Q4 2025 Interim Report

Revenue in the fourth quarter of 2025 amounted to NOK 184.6 (152.9) million, exceeding Q4 2024 revenue by NOK 31.8 million representing an increase of 20.8%. The fourth quarter was defined by high activity in Europe and APAC, however the Q4 revenue in Americas fell by 10% year-on-year, reflecting a typical in-season period where Tier 1 leagues prioritise live execution over major infrastructure change.

Gross earnings for the fourth quarter amounted to NOK 134.7 (112.0) million, achieving a gross margin of 73.0% (73.3%), the margin decreased slightly with an adverse impact from U.S. tariffs almost completely compensated by a positive product mix effect and higher share of service revenues. The cost of raw materials and consumables used was NOK 49.9 (40.9) million.

Overall, operating expenses, excluding raw materials and consumables, for the fourth quarter amounted to NOK 121.0 (108.7) million, an increase of 11.3% year-on-year.

Total employee benefit costs increased 13.6% to NOK 84.9 (74.8) million. The increase in costs reflected a higher number of employees (including sales consultants), 225 FTEs compared to 186 in the same period last year, and sales growth resulting in uplifts related to sales commissions and performance-based bonuses. Adjusted for capitalisation of employee benefit expenses related to commercial technological development projects of NOK 16.5 (nil) million, employee benefit expenses in the income statement was NOK 68.4 (74.8) million, 8.5% lower than the same period last year.

Depreciation and amortisation in the fourth quarter amounted to NOK 5.9 (3.8) million. Amortisation began on capitalised technological development expenditure in the third quarter with a further charge of NOK 0.4 (nil) million in the fourth. Amortisation is dependent on the completion status of the development projects combined with the timing of commercial product launches of fully developed products.

Other operating expenses increased to NOK 46.6 (27.7) million, including NOK 10.5 (1.4) million of costs expensed in relation to the IPO. Costs incurred were in line with our long-term strategy of building a scalable, efficient, and customer-focused organization, also covering costs for an ERP implementation, office expansions and increased market presence.

EBIT for the fourth quarter amounted to NOK 13.8 (3.3) million. EBITDA amounted to NOK 19.7 (7.1) million, corresponding to an EBITDA margin of 10.7% (4.7%).

EBITDAC (EBITDA less the impact of capitalised development expenditure) amounted to NOK 2.0 (7.1) million, and an EBITDAC margin of 1.1% (4.7%). Underlying EBITDAC excluding the NOK 10.5 (1.4) million in costs expensed in relation to the IPO, increased to NOK 12.6 (8.5) million, corresponding to an underlying EBITDAC margin of 6.8% (5.6%).

Net financial income and expenses for the quarter amounted to income of NOK 7.3 (11.1) million, attributable to NOK 4.0 (1.3) million of fair value gains on money market funds, while other financial gains reduced to NOK 1.9 (6.6) million.

Tax on the ordinary result was NOK 5.3 (4.0) million directly attributable to the positive profit before tax, with an effective rate of tax of 25% (28%), impacted by non-deductible IPO related expenditure for tax purposes.

This resulted in net profit for the quarter of NOK 14.4 (10.7) million.

At the end of the quarter, Appear maintained a solid financial position with a 68.7% (58.4%) equity ratio and NOK 499.1 (230.4) million in available liquidity comprising net cash and cash equivalents of NOK 60.5 (96.8) million and financial assets held in money market funds of NOK 438.6 (133.6) million. Appear has no interest-bearing debt.

Total assets on 31 December 2025 increased to NOK 858.0 (458.5) million representing an 87.1% (57.8%) increase from 31 December 2024 (31 December 2023).

The increase in total assets is explained mainly by the net cash proceeds received from the IPO generating net proceeds of 95.2 (nil) million from the issue of new shares, net of transaction-related costs of NOK 4.5 million and a further 95.7 (nil) million from the sale of treasury shares, net of transaction-related costs of NOK 4.1 million.

Total assets also increased through the investment of internally generated development costs which resulted in the capitalisation of NOK 17.4 (nil) million.

The investments in the fourth quarter totalled NOK 31.7 (5.9) million, of which NOK 19.1 (nil) million related to capitalisation of technological development expenditure, comprising capitalisation of employee benefit expenses NOK 16.5 (nil) million, allocation of shared overheads NOK 1.8 (nil) million and directly attributable expenditure of NOK 0.8 (nil) million. The Group also invested NOK 12.6 (5.9) million in property, plant and equipment.

In the fourth quarter NOK 275.0 (nil) million was placed into money market funds.

Cash flow from operating activities amounted to an inflow of NOK 20.4 (0.3) million. The increase in cash flow from operating activities is primarily attributable to operating profit before tax, with stable net working capital.

Cash flow from investment activities amounted to an outflow of NOK 304.4 (1.7) million, primarily attributable to NOK 275.0 (nil) million placed into money market funds, NOK 19.1 (nil) million related to capitalisation of technological development expenditure and NOK 12.6 (5.9) million to property, plant and equipment.

Cash flow from financing activities amounted to an inflow of NOK 187.8 (outflow 1.6) million. The inflow in the fourth quarter relates to the cash proceeds from the IPO generating net proceeds from the issue of new shares of 95.2 (nil) million, net of transaction-related costs of NOK 4.5 million and sale of treasury shares 95.7 (nil) million, net of transaction-related costs of NOK 4.1 million.

Total cash outflow amounted to NOK 96.2 (3.0) million predominantly explained by the purchase of money market funds less the cash proceeds from the IPO,

Revenue for the twelve-month period ending 31 December 2025 amounted to NOK 800.9 (605.6) million, exceeding the same period last year by NOK 195.3 million representing an increase of 32.3%.

The twelve-month period was defined by year-on-year growth across all regions; Americas: NOK 63.0 million (18.7%), Europe: NOK 116.3 million (45.2%) and APAC: NOK 16.0 million (134.4%).

Gross earnings for the twelve-month period amounted to NOK 579.3 (437.8) million, achieving a gross margin of 72.3% (72.3%). The margin achieved was consistent despite the impact of U.S. tariffs which increased our costs of goods sold from the second quarter onwards. The cost of raw materials and consumables used was NOK 221.7 (167.8) million.

Overall, operating expenses, excluding raw materials and consumables, for the period amounted to NOK 408.6 (365.2) million, an increase of 11.9% year-on-year.

Total Employee benefit expenses, including capitalised expenses, increased by 18.5% to NOK 300.9 (253.8) million. The increase was driven by higher number of employees, 204 FTEs for the twelve-month period compared to 172 in the previous period. Employee benefit expenses of NOK 58.5 (nil) million was subsequently capitalised in relation to internally developed intangible assets.

The increased activity level brought natural cost increases tied to sales commissions and performance-driven bonuses.

Depreciation and amortisation amounted to NOK 18.4 (14.1) million for the twelve-month period. Amortisation began on capitalised technological development expenditure in the third quarter with a charge of NOK 1.1 (nil) million; amortisation is dependent on the completion status of the development projects combined with the timing of commercial product launches of fully developed products.

Other operating expenses of NOK 147.8 (94.9) million, increased by 55.8%, costs incurred were in line with our long-term strategy of building a scalable, efficient, and customer-focused organization. Other operating expenses included costs expensed in relation to the IPO of NOK 17.8 (3.8) million, furthermore we incurred NOK 2.9 (2.9) million costs for an ERP implementation, office expansions and increased market presence.

EBIT for twelve-month period ended 31 December 2025 amounted to NOK 170.7 (91.3) million. EBITDA amounted to NOK 189.1 (87.3) million, corresponding to an EBITDA margin of 23.6% (14.4%).

EBITDAC (EBITDA adjusted for the impact of capitalised development expenditure) amounted to NOK 124.4 (87.3) million, and an EBITDAC margin of 15.5% (14.4%). Underlying EBITDAC excluding the NOK 17.8 (3.8) million of costs expensed in relation to the IPO, increased to NOK 142.2 (93.5) million corresponding to an EBITDAC margin of 17.8% (15.4%).

Net financial income and expenses was an expense of NOK 1.3 million (income 18.1) million attributable to NOK 10.0 (5.9) million of fair value gains on money market funds, offset by foreign exchange losses of NOK 10.4 (foreign exchange gains 10.6) million.

Tax on the ordinary result was NOK 40.3 (21.8) million directly attributable to the positive profit before tax, with an effective tax rate of 24% (24%). The effective tax rate was comparable to the previous twelve-month period, despite the impact of non-deductible IPO related expenditure for tax purposes.

This resulted in net profit of NOK 129.2 (69.5) million.

At the end of the financial year, Appear maintained a solid financial position with a 68.7% (58.4%) equity ratio and NOK 499.1 (230.4) million in available liquidity comprising net cash and cash equivalents of NOK 60.5 (96.8) million and financial assets held in money market funds of NOK 438.6 (133.6) million. Appear has no interest-bearing debt.

Total assets at 31 December 2025 increased to NOK 858.0 (458.5) million representing an 87.1% (57.8%) increase from 31 December 2024 (31 December 2023), the increase is explained mainly by the proceeds received from the IPO and increased investments with the capitalisation of development costs.

Net cash proceeds from the IPO amounted to 95.2 (nil) million from the issue of new shares, net of transaction-related costs of NOK 4.5 million and a further 95.7 (nil) million from the sale of treasury shares, net of transaction-related costs of NOK 4.1 million.

Total assets also increased through the investment of internally generated development costs which resulted in the capitalisation of NOK 66.2 (nil) million.

The investments in the twelve-month period were NOK 90.1 (10.2) million, of which NOK 66.2 (nil) million related to intangible assets arising from capitalisation of technological development expenditure , comprising capitalisation of employee benefit expenses NOK 58.5 (nil) million, allocation of shared overheads NOK 6.3 (nil) million and directly attributable expenditure of NOK 1.4 (nil) million. The Group also invested NOK 23.9 (10.2) million in property, plant and equipment.

In addition, NOK 325.0 (40.0) million was deposited into money market funds, with NOK 40 million withdrawn to cover working capital requirements in July.

Furthermore, we executed a renewal of the lease agreement for our U.S. office securing larger office space for an initial term of 4 years with an option to extend for a further 5 years. This resulted in an increase in the right-of-use asset and corresponding increase in our lease liabilities.

Cash flow from operating activities for the twelve-month period amounted to an inflow of NOK 163.2 (inflow 76.8) million. Cash flow from operating activities predominantly reflects the increased profit generated in the period.

Cash flow from investment activities for the twelve-month period amounted to an outflow of NOK 382.0 (outflow 45.5) million, predominantly attributable to the purchase of money market funds of NOK 325.0 (40.0) million, with NOK 40.0 (nil) million withdrawn to cover working capital requirements in July, and capitalized technological development expenditures of NOK 66.2 (nil) million.

Cash flow from financing activities for the twelve-month period amounted to an inflow of NOK 184.4 (outflow 7.8) million. The inflow predominantly related to the cash proceeds received from the IPO. Furthermore, the group received consideration from sale of treasury shares to employees of NOK 2.5 million.

Total cash outflow for the twelve-month period amounted to NOK 34.2 (inflow of 23.4) million, primarily reflecting the placement of surplus funds generated from operating and financial activities in money market funds.