Hi and welcome to this Vertiseit earnings call for the second quarter of 2026. My name is Jonas Lagerqvist.

I'm Deputy CEO and CFO of the group. This is Johan Lind, CEO of Vertiseit.

This morning we disclosed the group's interim report for the second quarter of 2026, and we will elaborate on this during this call. At the end of the call, there will be a Q&A session.

Feel free to use the Q&A function to send us any questions that you would want us to answer during the call. You can also join in if you wish to speak with us directly during the call.

The agenda for today is, of course, the Scala acquisition that was finalized during the quarter. We will elaborate on the financials.

We will share some highlights from the business, and we will finish off with a Q&A session. First just a short background on Vertiseit.

Johan, please.

Thank you. Vertiseit, our vision is connecting a world of retail, and by that we mean building the infrastructure for the physical customer meeting.

We at the core of our offering we provide an In-store Experience Management platform to be able to orchestrate all all digital touch points in in-store. The In-store Experience Management platform covers everything from manage all of your stores, your locations, and data associated with that, manage audience management to know who who do you talk to, who do you meet, and, of course, the core is to manage the actual experiences, meaning managing content, meaning managing the application, and, of course, also capture capture the outcome and results of the experience.

We we work with 2,000 brands. We we orchestrate more than 450,000 touch points in physical spaces.

As you've seen in the Q report now, our ARR after the acquisition of Scala reached 440 million Swedish kronor. We are 300 300 employees spread around 13 offices globally.

The the vision of the group, I told you, is connecting world of retail, really be the infrastructure of a connected world of retail. Ambition is to be the number one In-store Experience Management platform globally.

Looking into the financial goals, Jonas, do you want to? Yeah.

Our long-term goals, we state that prior to 2032, we should reach 1 billion Swedish kronor in ARR. It's approximately twice the amount that we have today.

We will also be in a position where we have 35% profitability measured as cash EBITDA, so as close to actual cash flow as it gets. During the way towards these long-term goals, we should always have an ARR growth annually exceeding 20%.

We should always grow our profitability measured as EBITDA cash EBITDA per share of at least 25% annually. We should always have more than 100% net revenue retention, meaning that we should always keep growing on our existing customers.

Of course, the highlight of this quarter was the acquisition of Scala, and we can walk you through this a bit. Scala is the pioneer within our industry.

If you look at the company, it was founded already in 1987. It's the most well-known brand in our category.

It has a real global presence with customers in every corner of the world. A large installed base.

However, the vast majority of the installed base globally is perpetual licenses. If you look at actual revenue, it's not that high that you could expect.

They have a turnover of 200 million last year with 85 million that fits into our definition of ARR, meaning that it's either software subscriptions for updates of perpetual licenses, meaning maintenance, or it's pure SaaS revenue. At the point of acquisition, there were a bit over 100 employees in this Scala business.

They were also part of a bigger group named Stratacache with significantly larger organization. I will describe a little bit how we will reposition Scala within the Vertiseit Group.

Worth mentioning is that Vertiseit ourselves, when we started the company in 2008, after just a year or two, we actually become Scala partner ourselves. When we started the company as a full-service provider, we were a Scala partner until actually Scala was acquired by Stratacache.

That was until the point where we, in 2016, actually decided to acquire DIS Sensors, and the reason for that was that Scala, from being partner only, decided to compete with the partners and go directly as well. We said that it doesn't fit us.

We actually choose to acquire DIS at the time. Then DIS has followed the old recipe of Scala, sell only through partners and being device-agnostic and software only.

That means that we have a unique knowledge about the company from working with them for a very long period of time. We also have employees in the group who have been working in the early stage when Scala was founded.

If we look at the acquisition rationale, it's, of course, a significant expansion of the international partner ecosystem. I think that's very important, especially in the US market.

We add Forte, AVI-SPL, and Diversified, among others, that are really strong within the digital signage sector in the North American market. We strengthen our position since Scala is the most well-known brand in digital signage.

Vertiseit as a whole are strengthened by this acquisition, and we can see that in reach and in incoming inbound leads and tenders and so on. We accelerate our growth in North America.

For those of you who have followed the company, we have done a significant effort to push in that direction the last two years. The last year, actually, Sebastian, the head of DIS, have lived there with his family.

It's really nice to see that we now get a strong footprint because 50% of the Scala customers are actually North American customers. We also add a very large base of untapped SaaS potential since Scala have deployed millions of licenses throughout the years, even though it's not SaaS today.

It's an untapped potential to convert to SaaS and recurring revenue. The profitability will be in line with our long-term goals.

We have designed an organization around Scala with where we have a requirement of 35% cash EBITDA. I will describe a little bit how we manage to do that.

The acquisition structure is a share and asset structure. It was actually a distressed situation where Stratacache needed to sell Scala really rapidly.

We had, I think, four days to give them an indicative offer and a less than a month to finish off this transaction. We decided that we buy the European entities and, but in the rest of the world, US and the rest of the world, we actually acquired the assets.

It's a mixed share and asset acquisition. I think it reduced the risk significantly, and I'm pleased that we actually chose that path in this transaction.

We performed a direct share issue to finance this with a price premium to current share price. The rest is just an expanded credit facility with Nordea Bank.

Looking into the integration, what we have done is that we have reduced from more than 100 employees down to 35. That's only possible due to a very rapid integration and also an integration where we are really strict on some strategic pillars.

One pillar is that Scala is now a strategic software offering within DIS, meaning that Scala no longer have its own organization. They have the development team around the product, but the actual organization is the DIS organization, meaning that we don't have duplicate key account managers or duplicate support or duplicates in anything, basically.

It's a new second product to DIS. It's partner first, partner only, meaning that we give back all direct sales to the partner community and all business from now on is only through partners.

We gradually transition also the installed base from perpetual licenses to a true SaaS offering. It will take years to complete.

We implement the device-agnostic offering. We no longer offer Scala technology in terms of hardware, media players, etc.

Instead, we have stepped back to the original Scala idea of being device-agnostic and invite device partners. We have closed down all facilities, all warehouse facilities, and so it's really important now to execute really rapidly on bringing direct customers to partner, stop doing full-service deliveries which they actually have done, and being 100% aligned with this strategy because that's what make this equation work.

All integration costs, including payments for people on garden leave, is all recognized already in this Q2 report, amounts to 28.7 million Swedish kronor. There are no future costs to expect due to this acquisition.

Of course, there are cash flow effects in Q3, but and maybe a small portion in Q4, but not more than that. Jonas, financials?

Yes. We increase we increase our ARR.

We we come out at 440 million at the at the end of the quarter, which is just above 50% growth compared to compared to last year. Of course, the the majority comes from from from Scala, but we we also keep growing our ARR organically.

Everyone has seen this slide before, but we are still we're still very proud of of keep performing an organic growth from every quarter quarter-to-quarter and have have continued to do so for for many, many years. This is an important important like fundamental in in our business to actually have a positive net revenue retention, keep growing on existing customers, and and then add to the to the grow add to add to the organic growth with acquired growth, like the Scala example.

The whole Vertiseit Group continue to grow to grow and grow during profitability. Just above 50% ARR growth, which exceeds our financial target of 20% annually.

Cash EBITDA compared to the compared to Q2 2025 has doubled during during the quarter, also indicating that we will manage manage to to actually reach also this financial target related to profitability. Scala, of course, like Jonas said, we we add a global reach, global a global network of customers, a global network of partners, some 85 million in in ARR, and a a very very nice potential to convert perpetual licenses into future SaaS revenue.

As mentioned in the in the report, we also see a a strong international pipeline and continuing to receive evidence of our market position as we are as we are are now more and more frequently invited to really substantial international tenders, also on the North American market. In the in the SaaS metrics for this for this quarter, they are they are somewhat like disturbed when it comes to comparison due to the inclusion of Scala mid-quarter.

Many of the many of the metrics actually exclude exclude Scala. Of course, important to understand how the how the actual organic business is is performing.

We strengthen the the N the net revenue retention during the quarter to 107%, and we also reduce our churn from from from 4 to 3% in this in this quarter. The annualized churn, the the churn on an annual basis.

In the quarter isolated, we we had a net net growth of 2.9%. Annualized, that means just about 12%, which is which is a little bit below what we are what we are used to, but given the given the activities that were performed during the quarter, we we we are quite quite quite satisfied with that number anyway, especially as as the the NRR strengthened and the churn remains low.

Revenue-wise, we are still including including Scala, which was consolidated from the 1st of June. One out of three months during the quarter was in was including Scala in the financials.

We are still around 50% SaaS share of revenue. Scala contributed with approximately 10 million in 10 million in revenue during the during this during this quarter.

The and profitability-wise, adjusted EBITDA, where we adjust for the for the costs relating to the to the Scala acquisition and the Scala integration, and also a minor a minor share of cost related to the to the relisting process that we are in also in the in the middle of. As communicated before, we we are investigating the opportunity to to move from Nasdaq First North and relist the company on Nasdaq main market.

We will get back to to that on a a later point in time. EBITDA is strengthened from 17% last year quarter to 18% in in Q2.

Also, the cash EBITDA margin is has been strengthened. Moving into some highlights for the quarter.

Of course, obviously, the biggest highlight is to get a grip on all new customers, partners that we have in the Scala ecosystem. I think it maps perfectly into verticals that we already are strong in.

It adds customers in the QSR space. It add customers in fashion, in finance, and so on.

I think as we go, when we have now a frequent plan of meeting all the partners, meeting and customers to really get a deeper understanding. After that, of course, we will deep dive into some highlights in the customer base and in the partner community there.

Another highlight in the quarter is the Circle K. We continue to grow with Circle K market by market, and this quarter, we start to expand into Poland and roll out in Poland.

We actually started as of last month with this one, and it's quite rapid pace. They have currently 350 service stations, and they will continue to grow in the market.

That's really nice. We can see Circle K is really expanding market by market with our offering.

We also had the Grassfish Summit. It's a yearly investment that Grassfish are performing every second year in Sweden and every second year in Vienna.

This year, it was in Vienna. The demand for tickets to this event was higher than it ever had been.

It was a great success. It's really an investment that we do to facilitate a place where the community within In-store Experience Management can meet.

So 90% of the attendees are current partners in the ecosystem, and it's really well perceived by the audience.

We are now in the Q&A session. We have received quite some questions, and I will try to present them all.

In case you don't believe that you get your answers properly answered, you are more than welcome to get back to us at any time, of course. There is a question on the revenue contribution.

Scala contributed with 11 million in revenue and approximately 2 million in profit for the quarter. Given that detail, there is a question whether Vertiseit grew organically the rest and the also on profit.

Approximately 20 million in revenue growth and 14 million in profit growth, and whether or not we could explain or elaborate on this. I would say that yes, we have the rest was organic Vertiseit growth.

The increased profitability was, of course, that we had a favorable revenue mix during the quarter, and also a favorable margin during the quarter. There is a question on our plans for the US now that we have an increased amount of staff on the ground.

How are you targeting big customers in US?

Yeah. In the US market, the main strategy now with such a large footprint with Scala partner is, of course, to sell indirect via the Scala partners.

Some of the integrator is also partners to Visual Art and Grassfish. We will also use those integrator more actively to expand on opportunities that we have within the Grassfish, Visual Art ecosystem, meaning expand with QSR brands that we have a strong footprint with on the Visual Art side, and also expand with some of the global concepts and global platform framework agreement we have with Grassfish.

The vast majority of business will be carried out by Scala partners.

How hard is it to convert perpetual licenses to SaaS?

It's hard, but it's doable. We have done it before.

We have done it in previous acquisitions. We have done it We have transformed DIS at the point in time.

We converted Scala back in the days. It's a big undertaking.

It's something that you perform over years. It's not something that you can do in a quarter or so.

I would say that there will be perpetual licenses in the market for Scala for at least three years into the future.

What incentives are there for partners to contribute to this conversion from perpetual to SaaS? Yeah.

We have changed a lot in Scala, but most importantly, we have made it much more favorable to go with SaaS. They will have higher margins, a significantly lower price than what the Scala used to have on SaaS.

We also incentivize the partners so that they get a five-year discount when they convert from perpetual to SaaS, meaning that they will have a very nice margin for the coming five years, even if they start from a low installed base, because the model with DIS Scala is that the higher volume you have, the bigger discount you get, so that we prioritize the partners that are loyal to us, have proven that they can run and operate a customer over a long period of time and keep them. I think the model that we have put into play are appreciated.

We have had meetings with some of the largest partners, at least four of them the last month, and they have been really positive to the approach that we have taken in regards to this.

We have Fredrik Nilsson, analyst at Redeye, who would like to join the call. Hi, Fredrik!

Thank you. Hi, Jonas, and Johan.

Hi.

Can you share some more info about the Volvo deal? What does it mean for the independent retailers using your software today, and why do you think you lost, if you did that, the deal?

Yeah. It's a good one.

We actually discussed We said that in it's so easy to only present the positives. In this quarter, within the automotive sector, we had this new global framework agreement with Stellantis from the Scala acquisition that grows really nice.

We also mentioned that we actually lost the integrator deal in for Volvo Cars Sweden in a tender. We don't actually know how it will play out.

It was a tender to push prices. It had really low requirements on most of the items that we are strong at, especially the platform and the technology side of things.

They brought a lot of global competition into the tender, and it was rewarded to Mood Media in the US. They have 1,000 employees, but they have a very, very limited organization in Europe and in the Nordic.

I don't know if they have any employee. We will see how it plays out.

Of course, we still do a lot of things for Volvo with other contracts for corporate communication. We do the Volvo Studios on a separate agreement.

We do also related We do have separate agreement, of course, with Volvo Trucks, Hertz, and among others. We also have partners in the ecosystem who do other markets.

We were really surprised that they chose to go for a full-service provider for the Swedish market without a proper global set-up. We will see how it evolves.

If it's less than 1% of the total ARR if we lose everything, and I don't expect that to happen in at least a short period of time because every dealer have separate agreements that spans over at least a year.

Great. That's a good color on that.

There was another question about the contribution from Scala. I have another point of view on that, but 10 million for one for a month when you expect 200 million in annual sales, it sounds a bit low.

Could you elaborate on that?

The 200 million that is the estimated turnover of the Scala business previous year. Reason for being vague on the exact number is that it was there was an equity deal in Europe and an asset deal in the US.

It was we were actually carving out assets and contracts from a larger entity. That was the approximate revenue for last year.

If we were to take that exact amount going forward, it will be approximately 200. In this amount, there are some hardware components, and that's as part of the integration, and as everyone know, we have the ambition to push hardware sales to our partner.

The top line going forward is very much dependent on in what pace we manage to phase out that hardware. That's one reason if you look at the revenue going forward.

The other one is, of course, that it's been consolidated for one month. We it's also a big business that we move from one ERP system to another.

There was also limited invoicing performed during that month.

Especially, as I said, the biggest portion of the business is US, and in US, it was an asset deal. Of course, not all revenue streams are up running as normal.

I think we have described it quite well. We have designed everything around the recurring revenue, which will amount to at least 85.

I assume we have a nice potential to expand that significantly on the perpetual license sales, which is part of the rest. Then, of course, we have the consulting revenue, where we support the partners to be successful in their implementations.

The risk is, of course, the third part where it's also by design that we will phase out hardware. In what pace that actually occur is not given at this point in time.

I see. So, 120 million in annual sales, that might be a little too defensive assumption, but 200 might be a bit high then also.

Is that how I should interpret it?

I think the risk that we churn out the hardware a little bit quicker, and then I assume that you could be somewhere in the range between 150 to 200.

That's clear. Thank you.

Last question from me: you touched upon it, consulting is actually down slightly year-over-year, despite one month of Scala in the numbers. Could you help us understand those figures?

I think it was due to actually due to some brands that actually had significantly lower number of projects in Q2 than usual. We don't see any big trends there, but it was some customers that we are used to are running on a higher level that had lower consumption of consultancy in the quarter.

Okay. That's all for me.

Thank you very much.

Thanks

so much.

A related question is the matter regarding working capital and how working capital will be affected by the Scala acquisition. I think that's a really good question.

Everything from the balance sheet and so on is now consolidated. No material effects from any hardware inventory or anything like that.

What might happen going forward, which we know from previous acquisitions, is that when you do large changes, you do changes in ERP, customers do not instantly recognize the invoicing formats and so on. There can during the integration phase, the first quarter or two, there can be a slight increase in accounts receivables due to that customers simply are not really used to new invoice formats, bank accounts, companies, and so on.

It can also be onboarding for some major end customers where when you start to invoice from a new customer due to the asset deal, that you actually need to go through an onboarding process before you are vetted as a new supplier.

Continued the questions on the integration, a question is, has the Scala organization integration, it ran according to plan, and is that only addressing the organizational part of the integration?

Yeah. The biggest part of the integration in this case, when you reduce from more than 100 employees down to 35 and associate most of those resources around the product, is, of course, the biggest and most important part to execute on.

We are through that in this process. That's why we are confident with stating exactly how much reservation we are doing for the garden leave for the resources we don't bring over.

The second part is the normal integration that we do. We integrate everything from the management system to all of the IT platform, the ERP, the full ERP stack basically, and we also bring over all contracts into a unified system to be able to capture the ARR and the SaaS metrics and so on.

It's all running according to plan. The organizational part is done.

The integration for the rest of the components take three months, as usual. It will be finished in Q3.

It looks really nice. As I mentioned in the CEO comment in the report, we will also look into expanding into APAC due to that we have a significant number of partners in both India, Japan, around Singapore and the countries around Singapore.

We think we need to be able to be closer and support those partners to be successful there long term. We don't see it as part of the integration project, but it's an activity that will continue even after Q3.

Comparing Scala's SaaS metrics to Vertiseit's, what differences are there between the companies? I think there

we haven't seen that, but I can do some assumptions. I think you you you actually have a slightly slightly lower growth.

That's one thing. I think that's and I I think that can change when when you move when you invest more in in the platform and also support the partners better.

There might like we we are I I think since a significant part of the licenses are on perpetual, there might be a little bit of a higher churn in in in Scala compared to Vertiseit, because I think when you have perpetual license, you decide if you want to buy updates, the maintenance basically, and it's very different from a pure SaaS offering where you have the software running in the cloud, and if you don't pay for the service, you don't have the service. I think that's that's the two component that at least I look closely into right now to see how it will affect.

In the beginning of the year, we, or Vertiseit, stated that we experienced a somewhat slower ARR growth, but expected it to gain and become a bit stronger during the second half of the year. Is that still the case?

It's we believe so. I mentioned that we are in some really large tenders.

Actually, we are in two QSR tenders that are among the biggest potential customers on Earth when it comes to digital signage. We don't want to overhype them.

It I should say that it depends a bit on those. I think we can we will manage to keep current growth space even without them.

Of course, if we would land one of those, or we have and have a second tier pipeline of tenders now which will materially affect growth. It's I should say you can expect at least the growth space that we had in this quarter, but potentially if we land one or two of the big tenders that are out there right now, we can we will materially overdeliver on that one.

Yes, and we received a question that I can address. What are currently the main obstacles to moving from First North to the main market?

I will say that there aren't any real obstacles. As communicated, we are in the process of evaluating this.

Even though no formal, final decision has yet taken, we are doing all the necessary preparations. For information, it can be interesting to understand that the process of moving from First North to main market is even a bit more extensive than doing the initial IPO, of course, depending on the structure that you have in the beginning.

It's quite extensive process. We're in the middle of preparing it.

Let's finish off with this question. What do you think investors underestimate the most about Vertiseit's business today?

I think the future I think the scalability the underlying scalability and the potential of bottom-line profitability as we grow.

Good. I think we covered most of the questions.

Please feel free to reach out to me or to Johan at any time, should you have any further questions. Apart from that, we will see each other again in this forum after the Q3 report, and we wish you all a very nice summer until then.

Have a nice day.

Thank you so much for taking your time. Bye-bye.

Thank you. Bye.