Financial Performance in Summary

• The Group’s total net sales for the quarter amounted to 2,419 (1,318) TSEK and consisted entirely of recurring license revenues, with no hardware sales during the period. Compared to the corresponding quarter of the previous year, the development reflects the Company’s established business model focused on recurring revenues. Net sales are in line with the previous quarter, and variations between quarters are a natural effect of the implementation pace. During the quarter, the Company built a strong sales pipeline in Sweden linked to the ADDA framework agreement, which came into effect at the end of March, with effects expected to be realized in the coming quarters. In the Netherlands, the organization was strengthened through the recruitment of a Country Manager, creating conditions for continued growth.
• Operating result (EBIT) for the quarter amounted to -8,300 (-5,243) TSEK. The comparative period does not include the Dutch operations, which have been consolidated during the year. Depreciation and amortization are higher compared to the previous year, mainly due to amortization of excess values related to the acquisition of the Dutch subsidiary.
• EBITDA for the quarter amounted to -4,311 (-2,538) TSEK. The decline compared to the previous year is mainly attributable to the consolidation of the Dutch operations. Compared to the previous quarter, the Company increased investments in sales and organization, including new hires, to support growth.
• Result after financial items for the quarter amounted to -6,663 TSEK (-3,779).
• Cash flow from operating activities for the period amounted to -4,653 (-7,013) TSEK. The improvement compared to the previous year is primarily attributable to lower purchases of goods during the period and a higher share of license revenues.
• Earnings per share for the quarter before/after dilution amounted to -0.02 SEK (-0.02).
• Equity per share at the end of the period amounted to 0.06 SEK (0.04).
• The equity ratio at the end of the period was 48.4% (53.2%).

Significant events during the quarter

• iZafe Group has launched a modular external Display for Dosell as well as a new remote care system. The products are planned to be introduced gradually during 2026, with commercial impact depending on customer needs and procurement processes.
• iZafe Group has resolved on a directed share issue of B shares amounting to approximately SEK 19.8 million, with the purpose of strengthening the organization and enabling an increased installation and sales pace. The issue is carried out in two parts, of which one part is subject to approval by an extraordinary general meeting.
• iZafe Group announces that its subsidiary Dosell AB has been awarded and signed a framework agreement in ADDA’s national procurement of medication dispensing systems. The framework agreement entered into force on March 31, 2026, and enables call-offs from municipalities and regions in Sweden.

Significant events after the end of the quarter

• iZafe Group announces that its subsidiary Dosell AB has obtained a European patent within data-driven medication management. The patent strengthens the Company’s intangible assets and long-term position in digital healthcare solutions.
• iZafe Group announces that its subsidiary Dosell AB has been awarded a contract in Region Jönköping County’s procurement of medication dispensing systems. The agreement covers both the region and all municipalities in the county, entered into force on April 1, 2026, and enables successive call-offs during the contract period.
• iZafe Group announces that the Company has obtained ISO/IEC 27001 certification for information security. The certification covers the entire Group and strengthens the Company’s position in procurements and international expansion.

Forecast
In this report, we present a forecast graph illustrating our expected growth in both ARR and active Dosell units over the coming years. The forecast is based on our current markets and key performance indicators, outlining a clear path toward an exponential increase in recurring revenue as more units become activated.

Comments from the CEO
We enter 2026 with a quarter that is financially in line with the previous period, but which operationally represents one of the most eventful quarters in the Company’s history.

Net sales remain at a level in line with previous quarters, reflecting our business model where revenues are built up gradually as installed units are activated and begin to generate recurring revenues. During the quarter, we did not increase our recurring revenue base compared to the previous quarter, while a significant portion of the contracts secured has not yet had an impact on revenues.

During the quarter, we have taken several decisive steps that together create the conditions for accelerated growth during the remainder of the year.

The single most important event is that Dosell has been awarded a framework agreement in ADDA’s national procurement – the first of its kind in Sweden. The framework agreement enables municipalities and regions to make call-offs without conducting their own procurements and represents a market with an estimated annual value of approximately SEK 200 million. The agreement entered into force at the end of the quarter, and we are already seeing a clear inflow of orders and call-off discussions that are expected to be realized in Q2.

In addition to ADDA, we have been awarded contracts in Region Jönköping together with the municipalities in the county, with an estimated value of approximately SEK 55 million and a maximum ceiling of SEK 82.5 million. After the end of the quarter, we have also signed an agreement with Västervik Municipality together with Atea, covering approximately 500 units corresponding to approximately SEK 3.7 million in annual recurring revenue at full rollout. Together, these agreements confirm the strong demand we are now seeing and how our pipeline is gradually being converted into concrete business.

During the quarter, we also completed a directed share issue of approximately SEK 19.8 million, with the purpose of accelerating the sales and installation pace. The capital is being used to strengthen the organization within sales, implementation, and support, which has also resulted in increased costs during the quarter. These investments are a deliberate step to capitalize on the strong sales pipeline we have built and to ensure that demand is converted into revenue in the coming quarters.

At the same time, we have continued to strengthen our international presence. In the Netherlands, we have recruited a Country Manager and invested in organization and inventory to enable a clear ramp-up in the coming quarters. The market is one of the largest in Europe for dose dispensing, and we see good conditions for continued growth.

We have also taken important steps in product and technology. During the period, we launched our new remote care system and a modular display solution, which broadens the target group and increases the value per installed unit. In addition, we have obtained a European patent in data-driven medication management and achieved ISO/IEC 27001 certification, strengthening our position in larger procurements and international business.

Overall, this is a quarter in which we have strengthened our business and delivery capacity. We enter Q2 with a strong pipeline, where we see a combination of new business, scaling within existing customers, and increasing inflow via partners in markets including Norway, Finland, Spain, and Iceland.

Within Pilloxa, we have seen a slight decline in ARR related to changes in an existing customer setup. At the same time, discussions regarding new patient support programs are ongoing, and we continue to see solid potential and a positive outlook for Pilloxa going forward. However, our primary focus remains on Dosell, where we see the greatest growth potential.

Our full-year ARR forecast remains unchanged, and we maintain strong confidence in it. At the same time, we see potential upside linked to the developments we are currently observing, not least through the ADDA framework agreement. However, the pace of call-offs and how quickly these translate into recurring revenues is still difficult to fully assess, and we have therefore chosen not to adjust the forecast at this stage.

What stands out most to me when reflecting on the quarter is that, with a relatively small but highly cohesive and dedicated organization, we have executed a large number of activities in parallel—from procurements and contracts to product launches, certifications, and capital raising. While these efforts are not yet fully reflected in the quarterly figures, they have been crucial in building a scalable platform for continued growth.

We enter Q2 with a business developing according to plan, where several of the initiatives we have implemented are now beginning to translate into tangible business. Our focus going forward is clear: to continue delivering, increase the rollout pace, and progressively build our recurring revenue base.

Anders Segerström
Chief Executive Officer, iZafe Group