Q1 2026 report

Revenue in the first quarter of 2026 amounted to NOK 231.7 (162.5) million, exceeding Q1 2025 revenue by NOK 69.2 million representing an increase of 42.6%. The first quarter was defined by high activity in the Americas.

Revenue in the Americas increased by 54% to NOK 143.6 (93.4) million. Revenue in EMEA increased by 25% to NOK 77.7 (62.0) million. In APAC, revenue increased by 46% to NOK 10.4 (7.1) million. Revenue split by business area for the quarter was hardware 53.2% (59.4%), software 34.1% (29.0%) and Services 12.8% (11.6%).

Gross earnings for the first quarter amounted to NOK 162.5 (118.3) million, achieving a gross margin of 70.1% (72.8%), the margin decreased by 2.7% impacted by product mix, impact of foreign exchange with weaker USD and adverse impact from U.S. tariffs from higher share of sales to the Americas. The cost of raw materials and consumables used was NOK 69.2 (44.2) million.

Overall, operating expenses, excluding raw materials and consumables, for the first quarter amounted to NOK 126.1 (83.6) million, an increase of 50.9% year-on-year.

Employee benefit expenses before the capitalisation of development expenses amounted to NOK 98.6 (66.5) million reflecting increased sales commission and company bonus provision following the strong sales, growth in full-time equivalents (average for the quarter was 231 vs 192), and long term incentives plans that were awarded for the first time in 2026 with the options vesting over a three-year period.

Operating expenditure was adjusted for capitalisation of commercial technological development projects of employee benefit expenses NOK 15.7 (14.7) million, allocation of shared overheads NOK 1.7 (1.6) million.

Operating expenditure increased in line with our long-term expansion plans with increased office cost having established presence in both Singapore and Sweden increasing our operating expenditure by NOK 1.6 (nil) million.

Depreciation and amortisation in the first quarter amounted to NOK 6.9 (3.5) million. Amortisation began on capitalised technological development expenditure in the second half of 2025 with a further charge of NOK 1.6 (nil) million in the first quarter of 2026.

EBIT for the first quarter amounted to NOK 36.4 (34.7) million. EBITDAC (EBITDA less the impact of capitalised development expenditure) for the first quarter amounted to NOK 25.9 (21.9) million, and an EBITDAC margin of 11.2% (13.5%). EBIT and EBITDAC in Q1 2026 impacted by 3.0 (nil) million for long term incentives plans.

In the comparative period Underlying EBITDAC excluded the costs expensed in relation to the IPO (NOK 3.0 million), this resulted in Underlying EBITDAC of NOK 25.9 (25.0) million, corresponding to an underlying EBITDAC margin of 11.2% (15.4%).

At the end of the quarter, Appear maintained a solid financial position with a 66.4% (68.7%) equity ratio and NOK 475.6 (499.1) million in available liquidity comprising net cash and cash equivalents of NOK 62.1.5 (60.5) million and financial assets held in money market funds of NOK 413.5 (438.6) million. Appear has no interest-bearing debt.

During the first quarter the group drew down on the money market funds generating proceeds, and net outflow, of NOK 30.0 million (inflow of NOK 20.0 million), the fund were used to fund movement in working capital reflecting increased purchase of raw materials and components, payments of short-term incentive plans and corporation tax instalment.

Investments in the capitalized development expenditure amounted to NOK 17.8 (16.3) million, including directly attributable expenditure of NOK 1.0 (nil) million, of which NOK 0.7 (nil) million is accrued at quarter end.

Investments in the property, plant and equipment the first quarter amount invested NOK 2.0 (3.1) million in property, plant and equipment.