Good morning, and welcome to this earnings call, where we will mainly cover the fourth quarter of 2025 summarizing our business done in October, November, and December, and also some comments regarding the full year of 2025. I am Fredrik Ruben.

I am the CEO of Dynavox Group.

Hi. I'm Linda Tybring, and I'm the CFO of Dynavox, and I will cover the financials at the end.

Yeah. For those of you who have participated in these calls before, you will be familiar that we'll start with a quick recap about what Dynavox Group does, and then we will summarize the main takeaways from the quarter and the full year.

We will dive deeper into the financials, and thereafter, there will be a Q&A session. You can submit questions during the Q&A session in the chat function here in Teams, or you can ask them live if you have been given prior notice to our team.

Of course, we always welcome offline questions sent by email to the above email address, which is Linda's, [email protected]. All righty.

A brief overview of Dynavox Group. First and foremost, it's important to reiterate our mission and our vision, which I know is very dear not only to now our over 1,000 colleagues around the world, but also to our ecosystem of partners and investors.

Our vision is a world where everyone can communicate. We will contribute to this via focusing on our mission, which reads to empower people with disabilities to do what they once did or never thought possible.

This also summarizes two of our main user stories: the "do what you once did", that may be a person who lived a normal life until a diagnosis, such as ALS, which rendered her unable to control the body or communicate like before. The other story is the "never thought possible", and that can refer to the child diagnosed at an early age with a condition, such as autism or cerebral palsy, where, thanks to our solution, he can do much more than the world around him ever thought possible.

On the picture here, you see Lane from Lawrenceburg in Kentucky in the US, and she's one of our amazing users diagnosed with cerebral palsy. She's a great example of this.

The market that we serve remains hugely underserved. We estimate some 50 million people have a condition so grave, they simply cannot communicate unless they have a solution like ours.

Every year, about 2 million people are being diagnosed, and yet we estimate that only some 2% of those are actually being helped, and the rest remain silent. The main reason for this spells lack of awareness, also among the professionals and the prescribers tasked to assist these users, and poor healthcare reimbursement systems.

We operate with a global footprint. Today, some 3/4 of our business stems out of the US, largely because of a reasonably well-functioning funding system established some 20, 30 years ago.

Our products are also sold in more than 65 markets around the world, of which 11 are markets where we sell directly, while the others are served by a network of some 100 reseller partners. Our own staff is distributed in a similar way as the revenue, meaning that some 60% or so of our staff are based in North America, with our US headquarters in Pittsburgh in Pennsylvania.

Our second-largest office is our headquarters here in Stockholm, but we have branch offices in several European countries, as well as in Suzhou in China, in Adelaide in Australia. As of today, we are just north of 1,000 employees in total.

We provide a comprehensive portfolio of solutions, ranging from the content and the language system, such as the world's leading library of communication symbols, and they're called PCS, and the leading solutions for off-the-shelf or custom-made synthetic voices of the highest quality with a large diversity of languages, ages, and ethnicities. Then we also do highly sophisticated communication software tailored to the type of user, which, of course, can vary greatly based on the need of that individual.

Then we develop and design devices with cutting-edge technology and medically certified durability, including communication aids controlled via eye tracking and accessories, such as the Rehadapt mounts. We have a services portfolio to help our users through the complexity of obtaining and getting funding for solutions.

Then, last but not least, we are there to help our users, the therapists, the caregivers through a global team of support resources. As mentioned, we operate this model globally, and it's important to note that each piece is critically important and also a significant differentiator for us, making us absolutely unique.

Our go-to-market model is predominantly as prescribed aids. That means that some 90% of our revenue comes from public or private insurance providers.

This also means that we have solid-paying customers and have always been resilient towards changes in the overall economic climate. Righty.

Now we will go back at focusing on the main topic of today, namely the earnings report for the fourth quarter 2025. If I would be looking at the highlights, we had another strong quarter when it comes to revenue growth.

The growth compared to the same quarter previous year sums up to 31% after adjusting for the currency effects. This marks a further acceleration of an already strong trajectory over the past 4 years.

The demand for our solutions remains high, proving the solidity of our underlying business, obviously, but we also see robust growth across all geographies and markets. We continue seeing increased growth in the touch-controlled product portfolio, which typically then serves younger users with autism.

However, in the quarter, we also continue to see good traction in the eye-gaze controlled solutions serving users with more complex needs. Our EBIT came in at 103 million SEK, and this includes non-recurring costs of roughly 17 million SEK in the quarter.

That implies then, of course, an even stronger underlying profitability. In November, we moved our entire North American headquarters and logistics hub to a brand-new location, from where you will see pictures during this presentation, including on this one.

Then last but not least, on December 23rd, we entered into an agreement to acquire all the shares of our Italian reselling partner, SR Labs Healthcare, and I will come back to that in a little bit. If we then instead look at the full year of 2025, we can conclude that it was a solid regarding our top-line growth.

In local currencies, the growth was 34%. Our profitability improved in the year.

The EBIT grew by 11%. Earnings per share grew by 13%, and this really proves the case that our business is continuing to scale quite well.

The fundamental factor behind this is, again, the hugely underserved potential in the market that we address. The growth in profitability during 2025 should be seen in the light of the investments that hit our P&L with around 100 million SEK in total of non-recurring nature related to two main projects.

First, the new ERP system that was successfully launched in North America on July 1, which represent some 3/4 of our business. This new system lays the foundation for a modern, highly digitalized, and scalable backbone.

Then in November, we finalized the consolidation of the product and development organization into a central hub in Stockholm, reducing our US-based team by some 50 FTE, and in parallel, building up an even larger team here in Stockholm. As a company with a clear focus on innovation, having our products and development function concentrated in one location enables further scalability and resilience.

Another important way to scale and grow our business is to expand our direct market and the presence there. More than 70% of our revenue from Europe and the rest of the world comes from markets where we have direct presence.

In 2025, we completed the acquisition of former reseller partners Cenomy in France and RehaMedia in Germany. As mentioned, on December 23rd, we announced our third acquisition for the year, this time in Italy, where we agreed to acquire our reselling partner, SR Labs Healthcare.

The company reported revenue of approximately €3 million in 2024, and we are paying the current owner €4.2 million in cash at closing. The closing is expected during the next half year, when we look forward to welcoming some 10 amazing new colleagues to our team.

Now I hand over to you, Linda, to take us deeper into the financials.

Thank you, Fredrik. Let's start with Q4.

Revenue for the fourth quarter came in at 677 million SEK, a 31% year-on-year growth after adjusting for the currency effects. Recent acquisitions contributed with 3%, and the organic growth was a solid 27%.

This marks another chapter in our 4-year strike of robust growth and consistent execution. Currency fluctuations had 15% negative impact on revenue, hence reported revenue growth was 16%.

Sales continued to grow across all our markets. Also in previous quarters, we continued to see growth among younger users with autism using handheld, touch-controlled devices.

At the same time, they continued to see good traction in our eye-gaze control solutions, serving users with more complex needs. The gross margin ended up as 69%, a decrease of 1.1 percentage point.

The gross margin was at the same time negatively affected by currency fluctuations resulting in 13 million SEK loss, but also somewhat strengthened by sales growth, and the addition of new direct markets contributed an extra layer of the gross margin. EBIT for the quarter was 103 million SEK, and the EBIT margin was 15.2%.

Our OPEX increased with 17% organically, and the OPEX increase was affected by factor such as staff increases, mainly within the sales and marketing organization. In total, we added 155 FTEs, including M&A, versus last year.

During the quarter, as Fredrik already mentioned, we continued to invest in new systems and tools to strengthen scalability. The total non-recurring spend related to this in the quarter was 6 million SEK, which was 4 million SEK lower than prior year.

Operating expense was also affected by non-recurring cost related to the restructuring cost in the product and development organization. The total non-recurring spend in the quarter was 8 million SEK, which was 6 million SEK higher than prior year.

Both these two investments are in line with the announced strategic plan. The development of the Tobii Dynavox or Dynavox Group share price has rendered in increased cost for employee long-term incentive programs of 3 million SEK compared to fourth quarter last year.

All in all, non-recurring cost in the quarter sums up to 17 million SEK, but this was partly offset by operating income that was positively impacted by 6 million SEK related to adjustments of earn-out liabilities. In addition, currency effects, both from lower exchange rate versus prior year and together with transactional timing effects, had a negative impact of 36 million SEK on EBIT for the period.

Net R&D cost decreased by 3 million SEK, and this includes non-recurring cost of 8 million related to the restructuring within research and development organization. If we look at the basic earnings per share, it total at 0.72 SEK per share to be compared with the last year's 0.51 SEK per share.

To the full year 2025 financials. Revenue for the year came in at 2.467 billion SEK, a 25% year-on-year growth.

Excluding currency effects, revenue grew by 34%. Acquisition contributed to 2%, and the organic growth was a solid 32%.

As with the quarter, we see growth across the board in not just regions, but also product and user group. We also see the trend where markets where we go direct grew stronger.

The gross margin ended up at 68%, a decrease of 0.34 percentage point. This was negatively impacted by the currency effect about 31 million SEK, and this relates to that inventory purchased in US dollar at a higher exchange rate, resulting in the loss upon sale due to the strengthen of SEK.

At the same time, the margin was strengthened by addition of new markets, which contributed to an extra layer of gross margin. EBIT for 2024 was 254 million SEK, corresponding to a margin of 10.3% versus 11.6% last year.

Our OPEX increased organically with 27% versus prior year. The OPEX increase mainly relates to staff increases in the sales and marketing organization and salary adjustment that came into force in April 1st.

During the period, we continued to invest in systems and tools to strengthen scalability. These non-recurring cost contributed approximately with 28 million SEK to the cost increase, with a total cost of 46 million SEK in the period.

Operating expenses was also affected by the non-recurring cost of approximately 41 million SEK related to restructuring of product and development organization. The cost of the long-term incentive program increased by 18 million SEK, driven by the share price development during the year.

The amount also includes a non-recurring cost of 5 million SEK related to historical long-term incentive cost. To summarize, a total of non-recurring cost amounted to 106 million SEK.

We should also say that currency effect, both from the lower exchange rates versus prior year and transactional timing effects, had a negative impact of 78 million SEK on EBIT for the period, an impact of 3 percentage points on EBIT. R&D expenses had a negative impact on EBIT of 61 million SEK compared with corresponding period last year.

This includes non-recurring cost of 35 million SEK related to restructuring within the research and development organization. Of course, we are very happy with our revenue growth and how we delivered on our strategic investment.

Adjusted for this, we are now seeing an EBIT in line with our financial target. For the quarter, cash flow after continuous investment was positive with 46 million SEK, and cash at hand at the end of the quarter was 195 million SEK.

Net debt was 909 million SEK, and the total unused credit facility at the end of the period was 300 million SEK. The net debt over last 12 months EBITDA was 1.7 times.

That was a lot of numbers, Fredrik. Back to you.

Great. Thank you, Linda.

A lot of numbers, but on the other hand, we're also summarizing both the quarter and the year. Before we open up for questions, I'd like to reiterate the main takeaways and bring further nuance to our performance and outlook.

We continue our strong trajectory, and that's a trend that started early in the spring of 2022. As we said, the revenue grew by 31% adjusted for currency, which, of course, is highly satisfactory.

Going forward, we are clearly meeting tougher comps. As noted as well, the strengthened SEK to the US dollar poses headwinds both on revenue and earnings.

We still saw that sales continue to grow across all markets. We continue to see the growing adoption among younger users, typically with autism.

At the same time, we also see good traction in the eye-gaze controlled solutions, serving users with more complex needs. Our profitability was negatively affected by non-recurring costs totaling some 100 million SEK in the year or over 4 percentage points.

That relates to the long-term investments that focus on building a more robust company and a more resilient company. Obviously, the strengthened SEK and the weaker dollar pose significant headwinds.

Our operations infrastructure got a significant upgrade with the opening of our brand-new and modern offices and operating hub in Pittsburgh, Pennsylvania, serving our entire North American market, and that represents some 3/4 of our business. We continue to expand our direct market presence by agreeing to acquire our Italian reseller partner, SR Labs Healthcare.

The overall exposure to import tariffs to the US is limited, since our products generally are classified as medically certified assistive devices, and that exempts them from tariffs under the so-called Nairobi Protocol. While the recent US government shutdown and general uncertainty on policies had no apparent impact on our business, we acknowledge the broader societal effects that this may cause and may cause some slowdown to the business.

The financial impacts are quite difficult to quantify at this point. It continues, obviously, to be a very fluid situation in and around the US, and we continue to monitor all macroeconomic and policy change developments very closely.

All in all, we remain confident there is ample opportunity for growth over a long period of time given the low penetration of communication aids, and we continue our efforts in helping more users by expanding and service a market that is largely underpenetrated. As we have learned from the history, it will never, ever be a straight path forward, but our past performance solidifies our long-term confidence.

Our current financial targets were communicated in February of 2024 and then expressed with a time horizon of 3 to 4 years. The first target, to on average grow revenue by 20% per year, adjusted for currency effects, but includes contributions from acquisitions.

In local currency, the fourth quarter growth for 2025 was 31, which means that we've found a revenue growth momentum to build on. The market we serve remains hugely underserved, but also quite immature.

With the example of growth levers, such as sales team expansion, adding direct markets, and operational excellence, we continue to build our growth journey. The second target is to deliver an annual EBIT margin that reaches and exceeds 15%.

We have proven to build strong growth with incremental improved in profitability, and we need to continue to invest, obviously, in future growth with improvements in scale. The recipe for us is quite simple: continued revenue growth, high and stable gross margins, and then a total operating expense that increase at a lower pace than the revenue growth.

As a consequence, we see good opportunity to further leverage how revenue growth translates to reaching and exceeding an EBIT margin of 15%. Last, but not least, the dividends policy.

We do have an attractive cash flow profile, and given the growth opportunities, we need to maintain a capital structure that enables strategic flexibility to pursue growth investment, and that obviously includes acquisitions. It's still expected that over time, the board will propose a dividend that corresponds to between 30 to 50% of the net profit.

For 2025, the board has proposed a dividend of 0.40 SEK per share, which represents some 36% of the net profit. To conclude before we open up for Q&A: another strong quarter, another strong year.

Revenue is growing, profitability is improving, and we are strengthening the operational backbone for future scalability and growth. Thank you.

Philip, are you on the call?

Can you hear me?

Yes.

Yes, I'm on the line.

Thank you. My first question is on sort of growth outlook you see, obviously very good momentum here continuing in Q4.

Given now that from Q1 you are facing this more tougher comparables, do you still see that you can sustain a sort of 20-plus organic growth momentum?

I think you're absolutely right, Jakob. Hi, by the way.

Sorry for the technical issues. This is Fredrik.

You're absolutely right. We are seeing tougher comps.

Without kind of talking too much into the future, we also remain confident in our long-term predictions, and that is expressed as we believe in an annual growth of 20% adjusted for currencies and contributions from acquisitions. We're making no change to the outlook.

We have never been in a situation where the current growth has been something we have comment on in more detail. Good.

Yes. Please continue.

Yeah. Sure.

No. Another question, if you can elaborate on the development in your US sales force during the last year, sort of how much it has grown from the beginning of 2025 to where you are now, and also what trends you're seeing in sort of sales force efficiency.

Sure. Can I hand over to Linda to maybe elaborate on that?

We have added more feet on the street, over 20 people in the sales organization, or solution consultant as we call them, have been added during the year. We also see an improvement in efficiency for our sales organization on a good trajectory, which is a really good sign considering how many people we have added during the past year.

That's great.

That equates to roughly 20%, or is it

It's about 10%

Sorry, the growth in terms of number of FTE.

Yes, that's about 20% increase.

Yep.

Good. Any further questions?

Then I'm also wondering a bit on your balance sheet. It's good to see the dividend here you announce today.

Given the sort of stronger profitability, I guess we will come down to quite low leverage level here towards the end of 2026. Just what are your thoughts on how you will use the balance sheet going forward?

We should always prioritize and make sure that we look at future investments. It could be M&A, etc.

We need to make sure that we have excess cash for that. Now we have a good situation, and that's why we decided on doing a dividend this year.

I think it's also important to stress the fact that given the type of business that we're in, the type of payers that we have, as a company, we should carry a certain leverage. We obviously feel quite confident in the ranges where we're currently operating.

That can change with market interest rates and whatnot. Obviously, we feel quite confident at the leverage rate that we're on and hence doing the dividend.

Good.

Maybe I can just take a one more and then I'll get back. But

A quick one.

Just if you can comment on the situation with RAM memory prices and if you see any impact on gross margin or ability to deliver.

Sure. Just for everybody to understand, the prices for high technology memory chips has gone up dramatically, typically associated with the AI boom.

We do have memory chips in our products, and yes, we have seen that the memory prices have gone up. You should see that in the light of two things.

We don't use the highest-specs memory chips that typically use in AI computing, etc. We're not really in that market.

The other part is that the bill of material cost for the memory chip per se in our products is very, very small. Even if it would look like a doubling of memory chip prices, etc., it only would affect some tenths of percentage points on our gross margin for our products.

With a 70% or so gross margin, the bill of material cost for a specific component doesn't actually affect us all that much.

Good. Thank you so much.

You have me here. Can you hear me?

Yes, Daniel. Hey.

Good morning and congrats to great report, I think, and also thanks for the clarification for some analyst on the COGS side. You mentioned the Nairobi Protocol.

Have you seen any policy impact or changes so far? I have looked myself.

I haven't found anything.

No.

No.

Good. Another question.

In the autumn on the close-down, you were quite safe out due to prepayments. Is it something changed this time, and this prepayment thing that it could be a larger impact directly given the close-down?

We didn't see any direct impacts of the close-down, and that's because there are buffers, as you allude to, in the system. I need to stress the fact that this type of close-down, and I would also say if you go up in the helicopter and look at the general uncertainty in the US society, it will and have some sort of impact on us.

It's affecting schools. It's affecting the life for our own staff and societies at large.

It's however super difficult for us to quantify exactly what that meant in terms of dollars. I would be wrong saying that we are unaffected largely.

There's nothing that we can really point at or quantify.

Super. Also in terms of ramping up sales force, can you comment a bit on the efficiency on the number of prescribers and so on that this sales force can help, i.e., your indirect sales force more or less

that

you work with? Yeah.

Three factors. The first one is the number of reps that we have in the field.

As we said in the previous question, that increased by roughly 20% or so, or 20 people to be exact, in the US last year. At the same time, we did see a improvement in kind of revenue per rep or sales rep efficiency.

The third element is something that I believe we have talked about before, which is the number of prescribers in the market that prescribe four or more devices per year. Here too, we saw an uptick compared to last year.

Actually don't have the number, but I would say that it were probably a double-digit percentage, perhaps low, in number of prescribers that are, for the lack of a better word, good at their job or, etc. That's, of course, a fantastic growth lever because they carry our water, and they typically have more successful patients.

Perfect. For my very last question on the competitor landscape, have you seen any larger changes for sort of the UK competitor, Smartbox was acquired there, and also to say something of PRC-Saltillo in the US, given these are private companies, it's hard to judge from the outside.

The short answer is no. I think it's largely business as usual.

If you look at the acquisition of Smartbox, that was announced, not yet closed, I believe. That's merely an ownership change, and that's potentially good.

We have no opinion about that. You did also see that PRC-Saltillo did acquire two small software companies, typically focusing on other markets than their home market US.

Again, this doesn't affect our day-to-day life.

Super. Thank you so much, and good luck in Q1.

Thank you, Daniel.

Linda.

Yeah. During 2025, we have talked about the strategic move that we have done from the US to Sweden, which means in 2025, our R&D spend has been very high because a lot of non-recurring cost.

What we see over time is that we will not increase our R&D spend in relation to revenue. That will over time go down.

Also why we did this move was for the same amount of money that we spend in 2024 or in Q4 2024, we will actually hire more people. We will get an efficiency in adding more capacity for the same amount of money.

Over time, this will go up, but, of course, we need to add a couple of heads every year, but it's not significant from a million SEK million SEK increase perspective.

The same.

Yes.

Yes.

Good morning. All right.

Most of my questions have been covered, but I was just wondering, has the US reimbursement rates increased going into 2026?

Yes, they have communicated a 1.9% increase in December that we will start to evaluate during the year or implement during the year. As historically, this takes some time for us because we need to update all our appendixes to our agreements with the funding bodies across the US.

It's a good question because, as many fear, with the current political climate, it didn't go down, and it's typically associated with inflation. I think this just under 2% increase of reimbursement rates underscores that.

Then I was also wondering about Tobii. They reported the other day, and it was quite a disappointment.

Does it have any effect on you about their performance and their ability to deliver products to you?

No.

Short answer. Okay.

No,

it's obviously a complex topic, but we are in a position where it doesn't affect us.

Yeah. We have a lot of stock when it comes to Tobii components.

That's part of the prepurchase we did during the summer.

Yeah. All right.

That was all for me. Thank you.

Thank you.

Hi, Jessica, is that the profitability or margin target is expressed as exceeding 15%. Our target is not 15% full stop.

It's exceeding 15%. We remain confident that that's a level where this company should be able to deliver.

With that said, we're also going to make sure that we make the appropriate investments so that we don't build a card house that could implode here. We want to build something very, very solid and resilient.

We should also remember that Q4 is our strongest quarter, profitability both grow both revenue and profitability can increase during

during the

quarter during the year.

Yes. That's mathematics.

Yes.

Sure. It's actually quite complex topic, because we are operating in an industry where we are also not only providing the products and the solution, we're also there to create the awareness.

Our long-term initiatives on educating prescribers, being active at universities, creating more and more successful users, etc., that is a very, very slow-moving ship. It's quite difficult to kind of exactly calculate the impact from when one of our colleagues are out in the street teaching a prescriber how to do their job until that translate into revenue growth.

I would say we are responsible for the growth because we and some of our industry peers, we largely create the market. Exactly to predict which percentage points that will end up in is genuinely hard, but we feel, obviously, that we've found the momentum.

I expect that there will be a bumpy road. Sometimes we will have very strong growth, and sometimes we will have weaker growth.

If you zoom out a little bit and look at the overall curve over longer periods of time, we are, obviously, quite confident in long-term growth. When I say long term, I'm probably more talking decades than quarters.

All right.

We concluded. All right.

Thank you everybody for listening in. We apologize for the technical mishaps that happened, but obviously we were able to hear the voices of some of our dear analysts and followers, something worked.

We will now continue to work, and next time we have a session like this will be on April 24th, it's a Friday, and then we will conclude the first quarter of 2026 and our earnings. Thank you very much.