Elliptic Labs (ELABS) Q2 2025 earnings summary

Executive summary

• Achieved significant commercial progress in H1 2025, including major multi-year agreements with a global PC laptop customer, covering commercial, consumer, and PC accessories, with a NOK 55 million minimum commitment to be recognized mainly in Q3 and Q4.

• Expanded presence in the AI PC market and maintained strong deployment momentum in smartphones, with 43 new smartphone models and 25 new laptop models launched in 2025.

• Over 500 million devices now deploy the AI platform, with three of the top five OEMs as customers and strong partnerships with Qualcomm and MediaTek.

• Strategic focus on scaling the AI Virtual Smart Sensor Platform and maximizing product portfolio value.

• Migration of a major customer from a third-party app to internal software stack, increasing customer stickiness and integration.

Financial highlights

• Q2 2025 revenue was NOK 24.6 million, down 27% year-over-year due to deferred laptop revenues; H1 2025 revenue totaled NOK 51.2 million, down 9% from H1 2024.

• Q2 2025 EBITDA was NOK 1.1 million (vs. NOK 11.4 million in Q2 2024); EBIT was negative NOK 4.9 million; net loss for Q2 2025 was NOK 8.2 million.

• Operating costs were NOK 23.9 million, with employee expenses at NOK 18.3 million and other operating expenses at NOK 5.6 million.

• Negative operating cash flow of NOK 9.3 million in Q2, mainly due to increased receivables and payout of holiday pay.

• Cash position at quarter-end was NOK 57 million; equity ratio slightly up to 91%.

Outlook and guidance

• Majority of NOK 55 million in new contract revenue to be recognized in Q3 2025, supporting strong year-on-year growth in H2 2025.

• Confident in achieving double-digit revenue growth for full year 2025, based on existing contracts and recent wins.

• Mid-term target set at over NOK 500 million in revenue and EBITDA margin above 50%.

• Multiple products per device and dual-sensor configurations are expected to drive future revenue growth.

• Revenue recognition will fluctuate due to timing of milestones, launches, and shipments.