Thank you, operator, and good morning, everyone. My name is Max Strandwitz, and I am the CEO of MIPS, and with me today we also have our CFO, Karin Rosenthal, and we will take you through MIPS' interim report for the third quarter of 2026.

If we start with key highlights of the quarter, it was a strong quarter that really validates our strategy. We saw strong sales development with 59% growth in the quarter.

If we adjust for acquisitions and FX, we had an organic growth of 24%. If we look at the year-to-date number, we see a net sales growth of 55% with an organic growth of 31%, which is also very much in line with our long-term ambition.

We saw that the momentum was broad-based across all the categories and geographies. Europe and North America continued to develop strongly, while Asia continued its positive trend, as we have also seen last quarter.

We see good demand for the recent acquisition Koroyd and its products. We have some new product launches reinforced the customers' interest in deepening their collaboration.

The management team has been further strengthened through the recruitment of a new CFO, Madelene Björklund, that will start in January, and we have also recruited a Chief Commercial Officer, Céline Flack, that will also start in January. CCO is a new role, or newly created role, and we are excited to explore also the opportunities there.

We have already communicated that we reached a settlement 2nd of July regarding the legal dispute in the US. We did recognize the cost in the quarter, and that's the difference that you see versus reported EBIT and adjusted EBIT.

We see a good improvement in underlying profitability, a strong testimony of the scalable business model, and we remain confident in our long-term strategy and our financial targets. In Sport, we saw good development.

It was a good quarter with 37% net sales growth. Adjusting for acquisition and forex, organic growth was 22%.

Europe delivered solid growth, while the US market showed positive development despite softer market conditions. In Asia, the positive trend continued.

It's good to see that we now have really strong performance with growth in bike for the 12th consecutive quarter in bike, which is of course fantastic and probably unmatched to see in our industry. I think also with that, having reported three consecutive quarters or years of quarterly growth in the bike segment, we can now call the COVID unwind effects over.

We see quite positive industry data from Germany. If we look at the number of bikes being sold in Germany, it's actually up 10% versus previous year.

For us, we continue to see Germany as a very strong engine for growth in Europe, and of course, the latest retail data that we see support that, and that is something that we also expect to continue. With the good development we see in Europe for bike, in the US market, and also the positive development in Asia, we expect also the outlook to be quite positive and our opportunities to continue to generate growth in the sports category.

In Moto, we see that the category continues to accelerate. We had good performance in the quarter with 116% growth.

Adjusting for acquisition and forex, organic net sales grew with 46% in the quarter. Year to date is now at 74% with an organic growth of 35%.

We continue to see good development both in the off-road and the on-road subcategory, but it's good to see for the first time that also in absolute terms, the on-road subcategory actually outgrew the motocross category. Really, really good to see that all the effects and initiatives that we have done within the on-road category is now starting to pay off.

No change to the long-term outlook. We have a good opportunity to continue to grow in the category.

It's also, you see a picture of Jeffrey Herlings that also won the MXGP World Tour and became world champion, and we also have another member of the MIPS athlete team that won the SMX series in the US, Jorge Prado. Really good performance of the athletes that we have in our athlete team in the motocross category.

If we look at Safety, we see of course that the Koroyd acquisition accelerated the growth that we see in Safety. We really have strong increased momentum with a growth of 396%.

Of course, if we adjust for acquisition and forex, the organic growth was 34% in the quarter. We did, together with Studson, launch the new SHK-2 industrial safety helmet.

The SHK-2 helmet is the development of the very successful SHK-1 helmet that has been extremely successful on the US market. The SHK-2 helmet focus a lot on thermal regulation, and of course, thermal comfort and fit for the user, and it was launched during September and has been really well received on the market.

The other thing that is unique is this is of course Studson's first helmet which is only having a full interior of the Koroyd solution. The previous one had of course both Koroyd and EPS, really good to see that we have a great ventilation in the helmet, and of course, a full Koroyd implementation.

We remain very excited about the category. No change in the long-term outlook, and we see a good opportunity to continue to grow in the category.

During the quarter, we have also increased our investment in Quin, and in conjunction with our original investment, we obtained an option to purchase another 5% at a predetermined valuation. We did exercise our option to acquire an additional 5%, which moves the MIPS ownership from 25% to 30%.

For us, real-world user data is a key component in our leadership in advanced helmet product development, complementing our already existing world-leading capabilities both when it comes to computer simulation, but also, of course, complementing our state-of-the-art test lab. With combining MIPS' test facility with real-life data, of course, we can create an ecosystem of data which is very difficult to match in our industry.

I believe the one that has access to the best data can take the best decisions, really excited about that investment. If we then look at the development in our different categories, in Sport, we saw 37% growth in the quarter, 22% organic.

If we look at year to date, the organic growth number in Sport is 30%, really solid growth there. In Moto, we saw 116% net sales growth, 46% organic.

If we look at the year-to-date organic growth number, we are at 35%, really strong growth in that category also. It is accelerating, as I already said.

In Safety, we are growing really fast and really excited about the new launch of the SHK-2 helmet. We had an ambition of reaching SEK 100 million for the year in the Safety category, and we are already at 77 million, I think we have a very good chance of getting to the SEK 100 million milestone.

With that, I hand over to Karin.

Good morning, I'm Karin Rosenthal, CFO of MIPS, and I will take you through the financial part of the presentation. We saw good development in the third quarter with an increase in net sales of 59%.

The Koroyd acquisition contributed with 30%, and FX had a positive effect of 6%, leading to a net sales increase of 24% organically. Gross profit increased with 55%, and we saw a gross margin of 72.3% versus 74.2% last year.

We saw good underlying improvement in profitability. Adjusted EBIT increased with 70%, and we saw an adjusted EBIT margin of 45.2% versus 42.1% last year.

OPEX, including other operating expenses, was impacted by legal cost of 37 million in the quarter versus 13 million last year, whereof the settlement cost was 32 million. We had good operating cash flow of 48 million.

If we look at the financial KPIs, 24% organic growth, 45% adjusted EBIT margin, and operating cash flow of 48 million. If we then look at the development for the first nine months, we saw good development with an increase in net sales of 55%.

Koroyd contributed with 26% growth, and adjusted for that and a negative FX on 2%, net sales increased 31% organically. Gross profit increased by 53%, and we saw a gross margin of 72.7% versus 73.6% last year.

We also saw good underlying improvement in profitability. Adjusted EBIT increased by 76% with an adjusted EBIT margin of 42.7% versus 37.5% last year.

OPEX, including other operating expenses, was impacted by legal cost of 56 million year to date, whereof the settlement cost was 32 million. Operating cash flow for the first nine months was 128 million.

Looking at the financial KPIs, 31% organic growth, 43% adjusted EBIT margin, and operating cash flow of 128 million. If we then look at the balance sheet and cash flow, we have cash and cash equivalents of 141 million.

We paid out dividend of 66 million in April, corresponding to 55% of net earnings. Since the acquisition of Koroyd last year, we have a revolving credit facility, and that's utilized of 230 million at the end of September.

Then net sales versus adjusted EBITDA amounted to 0.3 times at the end of September. Operating cash flow in the quarter amounted to 48 million.

With that, I hand over to Max.

Thank you, Karin. If we then summarize the quarter, it was a strong sales development with 59% growth in the quarter, organic growth at 24%.

If we look at the year to date, we are at 31% organic growth, well in line with ambition. Momentum was broad-based across all the categories and geographies.

We did gain market share in all our markets, and the integration of Koroyd is working really well. The management team has been strengthened through the recruitment of a new CFO and appointment of a CCO, and both of them of course will start in January.

Good underlying improvement in profitability. Adjusted EBIT in the quarter was 45%, and we remain positive on our long-term outlook and the delivery of our financial targets.

I also want to send a big thank you to Karin. This will be your last quarter, of course.

You have been with us for 24 consecutive quarterly reports, of course fantastic, well done, and so on. It has been a pleasure having you on board.

With that, I open up for questions.

Good morning, Max and Karin. A few questions from me.

Firstly, just on the organic growth that you reported during the quarter of 24%, that was somewhat below expectations. Was that in line with your expectations or are we reaching some sort of I don't want to say normalization because I know that the answer is going to be no, but did you expect a little bit more on the organic growth level?

Long-term we are expecting 30% organic growth, and you will see ups and downs. Last quarter we had 42%, this quarter 24%.

That, of course, when you are a fast-growing company like MIPS, you will see fluctuations like that. That's normal, I would say, and something we have always seen.

I would say that the MIPS performance was a little bit lower than expectations, but at the same time, the Koroyd performance was a little bit better than expectations, actually. If you look against consensus, we were spot on, I think you have swings both ways.

I don't see anything in the quarter that expect us to have a normalization rate of 24%. We are still quite confident on our ability to deliver more than 30% organic growth, and which is also in line with our long-term targets.

Nothing in the quarter. We had a little bit tougher comparative in Europe, if you remember last year we grew actually 80% organically in Europe last year, and of course, that's quite a tough comparative to meet.

Right, that's clear. Thank you, Max.

Then moving on to Safety, I believe there's been new standards in the US related to type 1 and type 2 helmets, introducing new designations. Is there something that could drive meaningful revenue for you there?

I think there is of course the new ANSI standard, which I think is the one that you refer to, of course have a much clearer definition on what a type 1 helmet and a type 2 helmet is, but also putting a lot more requirements on what a helmet actually should be able to do, and so on. Of course, as soon as there is any improvement in terms of regulation and standards, normally you see bigger demand for a better quality helmet, and of course the new standard as such helps that or supports that.

Then in terms of Koroyd, of course, that will probably have a little bit of a positive effect for that because there is a demand for better helmets. When it comes to introducing rotation in the standard, that has not yet happened, but you see in the standard there is actually a paragraph saying that they are looking into rotation.

Of course, when that will be announced, then of course it will be a bigger impact from MIPS, but for sure, it's a step in the right direction. Short-term, good for Koroyd; longer-term, I expect also positive development for MIPS in that category when it comes to rotational standards.

Great, thank you. On profitability, as you say, better than expected here despite the gross margin decline, was all of that related to Koroyd, the mix?

There is an impact of, of course, integrating Koroyd into our numbers. The gross margin in the quarter was down with 1.9%.

There is a small product mix effect also, and we also had, when it comes to our revenue stemming from services, of course we saw really strong growth in the quarter from that, and that has also a minor mix effect. Nothing that we didn't expect to come.

We have a very strong margin, but of course, implementing Koroyd, which has a little bit lower margin, could have that kind of mix effect. Then

lastly on the settlement fee in the third quarter, it was slightly lower, a couple of million lower than anticipated. Is this completely over and done with now, no more lingering into Q4?

The cost has been recognized in Q3. I think it's also important that in total, the costs were 37 million, but it's recognized under two different line items.

One is under other operational income and expenses, and then you also have legal fee regarding to creating the settlement agreement, which you find under administrative expenses. We were actually a little bit higher, but it has to do with the revaluation and the strengthening of the dollar that you saw in the end of the quarter.

On a like-for-like comparator, it was actually spot on what we expected.

Great, and then maybe lastly and more importantly, congratulations Karin, you will be missed.

Thank you, Adela.

Good morning, Max and Karin, hope you can hear me. Really good organic growth across all regions, as you mentioned, Max, and I think very few companies can match that in this environment.

You have previously highlighted product development, low inventory levels in the channel, and increasing market penetration as growth drivers. I wonder, is this still the right way to think about the growth, or has the balance between those drivers changed?

No, I wouldn't say that they have changed materially. The premium market, if you look at the US market, has always been working really well.

What we have seen and starting to see is that the lower part of the market is coming back, maybe a little bit quicker than we expected. Europe, of course, driven by a lot of the performance that we see in Germany, and of course with increased momentum that we see in the German market, of course it's also easier to grow.

In the end, our growth is mainly from gained market shares and of course increasing the penetration with our customers. Of course that journey will continue for a couple of more years.

Perfect, that's very clear. I think also that you highlighted at least that's my assumption, that you're quite confident in a strong finish to the year.

I think it is possible to explain a bit why you think that Q4 might be seeing some stronger organic growth and what you see ahead of the 2027 season, bike season, for example?

Our long-term ambition is to stay above 30%. We don't see anything in Q4 that would deviate from that.

Of course, if you look at comparator and also the composition of the quarters, Q3 was a little bit tougher quarter in terms of that. Also Q4 is normally the biggest quarter of the year.

Of course, with the seasonal variations, we see a much bigger quarter in Q4 versus the other quarters that we see. Then when we go into 2027, we have the exact same ambition level to grow more than 30%.

When it comes to the bike market, the European market, we expect to continue to grow quite quickly. We see especially Germany doing really, really well.

We see that fuel prices, of course, is promoting that you leave your car at home and it promotes a lot of commuting, but we see that biking in general increasing quite a lot. Also looking at the German statistics with 10% more bikes being sold versus previous years, that supports that.

A lot of brands are very bullish on the American market, and they expect it to come back already in 2027. I'm not sure.

I think it will be still a little bit of a challenging market, a lot of inflation on the market. We also see that long-term interest rates are quite high, and so on.

Our assumption for the US market that it will basically be as it is today. If it helps us a bit, I'm super happy, but I think it's much better to be a little bit more cautious on the US market and rather be surprised than plan for something which you don't have control of anyway.

Then, of course, you have Asian market, which actually bounced back a lot earlier than we expected. Chinese consumer market has been a little bit depressed through the years, but we still see, of course, great opportunities to grow, and the Asian market has been stronger than we expected throughout this year, and we also expect it to be quite strong during next year.

Perfect, thank you. Looking at Safety, your full-year indications implies around SEK 20 million in turnover from Safety segment in order to reach your ambition for the full year, which is then below the SEK 30 million delivered in Q3.

Given the demand we have seen, for example, within Studson's Koroyd-equipped helmets, is there anything in seasonality or shipping time and timing that would explain that step down, or is there room to exceed the indication or ambition for the full year?

I think, first of all, we should start by delivering the SEK 100 million. In terms of historic level, Q4 has normally been the biggest quarter in Safety of the year.

All right, perfect. That's great.

Looking at Q4 on the cost base, I think you are moving into a new headquarters, right? Is there anything we should bear in mind when it comes to the cost base?

You will have a little bit of cost relating to the move. We are moving in 1st of December to a new facility, but we talk about a few million SEK and not more dramatic than that.

Yes, you will have some costs relating to that, but nothing that is substantial or that material. A few millions is good to add into the assumption for Q4.

Great, thank you. That's very clear.

Before I hand back, Karin, thank you for all the help over the years and all the best for your next chapter. Thank you very much.

Thank you.

Good morning, guys. Thanks for taking my questions.

Great to be back. Sorry to hear that once I come back, you leave, Karin, but just I reiterate the other speakers.

You've been great here. Thank you.

I'm sure you're going to do great on your future endeavors as well. I have a question.

Sorry if you brought this up, but on the gross margin here that was down, say, two percentage points, obviously reference Koroyd and product mix, but as we model this going forward, is this a good base to assume sort of the new MIPS is? Also, as Koroyd continues to grow, it'd be interesting to hear if you think that Koroyd demands the same level OPEX to sales as classic MIPS or is there a dynamic there that could impact this somehow?

Thank you, Gustav, and welcome back. Good to have you back.

When it comes to the gross margin, of course, our long-term ambition has always been to be above 70%, and we are above 70%. We expect that also going forward with Koroyd that we should be able to defend that position.

I think in terms of the year-to-date development, we are down 90 basis points. For the quarter, we are down around 190 basis points, but still a very healthy margin.

Of course, there is a bit of product mix effect from including Koroyd into that number. When it comes to our overall SG&A and support model, of course, we like the MIPS model.

We think it's quite straightforward. We have two things which we are investing quite a lot in.

One is that we want to spend 5% when it comes to R&D. I believe that great companies do that, and of course, we have no other ambition when it comes to Koroyd, there you can assume something similar.

Then, of course, marketing, when you build a brand, you need to invest behind the brand, and there we want to do 7%. Surprise, surprise, very similar to the structure that we have in MIPS.

It will take some time to get into that model because, of course, Koroyd is still quite a small business, and of course, adding functions can sometimes have a little bit more dramatic effects because as you invest, and so on. Over time, we expect it to have the same type of cost base and cost ratios that you see in MIPS.

Right, that's very clear. For Koroyd specifically, going into Q4 and next, would you expect the growth to continue similar pace as we saw in Q3 or are there any effects here that we should be mindful of?

Number two, just to be clear, you referenced product mix impacting your gross margin, but is there any price adjustments of older models or something that plays a part here too, or pure mix then?

We can start with your last question first, which is, of course, we don't see any price adjustments. We haven't done any price adjustments as such, what you see is more a product mix effect and nothing on cost or on price adjustments as such.

When it comes to the momentum we see with the Koroyd business, we have expected them to grow with around 15%, which has been the historic growth number and so on, and we really wanted to defend that. If you look at the last quarter, of course, the momentum has been a little bit better than that, and we see no reason why it should start decreasing again.

Really good demand for the product. We see also in the Safety category, and especially with the launch of the new SHK-2 helmet, we are quite optimistic of the future great growth capabilities also of Koroyd.

No change in terms of what we're seeing at the moment.

That's very clear. Thank you.

Yes, thank you very much, and also thank you Karin for the time here and very helpful. First one on Koroyd, 40 million sales in Q3.

What was the growth rate of that year over year?

We haven't reported a quarterly growth rate because since they didn't have quarterly reporting, it's very difficult to divide that into quarterly buckets, and of course it has not been audited, so that's why we refrain from having really deep quarterly reporting. We saw that Q3 was at least stronger than the 15% that we expected to see for the full year.

It was a bit better momentum without referring audited numbers as such.

That's clear. That's good enough.

Secondly, on the Studson helmet that you mentioned here, is there a reason for why it's not including MIPS at this stage, and is it also a reasonable possibility in the future for this helmet, among others, to include MIPS, for example?

Of course, this helmet has been developed in the last two, three years, of course, before the MIPS acquisition. Whether it will be included in the future, of course, that's up to the customers.

We have active dialogue with most partners in the industry, and of course, we see MIPS as a very relevant component in every helmet, but if it will be included in this helmet is still too early to say.

Thank you. Final one on Quin.

What sales level is Quin roughly at now, and do you have more options to acquire more stake in the future?

Yeah. What we did with Quin as a company, as you remember, they used to sell their own helmets, and then of course, they were also developing the sensor technology.

Over the last years, we have restructured the company and we have shut down the whole helmet development, all the own selling of helmets, and now it's a pure ingredient brand, which of course made them lose a little bit of net sales and so on. Now the sales is a couple of millions, and of course, it has gone into profitable territory.

That's what I can comment on the performance. We don't have any more options, and of course, like we always do, we constantly evaluate where we put our money in the best way.

Of course, we like the development that we see with Quin, and of course, we could explore those opportunities going forward, but there is nothing planned at the moment, and there is no other option to call for at the moment.

Very clear. Thank you very much.

Thank you, Daniel.

Yes. I think most of the questions that we have seen, we also get some questions regarding gross margin.

I believe that we have answered that. Then we also got some question on project revenues, which is increasing quite quickly in the quarter.

Yes, we do see a lot of projects. It's also inclusion, of course, of the Koroyd business.

Like we said before, we need to recruit a lot of people to manage the growth that we are seeing and especially the inflow of projects and so on. The increase of revenue that you see is a combination of increased momentum when it comes to project services, but it's also the inclusion of Koroyd.

Then we get a question on, "You say that tougher standards are pushing more brands partner to you. How many new motorcycle helmet projects and brand agreements did you sign this year compared to last?"

That's not something that we have communicated, but we do see a bigger interest, of course. We see that a lot of the standards that are coming up now is a lot tougher, especially when it comes to competition level, and there is a new standard called FIM 02, which is used for both MotoGP and MXGP, which is of course a very challenging standard, and of course, a lot of brands comes to us because they want to have that collaboration.

Then we also get the question when it comes to, "Do you still plan to create a MIPS and Koroyd solution for 2027?" Yes, of course, we want to have a much more integrated solution of MIPS and Koroyd, and the plan is still to release that during 2027.

With that, I don't have any more questions. Thank you all for listening in.

Thank you, Karin, again, and speak to you again next quarter.