Thank you, Rasmus, and good morning, everyone. Please note that this presentation, as Rasmus said, is being recorded and will be accessible afterwards on our Investor Relations website, where you'll also find the earnings press release, quarterly report, and presentation material.

With me today, we have our CEO, Vegard Wollan; CFO, Pål Elstad. They will share details about our second-quarter 2026 financial performance and updates on key business developments.

Following the presentation, we will move on to Q&A segment. During this time, live questions can be submitted through the Q&A dial-in feature.

For instructions on how to dial in, please refer to the earnings call invitation available under stock exchange notice on our IR website. Please keep in mind that the dial-in is required only if you like to ask questions.

As a reminder, this presentation includes forward-looking statements that comes with inherent risk and uncertainties. Actual outcome may differ materially from statements expressed or implied.

We highly recommend reviewing our detailed Q2 2026 quarterly report and the '25 annual report for deeper understanding of the risks and uncertainties that could impact our business operations. With that, I will now hand the microphone over to our CEO, Vegard Wollan.

Thank you, Ståle, and good morning, everyone. Q2 was another solid quarter for Nordic, both operationally and financially.

Our product renewal program continues to progress very well, both strengthening our competitive position and expanding our addressable market. At the same time, we continue to develop our software offering and have launched cutting-edge AI tools that enable developers to speed up and improve the quality of their product development processes.

We continue to grow our cloud services business, which increase the lifetime value of our products. Financially, we achieved record revenue in the second quarter, an increase by 33% to $219 million.

This was once again at the high end of our guiding range, and this brings revenue for the last 12 months to $759 million, up 21% from the second quarter last year. As in the first quarter, we saw growth both in short-range and long-range, and among both large customers and the broad market, and across the consumer and industrial/healthcare segments.

Gross margin was 53.1% in the second quarter, up from 50.7% in the second quarter last year and from 52.1% in the first quarter this year. Overall, this generated an EBITDA of $36 million when adjusted for non-cash cost effects related to the Memfault acquisition, up from $21 million in the second quarter last year and from $24 million in the first quarter.

As I just mentioned, we continue to see growth both among our key customers and in the broad market, and this quarter, we see particularly strong performance in the broad market. Revenue from the top 10 customers are at an all-time high on a rolling 12 months basis, and we are continuing to grow the design activity with our key customers at a high level.

However, we have said for a long time that it has been a clear priority for us to regain traction in the broad market, and we now see the strongest growth in this area. Broad market revenue is up by almost 60% from the 2024 lows on a rolling 12 months basis, although still almost 20% below the peak levels from 2022.

We continue to see great upside potential, and we see both new customers and returning customers. Looking at the end customer Bluetooth Low Energy certifications, we account for 31% of the total number of certifications, although we dropped somewhat below 30% in the second quarter isolated.

Designs based on the new nRF54 Series accounted for more than 20% of the certifications in Q2, and this will continue to increase over time. It's important to note that this is only counting numbers of certifications, and it does not distinguish between high and low volume end products.

Because of that, this cannot be translated into volume or revenue market shares. Last time, I spoke about four key growth drivers for Nordic.

The first is the continuing wireless connectivity market growth, which creates an attractive business environment for us. The other three are up to us.

With an ever broader portfolio of next-generation hardware, cutting-edge software and developer tools, and a growing cloud services offering, we are strengthening our competitive position, expanding our addressable market, and increasing the life cycle value per customer and product. What sets us apart in this competitive environment is our complete chip-to-cloud solution.

Nordic is continuing to build a position as a trusted partner to its customers from concept idea through product development and all the way to the end product's life cycle. We have world-class, ultra-low power hardware offering wireless connectivity on multiple protocols, the highest performance processing and compute capabilities on the market, and continuously growing power management portfolio.

We have a strong stack of embedded software solutions, including the nRF Connect software development kit that works across the complete chip-to-cloud solution, and the newly launched AI-assisted development tools that I'll get back to in a minute. We have our growing cloud services business that enables secure over-the-air monitoring, debugging, firmware updating of devices in the field, and compliance with the EU Cyber Resilience Act and other regulations coming.

Let's first take a closer look by clicking in on our hardware portfolio. This is a very busy slide, but it necessarily is so if we have to show the increasing breadth of our portfolio that enables Nordic to capture the broad market and open entirely new opportunities.

In two years now, we have executed an aggressive roadmap built on the highly competitive 22-nanometer processes from our key partners, GlobalFoundries and TSMC. In short-range, you see the growing number of SOCs in the new nRF54 Series, spanning from entry-level parts, such as the different 54L05 variants, through the mainstream 54L10, L15, to the high-end large memory 54LM20A and B, and the 54H20, aimed to meet the complexity and functionality that intelligence at the edge now demands.

This adds to the nRF52 and the nRF53 Series, which have also served us so well over the past decade and still account for the bulk of revenue and even still have new design wins. In the middle, you see our long-range portfolio.

We introduced the nRF9151 in late 2024. At Mobile World Congress in March this year, we announced the upcoming nRF92 and the 93 Series, including the new smart modem variants.

This future-ready cellular IoT portfolio now spans LTE-M, NB-IoT, satellite NTN, and Cat-1bis, with options for both integrated applications processors with the open MCU series, and external application processors in the smart modem series of the 9x Series. Then we have the Wi-Fi portfolio, where we expect to make a step change forward with the upcoming nRF71 Series based on 22-nanometer technology and our most modern technology platform.

Underpinning all three spanning short-range, long-range, and Wi-Fi are the growing portfolio of power management solutions and range extenders. They complement the entire portfolio, improving usability and extending the addressable market.

Summing up, this represents the broadest and most modern product portfolio for low-power wireless communication in the market. We are addressing an ever-increasing part of the commercial opportunity, and we have only just begun to see the financial impact of the overall product renewal program.

On top of our hardware, software, and services pillars, there is one thing that ties it all together, which increasingly sets us apart. Developer experience has always been Nordic's strength, built on trusted, established development tools, high-performance connectivity and software stacks, documentation, and support.

That foundation gives developers a proven starting point when building on Nordic solutions. AI has the potential to assist developers across the entire product life cycle, from prototyping and board bring-up to debugging, release validation, fleet management, and there are many trying this at the moment.

However, generic AI assistants often lack the hardware SDK, configuration, and device-specific context required for reliable embedded development, which creates a real pain point for developers and end product development. Nordic's AI-assisted development capabilities address this by giving AI assistants access to verified Nordic context, including nRF Connect SDK, documentation, API references, device configurations, and even field data from nRF Cloud.

This is unique, and the ground truth is high-quality data from Nordic and the high-quality Nordic foundation for developers. This truly solves pain points experienced by developers.

This means we are now helping developers to speed up their development cycles and achieve higher quality results. With that, I'll leave it to Pål to take you through the financials.

Thank you, Vegard, for a very interesting review of our products and systems and tools we have enabling our customers to develop their products. Out now onto the financials for Q2.

As Vegard mentioned, revenue amounted to $219 million in the second quarter of 2026, an increase of 33% from the same quarter last year and 14% increase from the previous quarter. This is the highest quarterly revenue we have ever reported.

The previous highest was $202 million back in 2022. On a rolling 12 months basis, revenue increased by 21% to $759 million.

The revenue growth mainly reflects Nordic's strengthened competitive position in the short-range wireless communications market, with short-range revenue increasing 29% to around $200 million. Although short-range is driving our growth with more than 90% of total revenue, we see strong growth in the other business units.

Long-range revenue almost doubled to $15 million, with both higher product sales and higher cloud services revenue after last year's acquisition of Memfault. Although the scale is smaller, it's also worth noting close to a doubling of other revenue to $4 million, mainly driven by increased sales of PMICs and development kits.

Turning to the end-user markets, we see growth across all areas. Consumer revenue increased by 25% year-over-year to $125 million and now accounts for 57% of total revenue.

Consumer growth continues to be relatively broad-based across most verticals. Industrial and healthcare revenue increased by 45% to $86 million and account for 40% of the total.

Growth in this segment continues to reflect strong healthcare numbers and increasing contribution from long-range, which mainly goes to the industrial consumers. As we have communicated for a long time, revenue in industrial and healthcare will still depend on relatively small number of customers, with high sales to individual key customers supporting revenue also in this quarter.

This means that we would see significant variations from quarter to quarter. Interesting point this quarter is that other revenue grew to $7 million, up from $4 million last year.

Other revenue mainly reflects online catalog sales, supporting the positive development that Vegard mentioned in the broad market. Turning to gross profit, gross profit was $116 million in Q2, up from $83 million in the same quarter last year.

The gross margin hence increased to 53.1% from 50.7% last year. The increased margin reflects changes in product mix, higher sales to broad market customers, and increasing positive contribution from high-margin cloud services revenue.

We expect the gross margin to remain above 50% also in the third quarter, and reiterate our long-term ambition to keep gross margins above the 50% level. The growth is improving margins and increasing our operational leverage.

With 33% revenue growth and improving gross margins, gross profit increased by 40%. With higher volumes, we also see the effects of the operational leverage in our business model.

The adjusted EBITDA margin increased by close to 4% to 16.6%, and adjusted EBITDA increased by 75% year-over-year to $36 million. Splitting our cost base, you see that R&D increased in both absolute terms and in percentage of revenue.

We continue to invest in the short-range portfolio, although this area accounts for less than 60% of R&D spending, despite accounting for more than 90% of revenue. The R&D to revenue ratio in this area has now dropped to around 15%.

However, we still invest significant amounts in R&D in long-range and other in our early-stage businesses, and combined these account for more than 40% of R&D, despite accounting for just 10% of revenue. These are investments for the future, and as revenue grows over time, we expect gradually more balanced R&D to revenue ratios also in these areas.

SG&A OPEX also increased somewhat in absolute terms, although the higher revenue means the SG&A to revenue declined by almost 2 percentage points to 13.7%. Turning to cash cost development, in absolute terms, you can see that cash costs have increased from around $63 million in the second quarter last year to $80 million this year.

Salaries accounted for $14 million of increase, with around $4 million explained by acquisitions done last year, $2 million from salary adjustments, and $5 million from variable pay accruals. In addition, we have approximately $3 million negative effect of the weaker US dollar.

At the end of the first half here, Nordic had 1,465 employees, including the 59 employees that joined through acquisitions last year. This corresponds to an organic increase of 6% and a total increase of 10% compared to the same period last year.

Other cash expenses amounted to $26 million, up from $23 million last year, mainly driven by higher hardware and software spend, along with increased sales activity. I said last time that we overall expected a similar cash cost level in Q2 as in Q1, and although we saw a $2 million increase, we are pretty much on the same level as the last couple of quarters after we took on the acquisitions.

Overall, we see no major changes to the cost picture in the third quarter. CapEx in the second quarter was $8 million, slightly below both the second quarter 2025 and the first quarter this year.

Around 90% of this is back-end production testers as we're investing for added manufacturing capacity throughout the supply chain. CapEx intensity of the last 12 months is 3.8%, back within the 3% to 4% range we have typically seen over the last few years.

Turning to cash flow, overall, there was a slight reduction in cash during the quarter. However, it is important to understand the underlying developments.

Operational cash flow from operations of $15 million was driven by profits. However, the reduction versus last year is explained by increase in working capital during the quarter.

The increase in working capital is driven by higher inventory that mainly reflects a deliberate front-end loaded build to secure supply and capacity. Nordic has raised wafer purchases to support the ramp of next-generation products, notably the nRF54 Series, and to build inventory ahead of the additional test capacity being brought online in the supply chain, as I commented on the CapEx slide.

As a result, net working capital was $200 million at the end of Q2, up from $142 million last year. Measured as a percentage of last 12 months revenue, net working capital increased to 26%.

This is slightly above our target of 25%. Finally, cash and cash equivalents ended at $276 million, which is a strong balance sheet to support future growth.

In addition, we have $200 million in an unused credit facility. Before handing the word back to Vegard, we can have a look at our near-term outlook.

Based on current customer orders and forecasts, we are guiding for revenue of $220 to $240 million in the third quarter of 2026. This corresponds to a year-on-year growth between 23% to 34% or a midpoint of 28%, and sequential growth between 1% and 10%.

We reported a gross margin of 53% in Q2 and expect the gross margin to remain above the 50% also in the third quarter. With that, I'll leave the floor over to Vegard for some closing remarks.

Vegard.

Thank you, Pål. As I said last time, we are progressing to plan financially, operationally, and strategically.

It's good to see the positive developments continuing, and I'm extremely proud of the Nordic team execution at the moment. Financially, we reported 33% growth on a record high revenue of $219 million for the second quarter.

With improving gross margins and good cost control, this translates into a 75% year-on-year growth in adjusted EBITDA. As Pål just said, we expect continued growth in the third quarter.

Operationally, we see short-range nRF54 Series and the broadening long-range portfolio gaining momentum and start contributing more to revenue. Moving forward, we will continue with an extensive product renewal program and advancing our chip-to-cloud solutions.

To support all this, we have introduced AI-assisted development tools that will add speed and quality to our customers' product development processes all the way from first prototype to the deployed fleet. It is a strategic goal to increase the lifetime value of our products and services, and by adding new software and solutions, we are increasing the value through our nRF Cloud lifecycle services.

Finally, we continue to strengthen our organization. This quarter, we welcomed Joe Youssof, an old colleague of mine from Atmel and Microchip, as EVP with responsibility for marketing and developer experience in Nordic.

Christer Ruth, whom many of you will know from his long tenure as a research analyst and investment banker with DNB Carnegie. He will take responsibility for strategy and corporate development.

Both will be valuable additions to a management team working on a clear, strategic, profitable growth agenda. With that, I think we are ready and open for questions, and I'll hand back over to you, Ståle.

Thank you, Vegard. We will now open the line for questions.

For instructions how to join the Q&A, please refer to the earnings call invitation posted on our IR website under the stock exchange notice section. To allow as many participants as possible to ask questions before the market opens, we kindly ask that you limit yourself to one question.

Following our initial response, you will have the opportunity to ask one follow-up. With that, I will hand over to Rasmus to begin the Q&A session.

Hey, good morning. Thanks for taking my question, and congrats on a great quarter.

Just wanted to get your thoughts on some more outlook stuff. You've had now several quarters with top-line momentum, ahead of your own expectations, it seems.

It seems to be tracking well ahead of the growth trajectory you set out at the Capital Markets Day. At the same time, you're seeing clear signs of pull-forward in different segments amid supply crunch, and some customers raising prices on their products because of the memory situation, and some people struggling with demand destruction.

Just want to give you the opportunity to give any thoughts on whether the recent strength in revenues is coming on the back of pull-forward or if you see any whatsoever signs that we might be having to give this back in future quarters or into 2027. I appreciate you don't guide specifically, but just how you see the market loudly would be appreciated.

Then I have a follow-up.

Thanks, Christoffer. I think our strength which we are experiencing at the moment is multifolded.

It's a result of a lot of things happening. Obviously, the market is fairly strong.

Product renewal process for us is the foundation and is extremely important to deliver on what we do, and that's executing very well for us. I think all of this is obviously very important for us, and that's really what we are working and driving internally.

I think on the near-term tactics of potential pull-ins or not, we obviously all see the semiconductor market overall being extremely tight, and maybe even continue to be tighter and tighter at the moment from a supply side. Although I think we are well supported and managing this extremely well with our key partners at the moment.

I think overall, key thing for us is that market continues to improve, and we don't see evidence of pull-ins, particularly with our key customers and the largest customers we have, which is a fairly large group, even beyond these top 10s, which we obviously exchange a lot closer to. Having said that, I think there is some angst and concern in the market for potential constraints.

That's obvious, and we all hear about that. We cannot rule out the possibility that some customers are advancing orders because they worry about future capacity constraints, either from us or elsewhere.

All right, clear. As for my follow-up, I just wanted to double-click a bit on the guidance for Q3.

We've all seen that some of your customers and your key customers have had particular supply chain challenges ahead of the second quarters. We're just trying to understand if you in any way have reflected any particular headwinds in that guidance number in any part of the range for Q3, or if not, if that's something to come later on in Q4, or how we should think about that being reflected at all?

I guess the forecast we have is based on very tight dialogue with our customers. As Vegard said, it's not possible to rule out all possibilities, but it's based on a very detailed analysis and discussions with our company customers and also them seeing the market improving.

All right, thanks.

Thank you, Christoffer.

Hello, everyone. Thanks for taking my question.

On the long-range, could you comment a little bit on the order intake over the past few months? Just wanted to understand the growth of the second quarter, if it's more driven by the consolidation of Memfault or it is also the product business picking up strongly?

On the nRF92 Series, when should we expect the first volume to kick in? A follow-up question would be on the pricing environment in the market.

We have seen many of the competitors raising prices. What have you done so far, and what do you want to do?

Attached to that, how do you see your input cost trending in the next few quarters? Thank you.

That was two questions, that's good.

That's probably three, four questions, Sébastien. Appreciate that.

Thank you. We'll try to cover them.

Yeah.

Thank you.

I think as a starting point, as in prior quarters, we are not breaking out our cloud services and long-range hardware business separately. I think we can assure you that they are both growing, and they are both growing, I would say, as we also said initially, amongst our breadth of customers as well as breadth of segments.

We see that happen in both of that. We're very pleased with that.

I think that was a long-range question. And...

On the 92 Series.

92 Series contributing to revenue, it's a product which we have just started to sample to some key customers. Lots of interest, lots of execution happening on the 92 at the moment.

We have seen a fairly solid ramp of the 9151. The 92 Series is a successor to that, which is planned exactly this way.

We're all in all very comfortable with our current solution and the bring-up of the next generation in long-range on that regard. The 92 Series is a great product with a lot more compute power, a lot more performance of a already market-leading product.

It's a great position we feel we are in with that at the moment. Last question was around pricing and cost, I think.

Sébastien, I think on a general note, we need to say there that we don't specifically call out any changes we do on outbound pricing to our customers, nor do we talk about our COGS and costs from our suppliers. Having said that, I think it's also clear that we all see the semiconductor market is very tight on most process nodes, back-end assembly and test at the moment.

We are working extremely closely with all of our supply partners as well as customers. What we are doing is having a clear aim to balance growth and margins.

I think we are doing that at the moment, and our plan is clearly to be continuing doing that. Did that cover all the topics?

I think so.

Yeah.

Yeah. Thank you.

Thank you. Very clear.

Hi. Thanks for letting me on.

My first question was on your gross margin. We've seen this is the second quarter where your gross margin has gone up very nicely to 53%.

I was wondering how much of this positive effect was attributed to broad market momentum versus potentially the cloud software service accretion? No,

I think it's a good mix of the three items I mentioned. It's a customer mix, the broad market improving this quarter.

You saw that on the slides Vegard mentioned, so that has a positive impact. Also on the product mix is important, seeing more influx of the nRF54 in the equation.

Then, of course, finally, the contribution from the cloud is a positive impact. I guess summing up the three of them is explaining the increase year-over-year.

Great. Would you then say that the nRF54 is proving to be gross margin accretive in the initial revenues that you're getting?

Then also, just as a follow-up, you mentioned that the other sales, that being PMIC and development kits, had doubled in the quarter. I was just wondering if you're seeing that the 54 Series is now providing a platform where you're seeing more stickiness on your adjacencies, and so that being customers then designing in and more likely to design in on PMIC solutions?

It's a very delicate question, and I think we have to say we don't share specific margins on sub-families, obviously, of competitive reasons and protecting Nordic optimizing, balancing our margin picture at the current and future times. I don't think we can answer that specifically.

I think what we can say generally is obviously that 54 Series is running on a very modern, optimized processing technologies from TSMC and GF, the L and H series. Extremely important for us.

We think that's very modern, high-performance, cost-optimized technology, which is a good place to be in at the moment. That's in a tighter space.

We are quite pleased about that positioning compared to some of our competitors. Then

there was a question on PMIC and also the I guess cross-sell how that impacts.

Yes,

and

I think in that regard, you can usually say that's also usually not a disadvantage, if you look at it from a margin point of view. Without being specific on anything, I think that's as much as we can say on that.

Thanks for asking.

Great. Thanks, Vegard.

Good morning, and congrats on the good quarter. Just a couple of questions on cellular.

Cellular did very well this quarter. Can you say something about how much of revenues now are from 9151, and how much is still the older 9160?

Can you also say something about which categories are driving the strong growth we're seeing in cellular in this quarter?

Thanks, Øystein. We appreciate the interest and the question.

Again, to protect our competitive position, we are not sharing how the mix is between, let's say, new products vis-a-vis older products. I think we can generally say that the 9151, similarly as the 54 Series, is starting to contribute to revenues, and the design activity has been and is very strong on these new products, which we are very very much appreciating.

I think overall in cellular, I think also having taken the technically leading position on the NTN and satellite connectivity within IoT, I think that's another tailwind and a driver which is strong for us on the cellular and long-range side, has been now for about a year's time since we started prototype with the very first customers. There is a lot of people either selecting Nordic for that optionality for future enablement, or they enable that immediately.

I do want to mention that, and we are now also commenting on that we believe we will see customers now coming with Nordic products, long-range using NTN with satellite connectivity throughout the second half of this year.

Interesting. You're seeing now an acceleration both in cellular and PMIC.

Is this something you expect to continue that we're now seeing kind of an inflection point to these segments, and that they should continue to grow strongly in quarters ahead?

Again, Stian, I think we've got to be cautious about talking too much ahead because we're stringent on our guiding principles. I think what we do see at the moment, particularly in long-range and PMIC, is that we are executing to that plan we have communicated a couple of years ago.

Of course, we say we are on track to execute on that plan, which, yeah, you can read out what continuation you believe that leads to. We are not guiding beyond the current quarter, but executing to plan, and that's what you're seeing.

Thank you very much.

Thank you.

Hi. Good morning.

First question is really on demand visibility as a follow-up. What are your thoughts on the seasonality on revenues this year?

Would you still expect that kind of Q3 is the best quarter, and you see Q4 down around the usual 5% sequentially? Is there any moving parts that would potentially make seasonality a bit different this year?

Thank you.

Thanks, Martin. Again, I think I just need to repeat that we don't guide beyond the current quarter.

We don't guide and talk about Q4 at the moment. I think generally, we can just say there are different forces, pros and cons to the seasonality effects.

Of course, I think overall, the consumer market portion of Nordic's business is relatively large, and there is a natural seasonality in that part of the market. That's not something we are changing.

Thanks, Martin.

Okay. Thanks.

Then just secondly on the OPEX. OPEX was a bit higher in the second quarter sequentially.

What are your thoughts on OPEX going into Q3? Remember last year you had this, I think OPEX and payroll were a bit higher sequentially, Q-on-Q, in the third quarter.

What are your expectations around payroll specifically going into Q3?

If you look at from Q2 to Q3 last year, there was a step-up. That came due to acquisitions, FX impacts, and also higher variable pay.

That's been pretty stable over the last three quarters, and we expect it to be relatively stable into Q3. Of course, FX is difficult to predict, and there will be some salary increases also this year, but overall relatively stable from Q2

to Q3. Sounds good.

Thank you very much.

Thank you.

Thanks for taking my questions, and congrats with a solid quarter. Just a follow-up on Christoffer's questions on long-range.

Can you give any breakdown on how much of the long-range revenues is cellular IoT compared to Memfault in Q2? Also comments on your expectations for both of these segments into the next quarters?

You mentioned that we will see some customers using satellite technology. Can we expect that in next quarter?

Thank you. Thank you, Andrea.

We have decided not to break out our cloud services revenue separately, and we're currently reporting it, as under the long-range and cellular products business. We are doing that for protecting our competitiveness reasons.

That's why we are continuing to do that. What I can assure you is that they are both growing and progressing well and to the plans at the moment.

We are still obviously developing them jointly and cohesively in the three-pillar strategy, while we also expand our nRF Cloud services to be enabled and applicable even more so and in a even stronger way to all Nordic products, obviously, and also being our forefront mechanism to enable Cyber Resilience Act compliance as well as our customers' ability to update, access, and from an AI point of view, have these solid monitoring and interaction with their products in the market. I think it's fair to say that both the long-range hardware and the nRF Cloud solutions are currently very solidly developing for us, both with key customers and in the broad market.

That's the same for both of them. I think that's probably as much as we can share and will share to give some color on that, and the details have to come a bit later.

There was a question on satellites. You talked a lot about that on the designs we have there and then how that's developing.

Yeah. On the satellite technology, it's also a lot about having this optionality for quite a lot of customers.

As I said, that can be enabled, and that's a great thing you can do with Nordic. You can either start using it immediately, or you can via a software upgrade, and again using nRF Cloud for that software upgrade, you are in good hands with Nordic.

We see people planning for that immediately when they launch products, and some other people planning for that in a later stage. We are expanding and developing further with more and more satellite systems and technologies and providers.

As I also said, during the second half, we will see first commercial products in the market based on Nordic technology and NTN satellite systems.

Thank you.

Hi. Good morning, gentlemen.

Thanks for taking my question. My first one was on channel inventory, and in particular in your large distributor customers.

I think the year started relatively low in terms of channel inventory there. Can you talk about how that's trending and how you see sell-through?

Then my second question was on your own inventory. A big step-up from Q1 into Q2.

Can you just remind us of the composition here? Should we see that as precautionary ahead of potentially wafer price rises, etc.?

Thank you.

If we start with distribution inventories, we haven't commented it, but it's more or less unchanged from what we said in Q1, at healthy levels. When it comes to inventory, the buildup is a deliberate buildup.

We're buying wafers. We're planning for a growth, and we're securing wafer deliveries into our production.

It's a good question. We have it in wafers, we have it in semi-finished, and we have it in finished goods.

It's a healthy mix between these three categories in our inventory.

Very clear. Thank you.

Thank you, Craig.

Thank you. I had one question here is on the design registrations.

Maybe you can elaborate more on the 115 Bluetooth designs that you have, which is around 28% of your addressable market. On a last 12-month basis, it's up moderately year-over-year, I would say.

Do you think it's possible to really regain the market share in your broad market without this market share going back to 40%? I appreciate that you have higher value now per design, but do you expect your historical market share also to trend towards historical levels on this metric?

It's a great question, Marcus. I think, first of all, we remain a very clear market leader here in terms of product certifications.

Again, the certification activity will naturally vary a bit from quarter to quarter, and that's depending individual customer design cycles and a lot of things. I think what we want to make sure we say in this regard is that it's important that we don't look at this as a model for revenue market share or volume market share.

We are continuing to present the data, have to say mainly to be consistent with the past, but we also see reasons for this not necessarily being a good reflector of what's happening. I don't want to get into the details of that because that's probably a much longer discussion.

Key thing is that this is truly counting number of designs. There are other reasons which we may talk about at a separate point in time.

I think we are strong here, we are confident in what we are seeing, and it's something we are happy with. At the same time, we warn with some caution about how to assess and analyze based on the certification share.

That's clear. Thank you.

Thank you, Marcus.

Thanks for letting me back on. I just wanted to double-click a bit more on the 54H.

You've had it available to lead customers, but not really, as far as we can see, kind of expanded availability to the broad market. Could you maybe give an update on how that's progressing with those lead customers?

How many customers are you hand-holding and supporting that ramp, and what kind of timing are you thinking about kind of the true, proper scale ramp? Still, we already see it in gaming mice and so on, but those are not maybe the biggest volume applications in the market for that kind of product.

That would be helpful.

Yeah. Thanks, Christoffer.

Great question. I think the 54H20 is a very good product, and we already now see quite a few customers actually in the market with products based on it.

It is our highest-performance device at the moment in the short-range space aside with the 54LM20 series. These are built for the most demanding applications, high-end applications, and we work with several key customers to develop products on both the 54H20 and the LM20.

We have several key customers developing on both of them. On the H20, that is a complex product, and it's still requiring additional support from Nordic for our customers to utilize the full capabilities of the 54H20.

That's why we are focusing the support for the broad market with the nRF54L/LM Series, where the current 54LM20 A and B, which also has 2 megabyte of memory, is competing very well and winning very strong designs in that market, too. Thanks for the question, Christoffer.

Thank you.

Yes, thanks for taking the additional question. A follow-up on the healthcare business.

Have you made any specific progress to diversify your healthcare business beyond your large customer? How do you see the opportunity in the healthcare market developing, both in short-term, but also more on a mid-term view?

Thank you.

Thanks, Sébastien. Very good question.

I think the healthcare market is developing very interestingly for us, and we are providing quite a lot of different solutions into that space at the moment. We have very large customers here, but we also have quite a few smaller and mid-sized customers.

We have customers both, I would say, utilizing all of our products. We have customers here also on long-range products, nRF Cloud, and PMIC products, in the coming time, expecting Wi-Fi products as well.

There is a breadth here, and it's growing systemically. We are investing in it, and that's really something we believe in as a future important segment for us.

CGM obviously being a key driver for some of the highest volume growth opportunities in that space at the moment, but there is also quite a lot additional opportunity happening in connected healthcare and connected medical devices, which is where obviously having the highest quality wireless connectivity makes a lot of sense. That is clearly a space for Nordic Semiconductor.

Thank you, Sébastien.

Thank you.

Thank you, Rasmus. Before we close today's session, I have one brief announcement.

Nordic will conduct two post-Q2 result Q&A group calls with analysts and investors. The first group call will be for US investors and will be hosted by Jefferies, and is scheduled for today, Thursday, 6th of August, at 5:00 p.m.

Central European Summer Time. The second group call will be for European investors, hosted by UBS, and is scheduled for tomorrow, Friday, at 11:00 a.m.

Central European Summer Time. Both call will be attended by Vegard Wollan and Pål Elstad.

Each call will be moderated by the covering analyst at respective brokerage. For registration details, please visit the IR calendar on our website.

With that, I will now hand over to Vegard Wollan for his closing remarks.

Thank you, everyone. Great questions today.

Thanks for joining us, and this concludes today's call. Thank you.

Thank you.