Appear (APR) investor relations material

Executive summary

• Q2 2026 revenue fell 30% year-over-year to NOK 189.6 million, mainly due to weaker commercial execution in EMEA and APAC, post-World Cup investment pause, and adverse currency effects.

• H1 2026 revenue was NOK 421.3 million, down 2.8% year-over-year, with gross margin at 70.1% despite FX headwinds and U.S. tariffs.

• Net profit and EPS dropped sharply in Q2 and H1, with Q2 net profit down 68% and EPS down 70%.

• Free cash flow was negative NOK 54.3 million in Q2 and negative NOK 82.3 million in H1, impacted by higher working capital, tax payments, and inventory purchases.

• Americas showed resilience, contributing 65.9% of Q2 revenue and growing 17.7% year-to-date, while EMEA and APAC underperformed.

Financial highlights

• Q2 gross margin was 70.0%, stable year-over-year, but EBITDAC margin compressed from 25.6% to 6.1% due to lower product revenue.

• H1 EBITDAC margin dropped from 21.7% to 8.9%, reflecting lower gross profit and increased operating costs.

• Q2 profit: NOK 21 million, down from NOK 64 million in Q2 2025; Q2 EPS: NOK 0.51 (down 70% YoY).

• Available liquidity at end of June 2026: NOK 425.6 million, with no interest-bearing debt.

• Return on capital employed for the last twelve months was 24.1%, down from 44.9% a year earlier.

Outlook and guidance

• Full-year 2026 revenue guidance revised down to NOK 880–920 million (10–15% growth), from previous NOK 1.0 billion.

• Medium- to long-term targets: 25–30% annual revenue growth, 15–25% recurring revenue, gross margin ~70%, EBITDAC margin 17–20%.

• Event-driven infrastructure investment expected to remain subdued until the next rights renewal wave (2027–2029).

• Expecting growth from channel expansion in EMEA and APAC and continued strength in the Americas.