Verimatrix S.A.

Good evening everyone, welcome and thank you for joining us for the presentation of our business figures for the third quarter of 2026. I am Laurent Dechaux, General Director of Verimatrix and I am accompanied by Jean-François Labadie, our financial director. During this presentation, I will present the activity and the perspectives and Jean-François will of course present the details of the figures and of course we will open to questions through the Q&A that is in the Teams to answer all your expectations or all the questions you may have. So to start, and for those who discover Verimatrix, a quick reminder of our activity. Verimatrix is a French software development company specialized in the protection of digital content and the fight against video piracy. We have become a recognized leader in the security of premium content for telecom operators, video platforms and broadcasters that operate worldwide. Concretely, this means that when you watch a sports event, a movie or a premium channel on a digital platform, the Verimatrix technologies protect these contents against piracy and prodigious uses. So let's come to the remarkable events of the third quarter. I am pleased to announce once again that the third quarter is a new excellent quarter in terms of orders. All regions have contributed, both with new customers, with existing customers who adopt new solutions in addition to those already in place. Here are some examples. In Latin America, we have a new multi-DRM system on site and a Chilean telecom operator, with whom we have replaced a competitor with our multi-DRM solution. In Asia Pacific, an Indian telecom operator chose us for Counterspy and for a new multi-DRM system on site. And then in Europe and in the Middle East and in Africa, a victory StreamKeeper, the level of life of a telecom operator in the Middle East and a sports content owner who retained Counterspy and extended its perimeter. A significant element that goes in the direction of our strategy is Kaltura, a new partner who joined us, who signed a contract with Verimatrix, both for its internal use but also for the deployment of its own clients in TV as a service. Voilà donc cette dynamique commerciale dont je suis très fier et le point de départ des chiffres que nous allons voir, notre troisième trimestre affiche un chiffre d'affaires en croissance de 20% par rapport au troisième trimestre 2025. Donc c'est une performance tout à fait remarquable. Je remercie les équipes Verimatrix pour leur engagement au cours de ce troisième trimestre. I would like to make an important remark. As you will see in the figures that Jean-François will present to you, over 9 months, the total turnover at the end of the third quarter was established at $ 31.6 million, retreating 3% compared to the end of the third quarter of 2025. As we had indicated in the second quarter, this gap is explained by an exceptional order that we recorded last year and that has not been reproduced this year. The good news, as I told you in the second quarter, the good news is that we have filled a large majority of this gap, practically erased this gap since we were 11%, 11% back At the end of the second quarter of 2026 compared to 2025, and we are only 3%, it is absolutely not a slowdown in our underlying activity, quite the opposite, as I just explained to you on the takeover. And this basic effect of minus 3% will definitely be erased by the end of the year. et nous nous attendons à une comparaison en année pleine plus représentative de notre trajectoire réelle et des prises de commandes que nous avons réalisées au cours du premier, du deuxième et du troisième trimestre. Voilà, donc un troisième trimestre tout à fait conforme à nos objectifs, même au-delà de nos objectifs, et une performance remarquable à la fois en revenu en EBITDA. Et je vais maintenant laisser la parole à Jean-François, qui va rentrer un peu plus dans le détail de nos résultats.

Perfect, thank you very much Laurent. Good evening to all of you, I am Jean-François Labadie, the financial director of Rimatrix. We will go through the figures of the third quarter. To begin with, without wanting to completely repeat what Laurent has already explained to you, but indeed a total income on the quarter of very good invoices, 20% growth. And as Laurent said, I think that beyond 20% growth, which is particularly interesting in this figure, is that we have caught up a very, very, very large part of the delay that we had at the end of the previous quarter. And the way in which this delay has been caught up is also very interesting. I'm going to stay a little bit on recurring revenues. You see that over the quarter, our recurring revenues are growing by 5% compared to the third quarter. from last year. This is important because it is a dynamic change that we have at Verimatrix, where since the first quarter of 2025 and on the second quarter of 2025, we had a recurring turnover that was lower than the turnover of the same period of 2025. So the fact of being in growth compared to the third quarter of last year is very encouraging. It is obviously supported by all the commercial successes that we have had on subscriptions and we will come back to it a little later when we will talk about the evolution of the annualized value of the portfolio, what we call ARR. But here we have signals that all go green and that give us confidence to generate permanent growth in the future. The other interesting element is the good performance of the non-recurrent. We have achieved 3.2 million business figures in non-recurrent with the confirmation that our historic customers continue to place us perpetual orders on our traditional offer. There are two particularly dynamic countries on license sales. It's India, on the one hand, with the second Indian operator, who is a client of Verimatrix since 2024, who, since this contract signing, regularly passes us additional license orders, which generates a good hold of the non-recurrent. The second good news is Latin America, which has been a little bit in pain for a long time, or in a slight bend On 2025 and on the beginning of the exercise, on the third quarter, we have orders, in particular from Mexico. from our historical operators. So here is a very good third quarter with two dynamics between the non-recurrent and the recurrent that allow us to be confident. How does that translate into the turnover figure? Well, as Laurent said, we are only 3% behind last year. You see that recurring income is now at the same level as on the first three quarters of 2025. This is once again the consequence of the increase in ARR. You see that, obviously, the growth engine of recurring income is subscriptions. We are at 11.9 million dollars out of 21.7 million dollars For the total revenues, 11.9 are the revenues related to subscriptions. So two dynamics that we manage. The first is an important growth in subscriptions. and the second is a decline under control at Verimatrix of maintenance revenues, but all of this is part of our strategy. You have a gap on non-recurrent revenues, of course, always of minus 9%. Once again, a gap that has been considerably reduced over the third quarter and we are quite confident, I would say, to go back to positive on these non-recurrent revenue flows for the whole For the whole year, I told you about ARR, it rose to $27.8 million at the end of the third quarter of 2026. They have increased again. You will see in the following slide a history of the evolution of ARR for the group and you will see that the good news is that we have recovered les revenus récurrents embarqués que l'on avait perdus pendant toute l'année 2025. La partie abonnement représente 16,6 millions sur les 27,8 en croissance à double chiffre à plus 13% là où les abonnements de maintenance comme attendu baissent de 13%. Mais au global, encore une fois, un retour à la croissance des ARR chez Verimatrix à la fin du troisième trimestre. I talk to you a lot about the dynamics of subscriptions in relation to the trend of maintenance. You see on this graph that if we focus on the 16.6 million subscriptions at the end of Q3, you see that every quarter, Verimatrix is able to increase the value of its new contracts. Laurent mentioned a few of them, including a major actor in the field of sports These are important successes for us that allow us to capitalize on our offers and continue to generate permanent growth on subscriptions. Subscriptions with maintenance, what does it give? As I told you, since 2024, we had lost ARR over the entire year to go down to 27.1 million by the end of Q4 2025. Well, since the beginning of 2026, every quarter, we find, we cover the level of recurring income loaded that we have lost. We went over the second quarter of 2025. Our highest record, if you look, was Q4 2024 at $28.1 million. Our objective, of course, is to completely cover this ARR value that we have lost in the past. And the commercial dynamic gives us a fairly high level of confidence in our ability to cover this value. Voilà, j'en ai terminé pour le troisième trimestre. Je repasse la parole à Laurent qui va vous parler maintenant des perspectives pour l'ensemble de l'année 2026. Merci Jean-François.

Écoutez, passons donc maintenant à nos perspectives et notre stratégie. Alors la stratégie, je ne vais pas beaucoup m'étendre sur le sujet parce qu'elle n'a pas changé. Elle repose toujours sur les trois axes. that I mentioned a few months ago or at the beginning of the year 2026. The first is the refocusing on our core business, anti-piracy, where we have our expertise, our clients, and where we are known. The second is innovation in adjacent sectors that allow us to use the heart of our technology in these new industries or new needs of customers on new markets, but without redeveloping technology from scratch. We are working on a number of topics, I will probably come back earlier next year, with our main customers around a number of topics that seem to have attraction. And the last three elements of the strategy are to gain thanks to new partnerships, like the one concluded with Kaltura, which I talked about earlier, and which allow us to accelerate our presence on the markets and the takeover. and what we have just presented to you, I think, shows that this strategy is quite paying and goes in the right direction. So, for the perspectives of the year, we anticipate a good fourth quarter which will confirm the good execution of our activity in 2026. I confirm, we confirm our perspectives for 2020 online with our roadmap for 2028 A return to the growth of the turnover, which will probably be around 5%, a little more or a little more, more or less 5%. In any case, that's how we see it when I'm talking to you. A significant growth of the EBITDA above 3 million dollars and the growth of recurring revenues, as we had indicated at the beginning of the year 2026. The refocusing on anti-piracy, the partnerships that we have built, including the one with Kaltura, which I talked about, and of course our cost structure to lighten, allow us to tackle this last quarter with rather good confidence. I have finished on my side for the perspectives. Our next appointment will be the publication of the turnover and annual results of 2026. It will be on March 11, 2027. followed by the first quarter's business meeting, which will take place on April 26, 2027.