SHL Telemedicine announces full-year 2025 results

‌Press release

Ad hoc announcement pursuant to Art. 53 LR

All comparable previous periods figures are in constant currency1 (CC).

• Annual revenues in 2025 were USD 59 million (vs. USD 60 million in 2024) primarily due to a decline in the German market. On a constant currency basis, revenues declined by 3% compared to 2024.

• 2025 gross profit was USD 27.5 million similar to the gross profit in 2024. In 2025 the gross profit representing 47% of revenues compared with 45% on 2024.

• The net R&D costs in 2025 were reduced to USD 4.7 million, compared with USD 5.6 million in the prior year, as part of the overall cost reduction effects of the company.

• Adjusted EBITDA2 increased to USD 3.4 million, compared with USD 1.2 million in 2024. Adjusted EBITDA in the 2ndhalf of 2025 totaled to about USD 2.4 million, demonstrating an improvement compared with the 1sthalf of the year.

• Net loss was USD 15.4 million, compared to a net loss of USD 28.8 million in 2024. The decrease was mainly driven by lower other expenses (one-time costs) that in 2025 were USD 11.7 million lower than 2024.

• These one-time extraordinary expenses totaled USD 8.9 million in 2025, compared with USD 20.6 million in 2024. In 2025, these other expenses consisted mainly of a write-off of intangible assets, mainly software development for the German and the US markets. Only a relatively small portion of it, about 25%, is involved with cash impact.

• Cash flow used for operating activities in 2025 was USD 1.8 million, compared with USD 0.4 million used in 2024. The increase was mainly related to a change in working capital.

• Cash on hand and short-term cash investments as of December 31, 2025, were USD

25.3 million.

‌1 Constant currency - to enable meaningful comparison between 2025 and 2024 results, 2024 results are also presented at 2025 exchange rates which are calculated as annual average based on the average monthly exchange rates of each of the USD and the EUR versus the NIS, as published by the Bank of Israel. The management believes that this presentation enables a more meaningful comparison between the periods due to the significant fluctuations in NIS/USD/EUR exchange rates during the period.

‌2 Please see in the table below the Adjusted EBITDA Reconciliation to EBIT. Adjusted EBITDA is defined as: Operating Profit (EBIT) excluding depreciation & amortization expenses, ESOP (Employee Stock Option Plan) and "Other expenses". For more details on "Other expenses" see note 24g in the consolidate financial statements.

In December 2025 a capital raise was successfully completed. An amount of USD 15 Million was raised in SIX by means of non-tradable rights issuance to the company's shareholders. As of December 31, 2025, SHL held excess cash over its financial liabilities, reflecting a strengthening of the Company's balance sheet. During 2025, SHL continued to advance key restructuring initiatives, including the delisting from Nasdaq, aimed at simplifying corporate governance and reducing recurring listing-related costs. The company's shares continue to be listed on the SIX Swiss Exchange.

SHL's global operations in 2025 reflected both the resilience of its core markets and the disciplined execution underpinning the Company's turnaround. Israel continued to serve as a stable and reliable foundation for the Group, with both B2C and B2B activities performing well. The B2B segment delivered improved financial results compared with 2024, while B2C maintained consistent profitability, demonstrating the strength and maturity of SHL's long-standing operations.

Germany faced a more challenging year, with deeper losses primarily driven by the limitations of its fragmented and outdated legacy IT infrastructure. Adjusted EBITDA totaled to about minus USD 3.1 million, compared to minus USD 1.2 million in 2024. Throughout 2025, SHL advanced a major modernization program designed to address these structural constraints. The Company selected a modern, off-the-shelf SaaS platform to replace aging in-house systems and began the implementation in late 2025. Progress remained broadly in line with internal planning. As part of this transition, SHL recorded approximately USD 3 million in noncash write-offs relating to legacy German IT assets nearing end--of--life. While the financial benefits of this transformation will be realized only once the new platform is fully operational, the initiative represents an important step toward improving efficiency, reducing long-term costs and securing -the market's potential contribution to the Group.

In the United States, SHL made progress in reducing operating losses. Adjusted EBITDA improved from minus USD 4 million in 2024 to minus USD 2 million in 2025, supported by tighter cost controls and a more focused commercial strategy. The U.S. business streamlined its marketing approach, reduced advertising spending and concentrated efforts on professional medical users, including clinics, corporates and SOHO practices. While still early in the process, the improvements in the U.S. market reflect encouraging traction from the Company's realignment measures.

David Arnon, CEO of SHL, remarked: "While SHL's transformation is still in a consolidation phase, the progress achieved in 2025 reflects tangible actions and measurable outcomes. These improvements are underpinned by disciplined cost management, a clear operational focus, and the early impact of strategic initiatives. Together, they provide a solid foundation for sustainable development in the year ahead."

Key Figures for 2025

Adjusted EBITDA is defined as: Operating Profit (EBIT) excluding depreciation & amortization expenses, ESOP (Employee Stock Option Plan) and "Other expenses" as defined above.

(*) The average NIS/USD exchange rates in 2025 and 2024 were 3.45 and 3.70, respectively, representing a 6.8% change between the two years. As of 31 December 2025 and 2024, the NIS/USD exchange rates were 3.19 and 3.65 respectively, a change of 12.5%.

The Company believes Adjusted EBITDA provides useful information regarding the Company's financial and operating performance. Adjusted EBITDA is not U.S. GAAP measures. You should not construe Adjusted EBITDA as alternatives to operating profit or cash flows from operating activities determined in accordance with U.S. GAAP or as a measure of liquidity. Adjusted EBITDA is not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies.

Some of the information contained in this press release contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. SHL Telemedicine undertakes no obligation to publicly update or revise any forward-looking statements.

SHL Telemedicine is engaged in developing and marketing personal telemedicine systems and the provision of medical call center services, with a focus on cardiovascular and related diseases, to end users and to the healthcare community. SHL Telemedicine offers its services and personal telemedicine devices to subscribers utilizing telephonic and Internet communication technology. SHL is listed on the SIX Swiss Exchange (SHLTN, ISIN: IL0010855885, Security No.: 1128957) For more information, please visit our website at https://www.shl-telemedicine.com.

The AGM is expected to be held at the end of May or early June in Tel Aviv, Israel.

For a comprehensive understanding of the Company's financial reports and related management's discussion and analysis for applicable periods, please visit the Company's profile at https://www.sec.gov/edgar or the Company's annual report 2024 on its site: www.shl-telemedicine.com/reports

Fabienne Farner, IRF, Phone: +41 43 244 81 42, farner@irf-reputation.ch