Q1 2026
May 7, 2026
Strong momentum and progress in large account strategy in a market growing significantly faster than previously expected
+59.6%
REVENUE
2026 Change
22.9 MUSD
Increased market projections for coming 5+ years from all industry analysts.
Cignal AI projects a growth from 16.5 bn in 2025 to
24.7 bn in 2030
Q1
GROSS MARGIN
Q1
2026 2025
48.2%
47.3%
Broad traction including large accounts and AI-related Data Center Interconnect demand.
All time high revenues in Americas, strong growth in Europe. Strong growth in all business areas
EBITDA MARGIN
2026
2025
8.4%
11.7%
Q1
EBITDA was impacted by non-recurring costs of USD 472k related to the relocation of production.
EBITDA growing more than the revenue, showing the leverage in the Business
2
Powering the ever growing demand for bandwidth with open optical solutions and innovative softwareOUR PRODUCTS
Optical Networking Built for Scale and Efficiency
Open networking
Disaggregated network solutions, removing vendor lock-in
High-capacity, scalable transport
Enables dramatically increase bandwidth ( 25.6T+) over existing fiber infrastructure
Operational simplicity
Software driven automation reduce complexity, deployment time, and need for specialized expertise.
Cost-efficient architecture
Optimized for low total cost of ownership by design
WHO WE SERVE
Cloud & AI
Connectivity backbone for Data Centers and AI infrastructure
Network Operators
Scalable optical transport for network operators, Internet service providers and wholesale providers connecting citys and regions
Enterprise
High-capacity data center Interconnect for business critical applications.
2006
Founded, HQ Oslo
35.6%
Revenue growth 2025
USD 16bn
Market growing to 24.7bn in 2030
200+
Partners globally
+50%
Revenue from long-term customers
Q1'26 deep dive
4
All time high Q1 revenue in Americas and EMEA. APAC still project dependantRevenue per region and quarter - Last 5 quarters
MUSD
Americas
EMEA
APAC
7.8
12.3
+78%
10.8
13.3
13.9
5.3 4.9
+47%
6.1
8.6
7.8
1.2 1.4
+1%
2.0
1.3
1.2
Q1 Q2 Q3 Q4
2025
Q1
2026
Q1 Q2 Q3 Q4
2025
Q1
2026
Q1 Q2 Q3 Q4
2025
Q1
2026
5
Strong growth in all business areas, with Solutions, Software & Services leading the wayRevenue per business area and quarter - Last 5 quarters
MUSD
Solutions
Devices
Software & Services
+72%
13.6
14.2
11.6
10.9
8.2
+47%
6.4
5.4
5.3
3.6
4.1
+35%
2.5
2.9
2.7
3.2
3.4
Q1 Q2 Q3 Q4 Q1
Q1 Q2 Q3 Q4 Q1
Q1 Q2 Q3 Q4 Q1
2025 2026 2025 2026 2025 2026
6
Summary of Q1 financial performanceRevenue
EBITDA & EBIT
MUSD
+59.6%
23.2
22.9
18.7
19.0
14.4
MUSD
EBITDA EBIT 3,6Operating cash flow
MUSD
2,6
2,4
2,8 2,7
1,8 1,8
1,2
1,6
0,6
2,6
6,8
2,2
Q1 Q2 Q3 Q4 Q1
Q1 Q2 Q3 Q4 Q1
-0,5 -0,4
Q1 Q2 Q3 Q4 Q1
Gross margin and EBITDA margin Comments
% 47,3 % 48,6 % 49,5 % 46,1 % 48,2 %
8,4 % 13,7 % 12,6 % 15,3 % 11,7 %
4,1 % 9,8 % 8,5 % 11,9 % 7,9 % Q1 Q2 Q3 Q4 Q1
Gross margin EBITDA margin EBIT margin
EBITDA and EBIT were impacted by non-recurring costs corresponding to 2.0 p.p, related to the consolidation of production
Excluding these non-recurring costs, EBITDA and EBIT margin would have been 13.7% and 9.9% respectively
7
Strong financial positionBalance sheet Mar 31, 2026 Working capital development past 5 quarters
MUSD
56.8
56.8
MUSD
31.6
0.2
11.4
13.6
14.9
13.6
15.7
14.5
14.6
19.1
18.7 18.7
16.8
18.4
18.4
19.0
20.0
19.8
Q1
18.4
Q2 Q3 Q4 Q1
39.3
9.1
8.4
17.2
17.2
14.6
12.8
13.2
7.7
6.9
6.0
5.6
5.7
Assets
Equity and liabilities
Q1 Q2 Q3
Q4 Q1
Non-current Assets Current assetsCash and cash equivalents
Equity
Non-current liabilities Current liabilities
Deferred revenue
Trade Payables Net other short term liabilities** Including deferred revenue of MUSD 13.6 (10.2) 8
Board has proposed a dividend of NOK 0.60 per shareBoard considerations
Emphasizing stable to increasing dividend
Anticipating positive financial development
Solid financial position
Strong cash flow
Pending AGM approval
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 item impacts, growth trajectory, investment plans, flexibility, financial targets and covenants.
9
2026-2030: Roadmap to deliver profitable growth in a market increasingly shaped by AI-driven capacity expansion
STRENGTHEN AND EXPAND THE CORE
New and scalable go to market models
Accelerate growth in business area Devices
Localized operations
Continued focus on home markets
Targeting network- and data center operators, government & defense and enterprise
Data center interconnect, metro and regional networks
ADD NEW GROWTH DRIVERS
Leverage software automation and AI
Strengthen application software offering to support more automation
Increase efficiency and expand profitability by leveraging Agentic AI tools and a data-driven approach
Expand efforts in emerging markets
Asia
South America
Africa
Committing to the majors
Continue to expand capabilities with purpose to address the largest accounts such as major operators and hyperscalers
GAIN MARKET SHARE AND GENERATE NEW REVENUE STREAMS
Grow market share 2x - 3x in relevant markets Targeting 13-16% EBIT margin driven by scalability and efficiency
2026
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Profit and Loss StatementProfit and Loss Statement Q1 2026
Amounts in USD 1 000 | 2026 Q1 | 2025 Q1 |
Total revenue and other operating income | 22 913 | 14 355 |
Direct cost of saIes | -11 879 | -7 569 |
EmpIoyee benefit expenses | -6 676 | -4 517 |
Other operating expenses | -1 682 | -1 062 |
Total operating expenses | -20 238 | -13 149 |
Depreciation | -663 | -500 |
Amortization of intangibIe assets | -203 | -117 |
Total depreciation and amortization | -866 | -617 |
Operating profit/(loss) | 1 810 | 591 |
FinanciaI income | -11 | 82 |
FinanciaI expenses | -13 | -45 |
Net foreign exchange gains (Iosses) | -1 297 | -504 |
Net Finance Items | -1 321 | -467 |
Profit/(loss) before income tax | 489 | 124 |
Income tax | -254 | -59 |
Profit/(loss) for the year | 234 | 64 |
Shares outstanding (Basic) | 98 045 518 | 98 045 518 |
Shares outstanding (DiIuted) | 98 045 518 | 98 045 518 |
Earnings per share (Basic) USD | 0.002 | 0.001 |
Earnings per share (DiIuted) USD | 0.002 | 0.001 |
Earnings per share (Basic) NOK | 0.022 | 0.011 |
Earnings per share (DiIuted) NOK | 0.022 | 0.011 |
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Balance SheetAmounts in USD 1 000 | 2026 Q1 | 2025 Q1 |
Capitalized development cost | 2 371 | 1 835 |
Other Intangible assets | 625 | 606 |
Property, plant and equipment | 3 724 | 3 498 |
Right of use assets | 431 | 1 164 |
Deferred tax assets | 1 960 | 1 505 |
Total Non Current Assets | 9 110 | 8 608 |
Inventories | 18 397 | 14 875 |
Trade receivable | 19 071 | 18 373 |
Other current assets | 1 795 | 1 195 |
Cash and cash equivalents | 8 398 | 9 889 |
Total Current Assets | 47 661 | 44 332 |
TOTAL ASSETS | 56 771 | 52 940 |
Balance Sheet Mar 31, 2026
Amounts in USD 1 000
2026
Q1
2025
Q1
Share premium 15 275 14 116
Share capital 201 186
Other paid in capital - -
Foreign currency translation reserves | - | 66 | 249 | |
Retained earnings | 16 236 | 16 103 | ||
Total Equity | 31 646 | 30 654 | ||
Lease liabilities (noncurrent portion) | 201 | 392 | ||
Contract liabilities (noncurrent deferred revenue) | 6 668 | 4 562 | ||
Other noncurrent liabilities | - | 161 | ||
Total noncurrent liabilities | 6 869 | 5 115 | ||
Lease liabilities (current portion) | 258 | 837 | ||
Trade payable | 5 708 | 6 862 | ||
Contract liabilities (deferred revenue) | 6 885 | 5 596 | ||
Tax payable | 1 202 | 230 | ||
Current Public duties payable | 798 | 615 | ||
Other current liabilities | 3 406 | 3 029 | ||
Total current liabilities | 18 256 | 17 171 | ||
Total Liabilities | 25 125 | 22 286 | ||
TOTAL EQUITY AND LIABILITIES | 56 771 | 52 940 | ||
12 |
Cash Flow Statement Q1 2026
Amounts in USD 1 000 | 2026 Q1 | 2025 Q1 | 2026 YTD | 2025 YTD |
Cash flows from operating activities | ||||
Profit/(loss) before income tax | 489 | 124 | 489 | 124 |
Adjustments for | ||||
Taxes paid | -818 | -730 | -818 | -730 |
Depreciation and amortization | 866 | 617 | 866 | 617 |
Net interest expense | 24 | -37 | 24 | -37 |
Change in inventory | 272 | -2 267 | 272 | -2 267 |
Change in trade receivable | -353 | 1 491 | -353 | 1 491 |
Change in contract liabilities (deferred revenue) | 779 | 1 189 | 779 | 1 189 |
Change in trade payable | 78 | 1 816 | 78 | 1 816 |
Change in other current assets and other liabilities | 907 | 351 | 907 | 351 |
Interest received | -11 | 82 | -11 | 82 |
Net cash inflow from operating activities | 2 233 | 2 636 | 2 233 | 2 636 |
Net cash (outflow) from investing activities | -968 | -1 009 | -968 | -1 009 |
Net cash inflow from financing activities | -495 | -391 | -495 | -391 |
Net increase/(decrease) in cash and cash equivalents | 771 | 1 235 | 771 | 1 235 |
Cash and cash equivalents at the beginning of period | 7 337 | 7 972 | 7 337 | 7 972 |
Effects of exchange rate changes on cash and cash equivalents | 290 | 680 | 290 | 680 |
Cash and cash equivalents at the end of period | 8 399 | 9 888 | 8 399 | 9 888 |
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Thank you