Third quarter, July 1 - September 30, 2025 

• Sales amounted to 27,971 (31,781) kSEK.
• Operating profit before depreciation and amortization and shares in associated companies' earnings (EBITDA) amounted to 76 (1,486) kSEK, achieved through recurring income from game sales and maintained cost level. No major milestones during the quarter.
• Profit after financial items amounted to -6,070 (-6,825) kSEK, impacted by depreciation of capitalized development costs, that commence during the development phase.
• EBITDA per share amounted to 0,004 (0.09) SEK.
• Profit per share after financial items amounted to -0.33 (-0.39) SEK.
• Cash and cash equivalents at the end of the quarter amounted to 12,672 (8,952) kSEK. Cash and cash equivalents amounted to 8,608 kSEK at the end of the previous quarter.
• It was announced, after the quarter, that Cortopia, in partnership with Devolver Digital, have secured an additional $1 million USD in production funding to support GORN 2.
• Cortopia and Beyond Frames traveled, after the quarter, to New York for a press tour for TMNT VR with overwhelmingly positive response. TMNT VR has now surpassed over 50,000 wishlistsacross Meta Quest and SteamVR.

Accumulated, January 1 - September 30, 2025

• Sales amounted to 101,307 (132,570) kSEK.
• Operating profit before depreciation and amortization and shares in associated companies' earnings (EBITDA) amounted to 9,157 (8,945) kSEK, an increase of 2,4% compared to the same period last year, achieved through recurring income from game sales, collection of milestone payments and lower operating expenses.
• Profit after financial items amounted to -12,751 (-14,991)kSEK, impacted by depreciation of capitalized development costs, that commence during the development phase.
• EBITDA per share amounted to 0.49 (0.52) SEK.
• Profit per share after financial items amounted to -0.68 (-0.86) SEK.

CEO Comments
Strong Baseline, Stronger Horizons. Q3 2025 financial results were driven primarily by the steady baseline of revenues of our catalog, and was mainly a maintenance and development quarter, preparing for a big Q4 and beyond. Unlike Q2 2025 and compared to the prior year, Q3 2024, there were no major milestones or other significant revenue drivers outside of recurring revenues from the company catalog. Performance was in line with management expectations.

While Q3 results were quiet, the behind-the-scenes groundwork being laid through partnerships, game development, R&D, and marketing has produced some of the most exciting opportunities I've seen since coming to Beyond Frames. These efforts and conversations weren't possible before our major publishing successes and significant developments like GORN 2 and Teenage Mutant Ninja Turtles (TMNT VR). We're at an inflection point in XR technology and are having much more strategic conversations with intellectual property (IP) owners, hardware manufacturers, and game/entertainment distributors to discuss how we bring the world's biggest brands to smart glasses and other XR tech. Q3 was about leaning into the curve of these exciting new developments, and while I don't have anything to share today, I thought it was important that shareholders understand there's a lot of momentum building at Beyond Frames for an exciting future.

Studios
TMNT VR and the ongoing development of new content for GORN 2 are the major highlights of our studios. GORN 2 continues to sell well. The game is still under recoupment by Devolver Digital (the publisher of GORN 2) for the production funding and other costs they contributed to the project. Once their costs are fully recouped, we will begin to recognize revenue for the game and we estimate that this recoupment will be fulfilled by the end of Q4 2025. After the quarter, we announced that a deal  between Cortopia, in partnership with Devolver Digital, had been reached with an external party for an additional $1 million USD in production funding to support the game. This production funding will be managed by Devolver Digital and disbursed to Cortopia in accordance with a milestone schedule, with key deliveries spanning Q4 2025 through Q4 2026. This additional funding will not affect recoupment or revenue share, and demonstrates our studio, Cortopia's, ability to develop high-quality and entertaining games. 

The development of TMNT VR is still well underway. Q3's major focus was on delivering Q4 2025 and Q1 2026 milestones and preparing additional announcements to build anticipation for the title. After the quarter, Cortopia and Beyond Frames traveled to New York for a press tour and to host a panel about the game. The response from both the press and fans was overwhelmingly positive, and we were offered future feature articles by the media and greeted by a full room of attendees for our presentation. We've also surpassed over 50,000 wishlists across Meta Quest and SteamVR, which places us as one of the most anticipated
VR-only games in the market. We're exceptionally pleased with our marketing results so far, given we have not yet shown a gameplay trailer or other marketing that typically drives these kinds of wishlist numbers. Speaking of TMNT VR, we anticipate closing the second round of project funding with Alpha Nordic during Q4. Details on that round will be provided upon closure and will positively impact Q4 financials.

Publishing
Publishing was primarily focused on the go-to-market campaign for TMNT VR and optimizing catalog revenues as several content updates were released across our partner titles. In addition to our existing operations, Publishing is working diligently to explore the new and exciting category of smart glasses, which we see as a natural evolution of the XR market.

After the quarter, Publishing adjusted the publishing relationship with Combat Waffle Studios to a co-publishing setup in order to optimize for future opportunities in both companies and allowing Publishing to focus resources toward higher-margin opportunities in internally developed games, such as GORN 2, TMNT VR, and other projects in the pipeline. The amended contract will take effect on January 1, 2026, following recoupment for Ghosts of Tabor, GRIM and Silent North. It will have no impact on top-line revenue and limited impact on EBITDA.

The Future of XR and Smart Glasses
Last quarter, we mentioned the rapid growth of the smart glasses segment, which we see as a technical evolution of the XR market. This growth has continued as major players like Google, Meta, Apple, Snap, and others have rapidly pursued this segment in recent months. EssilorLuxotica, an Italianbased eyewear manufacturer that includes Meta's Ray-Bans, has seen over 4% growth from the smart glasses segment alone. Meta has also cited that smart glasses contributed to their 74% year-over-year growth in their Reality Labs segment, which captures revenue from mixed reality headsets like the Meta Quest line of products, apps for the Meta Quest Store, and AI glasses. 

This growth in smart glasses is due to the rise of artificial intelligence (AI). Glasses, as wearable tech, offer a unique form factor that enables the wearer to access improved AI assistance by providing more visual and audio context through what they see and hear in their surroundings. With our core expertise in developing XR experiences, we believe Beyond Frames is well-positioned to capitalize on this evolving technology.

Looking Forward
While we're still developing our internal titles, we're actively in discussions with major IP holders about our next games and apps. Our goal is still to be the leading provider of immersive entertainment in the world, and we believe that helping major IP owners build relationships with their fans through immersive tech is our path to achieving it. We hope to share more about this in the near future. We're happy with the foundations we've set in the XR market, but what's really exciting is the path ahead. As already mentioned in these quarterly comments, we strongly believe in the future of everyday, wearable XR tech, and technology we thought to be several years away is already available for purchase. The need for a rich app ecosystem to empower this technology is inevitable, and we plan to be at the forefront of this major inflection point for the XR space. 

On behalf of all of us at Beyond Frames, thank you to our players, team, partners, and shareholders for your continued support. 

Ace St. Germain, CEO Beyond Frames Entertainment AB (publ)

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