Napatech

Greetings, ladies and gentlemen, and welcome to the NAPA Tech H1 2026 report call. Please note that this call is being recorded. All participants are currently in listen-only mode. A question and answer session will follow today's prepared remarks. If you'd like to ask a question during that time, please press star followed by one on your telephone keypad. Thank you. It is now my pleasure to introduce Klaus Kovup, CFO, please go ahead.

Good morning, I'm Claus Skorup, CFO of Navatech. I'm pleased to welcome you all to Navatech's presentation for the second quarter and first half year of 26. Joining me today is our CEO Karthik Srinivasan. Our first half year 26 report was released earlier this morning on the Oslo Stock Exchange and is also available on the investor relations section of the Navatech website. For your information, a recording of this webcast will be available later today. There will be a question and answer session following the presentation. During and after these prepared remarks, you may submit your questions via text on the webcast page, or we can take your questions on the phone. If you would like to ask a question, please follow the instructions on this slide. Please note that this presentation contains forward-looking statements that are subject to risks and uncertainties. Our actual results may differ from those discussed in the forward-looking statements. For further information on risk factors, please see company announcement and the slides prepared for this presentation. With that, over to you, Karthik.

Thank you very much, Klaus. And hello, everybody. Let me spend the next few minutes talking about the business and the momentum we are seeing across both core infrastructure and AI infrastructure. As we look at Napa Tech today, there are four things I want investors to take away. First, our core infrastructure business continues to provide a strong and profitable foundation for the company. Second, AI infrastructure is increasingly becoming a production story rather than simply a design win story. We have moved from engineering engagement to design win to initial production and now to a follow on production order. That progression is an important proof point for us. And as volumes scale, we're building the operational capabilities and supply chain needed to support that growth. Third, we're deliberately broadening the customer and partner ecosystem around both businesses. That gives us more routes to market and over time should help AI infrastructure develop into a portfolio of opportunities rather than a single customer story. And finally, as inference becomes increasingly heterogeneous and distributed, Networking requirements are evolving alongside the computer architecture themselves. That is precisely where programmability matters, because the infrastructure can adapt as those architectures evolve. Put simply, core infrastructure is our strength today, while AI infrastructure represents a significant growth opportunity for tomorrow. And you can see that momentum in our first half results. In Q2, we generated revenue of US dollars $7.4 million. an increase of 55% year over year, with a gross margin of 67%. For the first half, revenue was $13.1 million, up 61% year over year, while unit volumes increased 20%. The difference between revenue and unit growth also reflects an important mixed shift in our business. We are seeing demand move towards higher speed, higher value products, which carry higher average selling prices. As that mix continues to evolve, revenue growth will not necessarily translate proportionally into unit growth. This is a trend we highlighted during our full year 2025 earnings, and we are continuing to see it play out in 2026. Importantly, this growth has been driven primarily by our core infrastructure business, while we also have begun to qualification orders for our AI infrastructure. So we are delivering strong growth from the established business while at the same time advancing our next growth engine. And based on our performance through the first half and our current visibility, our full year 2026 revenue guidance remains unchanged. Here, we show the role that each of our two businesses plays in the Napa Tech story. Core infrastructure remains the profitable foundation of the company. first half revenue grew 65% year over year to $12.8 million at approximately 70% gross margin. We also added 12 design wins in this segment, which gives us additional opportunities for future revenue growth. At the same time, we're building AI infrastructure as our next growth engine. The revenue contribution today is still relatively small as these programs progress through engineering, validation, and commercialization. But importantly, we are beginning to see that activity translate into production orders and higher volume deployments. As you would expect with programs of this scale and complexity, individual opportunities will progress at different rates. Our engagement with our tier one OEM, for example, has moved more slowly than we originally anticipated, largely due to organizational and management changes at the customer. The technical engagement remains active, and we continue to see significant strategic value in the opportunities we are pursuing together. More broadly, our AI infrastructure pipeline continues to grow, providing multiple paths to future revenue. And as these opportunities move toward higher volume production, we're building the operational, manufacturing, and supply chain capabilities required to support that scale. We also expect to continue investing as the business grows. But importantly, we are building our AI technology for reuse and our organization for operating leverage. As AI infrastructure revenue scales, we do not expect operating expenses to increase proportionately with that revenue. Our objective is not simply to grow revenue, but to translate that growth into increasing operating leverage over time. Before I get into the numbers on this slide, I want to point out this is a new view for us. We haven't historically presented our revenue geographically in this way. But as Napa Tech grows and our strategy evolves, we believe it's useful to give investors greater visibility into where our growth is coming from and where we are investing for the future. We see this as an additional strategic lens into the business that will help investors better understand how Napa Tech is developing over time. In the Americas, first half revenue grew 27% to $7.3 million. This is also where we are making a significant portion of our strategic investment in AI infrastructure, and we are seeing strong engagement with our customers across both core and AI infrastructure. In the rest of the world, revenue grew 141% to $5.9 million, driven by strong execution across our core infrastructure customers. So this geographic view gives you another perspective on our strategy. strong growth across our established markets alongside targeted investment in the areas where we see the greatest opportunity for future expansion. Let me finish my section by stepping back and talking about why we believe AI infrastructure represents such an important opportunity for NAPA tech. AI inference is changing rapidly. The industry is moving beyond architectures built around a single type of processor. Increasingly, AI systems are becoming heterogeneous, combining CPUs, GPUs, and specialized accelerators, each optimized for different parts of the workload. We are seeing this direction validated across the industry, including by pioneers such as Nvidia and other leading AI infrastructure companies. And importantly, we believe the shift towards heterogeneous compute plays directly to the value proposition of Nappertech's adaptive AI NICs. In this new world, established leaders will increasingly coexist with a new generation of specialized AI companies, each bringing different compute architectures and capabilities. And the more diverse that compute environment becomes, the more important and more complex the infrastructure connecting it becomes. The challenge is no longer simply about how much compute you have. It is also how efficiently you can connect that compute and move data between it. That has a direct impact on performance utilization and ultimately the economics of AI inference. We're seeing these architectures evolve rapidly across the industry, including an increasing focus on high performance networking technologies such as RDMA. And this is where our programmability becomes particularly important. Our adaptive AI NICs are built on programmable architectures. As processors, accelerators, networking protocols, and workloads evolve, our technology can adapt with them. Our goal is simple, help our customers move data more efficiently, keep their expensive AI compute better utilized, and ultimately improve the economics of AI inference. And as AI infrastructure becomes more heterogeneous and more complex, we believe the value of that programmability increases, further differentiating NAPA tech and strengthening the moat around our adaptive NIC architecture. That combination of adaptability and programmability is at the heart of AI infrastructure business we're building. And we believe this growing relevance combined with the differentiation of our programmable architecture is an important part of the long-term value creation potential for NAPA tech. With that, I'll hand it back to Klaus to take you through our financial performance and outlook in more detail.