Good morning, everybody. This is Fadi Pharaon, CEO of Tobii, and I'm joined today by Martin Johansson, our acting CFO, and Henrik Vikström, our interim head of communications.

Thank you all for joining our Q3 2026 earnings call. Let's start with the quarter.

Net sales were 140 million Swedish krona compared with 158 million last year. This of course represents a reported decline of 11% and an organic decline of 12%.

However, when adjusted for extraordinary one-off sales in last year's quarter, the sales actually increased by 16%, which is encouraging, but it does not change our assessment that we need higher and more consistent sales. Our operating cost base continued to decline, and EBITDA, the operating result before depreciation and write-downs, improved.

These developments together show underlying progress. However, the current sales level remains low in relation to our cost and investment base.

At this level, free cash flow was negative, and cash liquidity is strained. We are acting on both the operating business as well as the balance sheet.

The gross margin was 79% compared with 82% last year, and reported EBIT was negative 217 million SEK compared with negative 33 million SEK. Now, this result included a non-cash impairment, or a write-down, of 180 million SEK in AutoSense.

It reduces the reported EBIT, but it does not consume cash. I'll explain the reasons for this write-down in more detail later on when I discuss AutoSense.

As mentioned, the EBITDA actually improved to 18 million SEK from 11, and that corresponds to a margin of 13%. Now together, the Product & Solutions and Integrations units delivered positive EBIT, and these figures show that the actions we've taken on costs and priorities are having an effect, but we still need to improve our commercial performance.

The cash flow from operating activities was positive 22 million. After the investments of 88 million SEK, almost entirely actually related to product development, the free cash flow was negative 6 million SEK.

This means that the cash at the end of the quarter ended at 29 million Swedish krona. Again, this is a strained cash position, and we are therefore continuing to manage our cash tightly.

We prioritize our investments carefully, and we work intensively on the financing needed to meet our commitments. Now, let's move on and review the performance of our three business units.

Starting with the largest business unit, Products & Solutions, it's actually showed an organic growth of 3%. We saw a gradual recovery in China during the quarter because the earlier procurement delays began to ease up.

Now, the overall developments supported this positive organic growth, and they give us a base to build upon. Our focus now is to convert that progress into sustained growth.

During the quarter, I'd like to mention that we also launched a locally installed version of the Webcam Eye Tracking for research, which compliments the solution for remote studies that we released back in Q2. Our second-largest business unit, Integrations, showed an organic decline of 40%, but keeping in mind that the comparison period included the 30 million SEK Dynavox pre-purchase and 7 million SEK of non-recurring royalty revenue.

If we adjust for these items, Integrations grew by 31%. Now, although Products & Solutions did not reach positive EBIT, the combined EBIT of these two units, Products & Solutions and Integrations, which together represented 90% of the quarter's sales, was positive at 4 million SEK.

Let me move on to AutoSense, where we see that the sales increased, which is of course mainly driven by higher license revenue. The revenue of course remains at an early stage, and this development is encouraging and it reflects the commercial resonance of our technology.

I will take a minute here to put this part of the business in a broader context. The long-term need for driver and occupant monitoring remains clear, and it is supported by regulation and increasingly demanding vehicle safety requirements.

In the near term, however, the automotive industry continues to face challenging and uneven conditions. The investment priorities are under pressure, the development cycles are long, and the timing of OEM decisions can shift.

Now, AutoSense has established a strong technology position. Amongst others, we have a major design win with a premium European automotive OEM, and late last year, we signed a technology licensing agreement with a major automotive supplier.

These achievements, with others, validate our technology, and they also demonstrate different routes we can take to market. At the same time, our commercial progress has not yet translated into a revenue base of sufficient scale and visibility to support the historical level of cost and investment.

This is why we're adapting the business while pursuing the opportunities where we believe AutoSense can create value. Now against this background, we reassessed our development assets, and we concluded that their carrying value is no longer supported by expected future cash flows.

Therefore, we recognized a non-cash write-down of 180 million krona, mainly related to older driver monitoring system technology which was developed by Tobii before the AutoSense acquisition. The reported EBIT for AutoSense was therefore a negative 222 million krona.

AutoSense remains under strategic review because of market uncertainty, insufficient revenue scale, and the need for a more sustainable commercial and financial model. With that, I would like to invite Martin, please, to walk us through the financials.

Thank you, Fadi, and good morning, everyone. My name is Martin Johansson, and I am the acting CFO at Tobii, and today, I will be presenting Tobii's financial results for the third quarter of 2026.

To begin, I would like to highlight three key areas. The net sales totaled 140 million SEK, a decrease of 11% compared to prior year.

Last year did, however, include a total of 37 million relating to the pre-purchase agreement with Dynavox and one-off royalties. Adjusting for these items, net sales grew by 16%.

Currency had a positive impact of 1%. Operating profit was minus 217 million SEK compared to minus 33 million SEK in the same period last year.

The decrease is primarily attributable to the non-cash-related write-down of 180 million SEK within AutoSense. EBIT, excluding AutoSense, was positive in the quarter.

Free cash flow for the quarter was minus 6 million SEK, an improvement compared to minus 29 million SEK last year, and I will return to the financial position in more detail later in this presentation. As previously mentioned, the net sales declined, but adjusted for extraordinary one-off items, the underlying growth was 16%.

Gross margin decreased to 79% compared to 82%, reflecting overall lower net sales. During the quarter, we continued to see positive impacts from our cost-savings programs.

Operating expenses, excluding depreciation and including R&D investments, amounted to 121 million SEK, a total reduction of 29 million SEK compared to the same period last year. With already announced actions in Q2, we will continue to see the company's cost structure improve going forward.

Depreciation, which does not affect cash flow, amounted to 48 million SEK, an increase of 7 million. I want to once again point out that EBIT for the third quarter was negatively impacted by the aforementioned write-down of 180 million SEK related to the AutoSense business.

Looking at the Products & Solutions business unit, net sales increased to 86 million SEK, an organic growth of 3% compared to 84 million SEK last year. Most of our geographical regions had a stable development, and as Fadi pointed out, we did see a gradual recovery in China, which had seen procurement delays in recent months.

The gross margins stands at 70%, an improvement from last year's 68%. Operating profit improved to minus 7 million SEK compared to minus 19 million SEK previous year.

For Integrations, net sales decreased to 42 million SEK. This decrease ties back to the Dynavox pre-purchase of 30 million SEK and one-off royalty payments of 7 million SEK.

Adjusted for these items, net sales increased from 32 to 42 million SEK and a growth of 31%. The gross margin remains at a high 93%, which is reflecting the software, services, and license-based product mix.

Operating profit was 11 million SEK compared to 27 million SEK previous year. Again, it should be noted that last year's pre-purchase agreement had a significant positive impact on margins and profits in Q3 of 2025.

The AutoSense business unit reported revenues of 12 million SEK compared to 6 million SEK last year. The increase was driven by increased license revenues.

EBIT for this business area was negatively impacted by the non-cash-related write-down of 180 million SEK, and as Fadi already explained, the write-down already relates to the legacy DMS technology that was developed by Tobii prior to the acquisition of AutoSense. The cost measures announced last quarter will reduce the annual cost base in AutoSense by more than 50 million SEK.

Operating profit was minus 222 million SEK compared to minus 42 million SEK previous year. Excluding the write-down, EBIT was minus 42 million SEK, which was in line with last year.

I would like to conclude this section with comments on our cash flow and overall financial position. Free cash flow in the third quarter was negative at minus 6 million SEK.

Cash flow from operating activities before changes in working capital improved to 16 million SEK compared to 6 million SEK last year. Free cash flow improved from minus 29 to minus 6 million SEK.

Our cash balance at the end of the quarter was 29 million SEK, and we had utilized 20 out of the 25 million SEK credit facility. As mentioned in the report and earlier during this call, our overall liquidity and cash position is strained, and we are faced with several upcoming obligations, which Fadi will give more details to in a bit.

There remains a risk that Tobii may not have a sufficient financing for the next 12 months, and we are, of course, fully focused and committed to resolve this situation and will provide further information whenever material events occur. Back to you, Fadi.

Thanks a lot, Martin. Let me address the financing necessity upfront and let me be clear.

Securing our financial platform is the highest immediate priority for the board and the management. Our liquidity is strained, and we face several upcoming financial commitments.

We have 87 million krona of COVID-related tax deferrals that are due in the first quarter of '27, and then we have the first payment under the AutoSense promissory note to Xperi in the second quarter of 2027. Thirdly, a further 40 million SEK of tax deferrals, which is due in the third quarter of next year.

That's why the board, the management, and our major shareholders are working with external advisors to strengthen the balance sheet, and we're actively evaluating different forms of equity and debt financing. Now, the feasibility and the terms of these alternatives demand or depend, among other matters, on our ongoing negotiations with Xperi, which is the company that we bought AutoSense from.

Those negotiations are concerning the remaining payments linked to the acquisition of AutoSense. As you can deduct from it, this is an active process, but there's no guarantee that it will result in a transaction, a decision, or any other action.

As you can appreciate, we cannot comment on individual discussions or indicate which outcome is most likely before there's a concrete information to disclose. Of course, we will update the market promptly when material developments take place.

In parallel to all of this work, we remain focused on the actions within our control, and they are protecting cash, maintaining a disciplined cost base, and working on improving our commercial execution. If we look at the strategic review, it has given the Products & Solutions and Integrations a more focused and efficient foundation from which to grow.

In fact, since launching our cost-reduction program back in Q2 2024, we have fundamentally reshaped our cost structure, and that has led to reducing the quarterly cash operating costs, including R&D investments, by more than half. This shows the scale of the change in our cost base and reinforces the importance of maintaining our financial discipline.

Now, our ambition is to make Products & Solutions a sustainably cash-generative business. For Integrations, the priority is to strengthen the business through more standardized platforms and selected verticals.

AutoSense remains under strategic review. The additional cost program, which we announced in Q2, is expected to reduce the annual cost base by more than 50 million SEK.

We're also moving towards shorter payback periods, earlier monetization, and lower commercial risk. We continue to evaluate the full range of strategic alternatives with the objective of strengthening Tobii's group financial position.

Now, looking forward. As I mentioned, the work completed so far under the cost programs and the strategic review has given us a more focused foundation.

We're now moving into the next phase of our strategic work, and that's converting our efforts into profitable growth while keeping the financial discipline that we established. First, we must make financial discipline permanent.

That means we will protect cash and working capital and keep structural savings in place as we grow. We will not invest ahead of the market.

Future investments will have to follow demonstrated customer demand and visible revenue opportunities and acceptable returns. Second, we will give each business a clearer growth path.

For Products & Solutions, it should become our cash-generative unit, and it should expand beyond research into selected business solutions. Examples, it would include workforce training, quality inspections, safety-critical workforce, where we can see that eye tracking can help customers shorten the onboarding, improve consistency, and reduce errors.

We see this as important for growth because it broadens our customer base beyond research solutions and links our technology to measurable operational outcomes. For Integrations, we will build more standardized offerings and focus on selected verticals once the market demand is proven.

In AutoSense, we will continue our work to broaden our commercial model through licensing and partnerships, and the aim is to generate revenue earlier and create a better balance of investment and commercial risk. Thirdly, we will strengthen commercial execution across Tobii.

This means that we will deepen our customer focus. We will use the market insights and evidence of demand to sharpen our product and investment decisions and thereby strengthen our commercial performance.

That's our focus forward. Let me now summarize the quarter.

Reported net sales declined to 140 million SEK, and as I mentioned, that sales level is not up to our ambitions. Adjusted for the pre-purchase and non-recurring revenue in the comparison period, sales increased, though, by 16%.

EBITDA improved to 18 million SEK, and Products & Solutions and Integrations together reported a positive EBIT. These are early signs of underlying progress, but we need to deliver that progress consistently and ensure positive cash flow.

Again, AutoSense remains under review, and we're evaluating all alternatives that can strengthen both the business and Tobii's financial position. Our immediate financial position remains strained.

The cash at the end of the quarter was 29 million SEK, and the free cash flow was -6 million SEK. Securing the financial platform is, therefore, the board's and management's highest priority.

Our target remains positive operating cash flow for the group during 2027. While our immediate priorities are clear, the strategic relevance of Tobii's technology remains unchanged.

Our vision is to shape how people and technology understand human behavior. We combine our global leadership in eye tracking with expertise in computer vision to reveal how people perceive, engage with, and respond to the world around them.

We aim to do so through customer-led innovation, disciplined capital allocation, and scalable growth opportunities. Thank you very much, and Henrik, can we please now open the question-and-answer section?

Yes. Before we open for questions, I would like to briefly set expectations for the Q&A.

We will aim to be as transparent and helpful as possible in our answers. There are, however, certain areas where we will not be able to provide detailed information, such as individual customer relationships, specific project revenues, or other commercially sensitive details, and also ongoing negotiations and financing alternatives.

This is to respect our confidentiality commitments and to ensure that we communicate in a consistent and fair manner to all stakeholders. Where we cannot go into that level of detail, we will do our best to provide relevant context at an aggregate level.

With that, we're happy to take a selection of your questions. Will we start with verbal questions, and then we move in to the written questions.

Our first question comes from Daniel Thorsson at ABG. Please go ahead.

Yes. I've unmuted the microphone, just testing if it works.

Yes, we hear you. Yes.

Excellent. Thank you very much.

First, a question. It looks like you have narrowed the strategic direction now a bit, finding it more likely to divest AutoSense than previous communication, which sounded broader.

What is the reason for that given that the other segments are performing better now, and do you still consider all options still to be on the table, or is it now purely AutoSense focus ahead? Hi,

thanks a lot for the question, Daniel. As long as Tobii as a company is not showing profitable growth and sustained cash flow, I think all options should remain on the table.

Having said that, we are very encouraged that the previous work on cost efficiencies and strategic reviews have actually given us some underlying progress for Products & Solutions and Integrations. I think you've listened to that, right?

On AutoSense, though, we haven't reached that specific moment, and that's why we feel we still need to continue the effort. I would probably not jump on conclusions as you did in terms of which part of the strategic reviews that we will focus on.

We're actually open to different alternatives. We are studying them.

We evaluate them. We want AutoSense to succeed.

At the same time, we need to take into account the position of the Tobii Group. We continue working on that in order to improve that.

You mentioned, "Why?" The reason is clear in terms of the market uncertainty.

I think everybody is fully aware of what the automotive market is going through. Specifically for Tobii, it is incumbent on us to generate a revenue base that can sustain the level of costs and investments that we've had, and that goes for any kind of commercial business.

Okay. That's clear.

Thank you very much. Then secondly here, on the final slide, you showed a target of positive operating cash flow during 2027.

Does that mean sometime during 2027 or for the full year 2027? Also, does it include AutoSense as part of the group as of today or any assumptions of that being divested in that target?

No. When we have committed for that target, it's for the full year of 20 2027 for positive cash flow, and of course it is reflecting Tobii as is today with the three business units we have today.

Okay. That's very clear.

Perfect. Then on the cash flow here, you're clear on the Q1 and Q2 payments coming up.

Do you have any kind of one-off cash payments due in Q4?

I do not believe we have so. Those that I mentioned are the main ones.

Okay. Perfect.

Are

you saying Q4 '27 or '26, or which? '26.

'26. Q4 '26.

'26, we have some, but it's more on the operational level, I would say.

Yeah. I see.

I see. The COVID loan and the purchase considerations, they are both in Q1, Q2 '27, right?

Yes.

Okay. Clear.

A final question, combined EBIT in Products & Solutions and Integrations were positive as you highlight, but was the combined free cash flow for these two units also positive if we compare to the group free cash flow of minus 6 million here in the quarter, essentially excluding AutoSense?

Yes, I would say so. We don't really break it down on that level in a specific way, but I think it's fair to assume that that's actually the case because AutoSense clearly has a very big investment phase still and relatively limited cash flows coming into Tobii as a group.

Yeah. I assumed so as well.

Perfect. That's all for me.

Thank you, Daniel, for your very good and relevant questions. Appreciate it.

Okay. Then we move into the written questions, and we will start with some that we've received prior to this call.

The first one is a question why Tobii isn't growing in line with the eye-tracking market.

I don't really know what is the baseline of the growth of the eye-tracking market that is being considered in this question, though. It depends on what documentation one would read, but I would say that market growth estimates they vary considerably.

It depends on what you include, what segments, typically, it might be consumer XR, automotive, and that's still a fragmented and competitive market. As I mentioned before, the reported figures have been affected by extraordinary items in the comparison period, but once you take out these Dynavox pre-purchase agreement and other extraordinary effects, the net sales adjusted for those actually grew by 16% in Q3 and 5% if you look at the first nine months, right?

Again, this is encouraging to see that Products & Solutions have returned to growth in the quarter and the underlying growth for Integrations was positive as well. Again, we are not satisfied with the sales development, and that's exactly why our strategic priorities are focusing on the products, customers, and segments where we see the strongest return and the sharper commercial execution and those three principles that I mentioned in the call.

Okay. Next question.

What is management doing to regain the confidence of shareholders and the market?

Thank you, and I have full respect for this very relevant question. Look, the most important thing that we can do as management is to deliver.

Now, we have significantly lowered our cost base. We've laid the foundation for strengthening our core business, Products & Solutions and Integrations.

Combined, they were profitable this quarter, and they are showing underlying sales growth in the quarter. As I mentioned before, we have clear strategic priorities on how we're going to further strengthen our business.

We've also taken decisive actions within AutoSense, and we have an adjusted now cost base to reflect a tougher market and a revised commercial approach to enable our earlier monetization. A lot of effort and activity in the ground, but of course as a shareholder and the market, I would want to see those deliverables, and that's why we are here for.

Next question. Why doesn't Tobii communicate more with shareholders?

Of course, there can never be any communication that's enough. We have to keep in mind, though, that as a listed company, we must ensure that all the shareholders receive the same information at the same time.

That, per se, limits what we can discuss outside our regular reporting and particularly when there are financing, structural, and strategic reviews and discussions, when these things are ongoing. Within those boundaries, it is not always easy to communicate.

Now, we want to increase the dialogue with the market, and we will always provide further information as soon as there are material developments.

How will the cash flow problem be solved, both short and long term?

Thanks for the question. Look, the board, the management, and our principal shareholders are all actively working to strengthen the balance sheet in order to meet the financial commitments that I mentioned previously.

Again, we're evaluating various financing alternatives, including different forms of equity. The feasibility of these terms depend on, among other things, the ongoing negotiations we're having with Xperi.

We cannot go into further details than that today, but we will inform the market as soon as there are material developments. On the longer term, though, we are committed to make Tobii self-financing, which means the target of positive operating cash flow for the group in 2027.

When will the new financial targets be presented?

Thank you. That's true.

We don't have ones anymore. The new financial targets will be presented once we have secured the financial platform.

Again, we have already shared that we're targeting positive operating cash flow for the group in 2027.

Can you already now elaborate on the earnings potential you see for the core operations of Tobii?

You mean Products & Solutions and Integrations? Look, we will come back with targets, but we see the potential for robust profitability for these core operations over time.

We have a solid market position, and we've significantly reduced the cost base, and we're implementing measures to further improve the business.

Next question. With the information you have today, was the acquisition of AutoSense a mistake?

I think at any point, any business decision is made taking into account the information and those prospects at the time. Clearly, the evolution of DMS and OMS as a demand of the market has been correct because there is regulation and many OEMs are introducing this type of technology in their cars and vehicles.

It is incumbent on us to ensure that in a very competitive and fragmented market that we succeed with these solutions that we are putting togethers. We have already a few customers that I mentioned before showing us.

Today, clearly, our revenue base is not enough to sustain the historical cost that we've had. That's why we are determined to continue to work with our AutoSense talented team to ensure that we continue growing, as well as, at the same time, keeping all options open in terms of our strategic review to see how we can strengthen Tobii's financial state.

Okay. Another question on AutoSense.

Just 6 million krona software revenues during the quarter for AutoSense when DMS is mandatory in the EU. How can you comment on this?

It reflects, of course, on the number of customers we have. We've already seen license payments coming in in 2026, and we expect those to increase in the coming years.

Okay. What is the cash outflow for the Xperi promissory note in the second quarter 2027, and what is the total amount of future payments to Xperi and when are they due?

Martin, would you?

Yes, of course. The first installment in the 2027 Q2 is $10 million plus interest, corresponding roughly to 120 million Swedish krona.

Was there a second or was there a question tied to that?

No, I think that answered the questions. Right.

Then, next question, again, back to AutoSense. Can you elaborate on why the Korean design win never entered production?

Did the Korean OEM instead source its software from a competitor, and also when was Tobii informed about this?

Thank you for the question. The design win from 2023 from a Korean OEM, that was actually a framework agreement that the company had at the time that AutoSense was acquired by Tobii.

This framework agreement did not turn into a firm agreement for us or firm. As I said in our previous earnings call, it is not included our design win.

It was lost probably to competition. Okay.

Any further questions?

When do you have to repay the credit facility?

Martin?

The credit facility matures in mid-December.

I think that concludes the questions we've received, with that, I hand over to you, Fadi.

Thank you for all the great questions and the interaction. Again, I would like to thank our extremely talented team in Tobii and all our shareholders and our board and all stakeholders that are supporting us to continue to provide value and relevance in this demanding period, and the effort continues.

Thank you, everybody.