OssDsign (OSSD) investor relations material

Executive summary

• Q1 2026 revenue was SEK 36.9 million (approximately $4 million), down 3.6% in USD and 17.1% in SEK year-over-year, mainly due to USD depreciation against SEK and currency effects.

• Adjusted EBIT was SEK -13.4 million, reflecting lower sales and gross margin, partially offset by reduced operating expenses.

• Sales fell short of expectations, impacted by delayed capital injection, slowed hiring, contract renegotiations, and sales team turnover.

• Leadership transition to a U.S.-based CEO aims to accelerate commercial momentum and address operational challenges.

• Strong clinical evidence and real-world data continue to support product differentiation in the spinal fusion market.

Financial highlights

• SEK 36.9 million in Q1 2026 sales, down from SEK 44.5 million in Q1 2025, a 17.1% decrease in SEK.

• Gross margin dropped to 91.6% from 96.4% year-over-year, affected by lower sales, negative product/customer mix, and FX headwinds.

• Adjusted EBIT for the quarter was SEK -13.4 million.

• Cash flow from operating activities improved to SEK -14.9 million from SEK -25.9 million, aided by positive working capital development.

• Cash and cash equivalents at period end were SEK 170.5 million.

Outlook and guidance

• Corrective measures and recent hiring are expected to deliver improved commercial momentum in H2 2026.

• Management remains confident in achieving the SEK 400 million revenue target as set out in the ScaleToProfit strategy.

• Anticipates normalization of purchasing patterns once contract renegotiations conclude.