Interim Management Statement
Q1 2026
Kartik Srinivasan, CEO Klaus H. Skovrup, CFO
May 7, 2026
Q1 2026 INVESTOR PRESENTATION © NAPATECH 2026
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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 InfrastructureBusiness 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 FinTechProduction-oriented engagement
>$3M lifetime opportunity
$1.5M expected in 2026
400G SmartNIC application
Repeatable across other customers
AI Inference EngagementTransitioning to Production
Technical deliverables on track
Validation and testing on track
Advancing towards production readiness per plan
Tier-1 Server OEMProgressing 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
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 costsConsolidated 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) |
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
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
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Q1 2026 INVESTOR PRESENTATION © NAPATECH 2026