Copenhagen, 5 November 2025 Napatech A/S ("Napatech", OSE: NAPA) today announced
its financial results for the third quarter of 2025, delivering strong revenue
growth, improved profitability, and continued strategic momentum across key
accounts and product lines.

Napatech reported Q3 2025 revenues of DKK 40.1 million (USD 6.3 million),
representing an 18% increase in DKK and a 25% increase in USD compared to Q3
2024. This also marks a 31% sequential increase from Q2 2025 in USD terms. Gross
margin remained robust at 70%, consistent with historical performance.

EBITDA for the quarter improved significantly to negative DKK 6.1 million, a
year-over-year improvement of DKK 11.5 million. Staff and external costs were
reduced by 23% compared to Q3 2024, reflecting disciplined cost control and
operational efficiency. Net cash flows from operating activities were break-even
for the quarter, a DKK 22.5 million improvement from the same period last year.
Cash and cash equivalents stood at DKK 117.7 million at quarter-end.

"We are pleased to report a standout Q3, traditionally a slower quarter for us,
with strong growth in our core business and continued traction in strategic
accounts," said Lars Boilesen, CEO of Napatech. "Our performance this quarter
reinforces our confidence in the business and removes concern about the need for
a capital increase in 2026."

Napatech continues to make progress with key strategic partners. The company is
advancing its collaboration with a tier-1 server vendor, and an AI Inferencing
innovator. Napatech's deliverables for the D-Matrix JetStream AI NIC have
remained on track, and the companies are now exploring expanded cooperation.

"We are entering the final stretch of 2025 with strong momentum," Boilesen
added. "Our pipeline is expanding, our partnerships are deepening, and our
operational discipline is delivering tangible results. We remain on track to
meet our full-year guidance."

Napatech's financial guidance for 2025 remains unchanged:
Revenue: 	                        DKK 150-190 million
Gross Margin:	                        69-71%
Staff Expenses & Other External Costs:	DKK 170-180 million
Staff Costs Capitalized to Development:	DKK 8-12 million

Napatech will host a webcast presentation and a conference call to discuss its
third-quarter 2025 report today at 09:00 (CET). The presentation will be given
by Lars Boilesen (CEO) and Heine Thorsgaard (CFO).

https://events.q4inc.com/attendee/428944682

Dial-in details for the conference call are: 

DK: +45 89 87 50 45
US: +1 646 233 4753
UK, and all other locations: +44 20 3936 2999

Access Code: 082808

For additional information, please contact: Heine Thorsgaard, Chief Financial
Officer Phone: +45 4596 1500 E-mail: htg@napatech.com

About Napatech 
Napatech is a leading supplier of programmable FPGA-based Data Processing Unit
and SmartNIC solutions used in telecom, cloud, enterprise, cybersecurity, and
financial applications worldwide. Through commercial-grade software suites
integrated with robust, high-performance hardware, Napatech accelerates telecom,
networking, and security workloads to deliver best-in-class system-level
performance while maximizing the availability of server compute resources for
running applications and services.
www.napatech.com

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to section 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Heine Thorsgaard, CFO, Napatech A/S, on 5 November
2025 at 08:00 CET.