Notes
Note 1 – General
Appear ASA is the parent company of the Appear Group. The Group includes the parent company Appear ASA and its wholly owned subsidiaries Appear US Inc, Appear Ltd, Appear Pte Ltd and Appear Sweden AB. The Group`s head office is located at Lilleakerveien 2b, 0283 OSLO, Norway. Appear ASA is listed on the Oslo Stock Exchange (Norway) under the ticker APR.OL.
The condensed interim financial statements comprise the financial statements of the Parent Company and its subsidiaries as of 31 March 2026, approved by the board of directors on 28 April 2026 after the end of trading at the Oslo Stock Exchange.
Note 2 – Basis of preparation
These condensed interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34 “Interim Financial Reporting” as adopted by the European Union (the "EU") and additional requirements in the Norwegian Securities Trading Act.
These condensed interim financial statements do not include all information and disclosures required by IFRS® Accounting Standards ("IFRS") for a complete set of financial statements. Hence, they should be read in conjunction with the annual financial statements for the year ended 31 December 2025.
These condensed interim financial statements are unaudited. The accounting policies applied by the Group in these condensed interim financial statements are the same as those applied by the Group in its financial statements for the year ended 31 December 2025.
In the condensed interim financial statements, the first quarter is defined as the three-month reporting period from 1 January to 31 March. All amounts are presented in NOK thousand (TNOK) unless otherwise stated. Because of rounding differences, numbers or percentages may not add up to the sum totals.
Note 3 – Revenue by geography and segment
The table below shows the disaggregation of revenue from contracts with customers for the three-month periods ended 31 March 2026 and the basis on which revenue is recognised:
| NOK thousands | Q1 2026 | Q1 2025 | Year on Year Δ% | % of Revenue Q1 2026 | % of Revenue Q1 2025 |
|---|---|---|---|---|---|
| Revenue by geographical region | |||||
| Americas | 143,561 | 93,363 | 53.8 % | 62.0% | 57.5% |
| Europe, Middle East & Africa | 77,719 | 62,042 | 25.3 % | 33.5% | 38.2% |
| Asia Pacific | 10,397 | 7,100 | 46.4 % | 4.5% | 4.4% |
| Total revenue from contracts with customers | 231,677 | 162,505 | 42.6 % | 100.0% | 100.0% |
| Revenue by product group | |||||
| Sales of media processing and delivery platforms | 123,139 | 96,580 | 27.5 % | 53.2% | 59.4% |
| Additional sales of software and licenses | 78,975 | 47,143 | 67.5 % | 34.1% | 29.0% |
| Sales of support and consulting services | 29,562 | 18,782 | 57.4 % | 12.8% | 11.6% |
| Total revenue from contracts with customers | 231,677 | 162,505 | 42.6 % | 100.0% | 100.0% |
| Timing of recognition | |||||
| Hardware and software recognised at a point in time | 202,115 | 143,723 | 40.6 % | 87.2% | 88.4% |
| Services recognised over an agreed service period | 29,562 | 18,782 | 57.4 % | 12.8% | 11.6% |
| Total revenue from contracts with customers | 231,677 | 162,505 | 42.6 % | 100.0% | 100.0% |
Note 4 – Intangible Assets
In the three-month period ended 31 March 2026, Appear capitalised technological development expenditure totalling NOK 18.5 (16.3) million. The internal development is ongoing, and amortisation of the intangible assets commences once the development is completed and the asset is ready for its intended use. The expected commercial lifetime of the projects typically ranges from three to five years.
Management applies judgment to conclude whether intangible assets arising from internal development shall be recognised. An intangible asset arising from internal development is recognised from the point when Appear can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use, future economic benefits from use of the intangible assets are probable and Appear has adequate resources to complete the development and to use the asset and the intention to complete and use the asset.
Note 5 – Financial assets and fair value
Financial assets at fair value through profit or loss.
Appear holds investments in money market funds classified as financial assets at fair value through profit or loss. These instruments are valued based on quoted prices in active markets for the underlying securities. As such, the investments are categorised within Level 2 of the fair value hierarchy. Unrealised gains and losses on money market funds classified at fair value through profit or loss are included in net finance income and finance expenses.
Derivative financial instruments
The fair value of the forward exchange contracts is determined using observable forward rates and discounted cash flow techniques. As such, the financial instruments are categorised within Level 2 of the fair value hierarchy. Unrealised gains and losses on financial instruments are recognised in net finance income and finance expenses.
As at 31 March 2026 there was no outstanding forward contract (31 December 2025: nil). Accordingly, there were no unrealised fair value gains or losses.
Note 6 – Cash & cash equivalents
Cash and cash equivalents include restricted cash of NOK 7.1 million relating to deposit accounts (31 December 2025 NOK 14.1 million, included withheld employee taxes).
Note 7 – Significant events
Lease amendment: The Group signed a lease amendment expanding the Oslo office premises, resulting in an increase in the right-of-use assets and lease liabilities of NOK 9.8 million at an implied borrowing rate of 7.0%.
Long-term incentive plan: The Group made the first awards under the long-term incentive plan were awarded with effect from 1 January 2026. The Group awarded 359,109 of equity-settled conditional share awards to senior management, resulting in a share-based payment charge of NOK 3.0 million for the period.
Note 8 – Events occurring after the reporting period
The Board of Directors is not aware of any other events that occurred after the reporting date, or any new information regarding existing matters, that can have a material effect on the Q1 2026 interim report for the company.
Note 9 – Principal risks and uncertainties
At Appear risk management is based on the principle that risk evaluation is an integral part of all business activities and is a part of an annual review. Appear has not identified any further significant risk exposures beyond the ones described in the 2025 Annual Report.