Smart Eye Year-End Report Q4 January – December 2025

October – December 2025

• Net sales amounted to SEK 122.3 (100.3) million, an increase of 22%. Organic growth was 26% in the quarter. FX impacted sales with SEK -12.2 million in the quarter, and an adjustment of NRE revenue affected the same period last year with SEK 6.2 million.
• Gross profit amounted to SEK 101.5 (90.2) million, and gross margin amounted to 83% (90%).
• EBITDA amounted to SEK 10.2 (-18.7) million. FX impacted EBITDA with SEK -5.0 million.
• Operating results amounted to SEK -31.6 (-63.1) million, whereof the amortization of the surplus value, regarding acquisition of Affectiva and iMotions, amounted to SEK -26.1 (-29.7) million.
• Result after tax amounted to SEK -49.5 (-65.8) million.
• Cash and cash equivalents amounted to SEK 134.8 million at the end of December. Total available cash ending balance, including unutilized bank credit facilities, amounted to SEK 166.4 million.
• In December the company issued a senior unsecured bond with a nominal amount of SEK 300.0 million. Previously used credit facilities have been fully amortized in the period.
• During the quarter the company has won two more Design Wins with a Nordic truck manufacturer and after the quarter the company announces its first two Design Wins including alcohol impairment detection with a new Japanese OEM customer.
• After the quarter Smart Eye has entered into an agreement to acquire all shares in the Swedish AI-based software company Sightic Analytics AB. Completion of the acquisition is subject to the Swedish Inspectorate of Strategic Products (ISP) leaving Smart Eye’s application without action, which is expected to occur in March 2026.

January – December 2025

• Net sales amounted to SEK 403.7 (355.0) million, an increase of 14% compared to the corresponding period the previous year. Organic growth amounted to 21% and the FX affected the Net Sales negative with SEK -26.7 million in the period.
• Gross profit amounted to SEK 350.6 (319.0) million, an improvement of SEK 31.6 million compared to last year. Gross margin amounted to 87% (90%).
• EBITDA improved to SEK 4.9 (-82.3) million. FX had a negative impact on EBITDA with SEK -14.5 million.
• Operating results amounted to SEK -163.5 (-250.3) million, whereof the amortization of the surplus value, regarding acquisition of Affectiva and iMotions, amounted to SEK -107.7 (-116.2) million.
• Result after tax amounted to SEK -172.8 (-230.4) million.

The company will comment on its quarterly results during the earnings call hosted by Redeye, taking place live online at 11:00 on February 17, where the CEO and CFO will present the results and answer questions.

Comments from the CEO

In the fourth quarter we continued with a high growth level of 26% organically. While Automotive grew 69%, Behavioral Research registered a slight decrease of -1% compared to a strong Q4 last year. Thanks to our continued robust sales increase and cost control the EBITDA came in at +10 MSEK and hence confirmed us turning the page into a positive full year EBITDA, even if modest, of +5 MSEK.

Automotive
The license revenues are growing. In this quarter the European deliveries jumped rapidly, almost doubling from previous quarter, while the license revenues from the rest of the world came in softer. This is likely the way the market will behave leading up to the hard stop in July 2026 when DMS is mandatory in Europe. Our customers will ramp up quickly in the coming quarters in terms of EU deliveries. We have had 20 new car models that went into production, now exceeding 125 car models with 15 OEMs to reach production. Several new cars have recently had a market launch, soon to go into production with Smart Eye’s DMS. The Automotive licenses grew more than 100% compared to last year, a growth rate we expect to further increase during 2026.

The fleet and aftermarket business AIS had a strong quarter. From Q1 2026 we see it as a net contributor to Smart Eye’s cash flow, just as Behavioral Research. We expect another bump in deliveries to happen in July 2026 for buses and trucks, due to EU legislation.

We are on track to launch our first driver and cabin monitoring system, based on a rear-view mirror camera, at the end of the first quarter. We expect these kinds of systems to start growing from low levels this year and to become more important towards the end of the decade. They contain a richer feature set enabling us to deliver a higher value per car.

Another important feature is intoxication. By mastering the trinity of distraction, drowsiness and intoxication we are leapfrogging the rest of the DMS market. We have developed this feature for over five years and started to market this feature last year and in early 2026 we both received our first design win and decided to partake in the ongoing market consolidation by merging the market leader Sightic into Smart Eye. This move enables us to further accelerate the development and enables faster refinement of algorithms, giving us a unique positional advantage on the DMS market, ultimately leading to many more lives being saved.

Behavioral Research
The business area had a quarter marked by both success and headwinds. Our multimodal software platform developed by iMotions is doing extremely well, growing 15% organically in a market that is otherwise contracting. At the same time, sales of our other research products have slowed, resulting in -1% organic growth. The main market where we have struggled is still the US, while we are growing slowly in the rest of the world. We have kept costs in check so that the business area continues to be both profitable and cash flow positive. Our analysis indicates that we are increasing our market share.

Final Words
Q4 came in very close to our expectations in terms of revenue. We are satisfied given the adverse market conditions in both Automotive and Research. If seasonal effects and reservations for the performance share program are accounted for, EBITDA was better compared to last quarter. We continue to maintain tight cost control and do not foresee the need for additional savings programs, though this may be re-evaluated at any time.

While adding the staff from Sightic to our operational expenses starting in March, the acquisition is a strong strategic fit with our existing plans. The synergies in delivering on our intoxication roadmap mean we can maintain a similar cost level compared to a standalone scenario while improving time to market and overall quality.

On December 11, we announced the issuance of a senior unsecured bond of 300 MSEK. Half was used to resolve old debt and lower financial costs, while half serves as a strategic reserve. Available cash, including credit facilities, amounts to 166 MSEK.

2026 will certainly be a year of continued geopolitical turmoil, economic uncertainty, and volatility, affecting both research and the automotive industry.

However, we remain focused on delivering within our market segments and continuously developing our AI-based product portfolio, supported by:

• A solid financial platform and tight cost control
• Clear market leadership and unrivalled order stock for the coming years
• Industry-recognized quality and reliability
• Proven customer delivery capabilities
• A client- and user-focused organization
• A highly skilled and motivated workforce driven by the mission of saving lives
• New and unique features such as intoxication detection and iris authentication

We look forward with enthusiasm to an exciting 2026 with strong sales momentum driven by EU regulation and our unmatched stock of design wins, increasing EBITDA, and achieving positive free cash flow.

Martin Krantz
CEO, Smart Eye