 Unused credit facilities, end of period 21.500 1.000 Cash available, end of period DKK M 120.553 35.598 31 Mar. 97.208 2025 2026 72.750 Net working capital Financial outlook for 2026 is unchanged Revenue of $32-38M Napatech will continue the current momentum and first orders from AI infrastructure will come in H2 Products for AI infrastructure comes with a lower gross margin Staff expenses & Other external costs to increase slightly compared to 2025, whereas staff costs transferred to capitalized development costs are in line with 2025 With performance in the middle of the guided ranges, EBITDA would be negative around DKK 25M Comments Guidance Units sold 8,700-10,700 Revenue DKK 200 - 240M Gross margin 60 - 70% Staff expenses & Other external costs DKK 170 - 180M Staff costs transferred to capitalized development costs DKK 5 - 8M The company is exposed to risks that might affect our ability to reach our goals, such as currency fluctuations, general market uncertainty, and material changes in our large OEMs' needs for Napatech's products. We have seen increasing market uncertainty, particularly related to potential trade barriers, including tariff increases in the United States. With our products manufactured in the US and most of our customers also located in the US, we do not feel overly exposed. However, the lack of predictability and uncertainty surrounding tariff increases is a concern, and we will be monitoring the development closely. Further, we have seen an elevated risk driven by a supply-constrained, high-volatile environment across several key areas. This leads to extended lead times and increased prices for certain components. Where to Find Us 20 May 2026 New York, USA Core Infrastructure 2-4 June 2026 Prague, Czech Republic Core Infrastructure 30 Jun-Jul 2 2026 Dubai, UAE Core Infrastructure 19-21 Aug 2026 Virtual AI Infrastructure 15-17 Sept 2026 Dubai, UAE AI Infrastructure 12-15 Oct 2026 San Jose, USA AI Infrastructure https://www.napatech.com/about/events/ Q&A Session Following the presentation DK: +45 32 74 07 10 NO: +47 57 98 92 37 US: +1 646 307 1963 UK: +44 20 3481 4247 Participant Access Code: 4566992 To ask a question, press *1 on your telephone keypad. To withdraw your question, press *2 Texted questions can be submitted using the button on the website Stay Connected with Napatech On the web Social Media Other news www.euronext.com www.napatech.com www.google.com/alerts www.napatech.com/newsletter Q1 2026 INVESTOR PRESENTATION © NAPATECH 2026