Interim Management Statement
4Q and FY-2025
Kartik Srinivasan, CEO Klaus H. Skovrup, CFO
February 26, 2026
Q4 2025 and FY2025
INVESTOR
PRESENTATION
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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.
Agenda
Leadership Update Market Opportunity & Target Segments Differentiated Product Portfolio Financial Updates & Outlook
Strengthening Napatech's Leadership with Deep Industry Expertise
BUSINESS STATUS AND OUTLOOK
Q4 2025 and FY2025 Financial Highlights
Q4 2025 | Q4 2024 | 2025 | 2024 | Q/Q | Y/Y | |
Revenue | $7.9m | $5.4m | $22.4m | $16.8m | 48% | 33% |
Gross Margin | 70% | 65% | 69% | 68% | +5% points | +1% point |
Staff & External Costs | DKK 40.4m | DKK 44.8m | DKK 167.1m | DKK 171.8m | -10% | -3% |
Q4 EBITDA | DKK -3.8m | DKK -17.0m | DKK -58.6m | DKK -86.3m | DKK +13.2m | DKK +27.7m |
Net Working Capital | Reduced from DKK 98.6m (2024) to DKK 83.2m (4Q-2025) | |||||
Net Cash Flow from operating activities | Improved to DKK 11.4m (4Q-2025) from DKK -32.9m (4Q-2024) | |||||
Cash and Equivalents | DKK 127m (4Q-2025) up from DKK 117m (3Q-2025) | |||||
Capital Raise | NOK 200m / DKK 130.7m private placement to support expanding design win pipeline | |||||
Disciplined Execution Driving Scalable Growth
-
Technology Leadership Launched DPUs and SmartNICs for next wave of AI networking
Extended collaboration with Altera and Intel for programmable NICs
Developed complete solutions in high growth segments of AI, storage, cybersecurity R&D delivering on-time and to specifications to NRE-SOW specifications for key accounts
-
Scalable Growth Core business strengthening across network packet monitoring, security, and storage AI Infrastructure momentum building in inference networking
Expanded ecosystem of ISVs and OEMs extending go-to-market reach and demand generation Solutions increasingly repeatable and scalable across customer segments
-
Design Win Focus Continued pipeline building in opportunities of transformational scale
New customers, projects, applications and use-cases regularly emerging Pipeline growth driven by both direct engagement and partner ecosystem Secured 27 new design wins in 2025
- Culture of Execution Strengthened leadership team aligned to segmented market strategy and solution focus Operating discipline centered on revenue alignment, feature velocity, and scalable delivery
MARKET UPDATE
Powering Critical Infrastructure for Performance & Efficiency
Focused Market Strategy Across Core and AI Infrastructure
Cybersecurity | Network Monitoring Capture and Replay | Deep Packet Inspection
Telco Infrastructure | Financial Services
SAM (2026 - 2030)*$6.5b $10b @ 12% CAGR
Inference Pipeline Acceleration (MoE, RAG) Scale Up/Out Networking | Checkpoint Acceleration
Storage Acceleration | Multi-Tenant Security
SAM (2026 - 2030)*$6b $20b @ 35% CAGR
* Source: Dell'Oro Group; Grand View Research; Light Reading; Mordor Intelligence; Napatech market modeling
Structured Solutions Driving Scale and Strategic Growth
Advanced performance-driven solutions Deep technical collaboration with customer Higher revenue & absolute margins Leveraging partner ecosystem
Frontier Solutions
Full-stack offerings Easier deployment Repeatable revenue Strong moat
Turnkey Solutions
Both Solutions will serve Core & AI Infrastructure Markets
Idea is to transition cutting edge solutions from Frontier to Turnkey over time
PIPELINE SPOTLIGHTS
AI Infrastructure: Networking for AI Inferencing
Ethernet based scale-out solution
Line-rate performance under real-world load
Flow-aware traffic steering and congestion control
Hardware-accelerated traffic steering and flow control
CPU offload and in-network processing
Napatech Value Proposition
SOURCE: ALTERA INNOVATOR DAY
AI Infrastructure: Storage Acceleration
Napatech Value Proposition
- Inline hardware-accelerated data reduction
- Deterministic low-latency data movement
- Flow-aware traffic steering and congestion control
- Offloaded security and data integrity processing
- CPU offload and in-network processing
Financial Review and Outlook
Quarterly Revenue and OPEX development
Revenue mUSD & GM% OPEX mDKK
5.0
4.8
3.0
+48.2%
+26.4%
70.3%
65.3%
66.9%
5.4
0.3
70.5%
6.3
0.2
7.9
0.269.9%
4.8
0.0
3.4
0.4
7.8
6.1
44.8
48.9
-9.7%
35.1
12.2
13.2
17.2
13.8
9.6
29.4
27.5
25.5
28.2
42.6
35.1
40.4
2024-Q4
2025-Q1
2025-Q2
2025-Q3
2025-Q4
2024-Q4
2025-Q1 2025-Q2 2025-Q3 2025-Q4
GM%
NRE Product RevenueOther external costs Staff costs
Consolidated Income Statement Q4 & FY 2025
4th quarter | YTD Dec. | Q4 | YTD | |||
DKK'000 | 2025 | 2024 | 2025 | 2024 | ∆ | ∆ |
Revenue Cost of goods sold | 51,056 (15,369) | 37,678 (13,069) | 146,609 (44,733) | 116,408 (37,049) | 36% | 26% |
Gross profit | 35,687 | 24,609 | 101,876 | 79,359 | 45% | 28% |
GM% | 69.9% | 65.3% | 69.5% | 68.2% | ||
Staff costs | (28,184) | (27,521) | (118,181) | (111,226) | 2% | 6% |
Other external costs | (12,246) | (17,230) | (48,906) | (60,618) | -29% | -19% |
EBITDAC | (4,743) | (20,142) | (65,211) | (92,485) | -76% | -29% |
Transferred to capitalized development costs | 928 | 3,153 | 6,609 | 6,232 | -71% | 6% |
EBITDA | (3,815) | (16,989) | (58,602) | (86,253) | ||
Depreciation, amortization and impairment | (4,787) | (6,762) | (22,132) | (29,326) | -29% | -25% |
Operating result (EBIT) | (8,602) | (23,751) | (80,734) | (115,579) | ||
Finance income | 421 | 1,184 | 1,069 | 2,315 | 0% | 0% |
Finance costs | (668) | (959) | (5,454) | (3,823) | -30% | 43% |
Result before tax | (8,849) | (23,526) | (85,119) | (117,087) | ||
Income tax | 4,557 | 5,075 | 4,464 | 5,830 | ||
Result for the period
(4,292)
(18,451)
(80,655) (111,257)
Revenue in Q4 in USD was up 48%
compared to Q4'24 (up 36% in DKK)
Revenue in 2025 in USD up 33% compared
to 2024 (up 26% in DKK)
GM in Q4 of 69.9% was up + four basis points compared to Q4'24. GM in 2025 69.5% up 1.3 basis points compared to 2024
Staff costs and Other external costs in Q4
were down 10% compared to Q4 2024
Q4 EBITDA was negative of DKK 3.8m - up
DKK 13.2m compared to Q4'24.
Key Developments
-77% -28%
Quarterly movements in cash and Net Working Capital
Cash & Cash equivalents, mDKK Net Working Capital, mDKK
83.2
-8.3
8.7
-8.4
Cash beginning of Q
Net cash adjusted EBT
WC
adjustments
Interest, tax, & currency gain/loss
Investing
activities
Financing & foreign exch. diff.
117.7
-2.2
7.8
5.8
-1.3
-0.3
91.2
Cash end of Q
127.5 NWC Q3-25
Inventories Receivables
Payables and provisions
NWC Q4-25
Consolidated Cash Flow Statement Q4 & FY 2025
Net Cash flow from operating activities in Q4 was positive DKK 11.4m - 2025 negative DKK 32.9m
Net working capital end of 2025 DKK
83.2m
Free cash flow in Q4 was positive DKK 10.1m - up DKK 47.0m compared to Q4'24.
Cash and cash equivalents of DKK 127.5m
end of 2025.
Key Developments
4th quarter YTD Dec.
DKK'000 | 2025 | 2024 | 2025 | 2024 |
Earnings before tax (EBT) | (8,849) | (23,526) | (85,119) | (117,087) |
Adjustments to reconcile profit before tax to net cash flows | 6,639 | 9,565 | 34,612 | 41,733 |
Working capital adjustments | 7,789 | (24,058) | 12,310 | (31,341) |
Cash flows from operating activities | 5,579 | (38,019) | (38,197) | (106,695) |
Interest and tax | 5,797 | 5,079 | 5,254 | 3,854 |
Net cash flows from operating activities | 11,376 | (32,940) | (32,943) | (102,841) |
Net cash used in investing activities | (1,287) | (3,927) | (9,287) | (11,143) |
Free cash flow | 10,089 | (36,867) | (42,230) | (113,984) |
Net cash flows used in financing activities | (11) | (1,005) | 107,733 | 136,699 |
Net change in cash and cash equivalents | 10,078 | (37,872) | 65,503 | 22,715 |
Net foreign exchange difference | (263) | (649) | (2,374) | (741) |
Cash and cash equivalents at the beginning of the period | 117,655 | 102,862 | 64,341 | 42,367 |
Cash and cash equivalents at the end of the period | 127,470 | 64,341 | 127,470 | 64,341 |
2024
98,643
83,209
2025
Net working capital
Financial outlook for 2026
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 | |
Untis 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.
Additionally, in 2025 and ongoing in 2026, 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
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