Interim Management Statement Q3 2025

Lars Boilesen, CEO Heine Thorsgaard, CFO

November 5, 2025

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Safe Harbor Statement

This presentation has been prepared by Napatech A/S solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities.

Certain statements included in this presentation contain various forward-looking statements that reflect management's current views with respect to future events and financial and operational performance. The words "believe," "expect," "anticipate," "intend," "may," "plan," "estimate," "should," "could," "aim," "target," "might," or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include but are not limited to the Company's ability to operate profitably, maintain its competitive position, to promote and improve its reputation, to successfully operate its strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, neither the Company nor its subsidiary undertakings or any of such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

AGENDA

BUSINESS STATUS

Financial Results

3Q-2025 Revenue

3Q-2025 Gross Margins

3Q Staff cost/external cost

3Q EBITDA

3Q Net cash flow

YTD-Summary

Recent Highlights

Product Leadership

Business Growth

Design Win Focus

\$6.3M USD, +25% year over year, YTD 26%, Q2 vs Q3 2025 +31%

70%, as expected

DKK 35M, Q3 2025, vs 43,2M Q3 2024, a decrease of 23%

-6,1 MDKK, Q3 2025, vs. -17,6 MDKK, Q3 2024, improved by 11,5 MDKK

Net cash flow 0, -22,5 Q3 2024, improved by 22,5 MDKK YoY

Significant improvement year-over-year in overall operations

Napatech Ignites the Next Wave of Artificial Intelligence Infrastructure with Data Processing Unit Powered by Altera and Intel, specified by tier-1 server OEM

Successful progress in new design wins, leading to new revenue sources New design wins publicly disclosing and launching their products Base business strengthening, growing, in valuable accounts and use cases

Continued pipeline building in opportunities of transformational scale New opportunities emerging both organic and via partner ecosystem

OPPORTUNITY: APPLICATIONS THAT BENEFIT FROM NAPATECH NICS

CLOUD AND ARTIFICIAL INTELLIGENCE

AI Infrastructure AI Coprocessing AI Storage Acceleration Network Offload

BUSINESS CRITICAL APPLICATIONS

Cybersecurity Fintech Financial Services Regulatory Compliance Network Forensics

NETWORK INFRASTRUCTURE

Application and Network Monitoring 5G Mobile Infrastructure Capture and Replay Deep Packet Inspection

Napatech's Advanced NICs play a crucial role in modern datacenter designs …

… providing access to CPU and GPU resources ✓ that deliver AI, security and other services

Napatech Programmable NICs

ACCELERATED PROCESSING

Offload and accelerate burdensome CPU AI, network, security, storage processing

PROGRAMMABLE NETWORKING

Hardware performance at the speed of Software innovation

SUSTAINABLE COST

Rearchitect servers to remove ROI constraints from space, power and cooling

MARKET VALIDATION: EARLY ADOPTERS PROVE TECHNOLOGY, VALUE, BENEFITS AND SCALE

DEPLOYED NOW

8 global companies Initially niche, bespoke Component self-built DIY Not for sale Intel-Altera dominance >12M cards in 2024

Increased Volumes

Scalability with Intel's proven architecture and design in large-volume applications and use cases

Go-to-market

Access to Intel-Altera's global reach and collaboration with sales, marketing and business development into high volume prospects

Engineering collaboration

Tailoring and specified hardware and software solutions with Intel for highest growth segments

Access to latest technology

First mover advantage with access to Intel and Altera's latest CPU and FPGA technology

INTRODUCING A NEW 400G DPU FOR DATA CENTERS

A joint solution with Altera®, Intel®, and Napatech that enable an innovative approach to power the modern data center for public cloud, private cloud, edge, and enterprise data centers built for the Al era.

BUSINESS UPDATE: Design Win Pipeline and Base Business

New Design Win Pipeline

Nearly 200 opportunities, >60% in new business and markets
Nearly \$400M in value, >80% in new business and markets
Includes SmartNIC and DPU Programmable NICs
New business volumes: 1k, 5k, 10k, 25k+
Current design wins contribute 60k-80k units in peak production
Anchored by innovative software packages
Spanning customer types, applications and use cases
Altera regularly adding new opportunities
Napatech inbound leads noticeably up, web, organic, referral

Base Business Strengthening

• Over 400 base customers

• Design wins and sales increasing

• Higher ASP (HW+SW), at lower relative volumes

• FinTech and financial services market continue to shine

• Existing customer business returning to normal

• Attractive pipeline with 2H25 line of site

The improving base business, plus constantly expanding pipeline of opportunities and early success in new design wins provides great optimism towards realizing our growth ambitions

AI inferencing vendor win, d-Matrix
AI infrastructure back-end network
High-volume production
Hardware win reuse of tier-1 server OEM design
Commitments: units, NRE fee
5-year supply agreement
Development on schedule, mileposts met
Analysts expand projections of non-GPU co-processors for AI inferencing
Customer product launch/disclosure complete

CASE STUDY: TIER-1 SERVER OEM

Standalone SmartNIC (N3070X)

HARDWARE SOFTWARE

USE CASES

NETWORKING STORAGE SECURITY INFRASTRUCTURE MANAGEMENT AND MORE….

AI STORAGE CONNECTIVITY CLOUD STORAGE AI CONTENT AND DATA REDUCTION CLOUD TENNANT SERVICES 5G MOBILE INFRASTRUCTURE PARALLEL FILE SYSTEM

On time delivery of all hardware, exceeding customer expectations
Transitioning to software requirements per use case, stunning metrics

Land-and-expand from initial engagement to 6+ unique opportunities

24-26 March 2026 Dubai, UAE

Consolidated Income Statement Q3 & YTD

	Q 3		YTD Sep		Q 3	YTD Sep
DKK'000	2025	2024	2025	2024	∆	∆

Revenue	40,133	34,012	95,553	78,730	18%	21%
Cost of goods sold	(11,841)	(9,763)	(29,364)	(23,980)
profit Gross	28,292	24,249	66,189	54,750	17%	21%
GM%	7 0.5%	7 1.3%	6 9.3%	6 9.5%
Staff costs	(25,495)	(27,366)	(89,997)	(83,705)	-7%	8 %
Other external costs	(9,649)	(15,826)	(36,660)	(43,388)	-39%	-16%
EBITDAC	(6,852)	(18,943)	(60,468)	(72,343)
Transferred to capitalized development costs	755	1,363	5,681	3,079	-45%	85%
EBITDA	(6,097)	(17,580)	(54,787)	(69,264)
and Depreciation, amortization impairment	(5,018)	(6,921)	(17,345)	(22,564)	-27%	-23%
result Operating (EBIT)	(11,115)	(24,501)	(72,132)	(91,828)
Finance income	439	(75)	648	1,131
Finance costs	(545)	(995)	(4,786)	(2,864)
Result before tax	(11,221)	(25,571)	(76,270)	(93,561)
Income tax	1	10	(93)	755
Result for the period	(11,220)	(25,561)	(76,363)	(92,806)	-56%	-18%

EBITDAC: Earnings before depreciation, amortization and impairment, and staff cost transferred to development projects

Key Developments

Revenue in Q3 in USD up 25% compared to Q3'24 (up 18% in DKK) and up 31% compared to Q2'25. Revenue in YTD in USD up 26% compared to '24.
GM in Q3 70.5% up 3.6 basis points compared to Q2'25.

• Q3 EBITDA negative DKK 6.1m – up DKK 11.5m compared to Q3'24.

Consolidated Cash Flow Statement Q3 & YTD

	Q	3	YTD	Sep		Key Developments
DKK'000	2025	2024	2025	2024
Earnings before tax (EBT)	(11,221)	(25,571)	(76,270)	(93,561)		compared to negative DKK 22.5m in Q3'24
profit before flows Adjustments to reconcile tax to net cash	6 799 ,	11 155 ,	27 973 ,	32 168 ,	•	Net working capital end of Q3 DKK 91.2m
Working capital adjustments	3 815 ,	(8 193) ,	4 521 ,	(7 283) ,
Cash flows from operating activities	(607)	(22,609)	(43,776)	(68,676)		-9.8 2.4 3.5
Interest and tax	605	84	(543)	(1 225) ,
Net cash flows from operating activities	(2)	(22,525)	(44,319)	(69,901)		95.2

Net cash used in investing activities	(1,718)	(3,525)	(8,000)	(7,216)

Free cash flow	(1,720)	(26,050)	(52,319)	(77,117)

Net cash flows used in financing activities	(13,853)	25,977	107,744	137,704		compared to Q3'24.

Net change in cash and cash equivalents	(15,573)	(73)	55,425	60,587
Net foreign exchange difference	(183)	(271)	(2 111) ,	(92)		0.6 -1.7 -4.4 3.8
Cash and cash equivalents the beginning of the period at	133 411 ,	103 206 ,	64 341 ,	42 367 ,
Cash of and cash equivalents at the end the period	117,655	102,862	117,655	102,862		133.4

Net working	capital

	2025	2024
working	91	408
capital	245	72
Net	,	,

Net Cash flow from operating activities in Q3 negative DKK 2t compared to negative DKK 22.5m in Q3'24
Net working capital end of Q3 DKK 91.2m

Free cash flow in Q3 negative DKK 1.7m up DKK 24.2m compared to Q3'24.
Cash and cash equivalents of DKK 117.7m end of Q3 25.

NWC Improvement Initiatives

During 2025, we have planned and implemented several improvement initiatives aimed at reducing our Net Working Capital in the second half of 2025 and through 2026.
The key initiatives to improve the Napatech NWC focus on:
Reducing inventory levels and optimizing the planning of future product production
Negotiating better payment terms with key suppliers & current customers
Optimizing payment terms and sourcing model for new high-volume agreements
In the coming years, we anticipate that most of our new business will stem from large-volume orders rather than production for stock. This shift will lead to an even more optimized logistics setup with a significantly lower need for working capital.