Bokslutskommuniké 2025 Presentation

yubico

Q4 25 presentation

Jerrod Chong

Acting Chief Executive Officer Yubico

Snejana Koleva

Chief Financial Officer Yubico

• Company overview

• Q4 25 Highlights

• Financial overview

• Concluding remarks

  
  
  

• Q&A

Global scale, trusted by enterprises

4,5OO+

Business customers

+ millions of consumers

SEK2.2bn

Net sales LTM Q4 2025

+78%

Gross margin LTM Q4 2025

3O%

Net sales CAGR between 2020-2025

Employees

36%

Growth in ARR in the last 2 years

O

account takeovers

4

Current position in Advanced Authentication market

Expanding from Advanced Authentication into the broader Digital Identity market

Yubico's current market share approximately 5%

DIGITAL IDENTITY

USD ~45 bn

+18%

Advanced Authentication(AA) USD 5.2 bn

IAM

USD 19.3 bn

+15%

AA

USD 5.2 bn

+14%

Advanced Authentication represents a focused high-assurance segment within the rapidly growing Digital Identity Market

Strongest security

Phishable

Mobile Username and

applications password

Ease of use

Hardware passkeys YubiKey - most secure!

Synced passkeys

Phishing-resistant

Smartcard

Security

Integrated with +1,000 applications

IDENTITY ACCESS MGMT

DEVELOPER & ENCRYPTION TOOLS

ONLINE SERVICES

REMOTE ACCESS & VPN

PASSWORD MGMT

CMS

PRIVILEGED ACCESS

COMPUTER LOGIN

Share of Bookings per industry, Percent

Record bookings in the quarter amid currency headwinds:

Largest bookings in a quarter in fixed currency in the history of Yubico, amounting to SEK 705m. However FX headwinds and late-quarter deal timing negatively impacted net sales, gross profit and EBIT.

Strong subscriptions and ARR growth:

Subscription momentum continued, with YubiKey as a Service representing 28% of total bookings. ARR increased 21%

year-on-year to SEK 391m, reflecting a growing, more durable recurring revenue base across priority verticals.

Q4 example: 5-year subscription deal with global IT and systems integration provider in India and APJ.

Clear strategy and priorities for the next phase:

Investor Day hosted on November 19th outlined long-term strategy centered on security leadership, expanding subscription and digital identity services, strengthening go-to-market execution and simplifying the customer experience, with execution and profitability improvement in focus for 2026.

Product launches in Q4: YaaS introduces self service, authentication with PQC

Leadership transition with execution focus: Jerrod Chong appointed Acting CEO on December 18th, bringing over 12 years of experience at Yubico and continuity in strategy and execution.

• Product innovations with scale and quality

• Simplify how we engage with customers

• Know our customer journeys and amplify their voices

• Align execution with strategy

  
  
  

• Mission focus and keep our culture

  Q4 2025 Key figures

  SEK Millions

  Bookings

  Net sales

  ARR

  Gross profit, margin

  EBIT, margin

  +4.6%*

  (-8.7%)

  -1.3%* (-12%)

  +21% 84% 76% 18% 1%

  
  
  Underlying bookings growth and increased share of subscriptions

  SEK Millions

  Bookings, Perpetual and Subscription

  +4.6%*

  (-8.7%)

• In fixed currency, this is the largest booking in a quarter in Yubico's history

• Strong underlying activity, with broad-based demand across financial services, technology, retail and the public sector

• Americas were mostly impacted by the lower number of large orders, while EMEA and APJ delivered solid momentum

• Subscription bookings increased by 36.1% to SEK 198.7 (146.0)m, and correspond to a larger share of bookings at 28.2 (18.9)%. Renewals represented SEK 96.2m

Order bookings driven by small and mid size deals in the quarter

SEK Millions

Orders Bookings (Total Contract Value) by By Deal Size (in USD equivalent)

Y-o-Y Change,

%

-81%

+7%

+18%

• Smaller and mid-size orders continue to grow

• The number and order size of large deals was considerable lower than exceptionally strong Q4 2024, which included several large government and enterprise contract in Americas

  
  
  Net sales impacted by FX and timing, with strong growth in subscriptions

  SEK Millions ● Net sales was impacted by late booking

  Net sales

  * Excl. currency impact of -10.7%

  -1.3%*

  (-12%)

  orders in the quarter, with delivery occurring after quarter-end. Growing share of subscription contracts spread out revenue recognition

  • Subscription sales increased by 26.6% and amounted to SEK 94.1 (74.3)m representing

    17.2 (11.9)% of net sales. Increase in subscription sales continues to strengthen our recurring revenue base

  • Americas continues to have the highest share at 62.8 (66.9)% of net sales. EMEA remained stable at 28.2 (28.1)%. APJ showed momentum and now represents

    9.0 (5.0)% of net sales, driven by growth in India

    14

    
    
    Continued ARR growth driven by both new subscriptions and expansion

    SEK Millions

    Annual Recurring Revenue

    +21%

  • ARR growth driven by both adding new customers, as well as net retention rate above 100%

  • From Q3 to Q4, ARR increased by 1.2% to SEK 391.1 (386.2)m, whereof 4.7% was underlying growth, and -3.5% relates to negative currency impact

  • ARR growth in the quarter indicates continued growth in our subscription base going forward

    
    
    EBIT impacted by higher costs and currency headwinds

    EBIT and EBIT Margin, %

    * Adjusted EBIT

    
    
    

    SEK Millions

    • Gross profit decreased by -21.1% to SEK 413.9 (524.3)m, corresponding to a gross margin of 75.5 (84.1)% - driven by currency headwinds

    • Given the current USD/SEK development, we expect the gross margin to be in the range of 75-80 percent for 2026

    • EBIT was negatively affected by the decline in gross profit, increase in overhead costs, but also negative currency impact of SEK 22.8 million and non-recurring expenses of SEK 6.6 million

    • Total recognized expenses for the LTIP programs amounted to SEK 11.2 (21.4)m as part of employee costs

      Cash flow of SEK 28m supported by reductions of Working capital

      	2024	2024 Q4	2025 Q1 2025 Q2 2025 Q3	2025 Q4	2025
      Cash flow from operating activities before Working capital changes	432	109	45 42 106	16	209
      Change in Working capital	-88	19	-1 81 -69	35	45
      Cash flow from operating activities Cash flow from investing activities	344 -60	128 -41	44 123 36 -4 -13 -9	51 -23	254 -48
      Cash flow from Financing activities	-22	1	-6 -4 -92	0	-102
      Cash flow for the period	262	88	35 107 -65	28	104
      FX differences	15	8	-7 -13 -6	-8	-33
      Cash at the end of the period	824	824	852 946 875	895	895

      SEK Millions

      • Lower operating cash flow before

        Working capital changes due to lower profitability in the quarter

      • Working capital changes due to Inventory reduction driven by careful planning of sourcing and manufacturing volumes, expected to continue during 2026

      • Capex included investments in machinery and equipment SEK 13.9m and capitalized R&D SEK 6.6m

        
        
        

      • Strong cash balance maintained, supporting continued growth in 2026

1

2

3

4

5

Advance the Secure Root of Trust

YubiKey & Production: Continue to strengthen Yubico's position as the world's most robust, cryptographically verifiable

hardware-backed authentication devices.

Elevate YubiKey as a Service

YubiKey as a Service: Accelerate the ability for organizations to benefit from value-added, continuous security for users across all business scenarios, devices, platforms and locations.

Expand into Digital Identity Services

Digital Identity Platform:

Built on Yubico's foundation, the platform protects user identities end-to-end, unlocks new use cases, to increase trust and privacy across the customer ecosystem.

Drive

Go-to-Market Expansion

Go to market: Deepen footprint with existing customers, attract new customers and activate everyday users, across markets, by leveraging partner and alliances ecosystem.

Simplify Customer Experience

Frictionless engagement: Remove friction at every step, from how customers learn about, buy and deploy Yubico solutions at speed and scale, to empower strong customer voices.

19

20

Business models and pricing models: comparison of same scope at list prices

21

The Key to Trust