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Embla Medical hf
Quarterly Report • Oct 21, 2025
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Quarterly Report
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Interim Report Q3 2025 Announcement no. 49/2025
Sveinn Sölvason, President and CEO, comments:
"Sales in Q3 2025 amounted to USD 237 million, representing 11% reported growth, of which 7% was organic. Growth picked up in the third quarter as expected, driven by double-digit growth in Prosthetics & Neuro Orthotics. The solid momentum in EMEA continues and growth in Americas was strong following a soft start to the year, supported by our recently launched innovations such as Navii, Icon, and Pro-Flex Terra. Sales in our Bracing & Supports and Patient Care segments remained soft with flat sales in Bracing & Supports and modest growth in Patient Care. At the end of August, we closed the majority investment in Streifeneder ortho.production, which positions us as a full-range provider with opportunities to strengthen our presence in our key O&P markets and expand our offerings and reach in Emerging Markets.
The EBITDA margin was strong at 22% in Q3 2025 and 21% for the first nine months of the year compared to 20% in the comparable period. In line with our performance recorded in the first nine months of 2025, our guidance for the full-year 2025 has been reiterated."
Highlights Q3 2025
- Sales amounted to USD 237 million for the quarter and organic growth was 7 and 11% reported growth (USD growth).
- Prosthetics & Neuro Orthotics (P&NO) sales grew by 13% organic, Bracing & Supports sales were flat, and Patient Care grew 1%.
- Gross profit margin was 63% for the quarter, on par with Q3 2024. For 9M 2025 the gross profit margin increased to 63% compared to 62% in the same period 2024 (63% of sales excl. special items). The gross profit margin in the quarter was positively impacted by strong performance in P&NO coupled with solid efficiency gains in manufacturing. Adversely, the margin was negatively impacted by softer sales in Bracing & Supports and Patient Care and some impact from US tariffs.
- EBITDA was USD 53 million, and EBITDA margin was 22% of sales, on par with Q3 2024. EBITDA margin for 9M 2025 was 21% compared to 20% before special items in 9M 2024. The EBITDA margin in the quarter was positively impacted from strong sales in P&NO combined with solid manufacturing efficiency and continued cost discipline in SG&A. FX negatively impacted EBITDA margin by around 50 basis points in Q3.
- Net profit was USD 26 million and grew by 17%, corresponding to 11% of sales in Q3 2025, compared to 10% in Q3 2024.
- Free cash flow amounted to USD 38 million or 16% of sales, compared to 15% of sales in Q3 2024. Free cash flow was strong and positively impacted by solid operating results, positive impact from net working capital and CAPEX in line with normalized levels.
- NIBD/EBITDA before special items was 2.5x at the end of Q3 2025. The leverage ratio is within the target range of 2.0-3.0x and the share buyback program is ongoing. Embla Medical bought back 525,733 shares for approximately USD 2.7 million in Q3.
Other highlights
- On August 29, 2025, Embla Medical announced the closing of the majority share investment (51% of the shares) in privately owned Streifeneder ortho.production GmbH, an international developer and supplier of orthopedic mobility solutions, employing around 100 people, with sales of EUR 25 million in 2024 (USD 29 million).
- In connection with the investment in Streifeneder ortho.production, Embla Medical issued 2,805,135 new shares on September 5, 2025. The total value of the issued shares amounted to DKK 93 million (USD 14.5 million), which the sellers subscribed to.
- Launch of Odyssey® iQ, a new microprocessor foot by College Park. Odyssey® iQ is a new hydraulically dampened, lightweight, and low-profile foot solution suitable for various environments and activities offering long-lasting battery, and fast responses.
2025 Outlook
- Organic sales growth guidance is unchanged at 5-6%.
- EBITDA margin before special items guidance is unchanged at 20-21%.
| 9M 2025 | 9M 2024 | Q3 2025 | Q3 2024 | Guidance (current) |
Guidance (previously) |
|
|---|---|---|---|---|---|---|
| Sales growth, organic | 5% | 7% | 7% | 7% | 5-6% | 5-6% |
| EBITDA margin, before special items | 21%* | 20% | 22% | 22% | 20-21%* | 20-21%* |
*Potential impact from US trade tariffs continues to be an uncertain element to quantify given the frequent changes in the global tariff environment. Consequently, we deem it too speculative to quantify and guide an exact impact from potential tariffs on Embla Medical's financial results, but some absorption of tariffs is assumed in the guidance.
| USD millions | Q3 | Q3 | 9M | 9M | FY | FY | FY | FY | |
|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | 2024 | 2023 | 2022 | 2021 | ||
| Income Statement | |||||||||
| Net sales | 237 | 214 | 672 | 630 | 855 | 786 | 719 | 719 | |
| Gross profit | 148 | 134 | 420 | 393 | 535 | 486 | 440 | 455 | |
| Operating expenses (excl. other income / exp.) | 111 | 101 | 328 | 312 | 422 | 398 | 373 | 360 | |
| EBITDA EBITDA before special items |
53 53 |
47 47 |
138 138 |
123 127 |
169 173 |
139 139 |
114 128 |
149 149 |
|
| EBIT | 37 | 33 | 93 | 81 | 113 | 89 | 65 | 97 | |
| Net profit | 26 | 22 | 59 | 50 | 69 | 59 | 43 | 66 | |
| Sales Growth | |||||||||
| Sales growth USD | % | 11 | 11 | 7 | 9 | 9 | 9 | 0 | 14 |
| Growth breakdown: | |||||||||
| Organic growth | % | 7 | 7 | 5 | 7 | 6 | 9 | 4 | 10 |
| Currency effect | % | 3 | 0 | 1 | 0 | 0 | (1) | (7) | 3 |
| Acquired business | % | 1 | 3 | 0 | 3 | 3 | 1 | 3 | 1 |
| Balance Sheet | |||||||||
| Total assets | 1,722 | 1,583 | 1,722 | 1,583 | 1,539 | 1,386 | 1,325 | 1,247 | |
| Equity | 870 | 787 | 870 | 787 | 781 | 705 | 636 | 627 | |
| Net interest-bearing debt (NIBD) | 460 | 460 | 460 | 460 | 414 | 395 | 404 | 363 | |
| Cash Flow | |||||||||
| Cash generated by operations | 58 | 52 | 115 | 106 | 160 | 126 | 92 | 128 | |
| Free cash flow | 38 | 33 | 58 | 43 | 77 | 52 | 35 | 74 | |
| Key Ratios | |||||||||
| Gross profit margin | % | 63 | 63 | 63 | 62 | 63 | 62 | 61 | 63 |
| EBIT margin | % | 16 | 15 | 14 | 13 | 13 | 11 | 9 | 14 |
| EBITDA margin | % | 22 | 22 | 21 | 19 | 20 | 18 | 16 | 21 |
| EBITDA margin before special items | % | 22 | 22 | 21 | 20 | 20 | 18 | 18 | 21 |
| Equity ratio | % | 51 | 50 | 51 | 50 | 51 | 51 | 48 | 50 |
| Net debt to EBITDA before special items* | 2.5 | 2.8 | 2.5 | 2.8 | 2.4 | 2.8 | 3.2 | 2.4 | |
| Effective tax rate | % | 24 | 22 | 24 | 23 | 24 | 23 | 23 | 24 |
| Return on equity* | % | 9 | 9 | 9 | 9 | 9 | 9 | 7 | 11 |
| CAPEX / Net sales | % | 3.3 | 4.1 | 3.6 | 5.0 | 4.6 | 5.4 | 3.6 | 3.7 |
| Market | |||||||||
| Market value of equity | 2,091 | 1,991 | 2,091 | 1,991 | 2,125 | 1,713 | 2,035 | 2,724 | |
| Number of shares in millions | 430 | 428 | 430 | 428 | 428 | 421 | 423 | 423 | |
| Basic EPS in US cents | 6.0 | 5.1 | 13.8 | 11.8 | 16.2 | 14.0 | 10.3 | 15.6 | |
| Diluted EPS in US cents | 6.0 | 5.1 | 13.8 | 11.8 | 16.2 | 14.0 | 10.3 | 15.5 |
Management's report
Financial performance
Sales
Sales increased by 7% organic in Q3 2025
Sales in 9M 2025 amounted to USD 672 million, compared to USD 630 million in 9M 2024, corresponding to 5% organic growth and a 7% reported growth (USD growth). Sales in Q3 2025 amounted to USD 237 million, compared to USD 214 million in Q3 2024, corresponding to 7% organic growth and 8% increase including acquisitions (local currency growth) and 11% reported growth (USD growth).
Positive FX impact of USD 6 million in Q3 2025 Effects from FX amounted to USD 6 million, which positively impacted growth in local currencies by 3% points, while acquisitions contributed positively by 1%-point for the quarter.
| Sales by geographical segment (USD million) |
Q3 2025 |
Organic growth |
Δ Acq. / div. |
Δ Curr. effect |
USD growth |
9M 2025 |
Organic growth |
Δ Acq. / div. |
Δ Curr. effect |
USD growth |
|---|---|---|---|---|---|---|---|---|---|---|
| EMEA | 112 | 7% | 2% | 7% | 16% | 327 | 7% | 1% | 3% | 11% |
| Americas | 104 | 5% | 0% | 0% | 5% | 291 | 2% | 0% | 0% | 2% |
| APAC | 20 | 18% | 0% | (2%) | 16% | 54 | 11% | 0% | (3%) | 8% |
| Total | 237 | 7% | 1% | 3% | 11% | 672 | 5% | 0% | 1% | 7% |
| Sales by business | Q3 | Organic | Δ Acq. | Δ Curr. | USD | 9M | Organic | Δ Acq. | Δ Curr. | USD |
| segment (USD million) | 2025 | growth | / div. | effect | growth | 2025 | growth | / div. | effect | growth |
| Prosthetics & Neuro Orthotics |
135 | 13% | 2% | 4% | 18% | 372 | 10% | 1% | 1% | 12% |
| Bracing & Supports | 38 | 0% | 0% | 2% | 1% | 111 | (1%) | 0% | 0% | (1%) |
| Internal product sales | (10) | 2% | 0% | 9% | 11% | (29) | 1% | 0% | 2% | 3% |
| External sales | 163 | 10% | 2% | 3% | 14% | 455 | 8% | 1% | 1% | 9% |
| Patient Care | 74 | 1% | 0% | 3% | 4% | 217 | 0% | 0% | 2% | 2% |
| Total | 237 | 7% | 1% | 3% | 11% | 672 | 5% | 0% | 1% | 7% |
Strong growth in Q3 2025 across all regions driven by P&NO
Growth in Q3 2025 was driven by solid volume growth across all regions in Prosthetics & Neuro Orthotics (P&NO).
Sales growth in the EMEA region was strong in the third quarter with 7% organic growth. In P&NO the strong growth momentum seen over several quarters continued across the European markets in the third quarter. Growth was driven by solid uptake across most product categories, especially in our Bionics and Feet solutions supported by recent innovations such as Navii (bionic knee) and Pro-Flex Terra (mechanical feet solution). Sales in Bracing & Supports in EMEA were soft during the quarter, while sales performance in Patient Care varied across markets.
In Americas sales increased by 5% organic in Q3, driven by a strong recovery in the region following a slower than expected start to the year. Growth is supported by strong uptake across key product categories, including Bionics and recently launched innovations such as the Odyssey iQ (bionic foot) from College Park, which is off to a good start. Sales in Bracing & Supports came in flat and sales in our Patient Care business came in short for the quarter with mixed performance across markets.
In APAC our organic sales growth was very strong with 18% in Q3 2025. Growth is supported by very solid performance in P&NO across markets driven by China, Japan, and Australia. Also, Patient Care demonstrated strong growth for the quarter. Sales in Bracing & Supports was modest in Q3 2025 with solid growth in Australia and New Zealand, but soft performance across most other markets, except Korea, which is recovering on the back of a prolonged Doctor's strike.
In Neuro Orthotics (Fior & Gentz) the business is tracking in line with expectations. Since last year the focus of our Neuro Orthotics strategy is to expand into new international markets, while maintaining the growth momentum in our existing German business. During Q3 we have seen good ramp up in new markets and recently Fior & Gentz was awarded a new reimbursement code in the United States for their bionic knee joint, a significant milestone for the introduction of neuro orthotics in the United States.
The Patient Care market is estimated to grow in the range of 3-5% while yielding healthy operating margins. Our Patient Care business has over the last few quarters experienced lower than expected growth, mainly in EMEA and Americas regions. The performance can partly be ascribed to softness and timing in patient volumes; however, our Patient Care business has been delivering below market growth. The recent weaknesses can be ascribed to internal change initiatives including the ForMotion rebranding rollout, platform-wide integration of new ERP and operational systems, and other change management initiatives impacting ways of operating. This in turn has led to a temporary negative impact on performance in Patient Care, impacting revenue and profitability. The management team's full focus is currently on performance management in order to get the Patient Care business back on track, so the business area can begin to benefit from the structural growth in the O&P industry our product business has recently observed.
As communicated previously, we expect to see a gradual uptake of eligible K2 patients in Americas as prosthetists are gaining experience from fitting the first patients and submitting reimbursement claims. In this context, we expect our recently launched bionic knees Navii® by Össur and Icon® by College Park to address some of the active K2 amputees consistent with the coverage standards published by Medicare. We have so far received encouraging feedback among clinicians and users on our launches and will continue our efforts to enable more active K2 functional level amputees to gain access to advanced bionic knee technology, which previously was restricted to functional level K3 and K4 users.
Gross profit margin of 63% in Q3 2025
Operations
Gross profit in Q3 2025 amounted to USD 148 million or 63% of sales, compared to USD 134 million or 63% of sales in Q3 2024. Gross profit for 9M 2025 amounted to USD 420 million or 63% of sales, compared to USD 393 million or 62% for the same period last year (63% before special items).
The gross profit margin in the quarter was positively impacted by the strong performance in P&NO combined with solid efficiency in manufacturing. The margin was however negatively impacted by softer sales in Bracing & Supports and Patient Care resulting in less scale in addition to some impact from US tariffs.
Operating expenses (OPEX)
OPEX ratio of 47% in Q3 2025 OPEX amounted to USD 111 million or 47% of sales in Q3 2025, compared to USD 101 million or 47% of sales in Q3 2024. For 9M 2025 OPEX amounted to USD 328 million or 49% of sales, compared to USD 312 million or 49% of sales for the same period in 2024.
OPEX growth was 5% organic in the quarter, compared to organic sales growth of 7% with continued focus on cost management in SG&A.
EBITDA
EBITDA margin of 22% in Q3 2025
EBITDA amounted to USD 53 million or 22% of sales in Q3 2025, compared to EBITDA of USD 47 million or on par relative to sales in Q3 2024. For 9M 2025 EBITDA amounted to USD 138 million or 21% of sales, compared to EBITDA of 123 million or 19% of sales for 9M 2024 (20% before special items). EBITDA margin was negatively impacted by around 50 basis points (net of hedge) in Q3, and the FX impact was neutral YTD (net of hedge).
Financial items
Net financial expenses in Q3 2025 amounted to USD 4 million, compared to USD 5 million in Q3 2024. Net financial expenses in 9M 2025 amounted to USD 21 million, compared to USD 18 million for 9M 2024.
Net financial expenses are elevated in the nine-month period due to a negative impact from non-cash currency fluctuations mainly impacting the first half of the year. The impact is negative by USD 6 million in 9M 2025 (positive USD 1.5 million in Q3 2025), compared to negative USD 1 million in 9M 2024 (USD 0.5 million in Q3 2024).
Effective tax rate of 24% in Q3 2025
Income tax
Income tax amounted to USD 8 million in Q3 2025, corresponding to a 24% effective tax rate, compared to USD 6 million in Q3 2024, corresponding to a 22% effective tax rate. For 9M 2025 income tax amounted to USD 18 million, corresponding to a 24% effective tax rate, compared to USD 15 million in 9M 2024, corresponding to a 23% effective tax rate.
Net profit margin of 11% in Q3 2025
Net profit
Net profit grew by 17% in Q3 2025, amounting to USD 26 million or 11% of sales, compared to USD 22 million or 10% of sales in Q3 2024. For 9M 2025 net profit grew by 17% and amounted to USD 59 million or 9% of sales, compared to USD 50 million or 8% of sales for 9M 2024.
Diluted earnings per share in Q3 2025 amounted to 6 US cents, compared to 5.1 in Q3 2024. For 9M 2025 diluted earnings per share amounted to 13.8 US cents, compared to 11.8 for the same period 2024.
Cash flow
Cash generation of USD 58 million in Q3 2025
Cash generated by operations
Cash generated by operations amounted to USD 58 million or 24% of sales in Q3 2025, compared to USD 52 million or 24% of sales in Q3 2024. Cash generated by operations amounted to USD 115 million or 17% of sales in 9M 2025, compared to USD 106 million or 17% of sales in 9M 2025.
Cash generation was strong, supported by solid operating results coupled with positive impact from net working capital.
CAPEX was 3% of sales in Q3 2025
Capital expenditures
Capital expenditures in Q3 2025 amounted to USD 8 million or 3% of sales, compared to USD 9 million or 4% of sales in Q3 2024. Capital expenditures in 9M 2025 amounted to USD 24 million or 4% of sales, compared to USD 31 million or 5% of sales in 9M 2024.
CAPEX in the quarter is in line with normalized levels and the guided range of 3-4% of sales.
Free cash flow
Free cash flow was 16% of sales in Q3 2025
Free cash flow in Q3 2025 amounted to USD 38 million or 16% of sales, compared to USD 33 million or 15% of sales in Q3 2024. Free cash flow in 9M 2025 amounted to USD 58 million or 9% of sales, compared to USD 43 million or 7% of sales in 9M 2024.
Free cash flow was positively impacted by strong operating results coupled with positive impact from net working capital and CAPEX in line with normalized levels.
Cash and undrawn facilities amount to USD 191 millionn
Bank balances and cash equivalents
Bank balances and cash equivalents amounted to USD 102 million at the end of Q3 2025 and USD 89 million of existing facilities were undrawn. Bank balances and cash equivalents in addition to undrawn credit facilities at the end of Q3 2025, therefore, amounted to USD 191 million.
Capital structure
Net-interest bearing debt
NIBD/EBITDA before special items at 2.6x
Net interest-bearing debt, including lease liabilities, amounted to USD 460 million at quarter-end Q3 2025 which is flat with the level report in Q3 2024. Net interest-bearing debt to EBITDA before special items corresponded to 2.5x at quarter-end Q3 2025, within the target range of 2.0-3.0x.
Share buybacks and treasury shares
Share buybacks of USD 2.7 million in Q3 2025
The purpose of the program is to reduce the Company's share capital and adjust the capital structure with a desired capital level of 2.0-3.0x net interest-bearing debt to EBITDA before special items, by distributing capital to shareholders in line with the Company's Capital Structure and Capital Allocation Policy.
During Q3 2025, Embla Medical bought back 525,733 shares at a market value of USD 2.7 million. At the end of Q3 2025, treasury shares totaled 2,150,657.
2025 Financial Guidance
| Guidance | Guidance FY 2025 (Oct) |
Guidance FY 2025 (July) |
Guidance FY 2025 (April) |
Guidance FY 2025 (Feb) |
|---|---|---|---|---|
| Sales growth, organic | 5-6% | 5-6% | 5-8% | 5-8% |
| EBITDA margin before special items | 20-21% | 20-21% | 20-21% | 20-21% |
| For modelling purposes | ||||
| CAPEX as % of sales | 3-4% | 3-4% | 3-4% | 3-4% |
| Effective tax rate | 23-24% | 23-24% | 23-24% | 23-24% |
In line with the performance recorded in both Q3 and for the first nine months of 2025, our guidance for the full year 2024 has been reiterated.
As previously communicated, we continue to expect the second half of 2025 to be stronger than the first half of the year, driven by strong performance in our Prosthetics segment across regions and supported by solid growth in the core business and recently launched innovation.
In Neuro Orthotics (Fior & Gentz) we expect the international expansion to new markets to continue to contribute to growth leveraging the Embla Medical/Össur global commercial infrastructure and the ForMotion footprint within O&P clinics.
In Patient Care, we expect growth to improve over the modest performance recorded in the first nine months of the year. We are taking measures to improve our operations, and our current focus is dedicated to performance management to get our Patient Care business back on track. We believe our Patient Care business should be able to benefit better from the structural growth in the O&P industry our product business has recently observed.
Lastly, Bracing & Supports is expected to grow approximately in line with market growth realizing that the market for Bracing & Support remains challenging due to lower patient volumes for elective procedures as well as we have seen increased competitive/price pressure in selected markets.
The guidance for EBITDA margin before special items remain unchanged and is expected to be in the range of 20-21% for 2025. The EBITDA margin is expected to be positively impacted by strong sales performance, a favorable product mix from high-end solutions, continued efficiency gains in manufacturing, and cost discipline in SG&A. The investment in Streifeneder ortho.production GmbH, which was closed at the end of August 2025, is not expected to have a material impact on our financial guidance for 2025.
Potential impact from US trade tariffs
Potential impact from US trade tariffs continues to be an uncertain element to quantify given the frequent changes in the global tariff environment. Consequently, we deem it too speculative to quantify and guide an exact impact from potential tariffs on Embla Medical's financial results. Although, some absorption of tariffs is assumed in the guidance.
As previously communicated, we expect the main impact would be on our Bracing & Supports products manufactured in China and sold in the US. It is our expectation that adjustments could be made to our manufacturing setup to mitigate a large part of additional direct cost.
Foreign exchange
Sales are particularly exposed to fluctuations in the EUR/USD exchange rate. Additionally, the ISK has a relatively high impact on operating results as part of manufacturing, R&D and some corporate functions are based in Iceland, while sales in ISK are minimal. A breakdown of sales and costs by main currencies can be found in note 4 of the accompanying Condensed Consolidated Financial Statements.
All else being equal, a +/- 5% movement in EUR/USD is estimated to have an annual impact on EBITDA in the range of +/- USD 3.5-4.5 million when unhedged. The same movement in ISK/USD is estimated to have an annual impact on EBITDA in the range of +/- USD 3.5-4.5 million when unhedged. Embla Medical utilizes forward contracts to hedge approximately 50% of the estimated net currency exposure in ISK.
| Currency overview USD | EUR | ISK |
|---|---|---|
| Average exchange rate FY 2024 | 1.082 | 0.0073 |
| Average exchange rate in Q1 2025 | 1.052 | 0.0072 |
| Average exchange rate in Q2 2025 | 1.135 | 0.0078 |
| Average exchange rate in Q3 2025 | 1.169 | 0.0082 |
| Opening rate October 20 2025 | 1.168 | 0.0082 |
| Estimated average exchange rate for FY 2025* | 1.131 | 0.0076 |
| Change in estimated exchange rate FY 2025 compared to last year's average | 5% | 4% |
*Estimated average exchange rate is calculated as the exchange rate of 9M combined with the exchange rate (open) on Oct 20 2025 for the remainder of the year
Other highlights
Acquisition of Streifeneder ortho.production
On August 29, 2025, Embla Medical announced the closing of a majority share investment (51% of the shares) in privately owned Streifeneder ortho.production GmbH.
Streifeneder ortho.production is an international developer and supplier of orthopaedic mobility solutions, employing around 100 people. In addition to its offerings of prosthetic and orthotic components, Streifeneder ortho.production also supplies orthopaedic materials and equipment to the O&P industry. The investment in Streifeneder represents an attractive opportunity for Embla Medical to become a full range provider to a larger part of the global O&P market, ultimately reaching more patients.
In 2024, Streifeneder ortho.production sales of EUR 25 million (approximately USD 29m) with ~70% of sales related to prosthetics and orthopaedic materials. The majority of sales are generated in Germany, while also selling into other key European markets and distributing into the Americas and APAC regions.
In connection with the investment in Streifeneder ortho.production, Embla Medical issued 2,805,135 new shares on 5 September 2025. The total value of the issued shares amounted to DKK 93 million (USD 14.5 million), which the sellers subscribed to.
Proposed CMS Bidding Rule on OTS Orthoses
On 2 July 2025 CMS (US Medicare) released a proposed rule with a section dedicated to its competitive bidding program, which is designed to reduce Medicare's spending on certain types of medical devices incl. OTS orthoses. The proposed rule does not identify which orthoses will be subject to the next competitive bidding round, nor does it specify the timeline for implementation. In the past, the competitive bidding process has taken roughly 18 months. If CMS operated on the same timeline here, the earliest we would expect to see the next round go live would be sometime in 2027. As several factors remain uncertain, we believe it's still too premature to discuss potential impact at this stage.
Section 232 investigations on MedTech equipment
On 26 September 2025, the US Department of Commerce published a notice for a public consultation on a possible Section 232 Investigation concerning robotics/industrial machinery as well as personal protective equipment (PPE), medical consumables and medical equipment including devices such as hearing aids, prosthetics, orthopedic appliances, ventilators and respirators etc. The objective is to determine the effects on the US national security of imports of these goods. We are currently assessing the scope and potential implications of the Section 232 investigation and the potential trade restrictions that might result from this. As several factors remain uncertain at this stage, we deem it to be too premature to discuss potential impact until more clarity has been revealed.
ForMotion: More than halfway through unifying our Patient Care facilities under one brand
In Q3 2025 patient care facilities in selected locations in the United States were rebranded to ForMotion. Further clinics in the US and Australia are up for rebranding in Q4 2025.
Product launches during the last 12 months
| Launch quarter | Segment | Product name | Product description |
|---|---|---|---|
| Q2/Q3 2025 | Prosthetics Bionic foot |
Odyssey® iQ (College Park) |
The new Odyssey® iQ microprocessor foot is hydraulically dampened, lightweight, and low-profile. With an IP67 rating, long-lasting battery, and fast responses, it accommodates a wide range of users and activities. |
| Q1 2025 (Limited launch Q2 2024) |
Prosthetics Bionic knee |
Icon® (College Park) |
Icon® features responsive sensors, streamlined setup, and the intuitive Stride Studio app. Icon® is the versatile solution for low to high activity users. |
| Q1 2025 (Limited launch Q2 2024) |
Prosthetics Bionic knee |
Navii® (Össur) |
Navii® is a fully waterproof bionic knee featuring a powerful actuator provided to support consistency for stair and ramp descent. Navii® posses a variable position mechanical lock that can securely lock at three different angles and stay locked for standing during longer periods of time. |
Conference call and financial calendar
Conference call details
Embla Medical will host a conference call on October 21, 2025, at 9:00 CET / 7:00 GMT / 3:00 ET.
To actively participate in the telephone conference, please use the dial-in details provided below:
DK: +45 78 76 84 90 UK: +44 20 3769 6819 US: +1 646 787 0157
Participant access code: 274982
The webcast will be available through following link: Embla Medical Q3 2025 webcast
Financial calendar and events 2025
| Oct 21 2025 | Interim report Q3 2025 |
|---|---|
| Oct 21 2025 | Q3 2025 HCA Capital virtual presentation and Q&A |
| Oct 21 2025 | Q3 2025 Investor Road Show, Copenhagen (Danske Bank) |
| Oct 22-23 2025 | Q3 2025 Investor Road Show Benelux (DNB Carnegie) |
| Oct 23 2025 | Q3 2025 Investor Road Show New York City (DNB Carnegie) |
| Nov 4 2025 | Berenberg Nordic Seminar, Frankfurt |
| Nov 17 2025 | InvestorDagen Dansk Aktionærforening, Copenhagen |
| Nov 18-19 2025 | Jefferies Global Healthcare Conference, London |
| Nov 24 2025 | AktieInfo Investor Event (Retail), Aalborg |
| Nov 25 2025 | DNB Carnegie Healthcare Conference, Oslo |
| Nov 26 2025 | HCA Capital Group presentation, Copenhagen |
| Nov 26 2025 | Danske Bank Winter Seminar, Copenhagen |
| Dec 2 2025 | Nordea Focus Seminar, Paris |
| Jan 8 2025 | SEB Nordic Seminar, Copenhagen |
| Feb 3 2025 | Interim Report Q4 2025 & 2025 Annual Report |
For further information
Contact details
| Klaus Sindahl, Head of Investor Relations | +45 5363 0134 | [email protected] |
|---|---|---|
| ------------------------------------------- | --------------- | --------------------------- |
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Forward-looking statements
This press release includes "forward-looking statements" which involve risks and uncertainties that could cause actual results to differ materially from results expressed or implied by these statements. Embla Medical hf. undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Embla Medical hf.
Condensed Interim Consolidated Financial Statements
30.09.2025
Embla Medical hf
Grjóthálsi 5
110 Reykjavík
Id-no. 560271-0189
Statement by the Board of Directors and President and CEO
The Condensed Interim Consolidated Financial Statements of Embla Medical hf. for the period from 1 January 2025 to 30 September 2025 consist of the Financial Statements of Embla Medical hf. and its subsidiaries (together referred to as "the Company" or "Embla Medical"). The Condensed Interim Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standards for Interim Financial Reporting, IAS 34, as adopted by the EU. The Condensed Interim Consolidated Financial Statements are neither audited nor reviewed by the Company's auditors.
The total Net sales of the Company amounted to USD 672.0 million and the Net profit amounted to USD 58.9 million. Total assets of the Company amounted to USD 1,721.8 million at the end of period, liabilities were USD 851.8 million and equity was USD 870.0 million.
It is our opinion that these Condensed Interim Consolidated Financial Statements present all the information necessary to give a true and fair view of the Company's financial position at 30 September 2025 and financial performance and cash flow for the period ended 30 September 2025.
The Board of Directors and the President and CEO of Embla Medical hf. hereby confirm the Condensed Interim Consolidated Financial Statements for the period from 1 January 2025 to 30 September 2025 with their signatures.
Reykjavík, 21 October 2025
Board of Directors
Niels Jacobsen Chairman of the Board
Svafa Grönfeldt Vice Chairman of the Board of Directors
Arne Boye Nielsen Alberto Esquenazi
Member of the Board of Directors Member of the Board of Directors
Tina Abild Olesen Caroline Vagner Rosenstand
Member of the Board of Directors Member of the Board of Directors
President and CEO
Sveinn Sölvason
Consolidated Income Statement
| All amounts in USD '000 | Notes | 9M 2025 | 9M 2024 | Q3 2025 | Q3 2024 |
|---|---|---|---|---|---|
| Net sales | 3 | 671,998 | 630,108 | 236,795 | 213,528 |
| Cost of goods sold | (251,509) | (237,526) | (88,559) | (79,916) | |
| Gross profit | 420,489 | 392,582 | 148,236 | 133,612 | |
| Other income / (expenses) | 432 | 485 | (382) | 123 | |
| Sales and marketing expenses | (241,986) | (230,523) | (81,400) | (75,333) | |
| Research and development expenses | (33,909) | (29,827) | (11,489) | (9,498) | |
| General and administrative expenses | (52,162) | (51,432) | (18,065) | (16,263) | |
| Earnings before interest and tax (EBIT) | 92,864 | 81,285 | 36,900 | 32,641 | |
| Financial income | 1,699 | 2,391 | 548 | 903 | |
| Financial expenses | (16,553) | (19,022) | (6,235) | (6,559) | |
| Net exchange rate difference | (6,226) | (1,257) | 1,551 | 485 | |
| Net financial expenses | (21,081) | (17,889) | (4,135) | (5,171) | |
| Share in net profit of associates | 5,534 | 2,284 | 1,220 | 668 | |
| Earnings before tax (EBT) | 77,317 | 65,681 | 33,984 | 28,138 | |
| Income tax | (18,395) | (15,340) | (8,203) | (6,165) | |
| Net profit | 58,922 | 50,341 | 25,782 | 21,973 | |
| Attributable to: | |||||
| Owners of the Company | 58,932 | 50,072 | 25,863 | 21,863 | |
| Non-controlling interests | (10) | 269 | (81) | 110 | |
| Net profit | 58,922 | 50,341 | 25,782 | 21,973 | |
| Earnings per share | |||||
| Basic earnings per share (US cent) | 13.8 | 11.8 | 6.0 | 5.1 | |
| Diluted earnings per share (US cent) | 13.8 | 11.8 | 6.0 | 5.1 |
Consolidated Statement of Comprehensive Income
| All amounts in USD '000 | 9M 2025 | 9M 2024 | Q3 2025 | Q3 2024 |
|---|---|---|---|---|
| Net profit | 58,922 | 50,341 | 25,782 | 21,973 |
| Items that may be reclassified subsequently to profit or loss: | ||||
| Change in cash flow hedges | (881) | 631 | (490) | 475 |
| Exchange difference on translating foreign operations | 21,052 | 2,032 | (426) | 7,434 |
| Income tax | 4,951 | 838 | 581 | 1,652 |
| Other comprehensive income, net of income tax | 25,122 | 3,502 | (335) | 9,562 |
| Total comprehensive income | 84,044 | 53,842 | 25,447 | 31,534 |
| Attributable to: | ||||
| Owners of the Company | 84,054 | 53,574 | 25,528 | 31,424 |
| Non-controlling interests | (10) | 269 | (81) | 110 |
| Total comprehensive income | 84,044 | 53,842 | 25,447 | 31,534 |
Consolidated Balance Sheet
Assets
| All amounts in USD '000 | Notes | 30.09.2025 | 31.12.2024 |
|---|---|---|---|
| Property, plant and equipment | 5 | 78,896 | 71,824 |
| Right of use assets | 6 | 157,130 | 127,802 |
| Goodwill | 7 | 836,604 | 776,306 |
| Other intangible assets | 8 | 100,153 | 96,645 |
| Investment in associates | 27,060 | 20,364 | |
| Other financial assets | 4,176 | 2,704 | |
| Deferred tax assets | 52,430 | 46,365 | |
| Non-current assets | 1,256,449 | 1,142,010 | |
| Inventories | 167,228 | 143,102 | |
| Accounts receivable | 146,669 | 121,915 | |
| Other financial assets | 593 | 1,475 | |
| Other assets | 48,790 | 44,300 | |
| Cash and cash equivalents | 102,074 | 86,163 | |
| Current assets | 465,354 | 396,955 | |
| Total assets | 1,721,803 | 1,538,965 |
Consolidated Balance Sheet
Equity and liabilities
| All amounts in USD '000 | 30.09.2025 | 31.12.2024 |
|---|---|---|
| Issued capital and share premium | 101,087 | 93,464 |
| Other reserves | (51,529) | (75,390) |
| Retained earnings | 818,177 | 759,112 |
| Shareholders equity | 867,735 | 777,186 |
| Non-controlling interest | 2,239 | 3,513 |
| Total equity | 869,974 | 780,699 |
| Borrowings | 361,544 | 328,754 |
| Lease liabilities | 149,707 | 118,279 |
| Deferred tax liabilities | 36,517 | 37,478 |
| Provisions | 9,355 | 7,937 |
| Deferred income | 10,816 | 8,589 |
| Other financial liabilities | 30,938 | 47,946 |
| Non-current liabilities | 598,876 | 548,982 |
| Borrowings | 23,459 | 28,620 |
| Lease liabilities | 27,728 | 24,136 |
| Accounts payable | 32,855 | 27,275 |
| Income tax payable | 23,026 | 18,305 |
| Provisions | 13,109 | 12,615 |
| Accrued salaries and related expenses | 52,715 | 48,715 |
| Other financial liabilities | 35,199 | 10,258 |
| Other liabilities | 44,863 | 39,361 |
| Current liabilities | 252,953 | 209,284 |
| Total liabilities | 851,829 | 758,266 |
| Total equity and liabilities | 1,721,803 | 1,538,965 |
Consolidated Statement of Cash Flow
| All amounts in USD '000 | Notes | 9M 2025 | 9M 2024 | Q3 2025 | Q3 2024 |
|---|---|---|---|---|---|
| Earnings before interests and tax (EBIT) | 92,864 | 81,285 | 36,900 | 32,641 | |
| Depreciation, impairment and amortization | 5, 6, 8 | 45,118 | 41,337 | 15,950 | 13,927 |
| Change in inventories | (10,635) | (5,287) | (3,857) | 2,297 | |
| Change in receivables | (19,900) | (6,212) | 4,038 | 8,141 | |
| Change in payables | 4,089 | (6,783) | 3,076 | (4,840) | |
| Change in provisions | 1,329 | 3,078 | 848 | 339 | |
| Other operating activities | 1,664 | (940) | 855 | (199) | |
| Cash generated from operations | 114,529 | 106,479 | 57,810 | 52,306 | |
| Interest received | 1,670 | 2,367 | 636 | 1,081 | |
| Interest paid | (16,139) | (18,315) | (6,219) | (6,168) | |
| Income tax paid | (17,831) | (16,417) | (6,005) | (5,623) | |
| Net cash generated from operating activities | 82,229 | 74,114 | 46,222 | 41,596 | |
| Purchase of fixed and intangible assets | 5, 8 | (24,277) | (31,225) | (7,882) | (8,852) |
| Acquisition of subsidiaries, net of cash in acquired entities | 9 | (3,275) | (73,971) | (3,275) | 0 |
| Payment of contingent consideration and deferred payments | (4,259) | (4,385) | 0 | (1,130) | |
| Other investing activities | 749 | 24 | (902) | (77) | |
| Cash flows used in investing activities | (31,062) | (109,557) | (12,059) | (10,059) | |
| Proceeds from long-term borrowings | 57,463 | 0 | 0 | 0 | |
| Repayments of long-term borrowings | (57,822) | (105) | (339) | (41) | |
| Changes in revolving credit facility | (6,684) | 61,463 | (10,730) | (23,474) | |
| Payments of lease liabilities | (20,370) | (17,941) | (6,965) | (6,198) | |
| Increase in subsidiaries that does not affect control | (5,123) | 0 | (5,123) | 0 | |
| Dividends from subsidiaries paid to non-controlling interests | (35) | 0 | (35) | 0 | |
| Purchased treasury shares | (6,951) | 0 | (2,670) | 0 | |
| Cash flows generated from financing activities | (39,522) | 43,417 | (25,862) | (29,713) | |
| Net change in cash | 11,645 | 7,974 | 8,301 | 1,824 | |
| Exchange rate effects on cash held in foreign currencies | 4,266 | 580 | (343) | 2,169 | |
| Cash and cash equivalents at beginning of period | 86,163 | 72,653 | 94,116 | 77,214 | |
| Cash and cash equivalents at end of period | 102,074 | 81,207 | 102,074 | 81,207 |
Consolidated Statement of Changes in Equity
| All amounts in USD '000 | Share capital |
Share premium |
Other reserves |
Retained earnings |
Share- holders equity |
Non controlling interests |
Total equity |
|---|---|---|---|---|---|---|---|
| Balance at 1 January 2024 | 4,781 | 61,479 | (64,045) | 699,667 | 701,883 | 3,123 | 705,005 |
| Net profit | 50,072 | 50,072 | 269 | 50,341 | |||
| Change in cash flow hedges | 505 | 505 | 505 | ||||
| Transl. diff. of shares in subsidiaries | 2,997 | 2,997 | 2,997 | ||||
| Total comprehensive income | 0 | 0 | 3,502 | 50,072 | 53,574 | 269 | 53,842 |
| Share option charge for the period | 826 | 826 | 826 | ||||
| Share option vested during the period | (1,102) | 1,102 | 0 | 0 | |||
| Issued new shares | 48 | 27,156 | 27,205 | 27,205 | |||
| Change in non-controlling interests | 382 | 382 | (382) | 0 | |||
| Balance at 30 September 2024 | 4,829 | 88,635 | (60,819) | 751,223 | 783,869 | 3,009 | 786,878 |
| Balance at 1 January 2025 | 4,829 | 88,635 | (75,390) | 759,112 | 777,186 | 3,513 | 780,699 |
| Net profit | 58,932 | 58,932 | (10) | 58,922 | |||
| Change in cash flow hedges | (705) | (705) | (705) | ||||
| Transl. diff. of shares in subsidiaries | 25,827 | 25,827 | 25,827 | ||||
| Total comprehensive income | 0 | 0 | 25,122 | 58,932 | 84,054 | (10) | 84,044 |
| Payment of dividends | 0 | (35) | (35) | ||||
| Share option charge for the period | 1,453 | 1,453 | 1,453 | ||||
| Share option vested during the period | (2,715) | 2,715 | 0 | 0 | |||
| Issued new shares | 23 | 14,550 | 14,573 | 14,573 | |||
| Purchase of treasury shares | (11) | (6,939) | (6,951) | (6,951) | |||
| Change in non-controlling interests | (2,581) | (2,581) | (1,229) | (3,810) | |||
| Balance at 30 September 2025 | 4,841 | 96,246 | (51,529) | 818,177 | 867,735 | 2,239 | 869,974 |
1. Summary of Material Accounting Policies
Statement of compliance
The Condensed Interim Consolidated Financial Statements are prepared in accordance with International Financial Reporting Standard (IFRS) for Interim Financial Reporting, IAS 34 as adopted by the EU. The Condensed Interim Consolidated Financial Statements are presented in accordance with the new and revised IFRS accounting standards and new interpretations (IFRIC), applicable for the period. New and amended IFRS accounting standards that are effective for the current year have minor impact on the Company´s Financial Statements. The Company has not early applied new and revised IFRS accounting standards that have been issued but are not yet effective. The Financial Statements are presented in USD, which is the Company's functional currency. They do not include all of the information required for full Annual Consolidated Financial Statements and should be read in conjunction with the Company's Annual Consolidated Financial Statements for the period ended 31 December 2024. The Company's Annual Consolidated Financial Statements can be found on the Company's website www.emblamedical.com.
Basis of preparation
The Condensed Interim Consolidated Financial Statements have been prepared under the historical cost basis except for certain financial instruments that are measured at fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The Condensed Interim Consolidated Financial Statements are presented in USD and all values are rounded to the nearest thousand ('000), except when otherwise indicated. This rounding may have impact on the total sum. The accounting policies adopted are consistent with those followed in the preparation of the Company's Annual Consolidated Financial Statements for the period ended 31 December 2024.
2. Quarterly statements
| Q3 | Q2 | Q1 | Q4 | Q3 | |
|---|---|---|---|---|---|
| 2025 | 2025 | 2025 | 2024 | 2024 | |
| Net sales | 236,795 | 232,418 | 202,786 | 224,781 | 213,528 |
| Cost of goods sold | (88,559) | (87,931) | (75,020) | (82,663) | (79,916) |
| Gross profit | 148,236 | 144,487 | 127,766 | 142,117 | 133,612 |
| Gross profit margin | 63% | 62% | 63% | 63% | 63% |
| Other income / (expenses) | (382) | 447 | 367 | (86) | 123 |
| Sales and marketing expenses | (81,400) | (82,529) | (78,057) | (80,628) | (75,333) |
| Research and development expenses | (11,489) | (11,851) | (10,569) | (11,005) | (9,498) |
| General and administrative expenses | (18,065) | (16,817) | (17,280) | (18,532) | (16,263) |
| EBIT | 36,900 | 33,737 | 22,227 | 31,867 | 32,641 |
| Net financial expenses | (4,135) | (9,764) | (7,181) | (8,041) | (5,171) |
| Share in net profit of associates | 1,220 | 3,701 | 613 | 1,055 | 668 |
| EBT | 33,984 | 27,674 | 15,659 | 24,882 | 28,138 |
| Income tax | (8,203) | (6,561) | (3,631) | (6,263) | (6,165) |
| Net profit | 25,782 | 21,113 | 12,027 | 18,619 | 21,973 |
| EBITDA | 52,850 | 48,666 | 36,467 | 46,502 | 46,568 |
| EBITDA margin | 22% | 21% | 18% | 21% | 22% |
There were no special items in the above quarters.
3. Net Sales
| 9M 2025 | 9M 2024 | Q3 2025 | Q3 2024 | |
|---|---|---|---|---|
| Sales by geographical segment: | ||||
| EMEA | 326,755 | 294,123 | 112,130 | 96,487 |
| Americas | 291,196 | 286,130 | 104,443 | 99,612 |
| APAC | 54,047 | 49,856 | 20,222 | 17,429 |
| Total | 671,998 | 630,108 | 236,795 | 213,528 |
| Sales by business segment: | ||||
| Prosthetics & Neuro Orthotics | 372,468 | 332,473 | 135,345 | 115,019 |
| Bracing & Supports | 110,885 | 111,671 | 37,796 | 37,337 |
| Internal product sales | (28,736) | (27,856) | (9,932) | (9,477) |
| External product sales | 454,616 | 416,288 | 163,209 | 142,878 |
| Patient Care | 217,382 | 213,820 | 73,586 | 70,650 |
| Total | 671,998 | 630,108 | 236,795 | 213,528 |
4. Sales and expenses split by main currencies
| 9M 2025 | Q3 2025 | |||||
|---|---|---|---|---|---|---|
| LCY | USD | % | LCY | USD | % | |
| Sales | ||||||
| USD | 260,749 | 260,749 | 39% | 93,620 | 93,620 | 40% |
| EUR | 180,621 | 202,103 | 30% | 60,994 | 71,212 | 30% |
| ISK | 393,951 | 3,042 | 1% | 130,085 | 1,063 | 0% |
| Nordic curr. (SEK, NOK, DKK) | 77,004 | 12% | 24,102 | 10% | ||
| Other (GBP, AUD, CAD & Other) | 129,100 | 19% | 46,798 | 20% | ||
| Total | 671,998 | 100% | 236,795 | 100% | ||
| COGS and OPEX | ||||||
| USD | 232,993 | 232,993 | 40% | 78,841 | 78,841 | 39% |
| EUR | 124,961 | 139,935 | 24% | 44,261 | 51,676 | 26% |
| ISK | 8,473,276 | 65,319 | 11% | 2,623,736 | 21,448 | 11% |
| Nordic curr. (SEK, NOK, DKK) | 73,357 | 13% | 24,262 | 12% | ||
| Other (GBP, MXN, CAD & Other) | 67,529 | 12% | 23,668 | 12% | ||
| Total | 579,134 | 100% | 199,895 | 100% | ||
| 9M 2024 | Q3 2024 | |||||
| LCY | USD | % | LCY | USD | % | |
| Sales | ||||||
| USD | 254,112 | 254,112 | 40% | 88,261 | 88,261 | 41% |
| EUR | 163,462 | 177,682 | 28% | 54,358 | 59,724 | 28% |
| ISK | 361,270 | 2,616 | 0% | 121,338 | 882 | 0% |
| Nordic curr. (SEK, NOK, DKK) | 73,402 | 12% | 22,465 | 11% | ||
| Other (GBP, AUD, CAD & Other) | 122,295 | 19% | 42,196 | 20% | ||
| Total | 630,108 | 100% | 213,528 | 100% | ||
| COGS and OPEX | ||||||
| USD | 224,402 | 224,402 | 41% | 76,623 | 76,623 | 42% |
| EUR | 119,921 | 130,353 | 24% | 39,142 | 43,012 | 24% |
| ISK | 8,286,042 | 60,032 | 11% | 2,531,406 | 18,399 | 10% |
| Nordic curr. (SEK, NOK, DKK) | 67,655 | 12% | 21,010 | 12% | ||
| Other (GBP, MXN, CAD & Other) | 66,381 | 12% | 21,843 | 12% | ||
| Total | 548,823 | 100% | 180,887 | 100% | ||
Currency split is derived by using best available information at each time.
5. Property, plant and equipment
| Leasehold | Machinery & | Office | Computer | ||
|---|---|---|---|---|---|
| 2025 | improvements | equipment | equipment | equipment | Total |
| Cost | |||||
| At 1 January | 51,273 | 80,116 | 14,939 | 13,941 | 160,269 |
| Additions | 4,787 | 8,180 | 903 | 2,349 | 16,218 |
| Business Combinations | 2,212 | 599 | 58 | 37 | 2,905 |
| Eliminated on disposal | (61) | (161) | (17) | (46) | (284) |
| Exchange rate differences | 2,397 | 1,425 | 1,127 | 744 | 5,694 |
| At 30 September 2025 | 60,607 | 90,159 | 17,010 | 17,026 | 184,803 |
| Depreciation | |||||
| At 1 January | 19,654 | 50,499 | 9,850 | 8,442 | 88,445 |
| Charge for the period | 4,305 | 6,042 | 1,212 | 2,753 | 14,311 |
| Eliminated on disposal | (38) | (161) | (16) | (35) | (249) |
| Exchange rate differences | 1,460 | 775 | 702 | 464 | 3,401 |
| At 30 September 2025 | 25,380 | 57,155 | 11,748 | 11,624 | 105,908 |
| At 30 September 2025 | 35,227 | 33,004 | 5,263 | 5,402 | 78,896 |
| Depreciation classified by functional category: | 9M 2025 | 9M 2024 | Q3 2025 | Q3 2024 | |
| Cost of goods sold | 7,383 | 7,285 | 2,418 | 2,526 | |
| Sales and marketing expenses | 3,210 | 3,028 | 1,209 | 932 | |
| Research and development expenses | 1,000 | 577 | 376 | 182 | |
| General and administrative expenses | 2,718 | 2,960 | 930 | 972 | |
| Total | 14,311 | 13,850 | 4,933 | 4,612 |
6. Leases
Right of use assets
| Buildings & | Machinery & | ||
|---|---|---|---|
| 2025 | sites | equipment | Total |
| At 1 January | 123,789 | 4,012 | 127,802 |
| Additions and renewals | 41,630 | 2,283 | 43,913 |
| Depreciation charge and impairment for the period | (20,203) | (1,949) | (22,152) |
| Eliminated on disposal and termination | (1,958) | 0 | (1,958) |
| Exchange rate differences | 9,023 | 503 | 9,526 |
| At 30 September 2025 | 152,281 | 4,849 | 157,130 |
| Depreciation and impairment classified by functional category: | 9M 2025 | 9M 2024 | Q3 2025 | Q3 2024 |
|---|---|---|---|---|
| Cost of goods sold | 8,390 | 7,448 | 2,914 | 2,634 |
| Other income / expenses | 639 | 0 | 639 | 0 |
| Sales and marketing expenses | 6,884 | 3,724 | 2,391 | 1,317 |
| Research and development expenses | 2,366 | 2,234 | 822 | 790 |
| General and administrative expenses | 3,872 | 5,214 | 1,345 | 1,686 |
| Total | 22,152 | 18,620 | 8,111 | 6,427 |
At the end of the period it was decided to close two of the Company´s locations. The remaining contractual payments will be settled in 2026 with relocation to the new facilities. The Company impaired the right of use assets for the related leases totaling USD 0.6 million. The corresponding lease liabilities are presented entirely as current liabilities.
7. Goodwill
| 30.09.2025 | 31.12.2024 | |
|---|---|---|
| At 1 January | 776,306 | 690,855 |
| Business combinations | 21,124 | 104,489 |
| Exchange rate differences | 39,174 | (19,038) |
| At end of period | 836,604 | 776,306 |
The goodwill increase related to current year business combination is allocated to EMEA and Americas cash generating units.
8. Other intangible assets
| Customer & | Patents & | ||||
|---|---|---|---|---|---|
| 2025 | distribution relationships |
development costs |
Trademarks | Software & other |
Total |
| Cost | |||||
| At 1 January | 36,701 | 32,214 | 8,156 | 63,175 | 140,246 |
| Additions | 0 | 663 | 29 | 1,507 | 2,199 |
| Additions - internally generated | 0 | 0 | 0 | 5,860 | 5,860 |
| Business Combinations | 0 | 478 | 0 | 79 | 557 |
| Exchange rate differences | 2,973 | 359 | 703 | 228 | 4,262 |
| At 30 September 2025 | 39,673 | 33,714 | 8,889 | 70,849 | 153,124 |
| Amortization | |||||
| At 1 January | 9,393 | 9,789 | 523 | 23,896 | 43,601 |
| Charge for the period | 2,536 | 1,728 | 24 | 4,367 | 8,655 |
| Exchange rate differences | 465 | 131 | 0 | 119 | 715 |
| At 30 September 2025 | 12,394 | 11,649 | 547 | 28,382 | 52,971 |
| At 30 September 2025 | 27,279 | 22,065 | 8,342 | 42,467 | 100,153 |
| Amortization classified by functional category: | 9M 2025 | 9M 2024 | Q3 2025 | Q3 2024 | |
| Cost of goods sold | 689 | 1,239 | 215 | 402 | |
| Sales and marketing expenses | 5,058 | 4,318 | 1,566 | 1,422 | |
| Research and development expenses | 1,340 | 1,259 | 472 | 475 | |
| General and administrative expenses | 1,568 | 2,051 | 653 | 589 | |
| Total | 8,655 | 8,867 | 2,906 | 2,888 |
9. Business combinations
On 17 July 2025 Embla Medical announced the acquisition of the majority share (51% of the shares) in the privately owned Streifeneder ortho.production GmbH ("Streifeneder"). The investment was completed on 29 August 2025 following regulatory approvals, hence one month of sales is included in Q3 Financial Statement.
Streifeneder is an international developer and supplier of orthopaedic mobility solutions, employing around 100 people. In addition to its offerings of prosthetic and orthotic components, Streifeneder also supplies orthopaedic materials and equipment to the O&P industry. In 2024, Streifeneder realized sales of EUR 25 million (approximately USD 29m) with ~70% of sales related to prosthetics and orthopaedic materials. The majority of sales are generated in Germany, while also selling into other key European markets and distributing into the Americas and APAC regions.
As part of the consideration paid for Streifeneder, Embla Medical issued 2,805,135 new shares. The share price of each share was DKK 33.26, and the total value of the share price capital increase is thus DKK 93 million (EUR 12.5 million / USD 14.5 million).
The initial accounting for the acquisition has been provisionally determined at the end of the reporting period. The goodwill is not expected to be deductible for income tax purposes.