Interim Report 2026 January–September

July-September 2026

• Net sales decreased by 1,1 % during the quarter to 111,1 MSEK (112,4). The organic and currency-adjusted change amounted to 0,6 %.
• Adjusted EBITDA increased by 5,0 % during the quarter to 19,5 MSEK (18,6), corresponding to an adjusted EBITDA margin of 17,6 % (16,6).
• Operating profit amounted to 14,5 MSEK (9,9), corresponding to an operating margin of 13,0 % (8,8).
• Profit for the quarter amounted to 10,3 MSEK (7,7).
• Earnings per share amounted to 0,71 (0,52) SEK.
• Cash flow from operating activities amounted to 30,9 MSEK (31,3).

January-September 2026

• Net sales decreased by 0,4 % during the period to 338,3 MSEK (339,6). The organic and currency-adjusted change amounted to 3,0 %.
• Adjusted EBITDA increased by 42,2 % during the period to 54,4 MSEK (38,3), corresponding to an adjusted EBITDA margin of 16,1 % (11,3).
• Operating profit amounted to 35,4 MSEK (8,3), corresponding to an operating margin of 10,5 % (2,5).
• Profit for the period amounted to 23,0 MSEK (7,1).
• Earnings per share amounted to 1,57 SEK (0,49).
• Cash flow from operating activities amounted to 80,4 MSEK (42,8).

Comments by the CEO

I am pleased to report another quarter of solid profitability, with an adjusted EBITDA margin of 17.6 per-cent and strong cash flow. Particularly encouraging is that we increased our gross margin to just under 72 percent in the third quarter, despite rising component costs. This once again demonstrates that our busi-ness model enables us to maintain solid profitability even in a market environment that remains chal-lenging in some areas due to geopolitical uncertainty.

The quarter’s performance was strong given the volatility in the market, as demand for our solutions depends on long-term investment decisions. The market in which we operate is affected by unpredictable developments in the global econ-omy and disruptions to supply chains. We achieved revenue of SEK 111.1 million, representing a decrease of 1.1 percent in absolute terms compared with the third quarter of 2025, but an increase of 0.6 percent when adjusted for currency effects and acquisitions.

The slightly lower revenue was offset by an improved gross margin, which reached 71.9 (69.6) percent at Group level, with adjusted EBITDA of SEK 19.5 million, corresponding to an adjusted EBITDA margin of 17.6 percent. Cash flow from operat-ing activities amounted to SEK 30.9 million, and the Group’s equity ratio stood at 62.6 percent at the end of the period.

A major contributing factor to our solid profitability despite challenging external conditions was the strong performance of our US operations during the quarter. Our continued efforts to strengthen our offering in parking and access digital-isation, which is primarily aimed at business customers (B2B), have also made a positive contribution. This complements the rest of our business, which predominantly serves the public sector (B2G), making us somewhat less vulnerable to uncertainties that slow down decision-making by public authorities.

Efforts to reduce working capital remain a key priority. On a sequential basis, inventory levels for comparable units increased by approximately 1 percent, while they decreased by just over 14 percent compared with the corresponding quarter of the previous year.

Revenue from Traffic Solutions amounted to SEK 96.9 million in the third quarter, in line with the corresponding quarter of 2025. During the quarter, Traffic Solutions accounted for 87 percent of total sales, while Rail Solutions accounted for 13 percent.

We continue to see rising input costs, particularly for semiconductors and printed circuit boards, partly driven by increased demand resulting from investments in AI, as well as reduced petrochemical production due to unrest in the Strait of Hormuz. We therefore aim to offset these cost increases through close cooperation with customers and suppli-ers, product substitution and further efficiency measures.

During the quarter, we continued to invest in product development to further strengthen the competitiveness of our offering, with a particular focus on software, AI and data-driven solutions. Our clearly defined AI First strategy is fully inte-grated across the organisation and underpins our development activities, internal processes and marketing. With a strong development team and leading expertise in AI, image analysis and sensor technologies, we are well positioned to develop new applications and meet the growing demand for multi-sensor solutions.

With a total of 50 development engineers, approximately 30 of whom focus on advancing AI-based video solutions, we are developing solutions at the forefront of the industry. Virtually the entire development team uses AI-powered coding tools and AI agents, and more than 85 percent of the code we now produce is AI-generated. During the quarter, investment in product development amounted to approximately 15 percent of Group revenue.

Looking ahead, I can confidently say that TagMaster is well positioned to help address some of the major challenges facing transport systems worldwide, including traffic congestion in densely populated areas, improving road safety and reducing traffic-related emissions. These challenges are driving increased demand for our solutions, and we remain firmly committed to further strengthening TagMaster’s position, despite the uncertainty surrounding tariffs, geopolitics and the economy, which has contributed to a cautious approach in the market.

Jonas Svensson
CEO

Auditor’s review
The interim report has been subject to a limited review by the company’s auditors.

Financial calendar
February 4, 2027: Earnings release 2026
March 29, 2027: Annual Report 2026 available on web site April 29, 2027: Interim report first quarter 2027
April 29, 2027: Annual general meeting, Kista
July 16, 2027: Interim report second quarter 2027
October 28, 2027: Interim report third quarter 2027
February 3, 2028: Earnings release 2027