RaySearch Laboratories AB (publ)

Hello and welcome to the presentation of Research Interim Report for the second quarter of 2025. My name is Henrik Prevors, and I will be the moderator today. Joining us in today's call is Johan Lööf, Research Founder and CEO, and Nina Grönberg, our CFO. Johan and Nina will give you a brief summary of the quarter, including the financials, and after that we open up for questions. I also want to remind you that this session is recorded, and you will be able to find our recording on the website on the upcoming days. With that said, I hand over to you, Johan. Please go ahead.

Thank you, Henrik. I would also like to welcome all of you to today's webcast. Sales for the second quarter was 305 million Swedish kronor. That is a decrease of 4% compared to the same period in 2024. The weakest sales were partly due to the delay of several orders. Therefore, the order intake in July was unusually high. 56 million Swedish crowns higher than in July last year, and more than 50 million Swedish crowns above the average order intake for the last three years. I'd also like to point out that the revenue for the second quarter of 2024 included a one-time item of 37 million Swedish crowns from a previously prepaid license sale to Medallström, which made the year-on-year comparison more difficult. Operating profit for the quarter came in at 36 million Swedish crowns, translating to an operating margin of 12%. Profit in the second quarter was negatively affected by declining dollar and also some non-recurring costs. If we exclude those effects, the operating profit would have been 51 million Swedish crowns with an operating margin of 17%. Order intake for the second quarter landed at 241 million. As we noted before, order intake can fluctuate significantly between quarters. and that was especially clear this quarter. Still, we're seeing strong momentum across our markets. Customer interest remains high, demand is solid, and this supports our confidence in continued growth going forward. Overall, Razor has a strong financial position. As of 30th of June, our cash and cash equivalents was $403 million, And we have stable cash flow and no loans. We're proud to report that RayStation was used in the first European treatments with neutron therapeutics accelerator-based BNCT, boron neutron capsule therapy. These groundbreaking treatments were performed at Helsinki University Hospital in Finland and were part of a clinical trial. RayStation's advanced DNCT capabilities, now clinically validated in both Japan and Finland, are critical in supporting high-precision individualized treatment planning, which is vital for successful DNCT. The fact that RayStation was selected for this pioneering work, once again reinforces our leading position in the clinical development of the NCT. At the end of the quarter, we released RayCare version 2025, the latest version of our oncology information system. This version delivers important functionality upgrades to streamline clinical workflows, improve data management, and enhance interoperability across the treatment chain. With integrated and intelligent solutions and updated treatment support, this version of RayCare empowers clinical teams to deliver more coordinated and efficient care throughout the entire treatment process. On July 21st, we announced that AKSM Oncology has placed orders for both RayCare and RayStation to be used at Advanced Radiation Therapeutics, which is a new center in California that's expected to open in March next year. The center will use RayStation and RayCare together with their TrueBeam linear accelerators. Now, let's take a look at the financials. So please, Nina, go ahead.

Thank you, Johan. Yes, the second quarter in 2025 indeed emphasized the importance of taking a longer than quarter-to-quarter perspective when looking at research. The momentum and favorable market condition for research is still there, but with orders delayed to July and strong comparisons, we get a weaker outcome than we've been used to. Therefore, I will start with the rolling 12 development of net sales EBIT and EBIT margin. It is visible that quarter 2 outcome caused a downturn in an otherwise straight upward trend. However, the annual growth rate over the last two years is still 15% and the rolling 12 EBIT margin 20%. Moving on to the quarter two overview, order intake in the second quarter decreased with 17% from 290 to 241 million. The order intake for licenses were down 20%, ending at 107 million, while the order intake for support decreased 19% to 96 million. Research order intake fluctuates between the quarters, but also it is important to remember that it does only include contracted amounts. Since our churn is close to zero, there is also an essential amount of captured future support income that's not included in the order intake nor in the order backlog. Order backlog end of June amounted to $1,665,000,000, of which $550,000,000 is expected to generate net sales in the next coming 12 months and the rest over the four years after that. Net sales, including currency effects with a weaker U.S. dollar, decreased with 4% from $390,000,000 to $305,000,000. Currency adjusted growth was zero. The sales of licenses amounted to 131 million, corresponding to a decrease of 20%. Last year's license sales amounted to 164 million, powered by the 37 million revenue from the Medostron deal that we had last year. The support revenue amounted to 131 million, which is an increase of 14% compared to last year. The operating profit for the quarter was 36 million, and that is corresponding to an operating margin of 12%. And again, negatively affected by foremost a weaker U.S. dollar and also a temporarily higher cost, as Johan also mentioned. Adjusted for the reporting currency losses, the operating profit was 43 million and the operating margin 14%. Operating profit in the second quarter last year was 79 million, including a full drop-through of the Midwestern deal of 37 million. Cash flow from operations amounted to 71 million in the quarter, compared to 155 million last year. And the decrease is mainly related to the lower profit, but also an increase in the operating capital and higher preliminary tax payments. The net cash flow for the period was minus 104 million, affected by the 103 million dividend that we paid out in May. The fee cash flow was minus 1 million SEK in the quarter. Moving forward and summarizing the first six months, order intake has increased with 23 percent from 529 to 651 million. Order intake for licenses increased to 266%, and order intake for support increased 50% to 298 million. Net sales for the first six months was up 11%, from 576 to 637 million, where license sales stood for an increase of 5% to 297 million, and support sales increased 16% to $256 million. The six-month operating profit amounts to $111 million, and the operating margin to 18%. Last year's operating profit for the first half year was $125 million, with a margin of 22%. Cash flow from operations amounted to $217 million for the first six months compared to $322 million last year, and almost $60 million of those is related to higher tax payments in 2025, and where 46 of those is related to the 2024 year profit. Last year also included positive effects from big improvements in the operating capital. The net cash flow for the peer was minus 38 compared to plus 83 million last year. We had higher dividend in 2025 that stood for 37 million of that difference. Moving on to the overview of the quarter by quarter development, it is clearly visible that quarter two 2025 stands out as an exception to a strong previous performance. And last, moving back to the long-term perspective and the developments all the way back from 2008. Research continues the growth journey with the increased robustness from 40% recurring support revenue. And with this said, I hand over to you again, Johan.