ENVAR HOLDINGS INTERIM REPORT FOR THE SECOND QUARTER 2026

CEO Atey Ghailan comments:

The successful launch of Witchspire demonstrates that Envar is not only a strong consulting company, but that we also have the ability to develop and launch our own attractive, high-quality games. Many consulting companies have tried over the years to take the step into game development, but few have succeeded. I am convinced that our success is based on having focused on the right things from the start: building the right team, creating clear processes and maintaining an uncompromising focus on quality and the player experience.

At the same time, our Entertainment business area delivered record revenue during the second quarter, even excluding revenue from Witchspire. Deeper collaborations with our customers are a clear sign that the business has entered a new phase of growth. To meet the increased demand and create the conditions for continued expansion, we have strengthened the organisation with an additional recruiter and a business developer.

SECOND QUARTER│APRIL – JUNE 2026

• Net sales amounted to SEK 53,672 thousand (24,368), of which SEK 16,760 thousand (0) relates to revenue from game sales, representing a total increase in revenue of 120.26% compared with the same period last year.
• Operating profit before depreciation (EBITDA) totaled SEK 20,993 thousand (6,222), representing an operating margin of 39.11 percent (25.53) before depreciation.
• Operating profit (EBIT) totaled SEK 19,344 thousand (6,045) representing an operating margin of 36.04 percent (24.81).
• Earnings per share, basic, amounted to SEK 1.19 (0.38).
• Cash and cash equivalents totaled SEK 39,528 thousand (54,324). Cash flow from operating activities amounted to SEK 10,503 thousand (7,475).
• Net cash totaled SEK 39,528 thousand. The Company has no interest-bearing liabilities.

(Figures for comparison in parentheses refer to the corresponding period of the previous year).

ACCUMULATED│JANUARY – JUNE 2026

• Net sales amounted to SEK 79,432 thousand (47,044), of which SEK 16,760 thousand (0) relates to revenue from game sales, representing a total increase in revenue of 68.85% compared with the same period last year.
• Operating profit before depreciation (EBITDA) totaled SEK 24,529 thousand (11,283), representing an operating margin of 30.88 percent (23.98) before depreciation.
• Operating profit (EBIT) totaled SEK 22,688 thousand (10,928), representing an operating margin of 28.56 percent (23.23).
• Earnings per share, basic, amounted to SEK 1.42 (0.65).
• Cash and cash equivalents totaled SEK 39,528 thousand (54,324). Cash flow from operating activities amounted to SEK 6,244 thousand (2,922).
• Net cash totaled SEK 39,528 thousand. The Company has no interest-bearing liabilities.

(Figures for comparison in parentheses refer to the corresponding period of the previous year).

SIGNIFICANT EVENTS DURING THE QUARTER

• In April, Envar Games announced in a press release that Witchspire had more than 300,000 wishlists on Steam.
• In In May, it was announced in a press release that Envar is strengthening its position in the gaming industry by launching Envar Publishing, a new business area in which Envar acts as an active publishing and development partner for smaller games under development.
• In June, Envar Games launched its first internally developed game title, Withspire, in Early Access on Steam.  
• In June, it was announced that Witchspire had surpassed 100,000 copies sold one week after launch, marking a commercially strong start for Envar Games’ first internally developed title.  

SIGNIFICANT EVENTS AFTER THE QUARTER

• In July, Envar Holding announced a positive profit warning due to a significant increase in operating profit (EBIT) in Q2.

CERTIFIED ADVISER
Amudova AB is the Company's Certified Adviser and may be contacted at info@amudova.se or +46 8 545 017 58.

ABOUT ENVAR
Envar is an outsourcing and development studio focusing on graphic design, 3D graphics, animations and illustrations on behalf mainly of world-leading game development companies and other companies active in the entertainment industry. The Company has established itself as a provider of graphics and development services to some of the biggest brands in the gaming industry, including companies such as Riot Games, Netflix, EA Games, Nickelodeon, NetEase, Blizzard, 2K, Hasbro, Sony, Tencent and EPIC Games.

INTERIM REPORT
Envar Holding's report is attached and available at https://www.envarholding.com/interim-reports

This information is information that ENVAR HOLDING AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-08-11 08:00 CEST.