CellaVision AB (publ)

Welcome to Celevision Q3 Report 2026. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to CEO Steve Ferguson and CFO Monica Jonsson. Please go ahead.

Welcome everyone and thank you for joining us on our call this morning. My name is Steve Ferguson and with me is our Chief Financial Officer Monica Jonsson. We appreciate you taking the time to join us as we present Celevision results for the third quarter of 2026. Following the presentation we'll be happy to take your questions. Before I jump into the quarterly results, I'd like to take a moment to thank our employees, our customers, our partners, and our shareholders for their continued trust and commitment to Cellavision. It's through our combined efforts bringing together innovation and strong commercial execution that we continue to create long-term value and fulfill our mission, which is to advance laboratory workflow and diagnostic certainty through intelligent microscopy. And with that, let's turn to our performance for the third quarter. Cellavision's third quarter reflected really solid progress across the group. The quarter delivered an increase in net sales of 13.6% and we reached 200 million SEK in the quarter. Sales increased organically by 13.4% with only a minor currency effect. EBITDA amounted to 64 million SEK which corresponds to a 32% EBITDA margin. Across the regions, Americas continued to build on the strong second quarter that we saw earlier this year. Sales were up 32% to 89 million sec, with the primary drivers being strong demand for large connected instrument platforms and in this quarter a notable software contribution. Small instrument sales also continue to recover, which is a positive sign for the overall product mix. EMEA was down 10% compared to a very strong quarter last year. That said, the picture is much more balanced. Sales have sequentially progressed since quarter one. The key update from the region focuses on the bone marrow application, our most recent launch, and this has gone from customer evaluations to generating first revenue with the initial installations in EMEA marking the beginning of customer adoption. APAC grew 91% organically. Broad-based growth outside of China with solid performance for both instruments and reagents is the picture here. The standout is Japan, where we're seeing notable momentum in converting the installed base to Cellavision reagents, which strengthens the recurring revenue stream going forward. The bone marrow aspirate application has generated growing revenue in EMEA and that's a meaningful milestone in our expansion into specialized microscopy. The rollout is progressing across the region and we're seeing continued positive customer interest. On the regulatory side, the FDA 510 review is ongoing in the United States and our aim is to obtain market clearance before the end of this year. On the development side, the FPM technology and our next generation haematology analyzers are progressing through key phases towards a future market introduction. We see this technology platform as a significant step forward for digital cell morphology in haematology. It combines meaningfully higher image quality with substantially higher throughput than compared to what's available today on the market. It also opens the door for Cellevision to adjacent fields such as pathology and cytology. Now let me hand over to Monica who will present us with an overview of the financial results for the quarter.

Thanks Steve. So let's unpack the P&L and cash flow. Net sales was 200 million SEK in the quarter representing 14% growth or 13% organic growth against the same quarter last year. Also worth to notice is that year-to-date organic growth is 4% despite the weaker Q1. We had a gross margin of 66% in the quarter. That entails amortization of capitalized development expenditures for bone marrow and upgraded software program launched in Q1. This quarter we are amortizing 5 million SEK versus 2 million SEK last year. The gross margin was also negatively impacted by the sales mix. Operating expenses landed at 82 million SEK, equalling 41% of net sales. If we unpack that, we see that sales and marketing expenses are kept on stable levels. Administration expenses were impacted by costs of 4 million SEK associated with the final settlement of the CEO transition. R&D costs before capitalization were 39 million SEK, somewhat lower than last year and reflecting lower consultant and personnel costs during summer vacation period. Comparing to the same quarter last year, we have a higher capitalization of 16 million SEK and that results in an R&D cost of 23 million SEK. The higher capitalization is mainly due to the fact that some projects have recently advanced into more mature phases. The EBITDA increased to 64 million SEK with an EBITDA margin of 32%. We are continuing to invest in R&D with 90% of net sales. and our R&D investment programs are developing well and maturing according to plan. Finally, operating cash flow was 68 million SEK. The higher sales and the reduced inventory contributed positively to the cash flow. And the cash flow was 46 million SEK for the quarter. Our financial position remains robust with cash and cash equivalents of 290 million SEK sitting on the balance sheet. Let's look into the regional highlights.