eEducation Albert AB (publ)

Hello and welcome to today's presentation with Albert, where CEO Fredrik Bengtsson and CFO Erik Berglin will present a report for the first quarter of 2026. After the presentation, there will be a Q&A, so if you have any questions for the company, you can submit them in via the form to the right. And with that said, I hand over the word to you, Fredrik.

Thank you. Good morning and thank you for joining. I am Fredrik Bengtsson, CEO of Albert, and I'm joined today by our CFO, Erik Berglin. Together, we will take you through Albot's first quarter report for January through March 2026. After presentation, we will open up for questions. When we presented our year-end results in February, we set the framework for this year. Positive EBITDA and positive cash flow for a full year with quarterly variation. Q1 is our investment quarter. Today, I can confirm that Q1 delivered exactly what we communicated. We exit the quarter with 57.6 million krona in cash. That is the strongest position in more than a year and 15 million above year end. This is a business that generates cash. The revenue base is smaller than it was a year ago, but it's also fundamentally better. 96% recurring digital subscriptions, 95% from our core markets, the Nordics and the UK. That is a more focused and a higher quality starting point than we have ever had. Revenue and EBITDA in Q1 reflects timing and deliberate choices, not a change in trajectory. Let me explain what I mean by that. We made two choices in the second half of 2025 that directly affects the numbers you see today. First, we scaled back customer acquisition during the management transition, prioritizing profitable sources over volume. Second, we activated continued revenue streams or discontinued revenue streams that we deemed unprofitable. In a subscription model, lower sales in one period translate to lower recognized revenue in the next. That is the mechanic, and it's well understood, and that is exactly what we're seeing in Q1. The trailing effect of lower sales in the second half of 2025 hits recognized revenue hardest this quarter. The more relevant forward indicator is invoiced sales. For continuing operations Q1, invoiced sales were broadly in line with prior year. That tells you where the revenue base is heading. We are not satisfied with the top line. Growth is a strong priority, but we are building revenue from a stable source where we can see profitable outcome. This is not a surprise and it's not a deviation from our plan. Erik will take you through the revenue and ARR numbers in detail, including the currency effects on our UK business. EBITDA was negative in Q1. This was expected and it was budgeted. Revenue and costs are unevenly distributed across our quarters. Our marketing spend is front-loaded and Q1 is where we invest ahead of the seasonal cycle. We increased marketing investments in campaigns with revenue effects to follow. This is a planned return-based spending. We communicated in February that the full year would deliver positive EBITDA with quarterly variation. Q1 is consistent with that communication. Erik will walk you through the EBITDA in detail, the cost base and margin development. Let me revisit what I think matters the most, what we actually have and what we're doing with it. Albert Junior is our consumer platform for mathematics, reading and other curriculum skills. It provides a head start in primary and secondary education, a market leading position in the Nordics. During the second half of 2025, we deliberately restrained while we improved our tracking tools and evaluated outcomes. That work is well underway. We now invest with better visibility in what gives results. In Q1, we increased our marketing investment. Trial to paid conversion from the Q1 campaign came in above the levels we saw in comparable campaigns previously. We are not ready to quantify the full impact on subscriber base, but early data supports the investment. Sumdog is our B2B platform for schools in the UK. Sumdog is, to our knowledge, the only maths fluency platform with independently verified efficacy. The impacted study showed significantly improvement in math performance for pupils using SunBlog. That is not a marketing claim, that is evidence. And this matters because the UK market is moving towards evidence-based procurement. Having proved that your product works is becoming a condition for the conversion, not so nice to have. We are using this position towards larger institutional accounts, multi-academy trusts, and local authorities, where deal sizes are larger and retention is stronger. The sales cycles are longer, but value per relationship is meaningfully higher. The pipeline for these larger relationships is building, and we are in conversations for deals of a scale we have rarely seen before. The proportion of Sumdog's business has been unprofitable. Already at contract signing and deal size has been low. Lifetime value has been below the cost of onboarding for smaller customers. We are now moving away from this, not from the customers, but we are automating processes for smaller accounts, making them profitable. We're also expanding Samdog's language reach. The first platform to the new language, Welsh, is due in September. This is a concrete step towards broader coverage within the UK. Swedish Film continues to develop or deliver through its blanket license and school offer, which is branded Film och Skola. Here we have a stable, profitable business reaching roughly 40% of primary and secondary pupils in Sweden. It contributes positively to the group cash flow and it requires minimal investment to maintain its position. Across our brands, more than 10 million learners have engaged with our products. Each brand has a clear market position. Each one has real users, real engagement, and a real impact. To summarize where we are in the execution plan, On the top line, we are investing in customer acquisition in Albert Junior with early positive signs on conversion. In Samdog, we're building the pipeline for larger institutional relationships. The lead times are longer, the revenue impact will come gradually. We're not chasing volumes, we're building sustainable, long-term, high-value growth. On operational efficiency, there is more to extract from the cost base at the current size, but we primarily strive for growth. In B2B, we see clear synergies from automation and larger deal sizes. The goal is not to minimize cost, it's to maximize our return on every krona spent. On technology, Albert has been working with data-driven pedagogy for over a decade. The data from millions of learning interactions is real and a long-term competitive advantage. This is one of our moats. We continue to use adaptive technologies as a tool for better products and more efficient operations. So to summarize, we exit Q1 with the strongest cash position in over a year. The business is built on recurring digital subscriptions in two core markets. Q1 delivered what we said it would deliver, an investment quarter with the revenue effects building from here. We expect sequential improvements through the second half of the year, and our full year targets remain positive EBITDA and positive cash flow for 2026. Reflecting on markets, mathematics education is a challenge that governments and school systems are investing more in, not less. In the UK, the shift towards evidence-led procurement is accelerating. And in Sweden, the debate about screen time in schools is raising the bar for digital learning quality. Both these trends favor products that can demonstrate real outcomes. And at Albert Group, we have three established brands with a combined reach of well over a million donors. We have independently verified efficacy, and we have a revenue base that's 96% recurring digital subscriptions. We also have a financial position to invest in growth on our own terms. There are a few more quarters of work before the top line reflects what we're building underneath, but the leading indicators are moving in the right direction. And the value of what we have, three brands, proven outcomes, and the cash to invest on our own terms, that is not a bad starting point. I want to thank our teams in Gothenburg, Stockholm, London, and Edinburgh. The work that you do reaches hundreds of thousands of learners every day. And to our shareholders, thank you for your continued trust in our transformation, learning impact, and potential. We are building value step by step. And with that, I would like to hand over to Erik, who will take you through the financials in detail.

Thank you, Fredrik. Moving into the financial update. Following our structural reset, our focus this quarter was on driving operational efficiency across the group. While our shift towards profitable acquisition has created some short-term revenue noise, the organization is now leaner and our cash position is significantly stronger. Let's jump into the revenue. On this slide, you see two graphs. On the left is the total net revenue for the group, and on the right, net revenue has been adjusted to show only our continuing operations. Total revenue for the quarter was 32.3 million SEK, representing a 16% decrease year-over-year. To provide a bridge for that number, the majority of the gap is due to the strobist divestment, which accounted for over 3.3 million SEK of revenue in Q1 2025. We also managed through a significant currency headwind this quarter. For example, the pound weakened by roughly 8% against the Krona compared to last year. However, we as a group are in a strong position because a large part of revenue is already in SEK. Since the vast majority of our operating costs like salaries are also in SEK, this creates a natural hedge. It protects the margins even when the converted top line is compressed by foreign exchange rates. Looking at our continuing business on the right, we reported 32.3 million SEK. This reflects the strategic choice we made in late 2025 to prioritize high quality, profitable customer acquisition over raw volume. We've essentially traded short-term volume for much healthier and more sustainable revenue base as we move through 2026. On this slide, you see our EBITDA performance. On the left is the total for the group, and on the right, it's focused specifically on our continuing operations. For the total group, we saw a significant 45% improvement, reporting a loss of 3.7 million SEK compared to the 6.7 million SEK loss in Q1 2025. This validates our structural pivot and shows that our leaner cost structure is delivering results. On the right, you'll notice that for our core business, the loss was 4 million SEK this quarter compared to 3.2 million SEK last year. We as a group made a deliberate budgeted decision to lean into a strategic window for marketing during this period. In the fourth quarter, specifically around Christmas, digital marketing costs are at their peak due to holiday competition. In Q1, the market is significantly less expensive. We chose to concentrate our marketing spend in the core business now to capture higher volume users at a more favorable unit cost. This slide tracks our EBITDA margin, which measures our operational efficiency. The percentage of revenue we retain as operational profit. Our total group margin improved to minus 11%, a big step up from the minus 17 we saw a year ago. This progress is a result of our structural reset and the move towards a leaner, more effective, and market-driven organization. However, if we look at our core continuing operations on the right, the margin moved from roughly minus 9% last year to minus 12% this quarter. We view this as a tactical trade-off because Q1 is a low-cost window for customer acquisition, which shows to apply slight pressure on the core margin today to secure a higher volume of subscribers for the rest of the year. As indicated by the yellow trend lines, we're still on a clear path towards sustainable positive EBITDA. And we expect this Q1 investment to drive margin expansion as that revenue scales in the coming months. Finally, let's review our liquidity. On the left, cash flow for the period was 15 million SEK, which is an improvement of over 4 million SEK compared to last year. Our educational film business is a key driver here. It has a very attractive cash profile that contributes strongly to our reserves, particularly in the first quarter. On the right, you see our ending cash balance of 58 million SEK. We started a year at 42 million, so we've grown our cash position by over 15 million SEK in just three months. This is a very healthy position that gives us the financial stability to execute our 2026 roadmap without needing to look for outside funding. Thank you. Over to you, Fredrik.