Nordic Semiconductor Ord

At this time, I would like to welcome everyone to this Nordic Semiconductor Q1 2026 presentation. For the first part of this call, all participants will be in a listen-only mode. Afterwards, there will be a question-and-answer session. To ask a question during the Q&A, please press 5-star on your telephone keypad. This call is being recorded. I would now like to hand the call over to Head of Investor Relations, Steele. Please begin.

Thank you, Rasmus, and good morning, everyone. Please note that this presentation is being recorded and will be accessible on the Nordic website in the investigation section. Additional, for those of you missing this release, you can find the earnings press release quarterly report and presentation materials also on our IR website. With me today, We have our CEO, Vegard Volland, and our CFO, Paul Elstad. They will share details about our recent financial performance and updates on key business developments. Following the presentation, we will move on to the Q&A session. During this time, live questions can be submitted through the Q&A dial-in feature. For instruction on how to do dial-in, please refer to the earnings call invitation available under Stock Exchange Notice on our IR website. Please keep in mind that the dial-in is required only if you like to ask questions. As a reminder, this presentation includes forward-looking statements that come with inherent risk and uncertainties. Actual outcome may differ materially from those statements expressed or implied. We highly recommend reviewing our detailed Q1 quarterly report and the 2025 annual report for deeper understanding of the risk and uncertainties that could impact our business operation. With that, I will now hand the microphone to our CEO, Vegard Wolland.

Thank you, Asil, and good morning. We continue our progress according to plan, financially, operationally, and strategically. I look forward to present the highlights of the quarter before handing over to Paul to take you through the financials in more detail. Revenue in first quarter increased by 24% to $192 million, continuing the solid growth trend we saw through 2025. This was in the high end of our guiding range and brings revenue for the last 12 months to $705 million, up 19% from the first quarter last year. We continue to see growth in both short-range and long-range and among both large key customers and in the broad market. And we see year-on-year growth across both the consumer and the industrial and healthcare segments. Gross margin was 52.1% in the first quarter, up from 49.5% in the first quarter last year, and this was roughly on par with the underlying margin level in Q4 2025. This generated an EBITDA of $24 million when adjusted for non-cash cost effects related to the Memfault acquisition, up from $15 million in the first quarter last year. As I mentioned, we continue to see growth both among our key customers and in the broad market. And the top 10 share of revenue has stabilized and actually declined somewhat. Revenue from the top 10 customers are at all-time high on a rolling 12-month basis. And with a high level of ongoing design activity, we continue to see upside potential with these customers. It has been a clear priority for us to regain traction in the broad market, and it is encouraging to see that growth is now picking up in this segment. We see an increasing number of customers, former customers returning, new products entering the market, and the overall design activity remains solid. Broad market revenue is no more than 40% up from the 2024 lows on a rolling 12-month basis, but remains approximately 25% below peak levels from 2022. That means that we also continue to see significant upside potential in the broad market going forward. Looking at end customer certifications, we continue to maintain a share in excess of 30%. The overall number of designs certified in Q1 was 133, up from 103 in the fourth quarter of 2025. The science based on the NRF54 theories accounted for a little over 15% this time with the certifications in Q1, and this will increase over time. Please note this counting of certifications does not distinguish between high and low volume products, and hence this cannot be translated directly into volume or revenue market shares. Q1 reflects strong execution towards an ambitious plan. And I'm proud of what our new business unit teams and our extremely dedicated employees are delivering. This quarter, we continued to deliver on our promises. We are expanding into new addressable markets. We are enabling improved intelligence at the edge. and we are strengthening the chip-to-cloud lifecycle value as we evolve to a complete wireless solutions provider. Let me highlight some of our Q1 launches. Starting with short-range, Q1 was about continued product expansion and continued differentiation of the NRF54L series, fully in line with our promises and product roadmap. At the entry level, we recently announced the 54LS05 variant, expanding our reach into more cost and power sensitive applications, broadening the addressable market while supporting volume growth. At the high end, we reinforce our differentiation with Ultra Low Power Edge AI by launching the large memory 54LM20B SoC. Together, these additions strengthen the NRF54L series offering across both market reach and capability, supported by the market-leading and trusted Nordic developer experience. We are also expanding the addressable market in our long-range offerings. Here, Q1 was about scaling the product portfolio with a clear, credible, and market-leading roadmap. Product manufacturers need future-ready roadmaps and solutions as networks and satellite connectivity evolve. This is exactly what we are delivering here. With the new NRF92 series, we introduce our next-generation low-power cellular platform with substantially higher compute performance and integrated edge intelligence. Built on the more cost-efficient 22-nanometer platform, enabling a more adaptive pricing strategy. With the NRF93 series, we expand into higher bandwidth Catalan-based applications, addressing new markets while maintaining Nordic's focus on low power and ease of integration. At the same time, we continue to strengthen the proven NRF91 series, including satellite connectivity support and sub-GHz fallback, ensuring a simple, consistent developer experience across product generations. No more on edge AI. Nordic moves far beyond connectivity in this area. We deliver real, on-the-wise intelligence by running AI algorithms and neural networks directly on our ultra-low power wireless SOCs and modules, bringing far more intelligence to the edge node. This matters because processing and decisions increasingly need to be made locally. both reliably and efficiently, without cloud dependency. And this is where our differentiation is clear. With the integrated Axon MPUs on our hardware, Nordic delivers industry-leading energy efficiency across a broad range of edge AI applications, setting a new standard for ultra-low power edge AI. And equally important is the ease of use. The Nordic Edge AI Lab makes the developer experience effortless, significantly reducing design complexity and accelerating time to market for our customers. Edge AI is an important structural growth driver, and Nordic is positioned to lead it. Our complete ultra-low-power Edge AI and chip-to-cloud solutions create compounding advantages that are designed to scale and hard to replicate. We are also strengthening lifecycle value with our chip-to-cloud solutions offering NRF Cloud. There is a structural shift in the market towards stronger security, lifecycle management and long-term maintainability of the fleets of connected products. Both driven by the EU Cyber Resilience Act and how customers want to build and operate products over time. This is an area where Nordic is deliberately investing in and executing on. With our newly launched lifetime license for firmware updates and device management, customers get a predictable and scalable way to keep products secure and maintained throughout their entire lifetime. This goes beyond regulatory compliance. It reduces complexity and cost for our customers. while improving long-term reliability and trust in the products they bring to market. Through NRF Cloud, we continuously manage and improve the security, software, battery health, and intelligence across fleets over the full product lifetime. That is a core part of Nordic's complete chip-to-cloud offering. With that, over to you, Paul, for more details on the financials.