Q1 REPORT 2026
FIRST QUARTER HIGHLIGHTS
Revenue of USD 22.9 million, an increase of 59.6% in Q1 2026 vs Q1 2025
Gross margin of 48.2% (47.3%)
EBITDA of USD 2.7 (1.2) million equivalent to an EBITDA margin of 11.7% (8.4%), 13.7% adjusted for non-recurring cost related to relocation of production
Operating profit (EBIT) of USD 1.8 (0.6) million, equivalent to an operating margin of 7.9% (4.1%), 9.9% adjusted for non-recurring cost related to relocation of production
Strong operating cash flow of USD 2.2 (2.6) million
All time high revenues in Q1, continued strong underlying demand in market
Continued traction with large account strategy
Amounts in USD 1,000 | 2026 Q1 | 2025 Q1 | Change |
Jan - Mar | Jan - Mar | ||
Total Revenue | 22 913 | 14 355 | 59.6% |
Gross Profit | 11 033 | 6 786 | 62.6% |
Gross margin % | 48.2% | 47.3% | 0.9 p.p |
EBITDA | 2 676 | 1 208 | 121.6% |
EBITDA % | 11.7% | 8.4% | 3.3 p.p |
Operating Profit | 1 810 | 591 | 206.5% |
Operating Margin % | 7.9% | 4.1% | 3.8 p.p |
Net profit after tax | 234 | 64 | 264.3% |
Basic earnings per share NOK | 0.022 | 0.011 | 111.7% |
Diluted earnings per share NOK | 0.022 | 0.011 | 111.7% |
Basic earnings per share USD | 0.002 | 0.001 | 264.3% |
Diluted earnings per share USD | 0.002 | 0.001 | 264.3% |
Operating cash flow | 2 233 | 2 636 | |
Full Time Equivalents (FTEs) | 147 | 129 | 18 |
2 | Q1 Report 2026
Q1 REPORT 2026 CONTINUEDGEOGRAPHICAL SPLIT Q1 2026 BUSINESS AREA SPLIT Q1 2026
5.4%
14.6%
34.1%
60.5%
23.3%
62.1%
Americas EMEA APAC
MUSD
Solutions Devices Software & Services
25
20
8.4%
15 14.4
18.7 19.0
23.2 22.9
50%
11.7%
40%
30%
12.6%
13.7%
15.3%
10 20%
5 10%
0
Q1 2025
Q2 2025
Q3 2025
Q4 2025
0%
Q1 2026
Revenue EBITDA margin
3 | Q1 Report 2026
CEO COMMENTSSmartoptics entered 2026 with strong momentum, and the first quarter confirmed both the underlying demand in our markets and the strength of our business model. We delivered all-time high first-quarter revenues of USD
22.9 million, up 59.6% from Q1 2025, with strong growth across regions and business areas. The quarter was characterized by very high customer demand throughout the period, further traction in our large-account strategy, and accelerating activity linked to AI-driven network capacity expansion and data center interconnect.
Gross margin improved to 48.2% from 47.3% in Q1 2025, as a result of strong growth in business area Solutions, Software and Services. EBITDA amounted to USD 2.7 million, corresponding to an EBITDA margin of 11.7%.
Reported profitability was impacted by USD 0.5 million in non-recurring costs related to the relocation of production; excluding these, the underlying EBITDA margin would have been 13.7%. EBITDA grew more than revenue, demonstrating the leverage in the business.
A clear highlight of the quarter was the continued progress in our large-account strategy. We secured additional orders from major customers in both the Americas and EMEA, including regional operators, neo-scalers focused on AI workloads, and government customers expanding their network capacity. AI is now a tangible growth driver in our business: hyperscale and cloud customers are investing aggressively to support training and inference workloads, and traditional operators are scaling up metro and regional networks to handle the resulting traffic growth. In Q1 the growth was driven by parallel forces: AI-driven capacity expansion among hyperscale and cloud customers, ongoing modernization of metro and regional networks, and increasing demand for open architectures. Smartoptics' open, software-dri-ven and cost-efficient solutions are well-positioned
for this next phase of network modernization, and we continue to build our capabilities to address larger and larger accounts. Smartoptics' Q1 growth significantly outpaced the broader optical transport market.
Geographically, the Americas set a new quarterly record of USD 13.9 million, up 78% year-over-year, supported by strong demand from Communication Service Providers and Internet Content Providers. EMEA grew 47% to USD 7.8 million, with improving traction among large accounts and regional operators. APAC remained more project-dependent at USD
1.2 million, in line with the pattern of prior quarters.
Growth was broad-based across business areas. Solutions grew 73% to USD 14.2 million and Software and Services grew 35% to USD 3.4 million. Devices grew 47% to USD 5.3 million. The growth in Solutions, Software and Services reflects the success of our new-generation product portfolio and our growing ability to deliver complete solutions that combine high-performance hardware with software automation and operational efficiency.
Beyond financial performance, we continue to invest in the scalability of our platform. The production relocation completed during the spring of 2026 is an important step to support higher volumes, and investments in software and AI capabilities will continue throughout 2026 in line with our 2026-2030 roadmap. External market estimates have strengthend significantly - the optical transport market is expected to grow from approximately USD 16.5 billion in 2025 to USD 24.7 billion by 2030 - and Smartoptics' open architecture and software focus position us to capture a disproportionate share of this growth. We are continuing to manage a challenging supply chain situation to secure revenue in coming quarters.
Our goals, which will be further clarified during the year, remains unchanged: to grow market share two to three times in relevant segments and deliver an EBIT margin of 13-16 percent, driven by scalability, software leverage and operational efficiency.
4 | Q1 Report 2026
CEO COMMENTS CONTINUEDOur priorities for the year are unchanged:
Continue strengthening our position with large accounts, including major operators and hyperscalers
Expand selectively in emerging markets
Leverage software automation and AI to increase efficiency and unlock new revenue streams
Smartoptics enters the remainder of 2026 with strong business momentum, a solid financial foundation and a clear strategic direction. I would like to thank our customers for their continued trust, our partners for their collaboration, and our employees for their dedication and execution.
For further information, please contact:
Magnus Grenfeldt, CEO Phone: +46 733 668 877
E-mail: magnus.grenfeldt@smartoptics.com
Stefan Karlsson, CFO Phone: +46 766 344 504
E-mail: stefan.karlsson@smartoptics.com
5 | Q1 Report 2026
FINANCIAL REVIEWQ1 2026
REVENUE
Revenue increased by 59.6% in Q1 2026 to USD 22.9 million compared to USD 14.4 million in Q1 2025, mainly related to strong Solutions sales in the Americas and EMEA.
Revenue in the Americas increased by 77.8% to USD 13.9 (7.8) million. Revenue in EMEA increased by 46.5% to USD
7.8 (5.3) million. In APAC, revenue increased by 0.6% to USD 1.2 (1.2) million.
Revenue split by business area for the quarter was Solutions 62.1% (57.5%), Devices 23.3% (25.3%) and Software &
Services 14.6% (17.2%).
GROSS PROFIT
Gross profit in Q1 2026 amounted to USD 11.0 (6.8) million, corresponding to a stable gross margin of 48.2% (47.3%).
OPERATING EXPENSES
Employee benefit expenses amounted to USD 6.7 (4.5) million in Q1 2026, including non-recurring cost of USD 472 thousand related to relocation of the company´s production in Oslo to Stockholm. The average number of employees (FTE) increased from 129 to 147 during the same period. The increase was primarily due to new hires, inflation, variable salary and movements in the USD exchange rate.
Other operating expenses amounted to USD 1.7 (1.1) million.
EBITDA AND OPERATING PROFIT
EBITDA amounted to USD 2.7 (1.2) million in Q1 2026, corresponding to an EBITDA margin of 11.7% (8.4%). The improvement compared to last year was driven by higher revenue, slightly improved gross margin, supported by a reduced OPEX share of revenue.
Operating profit amounted to USD 1.8 (0.6) million, representing an operating margin of 7.9% (4.1%).
NET FINANCIAL ITEMS
Foreign exchange gains/-losses are the main components of Net financial items.
The group benefits from a natural hedge, as both revenue and direct cost of sales are largely USD-denominated.
CASH FLOW
Operating cash flow amounted to USD 2.2 (2.6) million in Q1 2026, mainly reflecting the operating profit, and a stable working capital.
Net cash flow for the quarter was USD 0.8 (1.3) million, resulting in a closing cash balance of USD 8.4 million at the end of the period.
BORROWINGS
The Group has two loans from Innovasjon Norge totaling USD 0.2 million. The loans are repaid on a quarterly basis and will be fully repaid by Q3 2026.
In addition, the Group has a credit facility with Nordea amounting to NOK 75 million (USD 7.7 million). As of March 31, 2026, the credit facility with Nordea was not utilized.
CURRENCY
The Group experienced increased foreign exchange volatility during the past year. The impact was mainly reflected in employee benefit expenses.
The Group's market is largely USD-denominated, as both component purchases and product sales are predominantly conducted in USD, while more than half of employee benefit expenses and other operating expenses are incurred in SEK. This currency mix exposes the Group to fluctuations primarily between USD and SEK.
OUTLOOK
For the period 2026-2030, the Group has a target to increase the market share within relevant markets by two to three times. With the scalable business model and further efficiency improvements, the Group targets an operating margin in the range of 13-16 percent.
DIVIDEND POLICY
When proposing a dividend for a financial year, the Board of Directors will seek a stable to growing dividend, and consider Smartoptics' financial position, one-off items, growth trajectory, investment plans, flexibility, financial targets and covenants.
6 | Q1 Report 2026
FINANCIAL REVIEW CONTINUEDQ1 2026
DIVIDEND PROPOSAL
The Board of Directors has proposed a dividend of NOK
0.60 per share for the upcoming Annual General Meeting. The final decision will be made by the Annual General Meeting.
7 | Q1 Report 2026
FINANCIAL STATEMENTSOther operating expenses | 1 682 | 1 062 | |
Total operating expenses | 20 237 | 13 148 | |
Depreciation | 7 | 663 | 500 |
CONSOLIDATED PROFIT AND LOSS STATEMENT
Consolidated statement of profit or loss | 2026 Q1 | 2025 Q1 | |||
Amounts in USD 1.000 | Notes | Jan - Mar | Jan - Mar | ||
Revenue from contracts with customers | 1,2 | 22 913 | 14 355 | ||
Other operating income | - | 0 | |||
Total revenue and other operating income | 1,2 | 22 913 | 14 355 | ||
Direct cost of sales | 11 879 | 7 569 | |||
Employee benefit expenses 6 675 4 516 | |||||
Amortization of intangible assets 7 203 117 | |||||
Total depreciation and amortization | 7 | 866 | 617 | ||
Operating profit/(loss) | 1 810 | 591 | |||
Financial income | 4 | -11 | 82 | ||
Financial expenses | 4 | -13 | -45 | ||
Net foreign exchange gains (losses) | 4 | -1 297 | -504 | ||
Net financial items | 4 | -1 321 | -467 | ||
Profit/(loss) before income tax | 489 | 124 | |||
Income tax | -254 | -59 | |||
Earnings per share in USD | |||||
Basic earnings per share | 0.002 | 0.001 | |||
Diluted earnings per share | 0.002 | 0.001 | |||
Weighted average number of shares | |||||
Basic | 98 045 518 | 98 045 518 | |||
Diluted | 98 045 518 | 98 045 518 | |||
Consolidated statement of comprehensive income | |||||
Profit/(loss) for the period | 234 | 64 | |||
Other comprehensive income: | |||||
Items that might be subsequently reclassified to profit or loss: Exchange differences on translation of foreign operations | 90 | -40 | |||
Items that are not reclassified to profit or loss: | ||
Exchange differences on translation to another presentation | 1 057 | 2 181 |
currency | ||
Total comprehensive income for the period | 1 382 | 2 205 |
Profit/(loss) for the period 234 64 |
Total comprehensive income is attributable to:
Owners of the parent company 1 382 2 205 |
8 | Q1 Report 2026
CONSOLIDATED STATEMENT FINANCIAL POSITION
Consolidated statement of financial position | 31.03.2026 | 31.12.2025 | 31.03.2025 | |
Amounts in USD 1.000 | Notes | |||
Assets | ||||
Non-current assets | ||||
Intangible assets | 3,7 | 2 996 | 2 852 | 2 440 |
Property, plant and equipment | 6,7 | 3 724 | 3 720 | 3 501 |
Right-of-use assets | 431 | 621 | 1 164 | |
Deferred tax assets | 1 960 | 1 883 | 1 505 | |
Total non-current assets | 9 110 | 9 076 | 8 610 | |
Current assets | ||||
Inventories | 18 397 | 18 668 | 14 881 | |
Trade receivable | 19 071 | 18 718 | 18 373 | |
Other current assets | 1 795 | 2 315 | 1 195 | |
Cash and cash equivalents | 8 398 | 7 337 | 9 889 | |
Total current assets 47 661 47 039 44 339 | ||||
Total assets 56 771 56 114 52 949 | ||||
Equity and liabilities | ||||
Equity | ||||
Share capital | 201 | 195 | 186 | |
Share premium | 15 275 | 14 779 | 14 116 | |
Other paid in capital | - | - | - | |
Foreign currency translation reserves | -66 | -156 | 253 | |
Retained earnings 16 236 15 134 16 104 |
Total equity 31 646 30 264 30 659 |
Non-current liabilities | ||||
Lease liabilities (non-current portion) | 201 | 251 | 392 | |
Contract liabilities (non-current portion) | 2 | 6 668 | 5 614 | 4 562 |
Borrowings (non-current portion) | - | - | 161 | |
Total non-current liabilities 6 869 5 865 5 115 | ||||
Current liabilities | ||||
Lease liabilities (current portion) | 258 | 411 | 837 | |
Trade payable | 5 708 | 5 630 | 6 864 | |
Contract liabilities (current portion) | 2 | 6 885 | 7 160 | 5 596 |
Tax payable | 1 202 | 1 661 | 230 | |
Public duties payable (VAT, Tax) | 798 | 1 006 | 616 | |
Other current liabilities | 3 406 | 4 116 | 3 031 | |
Total current liabilities | 18 256 | 19 985 | 17 174 |
Total liabilities | 25 125 | 25 850 | 22 289 |
Total equity and liabilities | 56 771 | 56 114 | 52 949 |
9 | Q1 Report 2026
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Consolidated statement of changes in equity | Share capital | Share premium | Other paid in capital | Translation difference reserves | Retained earnings | Total equity |
Amounts in USD 1.000 | ||||||
Balance at 1 January 2025 | 173 | 13 121 | 0 | 293 | 14 867 | 28 454 |
Profit/(loss) for the period | 64 | 64 | ||||
Exchange differences on translation of foreign operation -40 -40
Exchange differences on translation to another presentation currency | 13 | 995 | 0 | 1 173 | 2 181 | |
Total comprehensive income/(loss) for the period | 13 | 995 | 0 | -40 | 1 237 | 2 205 |
Balance at 31 March 2025 | 186 | 14 116 | 0 | 253 | 16 099 | 30 654 |
Balance at 1 January 2026 195 14 779 0 -156 15 446 30 264 |
Profit/(loss) for the period 234 234 |
Exchange differences on translation of foreign operation 90 90
Exchange differences on translation to another presentation currency | 7 | 496 | 0 | 555 | 1 057 | |
Total comprehensive income/(loss) for the period | 7 | 496 | 0 | 90 | 789 | 1 382 |
Balance at 31 March 2026 | 201 | 15 275 | 0 | -66 | 16 236 | 31 646 |
*The currency translation differences arising from the translation to the presentation currency is not included as a translation differences reserves, but presented as part of the different categories of the equity. These translation differences cannot be recycled through profit and loss.
10 | Q1 Report 2026
CONSOLIDATED CASH FLOW STATEMENT
Consolidated cash flow statement | 2026 Q1 | 2025 Q1 | |
Amounts in USD 1.000 | Notes | Jan - Mar | Jan - Mar |
Cash flows from operating activities | |||
Profit/(loss) before income tax | 489 | 124 | |
Adjustments for: | |||
Taxes paid | -818 | -730 | |
Depreciation and amortization | 7 | 866 | 617 |
Net interest expense | 24 | -37 | |
Change in inventory | 272 | -2 267 | |
Change in trade receivable | -353 | 1 491 | |
Change in contract liabilities (deferred revenue) | 779 | 1 189 | |
Change in trade payable | 78 | 1 816 | |
Change in other current assets and other liabilities | 5 | 907 | 351 |
Interest received | -11 | 82 |
Net cash from operating activities | 2 233 | 2 636 |
Cash flows from investing activities | ||
Payment for property, plant and equipment | -708 | -519 | |
Payment for development cost | 7 | -260 | -256 |
Payment for other intangible assets | -234 | ||
Net cash from investing activities | -968 | -1 009 | |
Cash flows from financing activities | |||
Proceeds from issuance of ordinary shares | - | - | |
Repayment of borrowing | -225 | -133 | |
Paid interest | -13 | -45 | |
Repayments of lease liabilities | -257 | -214 | |
Net cash from financing activities | -495 | -391 | |
Net increase/(decrease) in cash and cash equivalents | 771 | 1 235 | |
Cash and cash equivalents beginning of period | 7 337 | 7 972 | |
Effects of exchange rate changes on cash and cash equivalents | 290 | 680 | |
Cash and cash equivalents end of period | 8 398 | 9 888 |
11 | Q1 Report 2026
SHARE INFORMATION
TABLE OF THE 20 LARGEST SHAREHOLDERS AS 31ST OF MARCH 2026
# | Shareholders | Holding | Stake |
1 | Coretech AS | 28 883 599 | 29.46 % |
2 | Kløvingen AS | 14 750 429 | 15.04 % |
3 | K-Spar Industrier AS | 6 500 000 | 6.63 % |
4 | DNB Asset Management | 4 797 058 | 4.89 % |
5 | Handelsbanken Fonder | 3 663 000 | 3.74 % |
6 | Janus Henderson Investors | 3 583 666 | 3.66 % |
7 | Altitude Capital AS | 2 700 000 | 2.75 % |
8 | Avanza Bank AB | 2 618 777 | 2.67 % |
9 | Mirabaud Asset Management | 2 182 115 | 2.23 % |
10 | Nordnet Bank AB | 1 868 128 | 1.91 % |
11 | Toluma Norden AS | 1 680 729 | 1.71 % |
12 | Schroders | 1 449 999 | 1.48 % |
13 | Magnus Grenfeldt | 1 257 489 | 1.28 % |
14 | Folketrygdefondet | 1 138 912 | 1.16 % |
15 | Danske Invest | 1 049 614 | 1.07 % |
16 | AS Straen | 963 391 | 0.98 % |
17 | Varner AS | 963 391 | 0.98 % |
18 | Aperture Invertors LLC | 954 087 | 0.97 % |
19 | Anchora Capital | 900 000 | 0.92 % |
20 | Rasmussengruppen AS | 800 000 | 0.82 % |
Others | 15 341 134 | 15.65 % |
Total number of shares 98 045 518 100.00 % |
12 | Q1 Report 2026
NOTESGENERAL
These interim condensed consolidated financial statements for the period ended 31 March 2026, have been prepared in accordance with IAS 34 Interim Financial Reporting and are unaudited. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements for 2025, prepared in accordance with International Financial Reporting Standards (IFRS). The same accounting principles and methods of calculation have been applied as in the financial statements for 2025 for the Group.
Smartoptics Group ASA' consolidated financial statements as at 31 December 2025 were approved at the Board of Directors' meeting on 9 April 2026. The Group's condensed consolidated financial statements as at 31 March 2026 were approved at the Board of Directors' meeting on 6 May 2026.
EXCHANGE RATESThe interim financial statements are consolidated in NOK and translated to the presentation currency USD. For the Profit and Loss statement the monthly average exchange rate published by Norges Bank is used. For the balance sheet, the monthly ending exchange rate is used.
NOTE 1 - REVENUE SPLITRevenue split by geography | Q1 2026 | Q1 2025 |
Amounts in USD 1,000 | ||
Americas | 13 867 | 7 800 |
EMEA 7 819 5 336
APAC 1 228 1 220 |
Total 22 913 14 355 |
Revenue split by Business Area | Q1 2026 | Q1 2025 |
Amounts in USD 1,000 | ||
Solutions | 14 225 | 8 248 |
Devices 5 338 3 634
Software & Services 3 350 2 473 |
Total 22 913 14 355 |
13 | Q1 Report 2026
NOTE 2 - DEFERRED REVENUEService revenues are invoiced in advance and covers a contract period of typically 3 months to 6 years. The
Contract Liabilities (Non-current) | 6 668 | 4 562 |
Total Contract Liabilities | 13 554 | 10 158 |
service revenue is recognized during the contract period. "Current Deferred Revenue" will be recognized within the next 12 months.
Deferred Revenue | 31 Mar 2026 | 31 Mar 2025 |
Amounts in USD 1,000 | ||
Contract Liabilities (Current) | 6 885 | 5 596 |
Expenditures on development activities are capitalized if certain conditions are fulfilled. Capitalized development includes costs directly attributable to development of the intangible asset, such as personnel expenses and consultancy services. Otherwise, such expenses are expensed as and when incurred. The intangible assets are amortized over 5 years.
Smartoptics has been approved government grants for one development project during 2026. The grant is recognized in the Profit and Loss statement as a reduction of payroll cost or as a reduction of capitalized development cost depending on the underlying accounting treatment of the cost that the grant is intended to cover.
NOTE 4 - FINANCIAL ITEMSCurrency effects come from the cash position, which is made of NOK, SEK and USD, Trade Receivables and Trade Payable which is predominantly in USD.
NOTE 5 - OTHER WORKING CAPITAL CHANGESOther working capital changes relates to pre-pay-ments of certain components, inventory and pay-out of variable compensation related to Q4 2025.
Property, plant and equipment | 31 Mar 2026 | 31 Mar 2025 | Change |
Amounts in USD 1,000 | |||
R&D equipment | 2 158 | 1 869 | 289 |
Production equipment 372 226 145
Demo pool equipment 659 846 -187
NOTE 7 - DEPRECIATION AND AMORTIZATION SPLITFixed assets are depreciated over a period of 3 to 5 years. There is no goodwill in the group.
Depreciation and amortization | Q1 2026 | Q1 2025 |
Amounts in USD 1,000 | ||
Property, plant and equipment | 439 | 310 |
Product development 203 117
Right of use assets / leasing | 224 | 190 |
Total | 866 | 617 |
14 | Q1 Report 2026
NOTE 8 - SIGNIFICANT EVENTS DURING THE PERIODSmartoptics has signed a new lease agreement for office space in Kista amounting to 68 MSEK during a term of seven (7) years. The agreement is conditional upon the landlord completing the premises according to the company's specifications. In accordance with IFRS 16, future lease obligations will be recognized on the balance sheet from the date the premises are made available to the company, which is expected to occur in 2026.
Office & warehouse furniture and fixtures
536
560
-24
Total 3 724 3 501 223
ALTERNATE PERFORMANCE MEASURES (APM'S)
GROSS PROFIT Total revenue and other operating income deducted with direct cost of sales | ||
Amounts in USD 1,000 | 2026 Q1 | 2025 Q1 |
Total revenue and other operating income | 22 913 | 14 355 |
Direct cost of sales | - 11 879 | - 7 569 |
Gross profit | 11 033 | 6 786 |
GROSS MARGIN Gross profit divided by total revenue and other operating income | ||
Amounts in USD 1,000 | 2026 Q1 | 2025 Q1 |
Total revenue and other operating income | 22 913 | 14 355 |
Gross profit | 11 033 | 6 786 |
Gross margin | 48.2 % | 47.3 % |
EBITDA Operating profit/(loss) adjusted for total depreciation and amortization | ||
Amounts in USD 1,000 | 2026 Q1 | 2025 Q1 |
Operating profit/(loss) | 1 810 | 591 |
Total depreciation and amortization | 866 | 617 |
EBITDA | 2 676 | 1 208 |
EBITDA MARGIN EBITDA divided by total revenue and other operating income | ||
Amounts in USD 1,000 | 2026 Q1 | 2025 Q1 |
EBITDA | 2 676 | 1 208 |
Total revenue and other operating income | 22 913 | 14 355 |
EBITDA margin | 11.7 % | 8.4 % |
15 | Q1 Report 2026
Smartoptics Group ASA Brynsalléen 2
NO-0667 Oslo, Norway https://www.smartoptics.com