Elliptic Labs (ELABS) Q4 2025 earnings summary

Executive summary

• Full-year 2025 revenue was NOK 102.7 million, down 23% year-over-year, impacted by revised milestone revenue recognition and restated Q3 results following the audit process.

• Strategic review led to targeted cost reductions, a focus on leveraging the existing portfolio, expanding into new verticals, and productizing the AI platform for embedded devices.

• Positive shipment trends in both laptop and smartphone verticals, with new contracts signed and increasing model launches.

• Leadership transition occurred in November 2025, with Ola Sandstad appointed as interim CEO.

• Major multi-year laptop agreements signed and implemented in Q4, with revenue recognition revised and backlog of NOK 31.8 million to be recognized in future periods.

Financial highlights

• Q4 2025 revenue was NOK 42.3 million, including NOK 16 million in milestone revenue, down 12% year-over-year.

• EBITDA for Q4 was NOK 1.4 million; full-year EBITDA was NOK -20.7 million, impacted by one-off costs.

• Full-year net loss after tax was NOK -138.2 million, mainly due to derecognition of deferred tax assets.

• Cash position at year-end was NOK 43.1 million, with negative operating cash flow of NOK -3.3 million in Q4.

• Equity at year-end was NOK 189.8 million, down from NOK 325.3 million, mainly due to derecognition of deferred tax assets and net loss.

Outlook and guidance

• Cost efficiency initiatives implemented to reduce personnel and operating costs by 15% and capitalized development costs by 12%.

• Remaining value of NOK 31.8 million from multi-year laptop contracts to be recognized over 2026–2027.

• Focus on scaling within laptops and smartphones, increasing multi-sensor penetration, and expanding into adjacent verticals such as smart glasses and smart TVs.

• Productization of the AI platform aims to enable scalable Edge AI deployment and open new high-margin revenue streams.

• Revenue expected to recover through monetizing current contracts and expanding into new verticals.