Dynavox Group Ab

Okay, good morning and welcome to this earnings call where we will cover the third quarter summarizing our business from July, August and September of this year. And I'm Fredrik Rubin. I am the CEO of Dynavox Group.

Hello, I'm Linda Theinbrink. I'm the CFO of Dynavox and I will cover the financials later on.

Great. So for those of you who have been participating in these calls before, you will be familiar with that. We will start by a quick recap about what Dynavox Group is about. And then we will summarize the main takeaways from the quarter. We will then dive deeper into the financials. And thereafter, there will be a Q&A session. And you can submit your questions during this call in the function here in Teams, in the chat function. Or you can ask them live if you have asked or if you've been given prior notice to our team. We, of course, always welcome offline questions sent over email to the above email address, linda.tybing at dynavoxgroup.com. But a brief overview of Dynavox Group. First and foremost, it's important to reiterate our mission and our vision, which I know is very dear to not only our over 1,000 colleagues around the world, but also to our ecosystem of partners and investors. And our vision is a world where everyone can communicate, and we contribute to this by focusing on our mission, which reads to empower people with disabilities to do what they once did or never thought possible. And this also summarizes two of our main user stories. The first one, the do what you once did, that may refer to a person who led a normal life until a diagnosis such as ALS, which rendered her then unable to control the body and communicate like before. And the other, the never thought possible, can refer to the child diagnosed at an early age with a condition such as autism cerebral palsy or so where thanks to our solutions, he can now do much more than the world around him ever thought possible. On the picture here to the right, we see Elaine from Lawrenceburg in Kentucky. She is one of our amazing users diagnosed with cerebral palsy and is a great example of this. The market that we service is hugely underserved. Some 50 million people have a condition so grave that they simply cannot communicate unless they have a solution like ours. And every year, we estimate some 2 million people are being diagnosed, and yet only some 2% of those are actually being helped, and the rest remain silent. And the main reason for this spells lack of awareness, and also among the professionals and the prescribers who are tasked to assist these users and a poor healthcare reimbursement system. We operate this with a global footprint. Today, some three quarters of our business stems out of the US, and that's largely because of a reasonably well-functioning funding system established some 20, 30 years ago. But our products are sold in some 65 markets around the world, of which the US, Canada, UK, Ireland, Denmark, Sweden, Norway, Australia, New Zealand, and France, most recently Germany, are markets where we sell directly. while the others are served by a network of some hundred plus resellers. Our staff is distributed in a similar way as the revenue. That means some 60% of our staff are based in North America with our US headquarters in Pittsburgh, Pennsylvania. And our second largest office is here, our headquarters in Stockholm. But we have branch offices in several European countries, as well as in Suzhou in China, Adelaide, Australia. As of today, we are about 1,000 employees in total. We provide a comprehensive portfolio of solutions that ranges from, if you start from the left, the content and the language system, such as the world's leading library of communication symbols called PCS and the leading solutions of off the shelf or custom made synthetic voices of the highest quality. And with a large diversity in terms of languages, ages, ethnicities. We then offer highly sophisticated communication software, which is tailored to the type of user. which can vary greatly based on the needs. We then develop and design devices with cutting edge technology and medically certified durability. And that includes communication aids controlled via eye tracking and accessories such as the ReHadapt mounts. We have a services portfolio to help our users through the complexity of obtaining and getting funding for the solutions. And last but not least, we're there to help our users, the therapist and the caregivers through our global teams and support resources. We operate this model globally, and it's important to note that each piece here is critically important and also a significant differentiator for us, making us absolutely unique. Our go-to-market model is predominantly as prescribed aids. And that means that some 90% of our revenue comes from public or private insurance providers. And this also means that we have solid paying customers and have always been resilient towards changes in the overall economic climate. But now I will go back at focusing on the main topic of today, namely the earnings report for the third quarter 2025. So if I look at the highlights, we had another strong quarter when it comes to revenue growth. The growth compared to the same quarter previous year sums up to over 35% after adjusting for currency effects. And this marks a further acceleration of the already strong trajectory over the past three years. The demand for our solutions remains high, proving the solidity of our underlying business, and we see robust growth across all markets. In this quarter, a particular highlight is the outstanding performance in our direct presence markets outside of North America. We continue seeing increased growth in our touch control product portfolio, and they are typically serving younger users with autism. However, in this quarter, we also saw very good traction in the eye gaze controlled solution area, serving users with more complex needs. Our investments in systems, infrastructure, and organization to support our long-term ambitions continue according to plan, and I will come back to that shortly. EBIT came in at 64 million SEK in the quarter, but this includes non-recurring costs of some 26 million SEK in this quarter, implying then a strong underlying profitability. And on September 1, we completed the previously announced acquisition of our long-standing German reselling partner RehaMedia. Coming back to our investments. So strategic investments are an important part of our growth strategy and a way for us to scale and build an efficient and resilient company. So in 2025, we expect to invest approximately 100 million SEK in total of non-recurring nature in two main projects that are progressing well and according to plan. The first one is the rollout of a new ERP system in North America and an establishment and a consolidated product and development hub here in Stockholm. The ERP successfully launched on July 1, and despite almost a week-long freeze period, we have been able to keep up deliveries and even deliver more voices to our customers than in Q2. And during Q3, the non-recurring spend totaled some 9 million SEK, or 40 million SEK spent year-to-date on that. The second topic, the consolidation of our product and development organization into a central hub in Stockholm, continues according to plan. All managers are in place since a while back and the majority of all functions have been recruited and have started. And since April of this year, all new product releases have been handled from the Stockholm Hub. During Q3, the non-recurring spend totaled 14 million SEK on this with a 33 million SEK spent year to date. But now I will hand it over to you, Linda, to take us deeper into the financials.