Hybrid Software Group — Annual Report 2025

Mar 12, 2026

Hybrid Software Group PLC 213800ZFW446QIHAB654 2025-01-01 2025-12-31 213800ZFW446QIHAB654 2024-01-01 2024-12-31 213800ZFW446QIHAB654 2024-12-31 213800ZFW446QIHAB654 2025-12-31 213800ZFW446QIHAB654 2023-12-31 213800ZFW446QIHAB654 2024-01-01 2024-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800ZFW446QIHAB654 2024-01-01 2024-12-31 ifrs-full:TreasurySharesMember 213800ZFW446QIHAB654 2024-01-01 2024-12-31 ifrs-full:RetainedEarningsMember 213800ZFW446QIHAB654 2024-01-01 2024-12-31 ifrs-full:IssuedCapitalMember 213800ZFW446QIHAB654 2024-01-01 2024-12-31 ifrs-full:MergerReserveMember 213800ZFW446QIHAB654 2024-01-01 2024-12-31 ifrs-full:SharePremiumMember 213800ZFW446QIHAB654 2025-01-01 2025-12-31 ifrs-full:SharePremiumMember 213800ZFW446QIHAB654 2025-01-01 2025-12-31 ifrs-full:IssuedCapitalMember 213800ZFW446QIHAB654 2025-01-01 2025-12-31 ifrs-full:TreasurySharesMember 213800ZFW446QIHAB654 2025-01-01 2025-12-31 ifrs-full:MergerReserveMember 213800ZFW446QIHAB654 2025-01-01 2025-12-31 ifrs-full:RetainedEarningsMember 213800ZFW446QIHAB654 2025-01-01 2025-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800ZFW446QIHAB654 2023-12-31 ifrs-full:RetainedEarningsMember 213800ZFW446QIHAB654 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800ZFW446QIHAB654 2023-12-31 ifrs-full:SharePremiumMember 213800ZFW446QIHAB654 2023-12-31 ifrs-full:TreasurySharesMember 213800ZFW446QIHAB654 2023-12-31 ifrs-full:IssuedCapitalMember 213800ZFW446QIHAB654 2023-12-31 ifrs-full:MergerReserveMember 213800ZFW446QIHAB654 2024-12-31 ifrs-full:IssuedCapitalMember 213800ZFW446QIHAB654 2024-12-31 ifrs-full:SharePremiumMember 213800ZFW446QIHAB654 2024-12-31 ifrs-full:TreasurySharesMember 213800ZFW446QIHAB654 2024-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800ZFW446QIHAB654 2024-12-31 ifrs-full:RetainedEarningsMember 213800ZFW446QIHAB654 2024-12-31 ifrs-full:MergerReserveMember 213800ZFW446QIHAB654 2025-12-31 ifrs-full:SharePremiumMember 213800ZFW446QIHAB654 2025-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800ZFW446QIHAB654 2025-12-31 ifrs-full:IssuedCapitalMember 213800ZFW446QIHAB654 2025-12-31 ifrs-full:TreasurySharesMember 213800ZFW446QIHAB654 2025-12-31 ifrs-full:MergerReserveMember 213800ZFW446QIHAB654 2025-12-31 ifrs-full:RetainedEarningsMember iso4217:EUR iso4217:EUR xbrli:shares ANNUAL REPORT 2025 Hybrid Software Group PLC annual report and financial statements for the year ended 31st December 2025 3 Hybrid Software Group PLC | Annual Report 2025 HYBRID SOFTWARE GROUP 5 Our company 6 Digital revolution in print manufacturing 10 Our value proposition 14 A year in review 16 Our markets 21 Our business segments 33 COMPANY STRATEGIC REPORT 51 Chairman’s statement 52 CEO’s review 54 CFO’s review 56 Principal risks and uncertainties 60 Section 172(1) 68 Environmental matters 70 Social and community 72 Employee matters 73 GOVERNANCE 77 Board of directors 78 Directors’ report 80 Corporate governance report 86 Audit committee report 88 Directors’ remuneration report 89 Independent auditor’s report 98 FINANCIAL STATEMENTS 107 OTHER INFORMATION 159 Glossary 160 Contents HYBRID SOFTWARE GROUP Hybrid Software Group PLC (Euronext: HYSG) is a leading developer of enterprise software and printhead drive electronics for packaging and industrial print manufacturing. Customers include press manufacturers such as HP, Canon, Durst, Roland, Hymmen, as well as global brands, consumer packaged goods companies, retailers, and thousands of packaging printers, trade shops, and converters worldwide. Its brands comprise: Labels & Packaging Software, Colour (derived from the 2022 acquisition of ColorLogic GmbH), Helix (formerly Global Graphics Software ), Brandz (including the 2022 acquisition of 3D software supplier iC3D, and the 2025 acquisition of Tallon Graphics Solutions), and Conics, a Belgian integrator and software developer acquired in 2025. Other businesses include industrial printhead drive solutions specialist Meteor Inkjet, and the pre-press workflow developer and interface supplier Xitron. Our company Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Our company Hybrid Software develops innovative technology for industrial print manufacturing processes that use inkjet and other printing techniques. The technology is critical because efficiency and sustainability concerns are driving the conversion of manufacturing processes from traditional analogue methods to just-in-time digital production using inkjet printing. Applications for inkjet printing include a diverse range of goods, from labels and packaging, to textiles, tiles, laminates, wall coverings, additive manufacturing and 3D printing applications. Hybrid Software Group PLC is a public limited-liability company registered in England and Wales with its shares traded on Euronext Brussels under stock code HYSG. It is headquartered near Cambridge, UK. The Company employs more than 300 employees worldwide and has a pedigree stretching back more than 30 years. Hybrid Software Group PLC has offices around the world and is headquartered near Cambridge, UK. The team poses for a photo during the successful exhibition at Labelexpo Europe in Barcelona. The Company is the only full-stack supplier of all the critical core technologies needed for inkjet printing. Our principal customers are original equipment manufacturers (OEMs) of digital printing equipment, including high-speed digital production presses, professional colour proofing devices, wide format colour printers, and industrial inkjet printers for ceramic tiles, packaging, textiles and additive manufacturing, as well as end users, primarily printing companies who purchase these devices to print and convert labels and packaging materials. Hybrid Software has traditionally provided software components and printhead drive electronics to OEMs to enable them to build their own solutions. Our investment case → Inkjet adoption is increasing rapidly across multiple industry sectors. → Analogue markets are converting to digital production. → Hybrid Software enables customers to migrate their traditional manufacturing processes to digital inkjet. → Hybrid Software is the only vertically integrated supplier to this market, supplying products and technology to both manufacturers of digital printing equipment and to manufacturers of packaging and other printed goods who operate them. → Component businesses are award-winning technology leaders. → Synergies between companies in the Company, following strategic acquisitions made in recent years, will accelerate innovation and revenue growth. However, the strategic acquisitions made in recent years now enable the Company to provide full turnkey solutions for OEMs that enable them to bring new digital printing devices to market faster and with higher quality. These solutions are higher value and provide more revenue to the Company per device installed. Furthermore, the OEM business is synergistic with the Company’s end-user products, accelerating revenue growth and increasing the Company’s market share in the inkjet space. Guido Van der Schueren, Executive Chairman, shares,“We will continue to deliver leadership in software and electronics for industrial printing and packaging, driven by the intelligence and passion of our people.” Industrial print manufacturing is when printing technology is used in broader manufacturing processes where it isn’t the print itself that is being sold. 6 7 CONICS Our company Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Connecting the world of print and packaging. Hybrid Software’s suite of technology businesses empowers brands, pre-press agencies, converters, and OEMs with intelligent tools across artwork management, prepress, colour management, production workflow and OEM software, delivering efficiency, innovation, and collaboration across the graphic arts value chain. 8 9 Digital revolution in print manufacturing Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Digital revolution in print manufacturing The print manufacturing market is transitioning from analogue to digital at a rapid pace. A number of factors have combined to accelerate this change: supply chain disruption caused by changing consumer demand for customised products, and the growing realisation that the way for manufacturing industries to increase their business is to go digital. At the heart of this change in the printing market are the innovations taking place in digital inkjet printing. Inkjet printing makes it possible to change what is being printed in real time on every object. It can be inserted at different points in the production process, for instance during product decoration, packaging or labelling. In addition, inkjet can print on any surface, resulting in a revolution in the way in which goods are produced and packaged and the speed with which they are ready for market. Jobfile Computer to plate Prepress Offset printer Digital printer Analogue versus digital workflow In an analogue workflow, graphic designs are transferred to a printing plate which is fed to the press to produce multiples of the same item. In a digital workflow, a PDF file created by the designer encapsulates all the data required for printing. The PDF file is submitted to the digital printing press via a Digital Front End (DFE), and can contain different images and text for each product produced using a technology known as Variable Data Printing (VDP). Analogue Digital A typical labelling workflow Specialised software is used to prepare the PDF file for printing. This may include merging a data stream to generate QR codes or barcodes for product identification or security purposes; colour management to accurately match specific brand colours; layout tools to ensure the most economical use of raw materials; portals to review and approve the artwork on screen; and enterprise software for workflow automation. Other software embedded in the printing process ensures high-quality output through rasterisation and screening depending on the specifications of the printing device. As many as seven colours plus white and clear inks may be jetted with different sizes of ink drops to achieve the desired output after careful calibration to the printing device. 10 11 Digital revolution in print manufacturing Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 3D printed art Digital textile printing onto furnishings and curtains Functional printing onto screens Photovoltaic printing onto solar panels Digital décor printing onto floors and surfaces Digital print onto cereal boxes, wine bottles, beer cans... Digital print for manufacturing Printing is part of the manufacturing process for thousands of products that touch our everyday lives, as the illustration shows below. Inkjet is the technology driver for digital conversion of these processes and makes it possible to produce products that were simply not possible with analogue processes, such as customising vehicles, garage doors, or even jetting onto the side of aircraft. Hybrid Software Group enables its customers to migrate their traditional manufacturing processes to digital inkjet printing. Digital textile printing onto bedsheets Glass printing onto windows Direct-to-shape digital printing onto cosmetic tubes Digital inkjet printing onto corrugated boxes Industrial / functional printing onto car windscreens and interiors 2024 Copyright © Adobe Stock 12 13 Our value propositions Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Our value propositions Hybrid Software is the only full-stack supplier of all the critical core technologies needed for inkjet printing. With a third of our headcount working in engineering and approximately 20% of revenues reinvested in R&D, we are dedicated to innovation on behalf of our customers and maintain a strong IP position with numerous patents. Original Equipment Manufacturers (OEMs) Our value proposition to OEMs of industrial digital printing equipment, typically featuring inkjet technology, is to offer turnkey solutions and individual components to enable them to migrate analogue processes to digital and to bring new digital printing devices to market faster and with higher quality. Print service providers and converters Print service providers and converters are industrial manufacturers of products, such as labels, cartons, tiles, displays, fabrics, flooring, décor, etc. which are typically produced using digital printers made by OEMs. Our value proposition here is to offer a complete set of software applications to maximise efficiency in production workflows. 14 15 A year in review Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 16 17 A year in review Global Graphics Software rebrands as Hybrid Software Helix Global Graphics Software announced its new brand identity: Hybrid Software Helix. The name reflects the company’s evolution into a trusted provider of embedded, intelligent software components at the heart of industrial print systems. It also signals its commitment to ongoing innovation, its deep-rooted connection to Cambridge, and its role in shaping the future of digital print. “We may have a new name, but our values remain the same,” said Managing Director Justin Bailey. “Helix continues to be defined by trust, collaboration, and a relentless focus on innovation.” November 2025 Hybrid Software puts AI in practice at Labelexpo Europe At Labelexpo Europe in Barcelona, Hybrid Software introduced Matches - AI- based software for intelligent job similarity search, and showcased SmartDFE, its intelligent digital front end platform that powers high- speed presses from Mark Andy, Dantex, Weigang, Flora, and other manufacturers. All AI solutions are built on private large language models to protect customer data security, positioning Hybrid Software as a leader in AI offerings with tangible ROI for the packaging industry. September 2025 Hybrid Software Helix receives King’s Award for Enterprise for Innovation Hybrid Software Helix, formerly Global Graphics Software, received the UK’s prestigious King’s Award for Enterprise for Innovation, recognising its SmartDFE™ intelligent digital front end platform that drives high-speed label, packaging, and industrial inkjet presses. The award was formally presented in September at the company’s Cambridge headquarters by His Majesty The King’s representative, Mrs Julie Spence OBE CStJ QPM, HM Lord- Lieutenant of Cambridgeshire, in a ceremony attended by employees and guests. This marks the company’s second King’s Award, following its 2020 Queen’s Award for Enterprise for Innovation for ScreenPro™ screening software. May 2025 PACKZ 11 Launches with Industry-First RIP Integration Hybrid Software unveiled PACKZ 11, featuring PACKZ Max with integrated Harlequin RIP® technology that enables precise flexo screening, 1-bit TIFF output, and live RIP previews directly within the PDF editor. The release introduces extended CF2 file format support for folding carton with 3D visualisation capabilities and automatic barcode conversion supporting GS1 Sunrise 2027. PACKZ Max unifies all flexo prepress operations in one platform, eliminating costly RIP servers while maximizing print quality and efficiency. June 2025 CLOUDFLOW Colorspace Wins Three Major Industry Awards in 2025 CLOUDFLOW Colorspace transforms complex color management through powerful automation, exceptional accuracy, and seamless integration across print environments. In 2025, this innovation earned Hybrid Software two prestigious EDP Awards, recognising CLOUDFLOW Colorspace as Best Color Management Solution. The technology also received the esteemed Pinnacle Award from PRINTING United Alliance for its breakthrough approach to streamlined, reliable color workflows. Most recently, CLOUDFLOW Colorspace won the 2025 CI Flexo Tech Innovation Award, underscoring Hybrid Software’s leadership in advancing color automation and print technology. November 2025 Acquisition of Conics, Offering Consultancy and AI Innovation Hybrid Software announced the acquisition of Conics, a Belgium-based software development and consultancy firm specialising in graphical software selection, implementation, and custom integration services for the printing and packaging industry. The acquisition strengthens Hybrid Software’s project management and consultancy capabilities while adding Conics’ AI expertise and products to complement Hybrid’s existing labels and packaging solutions. Conics will operate as a separate business unit from its Ypres offices and continue integrating software solutions from multiple industry vendors as required by customers. September 2025 Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 A year in review 18 Fusion Packaging Summit 2025 Together with industry partner sponsorship, Hybrid Software successfully hosted the inaugural Fusion Packaging Summit in Amsterdam from April 22-25, 2025. The event attracted 220 attendees from 23 countries and 14 sponsor partners for four days of innovation, collaboration, and major industry announcements. The summit featured 22 technical sessions and included factory visits to three local customer partners: AV Flexologic, Geostick, and Intergrafipak. The event was sponsored by a strong group of industry leaders, including ABG, Arden Software, AV Flexologic, Bobst, CERM, Conics, Eco3/Agfa, Global Vision, HELL Gravure, Hybrid Fusion Packaging Summit 2025 took place in the NH Collection Barbizon Palace in Amsterdam. Hybrid Fusion brought together 220 attendees from 23 countries, along with 14 sponsor partners in Amsterdam. The Summit was four days filled with innovation, networking, collaboration and major announcements. HP, Infigo, Koenig & Bauer, XSYS, and Zünd. “With a long gap between Drupa and Labelexpo Europe, 2025 was the perfect year to introduce the Fusion Packaging Summit—a real ‘fusion’ of global brands, trade shops, packaging converters, a large group of partners who serve them, and our own product experts,” said Mike Rottenborn, CEO of Hybrid Software Group. “The results far exceeded my expectations, and we will make Fusion an annual event, alternating between Europe and North America.” Hybrid Software presented product innovations, together with customer testimonials and roundtables. Technology Announcements A major highlight was the unveiling of a new standard to extend the CF2 file format for folding carton packaging. Jointly developed by Hybrid Software and Arden Software, and supported by partners Zünd, Kongsberg, and EngView Systems, the extended CF2 format addresses critical gaps in the current industry standard by adding folding angles for crease lines and folding order for 3D viewing, while maintaining backward compatibility. Future extensions will embed substrate information, grain direction, and other features, adhering to Hybrid Software’s open systems philosophy that industry standards should remain accessible to all participants. David Zwang and Marco Boer gave highly revelant keynote presentations. Attendees visited local Hybrid Software customers Geostick, AV Flexologic, and Intergrafipak factories. Fusion Packaging Summit 2026 in Florida, United States Fusion Packaging Summit 2026 registration is already open, and will take place at The Westin in Sarasota Florida, USA from April 20th to 22nd 2026. “At Hybrid Software, we’re committed to listening to our customers and understanding their needs and aspirations. The Fusion Packaging Summit provides a platform to get together with our customers and partners in North America and plan for the future. For the 2026 event, we’ve booked the entire Westin Sarasota hotel for our customers and industry partners. The diverse agenda will provide relevant tracks for packaging trade shops, print providers, and brands and will cover timely topics including prepress automation, artificial intelligence, and color management for multiple printing technologies including flexo, offset, gravure, and digital printing,” says CEO Mike Rottenborn. 2026 19 A year in review Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Our markets Hybrid Software’s markets include labels and packaging, ceramics, textiles, 3D printing and additive manufacturing. In each of these segments, inkjet technology is giving brands the flexibility to respond to changing customer demands by just-in-time digital production, and to create products that would not be possible using analogue production methods. Set against the transition to digital printing, another trend is at play: manufacturers of digital printing devices are looking for turnkey or SaaS solutions that are fast and flexible enough to power the next generation of digital inkjet printers at blistering production speeds. The Company’s software engineering expertise allows it to develop solutions to meet and exceed these requirements. 20 21 Our markets Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Hybrid Software continues to shape the labels and packaging market through a focused portfolio that spans prepress editing, automated workflows, and online proofing. The company’s core platforms include PACKZ for native PDF editing, CLOUDFLOW for enterprise workflow automation, and Proofscope for browser-based review and approval, which together streamline design-to-print production for label and packaging converters. Labels and packaging Flexibility While packaging produced via the flexographic process continues to hold the largest share of the labels and packaging market in Europe and the US, the portion of digitally printed labels and packaging is rising significantly. The global digital packaging printing market is valued at approximately USD 34.01 billion in 2025 and is on track to reach USD 56.12 billion by 2030, representing a CAGR of around 10.1% over this period. (a) This shift is driven by digital printing’s flexibility, enabling short runs to be produced quickly in response to changing consumer demand. In Asia, though gravure cylinder-printing still dominates much of the packaging output, there is clear migration toward flexographic and digital printing methods. Indeed the global digital label printing market alone is estimated at USD 12.3 billion in 2025. (b) Asia-Pacific is projected to be one of the highest growth areas for digital label and packaging printing over the next five years. Innovation In recent years the industry has seen many exciting innovations around materials and process types. These include advanced water-based inks, paper pouches, flexible films, and recycled material formats. One notable advancement is Direct-to-Shape printing, which enables full-colour images, text line-work and other special effects to be printed directly onto cans, bottles, sleeves and other shaped objects as an in-line step in the manufacturing process. Market commentary for 2025 (a) Mordor Intelligence. https://www.mordorintelligence.com/industry-reports/digital-printing- packaging-market (b) Future Market Insights. https://www.futuremarketinsights.com/reports/digital-label-printing-market (c) Labels and Labeling. https://www.labelsandlabeling.com/news/market-trends/2025-predictions (d) Sustainable Packaging. https://sustainablepackaging.org/resource/2025-trends-report A closer look at sustainability trends The Sustainable Packaging Coalition’s 2025 Trends Report highlights how U.S. state-level EPR laws and broader regulatory shifts are redefining what qualifies as “recyclable” and are forcing packaging producers to track and report material flows. In upcoming years, labels and packaging companies’ measurement of sustainability efforts is no longer limited to “recyclable material used” or “weight reduced”. It must embrace full value-chain carbon tracking, reuse/refill models, material transformation (recycled/bio- based content), regulatory / EPR compliance, and verified end-of-life outcomes. Those who invest early in establishing robust data collection, traceability, and verified metrics will be better positioned to meet brand-owner demands, regulatory pressures, and consumer expectations. emphasises that digital printing is “firmly established” as the standard technology for labels and packaging, and that the tipping point from analog to digital is shifting at an unprecedented pace.(c) Smart factories In response to brand-owner and converter demands for inkjet and digital printing within smart production lines, the industry is increasingly adopting smart factory and Industry 4.0-enabled workflows. For example, Hybrid Software’s SmartDFE™ Digital Front End integrates AI-based automation with digital printing equipment, enabling print-on-demand and connectivity to enterprise systems, and it has received recognition, including the 2025 King’s Award for Enterprise for Innovation. These developments underscore the trend toward fully automated, traceable digital printing operations within packaging production. 22 23 Our markets Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Demand for ceramic tiles continues to grow The global market for ceramic tiles and printing is estimated at around USD 111.24 billion in 2025, with a projected compound annual growth rate (CAGR) of ~4.9% from 2025 to 2033. (e) Digital printing has transformed how ceramic tiles are decorated, and by the end of 2025 experts expect that over 85% of glazed tile production worldwide will incorporate digital printing technology. (f) Industrial ink-jet systems have largely replaced screen-printing in the ceramic tile industry, allowing for faster turnarounds, more aesthetic flexibility and responsiveness to new construction and renovation projects. The ceramics market remains heavily influenced by regional economic conditions and the pace of residential and commercial build-outs. For example, China continues to be a key producer and consumer of ceramic tiles, while Europe maintains a strong design-led industry and other regions present growth opportunities. (g) Dedicated features In this evolving environment, the company stands out by supplying advanced print- platform electronics and software for digital tile decoration. Our solutions are engineered for the demands of industrial ink-jet tile printing systems: high throughput, heavy pigment inks, recirculating ink systems, anti-sedimentation features and robust nozzle control functions. These features are critical since ceramic inks are prone to settling and nozzles require active maintenance to ensure reliable print performance in large-scale production. Economical and flexible Digital printing of ceramic tiles offers significant cost and operational benefits compared to analogue screen-printing methods. Short production runs become economically feasible thanks to lower setup costs, minimal change-over waste and reduced inventory of finished goods. Other manufacturing advantages include reduced breakage due to non-contact printing, simplified colour-matching for repeat orders and the ability to yield realistic visuals of marble, natural stone or large-format tile layouts without repeating patterns. These benefits align with market trends showing strong adoption of digital decoration methods for ceramic tile production. (h) Ceramics Hybrid Software supports the ceramic tile printing market through its Meteor Inkjet business unit. By delivering scalable, high-performance solutions for industrial inkjet systems, the company enables efficient, precise, and visually stunning tile production. (e) Data Insights Market. https://www. datainsightsmarket.com/reports/ ceramic-tile-and-its-printing-1091653 (f) SD Tiles. https://www.sdtiles.com/ news/digital-printing-technology- reshapes-the-futur-85145961.html (g) Pro Market Reports. https://www. promarketreports.com/reports/ceramic- tile-and-its-printing-8913 (h) Data Insights Market. https:// www.datainsightsmarket.com/ reports/ceramic-tile-inkjet-printing- machine-1517215 A closer look The ceramics industry continues to evolve rapidly as digital printing solidifies its dominance across global tile production. Digital inkjet systems are now used in over 85 percent of glazed tile decoration, transforming design flexibility and production efficiency. (e) This shift supports the rising global ceramic tile market, valued at more than USD 111 billion and forecast to grow steadily through 2033. With China maintaining its position as the largest producer and Europe driving design innovation, regional diversification is strengthening the industry’s resilience. Digital tile printing is enabling manufacturers to meet growing global demand for customization, faster turnaround, and sustainable production—all critical to the next decade of ceramic manufacturing. (g) 24 25 Our markets Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Textiles (i) Precedence Research. https://www.precedenceresearch.com/digital-textile-printing-market (j) Coherent Market Insights. https://www.coherentmarketinsights.com/industry-reports/digital-textile- printing-market (k) Mordor Intelligence. https://www.mordorintelligence.com/industry-reports/global-digital-textile- printing-market (l) Research and Markets. https://www.researchandmarkets.com/reports/5511294/digital-textile- printing-market-share Hybrid Software Group develops advanced technologies for industrial print manufacturing—including inkjet and other digital methods—that are central to the drive toward just-in-time production and sustainability-led conversion of analogue processes across sectors such as textiles, packaging, ceramics and more. Many areas for growth The global digital textile printing market is projected to grow from approximately USD 3.89 billion in 2025 to around USD 12.73 billion by 2034, representing a CAGR of about 14.11 % over the forecast period. (i) Cost-effective single-pass printing Single-pass digital printing is anticipated to be the fastest growing segment in the digital textile printing market. Single-pass digital printing is an advanced technique that enables rapid, efficient, and accurate printing using specialised equipment, which requires just a single pass to apply ink or images onto diverse surfaces. Driven by sustainability Sustainability is a key driver for digital inkjet production because it reduces water, energy usage, pollution and waste. The latter is of special interest: the amount of textile production ending in landfill is a particular focus for brands who are increasingly aware of their consumers’ demand for environmentally and socially responsible business practices. A closer look Technical Textile Growth: Beyond apparel and décor, the industrial textiles segment (automotive, healthcare, protective fabrics) is increasingly adopting digital print solutions, offering new growth opportunities. (j) Regional Near-shoring and Resilient Supply Chains: As brands seek more flexible, geographically dispersed manufacturing, regions such as North America and Europe are investing more in local digital print capacity to reduce lead times and inventory. (k) Advanced Ink and Fabric Compatibility: There is significant R&D in eco-friendly inks, dark-fabric printing, and recycled/biobased substrates, enabling digital print expansion into premium, sustainable textile categories. (l) 2024 Copyright © Adobe Stock Personalisation of products Digital inkjet enables brands to respond to changing consumer behaviour as fashion cycles shorten and more goods are purchased on-line with scope for personalisation. Supply chain disruption and increasing de-globalisation has accelerated the trend towards producing closer to the consumer. 26 27 Our markets Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Beyond prototyping What began as a tool for rapid prototyping is now driving production-scale operations. Technologies such as Binder Jetting and Material Jetting—both rooted in inkjet principles—are increasingly used for functional parts in aerospace, automotive, healthcare, and electronics. → Binder Jetting deposits a liquid binder onto a powder bed, layer by layer, to form parts that are later cured or sintered, making it ideal for metals and ceramics. Additive manufacturing Kris Binon, AMIS Managing Director, Jacques de Schepper, Software Engineer, and Nick De Roeck, CEO, pose with Dave Vanhove, CEO of 3iD, a well-known Belgian 3D printing service bureau. Additive manufacturing (AM) is transforming production by enabling agile, just- in-time workflows, reducing inventory costs, and minimising waste. Among its many approaches, inkjet-enabled technologies stand out for their precision and versatility, building on decades of innovation in digital printing. These methods allow manufacturers to create complex geometries without expensive tooling, opening new opportunities for sustainability and mass customization. → Material Jetting jets droplets of photopolymer or wax and cures them with UV light, enabling multi-material and full-color parts with exceptional surface quality— perfect for medical models or tooling. The market reflects this shift: binder jetting alone is projected to grow from USD 0.64 billion in 2025 to USD 1.44 billion by 2030 (CAGR ~17.8%), while the broader additive manufacturing sector is expected to reach USD 113 billion by 2032, up from USD 25 billion in 2025. (m) Mordor Intelligence. https://www. mordorintelligence.com/industry-reports/ binder-jetting-3d-printing-technology- market (n) Data Insights Market. https://www. datainsightsmarket.com/reports/ binder-jetting-3d-printing-technology- market-20507 (o) Coherent Marketing Insights. https:// www.coherentmarketinsights.com/industry- reports/additive-manufacturing-market Powder-Bed Technologies Take Center Stage While inkjet-based methods remain vital, Selective Laser Sintering (SLS) and Multi Jet Fusion (MJF) have emerged as dominant forces in polymer production: → SLS uses a high-powered laser to sinter polymer powder, producing strong, functional parts without support structures. Its ability to handle complex geometries makes it a favorite for aerospace and automotive applications. → MJF, developed by HP, combines powder deposition with inkjet-applied fusing and detailing agents, followed by infrared heating. This approach delivers high throughput and excellent mechanical properties, making it ideal for short- to mid-volume production runs. Both technologies belong to the powder-bed fusion family, which offers scalability, material efficiency, and design freedom—key drivers for industrial adoption. AMIS: Driving Workflow Innovation Originally focused on jetting technologies, AMIS quickly recognised its added value for SLS and MJF workflows as well, where build preparation is critical for cost efficiency and quality. In 2025, AMIS achieved a major milestone: AMIS Pro became production-ready and is now deployed by multiple users worldwide—just one year after development began. This rapid commercialization underscores the team’s agility and Hybrid Software’s deep expertise in industrial workflows. AMIS Pro is a next-generation build preparation and 3D-RIP solution tailored for SLS, MJF, and jetting -based technologies. It addresses one of the biggest challenges in additive manufacturing: preparing dense, collision-free builds quickly and accurately. Customers report up to 80% reductions in preparation time, thanks to advanced nesting algorithms, an intuitive interface, and streamlined slicing. By combining automation with operator control, AMIS Pro helps manufacturers achieve higher packing density, lower cost per part, and improved part quality— critical for scaling AM economically. Customer Success and Partnerships Belgian service bureau 3iD, a pioneer in polymer AM and the first adopter of HP’s MJF technology, transformed its workflow with AMIS Pro. Tasks that once took hours— nesting, slicing, part positioning—are now completed in minutes, freeing resources for quality control and growth. 3iD is just one example among several customers worldwide reporting similar gains, reinforcing AMIS Pro’s value across different production environments. Partnerships amplify this impact: the integration of AMIS Pro with Phasio, a next-generation MES platform, connects quoting, build preparation, and production traceability in a single digital thread. For the first time, additive manufacturers can combine flexible operator- driven build prep with automated data traceability, enabling faster iteration and complete process control. Recognition and Outlook Hybrid Software’s achievements in Additive Manufacturing have not gone unnoticed: in 2025, the AMIS team earned two international industry accolades, validating its role as an innovation leader in additive manufacturing software. AMIS Pro was named one of the two Runners-Up Winners of the SME AM Start-Up Technology Award in Detroit (US) and selected as a Finalist for the prestigious TCT Software Award at the TCT Awards 2025 in Birmingham (UK). These honors underscore AMIS’s commitment to delivering solutions that combine speed, precision, and efficiency for SLS, MJF, and jetting technologies. Looking ahead, the market is evolving rapidly, and AMIS is positioned at its core. By uniting precision software, intelligent automation, and industry collaboration, AMIS is redefining workflows for powder-bed and jetting technologies. 28 29 Our markets Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 3D modelling Capture 3D is a state-of-the-art technology that uses a reflex camera to capture the precise dimensions of objects, ensuring the creation of perfect deformation grids. The system’s capture process is both fast and accurate, entirely eliminating the need for interactive measuring. This reduction in manual measurements minimises errors and the need for manual adjustments, drastically improving efficiency in the creation of grids and 3D models, particularly for metal cans and shrink sleeves. With its innovative pattern technology, Capture 3D offers the unique ability to quickly create Capture 3D technology removes deadzones to maintain sharp, distortion-free placement of logos, text, and product information on every package surface. By accurately modelling the appearance of labels, cartons, bottles, and other types of packaging in software, iC3D software reduces the need for physical printing of product samples and speeds up time to market. Capture 3D software accurately captures the exact dimensions required for deformation grids using reflex cameras. The process reduces errors and the need for manual adjustments, and speeds up the grid creation and 3D modelling for metal cans and shrink sleeves. compensation grids and check the repeatability of shrink tunnels and metal can embossing machines, all while eliminating deadzones. This all-in-one solution integrates seamlessly with PACKZ for 2D artwork distortion and iC3D for 3D modelling, streamlining the entire workflow. Furthermore, by incorporating anisotropy, Capture 3D provides precise analysis and optimisation of artwork deformation, offering a real-time 3D preview for superior results in both design and production. Dynamic 3D modeling enables the creation of accurate digital representations of bottles, boxes, pouches, and other packaging types, either from scratch or from iC3D’s predefined template libraries. 30 31 Business segments Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Our business segments Enterprise software File preparation and workflow automation for print manufacturing. Printhead solutions Electronics and software for industrial inkjet devices. Printing software Graphic processing engines for fast and high-quality digital output. 32 33 Business segments Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Hybrid Software Brandz Project Intelligence & Timeline Management Artflow provides sophisticated project visibility through real-time Gantt chart tracking, enabling stakeholders across design, customer, supplier, and legal to monitor progress and forecast delivery with precision. The retroactive planning functionality allows teams to schedule backward from critical launch dates, ensuring approval workflows remain aligned with market requirements. Flexible revision timeframes accommodate varying review complexities—from straightforward label updates to comprehensive regulatory validations—while intelligent alerting provides early warning of potential delays, allowing proactive intervention before deadlines are compromised. Hybrid Brandz exhibited at the 14th Pharma Packaging & Labeling Innovation Forum 2025 in Berlin, Germany, an event where senior pharmaceutical and healthcare packaging professionals come to network, share best practices, and discuss industry challenges. Hybrid Brandz integrates Artflow’s comprehensive SaaS platform, featuring project management, enterprise connectivity, and visualisation tools from iC3D, with Hybrid Software’s existing production solutions, creating end-to-end capabilities spanning brand concept through final print output. Compliance & Copy Management The platform’s advanced copy management system integrates AI-assisted validation rules that streamline regulatory compliance across multiple markets and jurisdictions. Enhanced proofreading workflows incorporate approximate string matching search capabilities, enabling reviewers to locate specific copy elements directly within artwork files. Customizable language displays allow users to isolate relevant languages during review, reducing cognitive load in multi-market projects. Sophisticated grouping, filtering, and sorting functions simplify the management of complex copy sheets, accelerating compliance verification while reducing error risk. Enterprise Integration & Automation Artflow’s Public API, built on Azure API Management infrastructure, enables secure, scalable cross-system automation. The platform synchronizes seamlessly with enterprise ERP, CRM, and DAM systems, maintaining data consistency across the technology ecosystem. Integration with Hybrid’s MyCLOUDFLOW SaaS workflow automation platform creates end-to-end production workflows—automating barcode placement, packshot generation, and step-and-repeat creation directly from Artflow briefs. This connectivity eliminates manual handoffs between brand management and production systems, reducing cycle times while maintaining quality and compliance standards. 3D Visualisation & Pre-Production Validation iC3D extends Artflow’s capabilities with photorealistic 3D visualisation, enabling brand teams to evaluate packaging concepts in virtual environments before committing to physical production. Stakeholders can assess structural design, graphics placement, material finishes, and on-shelf presence—eliminating costly mockup cycles while accelerating approvals. The platform supports SKU variation visualisation, substrate testing, and virtual planogram validation, proving particularly valuable during new product launches and package redesigns where speed-to-market is critical. The Hybrid Brandz team at Packaging Première & PCD Milan 2025. iC3D provides brand owners, CPGs/FMCGs, retailers and design agencies the opportunity to innovate faster with accurate 3D protoyping. 34 35 Business segments Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Artflow aquisition Hybrid Software completed the acquisition of technology supplier Hybrid Software Brandz NV (formerly TGS NV) in 2025, a strategic acquisition that marked a significant expansion of the company’s capabilities by integrating the full intellectual property and source code of Artflow into the portfolio. The new business unit dedicated to brand owners, CPGs/FMCGs and retailers reflects the strategic evolution to extend solutions from print production into the earlier stages of the packaging lifecycle. The acquisition of Artflow positions Hybrid Software as a unique end-to-end technology provider spanning the entire packaging lifecycle from initial brand concept through final production. By bringing the complete Artflow development team in-house, Hybrid Software now serves both upstream stakeholders (project managers, design agencies, legal and procurement teams) and downstream production partners (prepress, printers, and converters) with integrated tools that simplify audit trails and maintain comprehensive oversight across organizational boundaries. This unified approach addresses a persistent industry Igor Vandromme, VP/GM of Hybrid Brandz and Heath Luetkens, Sales Director of Americas provided numerous demos for new prospects and existing customers at Labelexpo Europe 2025 in Barcelona. challenge: the disconnect between brand intent and production execution. Traditional workflows move artwork through fragmented systems—losing fidelity, requiring costly rework, and introducing compliance risks. Hybrid Software’s combined portfolio eliminates these gaps by creating a continuous workflow that spans brand management, artwork development, regulatory compliance, production optimisation, and print quality control. The result is a comprehensive solution that positions the Company uniquely in the packaging technology landscape. Rather than serving isolated silos, Hybrid Software can now, with Hybrid Brandz, support entire supply chains with seamless integration, reducing errors, accelerating time-to-market, and ensuring brand consistency from concept to consumer. Artflow provides managers precise color proofing capabilities, collaborative commenting tools, and end-to-end project oversight from design through print production. The September 2025 version of Artflow focuses on enhanced timing, compliance, and workflow integration to help project managers bring packaging artwork to production faster and with greater accuracy. 1 2 200% energydrink w a v e l e m o n squeeze the day. energydrink INGREDIENTS: Freshly squeezed lemon juice; Water, Natural sweeteners (agave syrup); Salt; Baking soda; potassium chloride. w a v e l e m o n Whether you need a quick pick-me-up in the morning or an afternoon energy boost, our lemon energy drink is the per- fect choice. So why settle for sugary and artificial energy drinks when you can enjoy the natural goodness of our deli- cious and invigorating lemon drink? Calories Sodium Fat / lipide Sugars Protein 56 40 mg 0 g 30 g 1 g squeeze the day. w a v l e m o Cyan Magenta Yellow Black PANTONE 2256C PANTONE 3415C Keyline 0.0% 0.0% 0.0% 0.0% 100% 0.0% 0.0% on 8/12/2023, 11:47:02 AM JohnDoe Note 1 Remove Note Save Note This is the right color value, let’s move forward :) 36 37 Business segments Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Hybrid Software Labels & Packaging Hybrid Software offers specialised production software designed primarily for labels and packaging, including native PDF workflow and editing, variable data embellishment and imposition, enterprise cloud and SaaS solutions, scalable technology with low cost of ownership, and direct integration with leading Enterprise Resource Planning (ERP) systems and output devices. Hybrid Software’s products are based on the company’s extensive experience in the labels and packaging industry as well as its commitment to industry standards: no proprietary or legacy file formats are used by Hybrid Software’s products, only industry-standard formats like PDF and TIFF. Our products are used by thousands of customers worldwide in all areas of pre-press and printing, including labels and packaging, folding cartons, corrugated, and wide format. Hybrid Software’s products are used both for conventional and digital printing processes. Although Hybrid Software supplies OEM customers who manufacture equipment for package printing, most of its customers are end-users: companies who print and convert labels and packaging to support brands and consumer product companies. Selling directly to end users requires specially trained employees in all major markets worldwide to provide sales, support, training, installation and integration services, and these employees are critical to the success of Hybrid Software. PACKZ Max integrates Harlequin RIP® directly into the PACKZ PDF editor, enabling precise flexo screening, seamless 1-bit TIFF output, and high-quality digital printing. MyCLOUDFLOW MyCLOUDFLOW gives customers rapid, hassle- free access to CLOUDFLOW. Hosted by Hybrid Software on the fastest cloud computing platforms, MyCLOUDFLOW brings convenience and security to the label and packaging industry, without requiring in-house IT support or heavy capital investment. Key products → CLOUDFLOW A modular production workflow suite for file processing, asset management, soft proofing and workflow automation. It is a flexible application platform specifically tailored for packaging graphics with support for, among other things, PDF colour separation, trapping, layout, and variable data as well as rasterisation and screening using the Company’s leading Harlequin Core™ RIP. CLOUDFLOW can run on physical hardware as well as in public or private cloud computing environments. → MyCLOUDFLOW A multi-tenant version of CLOUDFLOW hosted in a dedicated Amazon Web Services cluster and maintained by Hybrid Software’s IT professionals instead of by their customers’ local IT departments. The secure, high performance solution is offered at a cost-effective monthly Software-as-a-Service pricing model. → PACKZ The leading professional PDF editor for packaging and label production using any printing method: flexography, offset lithography, gravure, as well as digital printing. PACKZ operates on native PDF files and uses 64-bit multi-processing and multithreading facilities for high performance. PACKZ provides a “Swiss Army Knife” containing a full set of tools for packaging pre-press, and its support for native PDF eliminates the need for file conversions or proprietary file formats. → Colorspace Colorspace delivers accurate colour predictions and impeccable brand colour matching by intelligently estimating artwork performance across printing presses with detailed visual and numerical reporting. Its adaptable workflows and brand colour verification ensure precise reproduction and flexibility for digital, conventional, and Hybrid print conditions. → iC3D A full software suite that generates photorealistic 3D virtual mock-ups and offers a large library of modelling templates for digital packaging design and prototyping. → Capture 3D Capture 3D allows distortion of artwork due to metal forming or heat shrinkage to be accurately compensated, and results can be shared in a visually realistic 3D preview. With this innovative technology, precise and easy grid distortion can take place in minutes instead of days, speeding up customers’ time to market drastically while also increasing quality. PACKZ 11.5 introduces an advanced screen analyzer, extended CF2 3D variants, and enhanced laneplanner to deliver precision, efficiency, and collaboration across production workflows. 38 39 Business segments Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Before graphic designs can be printed or displayed on a monitor, they must be broken down into vector data (mathematical drawing algorithms), raster data (image pixels), and/or screened data (calibrated areas of ink or pigment representing image data). Hybrid Software Helix is one of the world’s foremost developers of the graphic processing engines, known as Raster Image Processors or RIPs, that are used for these tasks. Colour management is also required for high-quality output, a task which is especially difficult for digital printing where the inks supported by the printer may not be capable of exactly matching brand-specific spot colours used for packaging and corporate branding. Our ColorLogic technology provides a full set of products for these demanding applications, as well as a Software Development Kit (SDK) which allows OEMs to produce their own customised colour management tools. We develop software components and workflow solutions for the high-speed digital printing of photo books, labels, packaging, interior décor, textiles and ceramics. The company’s combination of software and first-rate engineering skills enables it to help press manufacturers to respond to technical challenges with innovation, meeting their speed and quality requirements, and getting them to market quickly. Hybrid Software Helix For more than 40 years, our OEM Software business, Hybrid Software Helix, formerly Global Graphics Software, has played a critical role in the print process for tens of thousands of customers worldwide with its Harlequin RIP® raster image processor. Helix has continued to enhance Harlequin to meet the needs of the digital printing market: high-speed processing that runs efficiently on off-the-shelf hardware while supporting fully variable data. Customers Customers include companies such as Hewlett Packard, Mimaki, Mutoh, Canon, Durst, Roland, and Agfa, as well as many others who embed our printing software into their own branded digital front ends (DFEs). Licensing Solutions are typically licensed under technology agreements and reseller agreements. We are noted for our flexible approach to licensing technology and pride ourselves on being a trusted commercial and development partner. This is facilitated by a Technical Services team who work to accelerate each customer’s time to market, and also by an experienced product support team. In 2025 Helix launched SmartRIP, an innovative raster image processor (RIP) in the SmartDFE family that delivers exceptional performance and scalability for a wide range of industrial applications. Key products and technologies → Harlequin Core A Raster Image Processor (RIP), specialised software that converts text and image data from many file formats including PDF, TIFF™ or JPEG into a format that a printing device can understand and output. It produces unmatched quality without sacrificing speed, which means that printing devices that incorporate Harlequin can be kept running at full-rated speed, even on the most complex jobs, without incurring high costs for computing hardware. → SmartDFE Intelligent digital front end components for digital printing of labels and packaging within Industry 4.0 automated manufacturing environments. → Harlequin Direct Software that drives print data directly to the printer electronics instead of buffering them on mass storage devices, allowing the development of faster, wider and higher resolution printing devices. → ScreenPro Core Software that converts continuous tone image data into ready-to-print halftones (dots of varying size and spacing) in real-time with no compromise on quality. → Mako Core Software that creates, rasterises, converts, analyses and optimises many different page description languages, allowing print software developers full control over colour, fonts, text, images, vector content and metadata with precision and performance. → Apex Apex is the world’s first fully GPU-native (graphics processing unit) page description language (PDL ) renderer. Unlike traditional solutions that only offload parts of the rendering to the GPU, Apex runs entirely on the GPU, delivering true high-speed PDL rendering. → Colour management software Colour accurate matching of brand colours for digital production using four or up to seven process colours. Products include CoPrA, ColorAnt, ZePrA, as well as a full SDK, the ColorLogic Core SDK, for OEM licensing. Hybrid Software Helix was recognised with a 2025 award for Best Technical Workflow Solution for SmartDFE™, intelligent digital front end components that drive high-speed label & packaging and industrial inkjet presses. 40 41 Business segments Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 CLOUDFLOW Colorspace: The Hybrid Software Colour Solution Colorspace is Hybrid Software’s dedicated colour solution, powered by spectral ColorLogic technology and designed to deliver end-to-end colour management across modern print production workflows. Built on industry standards such as ICC and ICC DeviceLink profiling and PDF/X compliance, Colorspace provides precise control over colour, from measurement through final output. Colorspace unifies core colour technologies into a scalable solution that integrates seamlessly across Hybrid Software workflows and OEM environments. Designed to support the entire print value chain, it delivers a tailored user experience, enhances operator productivity, and reduces manual touchpoints through advanced automation. The result is faster turnaround times, consistent colour accuracy across substrates and devices, and unparalleled flexibility for high-volume, industrial production. By consolidating ColorLogic’s colour science expertise into Colorspace, Hybrid Software simplifies deployment, improves workflow efficiency, and ensures consistent color fidelity across complex production ecosystems. Hybrid Software’s Colour Solutions Colour solutions from Hybrid Software unify advanced colour management under a single strategy, powered by proven spectral ColorLogic technology. Through its flagship solutions, CLOUDFLOW Colorspace and PACKZ Colorspace, Hybrid Software delivers accurate, automated colour workflows for industrial printing, prepress, and packaging. ColorLogic continues to support its global reseller network through its three core products: ZePrA - Smart Color Server, CoPrA - Advanced Color Profiler, and ColorAnt - Color Optimizer, ensuring continuity for existing customers while benefiting from deeper integration within the Hybrid Software portfolio. 2025 Highlights → Awards: In 2025, CLOUDFLOW Colorspace earned Hybrid Software three prestigious awards recognising it as the Best Colour Management Solution: the EDP Award, the Pinnacle Award from PRINTING United Alliance, and the 2025 C!Expo Tech Innovation Award. Together, these honours underscore Hybrid Software’s global leadership in colour automation and print production efficiency. → Product Innovation • Deeper integration of Spectral ColorLogic technology within CLOUDFLOW with enhanced automation, expanded multicolour support, and ink-saving optimisation for high-volume production environments. • Enhanced colour-accurate rendering in Proofscope, supporting greater operator productivity, reduced turnaround times, and measurable cost savings. • Increased flexibility for integrating colour management into complex, automated packaging workflows, including improved implementation through CLOUDFLOW Resource Manager to optimise production planning and execution. • Integration of the Hybrid Software licensing system across colour solutions, enabling streamlined activation, simplified license management, and greater scalability for enterprise deployments. Market Impact → Expanded Hybrid Software Helix and the ColorLogic Core SDK, strengthening the Group’s presence in industrial print markets. → Sustained support for ColorLogic’s global reseller channel while aligning future innovation under the Hybrid Software Color Solutions strategy. People & Leadership Continued investment in colour science expertise and leadership to drive innovation, product excellence, and long-term customer value. Why Color Solutions Matter Accurate colour reproduction is critical where brand integrity and print quality are paramount. Powered by ColorLogic technology, Hybrid Software’s Colour Solutions embed industry-leading colour science across prepress, workflow, and production systems. Automated workflows, reliable profiling, and advanced multicolour support enable consistent colour, efficient production, and seamless OEM integration from design through final output. Strategic Priorities for 2026 Looking ahead, Hybrid Software’s Colour Solutions will focus on continued product leadership in predictive colour automation, deeper integration across Hybrid Software workflows, and targeted expansion into emerging industrial print segments such as textiles, ceramics, and additive manufacturing. These priorities align with Hybrid Software’s broader strategy to enable scalable, end-to-end digital print production. Executive Perspective Christopher Graf, Vice President Colour, Hybrid Software reflects, “Colour accuracy is no longer a standalone function. It is a foundational capability that must be embedded across the entire production workflow. With Colorspace, powered by ColorLogic technology, we are bringing decades of proven colour science into a unified solution that supports our customers today while preparing them for the future of industrial print.” Presenting our colour solutions at Printing United 2025 in Orlando, FL, USA. Christopher Graf speaking on the Fujifilm Stage about the future of Hybrid Software on digital and conventional printing at Labelexpo 2025. 42 43 Business segments Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Founded in 1977, Xitron develops mission-critical software that powers prepress and printing operations worldwide. The company’s long-standing focus on Prepress Independence® positions Xitron as a differentiated alternative to proprietary, vendor-locked systems that dominate the print industry. Xitron software enables printers and OEMs to control and modernize production without replacing existing hardware, reducing capital risk while extending asset life. With nearly 50,000 installations globally, the company benefits from a large, diversified installed base across offset, flexo, screen, digital, and high-speed inkjet markets. A Differentiated Portfolio Built on Trusted Core Technology Xitron’s products are built on the industry-proven Harlequin RIP architecture, widely regarded as the gold standard for file interpretation accuracy and performance. This foundation supports a modular portfolio designed for scalability, integration, and long- term relevance. Navigator Platform The Navigator Harlequin RIP and Navigator Workflow form the backbone of Xitron’s commercial offering. As the first PDF 2.0-compliant RIP, Navigator ensures accurate rendering of modern file features such as transparency and complex color data—reducing errors, rework, and downtime. The workflow layer provides cross-platform, client- server control, enabling efficient job submission, preview, tracking, and archiving across Mac and PC environments. Modular licensing allows customers to Xitron Enabling open, scalable print production for nearly 50 years, Xitron is a long- established software provider delivering vendor-independent prepress and print workflow solutions. Xitron combines long-term stability with targeted growth opportunities, serving as a critical software provider within the evolving global print ecosystem. align functionality with operational needs, supporting predictable cost structures. K2 Workflow: Addressing a Market Replacement Cycle K2 represents the first new commercial offset workflow introduced in nearly two decades, targeting a significant installed base of aging systems originally deployed by major equipment and consumables suppliers. By offering a modern, vendor-agnostic replacement that maintains compatibility with existing platesetters, K2 addresses a clear market need driven by: → End-of-life legacy platforms → Rising subscription costs → Customer resistance to forced hardware upgrades K2 enables customers to transition incrementally, preserving capital investments while adopting current workflows. It’s an approach that lowers barriers to adoption and supports steady replacement-driven revenue. Dealers from seven European countries gathered in Ghent, Belgium, for K2 workflow certification and training. Response to Xitron’s next-generation platform has been overwhelmingly positive. Strategic Highlights → Nearly 50 years of operating history and industry credibility → Large, diversified global installed base → Vendor-independent positioning aligned with customer cost pressures → Proven core technology with low technical risk → Exposure to both replacement cycles and digital growth markets → Modular, software-driven model supporting predictable margins Sabarish Ramanunni and Vijay Gaikwad of Fujifilm join Xitron’s Karen Crews and Doug Mawdsley to celebrate the sale of a Navigator Flexo Suite in Kenya. Xitron’s Blue Box USB interface delivers direct, reliable raster output from Harlequin-based RIPs to CtP and film imagers from leading manufacturers worldwide. Exposure to Multiple Print Growth Segments Xitron serves customers across a wide range of print markets, providing diversification and resilience: → Offset Printing – Core commercial production workflows → Flexography – Specialised tools for modern flexo CtP production → Screen Printing – Film and direct-to-screen applications → High-Speed Inkjet – Digital production and industrial printing Since 2011, Xitron has partnered with leading inkjet printhead and drive electronics manufacturers, resulting in thousands of successful inkjet installations. This positions the company well for participation in the continued shift toward digital and Hybrid print. OEM-Focused DFE Strategy Xitron’s Navigator DFE extends its reach beyond traditional prepress into OEM-embedded solutions. Built on the same Harlequin Core, the DFE supports leading printhead technologies, including Memjet and HP, and features a fully brandable, browser-based interface. Open APIs enable deep integration with OEM software, paper handling systems, and industrial controllers, allowing partners to accelerate time-to-market while reducing development risk. This OEM strategy provides a scalable path to recurring and embedded revenue opportunities. 44 45 Business segments Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Conics In September 2025, Conics joined Hybrid Software as a new business unit, specialising in solving complex challenges that printers and packaging producers struggle to address with industry-standard solutions. What sets Conics apart is its supplier-independent and product-agnostic approach. This enables Conics to provide objective and transparent advice, free from the influence of software suppliers. With over 30 years of cumulative experience in the printing and packaging industry, the Conics team is well- versed in creating automation modules for day-to-day graphical workflow. Conics has consistently pushed the boundaries of automation by delivering bespoke solutions for its clients, while continuing to explore emerging technologies and their application within the industry. Project Management and Consultancy Conics possesses a strong team of consulting experts in various software applications for printers and packaging producers. They play the role of both advisor and eventually project manager, helping teams define, build and implement the correct solution for the customer’s challenges. Conics always starts from processes, not from a software perspective. The team recognises that no two businesses are alike and that effective guidance requires a customised, hands-on approach. They analyse business needs, workflow, and objectives. Based on that, they provide tailored advice to identify the most suitable software solutions. Conics’ founders Dries Maerten and Frederic Vandelanotte with the rest of the Conics team. Custom development From creative and prepress applications to production management, there are always unexpected gaps in the workflow where automation could be introduced aiming for further optimisation and reducing overheads and opportunity costs. Off-the-shelf software does not always address the specialised demands of the graphical production industry. When standard solutions fall short, Conics can step in with tailor-made software development. Their skilled developers have deep insight into the graphic industry and design solutions that align precisely with businesses’ workflows and operational requirements. They focus on creating software that delivers immediate value while remaining flexible enough to support their future expansion. Whether the objective is to streamline processes, connect multiple systems, or build an entirely new digital tool, the Conics team has the knowledge and experience to bring vision to life. The toolbox The Conics toolbox is something our technician offers to the clients who wishes to start introducing a certain degree of automation into their printing and packaging business. Our three main tools match respectively with three key layers of your business, customer communication management, creative collaboration, and printing floor management. → JAIMES Recognising how repetition kills business growth, JAIMES AI was introduced as a tool to turn unstructured customer communications such as Requests for Offer or Orders directly into structured data, ready-to-use in an ERP/MIS system or Order portal. This tool cuts down on long hours of manual input of information. → Scotty Scotty is a flexible communication tool and workflow management tool developed by Conics, allowing any company to start building their project flow and automating tasks from day one without extensive development. Scotty works with automation modules that could be added or removed, organised or reorganised. The modules still remain fully customisable where necessary to adapt to each client. → Anilox Follow-up System (AFS) The Anilox Follow-up System (AFS) is the platform offered to printers as a tool to comprehensively monitor the performance of all anilox rolls in a flexo printing fleet. With AFS, printers can capture the changes in status of every roll and ensure color consistency. Anilox suppliers, and cleaning service providers can be given accessed to AFS by printers themselves. This enables a more effective collaboration during cleaning and performance tracking. JAIMES, CONICS`s AI-Assistant built for the graphic industry, analyses unstructured information from emails, PDFs, Excels, and exports the relevant data into ERP systems. 46 47 Business segments Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Under the Meteor Inkjet brand, we develop and supply specialised electronics and software that drive industrial inkjet printheads, enabling precise fluid deposition for the production or finishing of manufactured products. Meteor’s products translate the bits and bytes of print data into firing instructions that inkjet printheads understand. Our technology forms an essential link between the digital ‘model’ of a production job (held as a file on a PC) and the precisely timed ejection of drops of fluid from thousands of nozzles in an array of printheads. Long-standing relationships with all major printhead manufacturers including FUJIFILM Dimatix, Epson, Konica Minolta, Kyocera, Quantica, Ricoh, Riso (previously Toshiba TEC), Seiko Instruments, Xaar and Xerox mean we can continually develop electronics and software solutions for new printhead models. These close partnerships enable us and our OEM customers to accelerate their route to production. Meteor Inkjet Meteor’s new HDC-XM solution for the Xerox M Series enables OEMs to fully exploit the capabilities of these printheads which are already widely used for additive manufacturing. Coupled with Meteor software for system control, print job creation and image quality enhancement, OEMs can significantly reduce the time and effort associated with the design and delivery of industrial inkjet systems. Our solutions are modular, scalable, and production- ready and are supported by a world-class technical team, situated in Cambridge, UK amongst one of the largest industrial inkjet clusters in the world, as well as sales & support facilities in China, the United States, Japan and Korea. Customers Meteor’s global customer base serves a wide variety of markets including ceramic tiles, direct-to-shape, textiles, packaging, 3D/additive manufacturing, functional, security & electronics, labelling, signs & displays, decor, commercial print, book printing and glass printing. Under the Meteor Inkjet brand, we develop and supply specialised electronics and software that drive industrial inkjet printheads, enabling precise fluid deposition for the production or finishing of manufactured products. Meteor Inkjet launches Advanced DropWatcher optics Meteor’s advanced DropWatcher Optics enable more precise visualisation and measurement of ink droplets, which enables users to analyse and improve print quality with greater confidence and control. Building on the proven synchronised strobe and long-exposure imaging approach of earlier Meteor DropWatchers, the new system introduces enhanced optical and timing technologies that capture sharper, more detailed images of individual droplets. This allows accurate measurement of drop volume and a deeper understanding of dynamic behaviours such as ligament breakup, meniscus oscillation, and mist generation. This advancement provides a new level of measurement precision and analytical capability. Meteor Inkjet’s products and services Meteor understands the commercial and technical realities of industrial inkjet and delivers products and services from print system concept through to production. → Electronics Production-ready, scalable drive electronics for all major industrial inkjet printheads. → Software Comprehensive software for single-pass or scanning including development kits, workflow solutions and advance print quality tools. → Tools Meteor offers an extensive range of tools for ink characterisation, print reliability analysis, printhead evaluation and print process development. Our solutions reduce development risk and time to market for manufacturers building new industrial inkjet printers. Among our customers in this segment are Mark Andy, a leading label equipment manufacturer in the US; Hymmen, a leading printed laminate equipment manufacturer in Germany; and China’s leading ceramic tile decoration equipment manufacturer. 48 49 COMPANY STRATEGIC REPORT 2025 was another successful year for Hybrid Software, with healthy growth in most business segments. Our commitment to innovation is as strong as ever, with more than 100 engineers innovating in partnership with our customers and more than 300 employees dedicated to their success. In 2026 we will continue to execute our strategy of delivering profitable growth for all stakeholders. Chairman's statement Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Chairman’s statement “I’m pleased to report that 2025 was a record year for Hybrid Software in both revenue and operating profit.” I’m pleased to report that 2025 was a record year for Hybrid Software in both revenue and operating profit. Our expectations for 2025 were initially conservative, but sales were especially strong in the second half of 2025 and we exceeded our expectations by a significant margin. Our 2025 results came mainly from organic growth, not from acquisitions or from any major industry trade show. Labelexpo Europe was a success, as we’ve come to expect every two years, but it was not a game changer for Hybrid Software. No credit is owed to any change in strategy, or to an improvement in business conditions for our customers. High interest rates and geopolitical uncertainty have become the norm, not the exception. But we have learned to operate under those conditions with lean management, fast execution, and continued investment in developing and selling innovative products. So what is the explanation for our 2025 results? Like Occam’s razor, the simplest explanation is most likely to be the correct one: our strategy to provide industry- leading software to printers and converters of labels and packaging, as well as innovative software and electronics to other manufacturers who build digital printing devices for packaging, has been correct all along. As the packaging market matures, the industry comes to us as the only company with a full-stack solution for digital package printing. This does not mean that digital package printing is the only game in town. Analog technologies like flexography, offset printing, and gravure still dominate long-run packaging, and our software fully supports these printing technologies. But brands and consumer packaged goods companies (CPGs) drive investment in package printing, and sustainability considerations favour shorter print runs produced closer to their production lines, a perfect fit for digital printing. I have addressed the topic of artificial intelligence in previous letters with a respect for the technology but a heavy measure of scepticism about the value of AI in labels and packaging, where 99.9% accuracy is simply not good enough. Despite the promise of AI and many empty press releases from industry vendors, it’s difficult to find products where AI has replaced powerful software and human intelligence in the production of professional packaging. But in 2025 we completed two acquisitions that bring tangible benefits to our customers and increase our expertise in AI. The first was Conics, a Flemish professional services company with deep AI expertise and a blue-chip customer base. Secondly, we acquired the technology company behind our Brandz artwork management software, Artflow. After a successful partnership and the acceptance of Artflow by many significant brands and CPGs, acquiring the software and the people who develop it was the next logical step; we’ve always believed in owning our technology rather than partnering or licensing it from other companies. We acquired Conics and Artflow for their technology and their DNA, not for their revenue. Our acquisition strategy has always revolved around acquiring technology which complements our core expertise in prepress software for labels and packaging, including artwork management, 3D rendering and visualisation, colour management, and artificial intelligence. But despite our sizeable cash position, our acquisition strategy is slowing down. We passed up several opportunities in 2025 because they were not a good fit with our structure, and we already offer a complete technology portfolio for labels and packaging so we do not need to acquire other companies unless they add significantly to our revenue and profits. Last year I closed my letter with the promise of high expectations for the year ahead, and the performance of Hybrid Software exceeded my expectations. For 2026, I foresee further acceleration in the growth and success of Hybrid Software. We will continue to execute our strategic plans, and the market will continue to come to us. The biggest change coming in 2026 is our shift from a technology company with a sales force, to a sales-driven company with industry-leading technology. With a mature product portfolio and a strong operations team, we are expanding heavily in developing markets and global accounts and expect significant growth in these segments. As always, I would like to thank the stakeholders of Hybrid Software Group: our shareholders, our employees, Board of Directors, and management team, and most of all, our customers for their continued support as we deliver continued growth and success in 2026 and beyond. Guido Van der Schueren Executive Chairman Guido Van der Schueren, Executive Chairman 52 53 CEO's review Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 CEO’s review “2025 was a successful year for Hybrid Software, with consolidated revenue growth of 6% and adjusted operating profit up 17% compared to last year.” 2025 was a successful year for Hybrid Software, with consolidated revenue growth of 6% and adjusted operating profit up 17% compared to last year. We completed two acquisitions and finished the year with €14.5 million cash on hand, 52% above our cash position at the end of 2024. We worked hard to simplify the structure of Hybrid Software Group, rebranding our OEM software business as Hybrid Software Helix Ltd. and unifying the group’s core software businesses – Labels & Packaging, Brandz, ColorLogic, Helix, and Conics – under the Hybrid Software banner and a new group website launched at our Fusion customer event in Amsterdam. The operations of Hybrid Software and Helix (formerly Global Graphics Software) have also been merged in both the US and UK to streamline operations and improve efficiency. All business units developed and launched innovative new products in 2025 which contributed to our revenue growth. It’s impossible to cover all of these in this short letter, but I’d like to highlight a few of the most important product launches here. Hybrid Software’s Labels & Packaging business unit launched CLOUDFLOW Datacenter, a high-performance Linux-based version of the software which powers our MyCLOUDFLOW SaaS platform, for enterprise customers to use in their own private cloud environments. Hybrid’s Color business unit leveraged ColorLogic’s successful products to created Colorspace, an automated color management platform for labels and packaging that is unique in the industry. Our Helix business unit launched Mako Apex, a graphical software toolkit which uses Graphic Processing Units (GPUs) to provide much higher performance than standard CPU-based rendering. In addition to Mako Apex, shipments of Helix’s SmartDFE solution continue to increase, with more than 20 OEM customers now shipping digital printing presses powered by SmartDFE. Hybrid’s Brandz business unit completed the acquisition of its technology supplier and closed several major deals for its Artflow artwork management software and iC3D Mike Rottenborn Chief Executive Officer photorealistic 3D rendering. Its award-winning collaboration with Diageo for point-of-sale custom printing of high value alcoholic beverage bottles has been extended to other brands which will be featured at the FIFA World Cup this summer. In 2025 we also acquired Conics, a Flemish software developer with deep AI expertise and a groundbreaking product – Jaimes – which augments human customer service reps with custom Large Language Models to interpret customer emails and facilitate packaging production. We will continue to lead the industry in AI software products with measurable customer value in 2026 and beyond. Not to be outdone, Meteor Inkjet completed the development of their patented Nozzle Health Technology which can detect failing or clogged printheads using electrical feedback. Despite the slowdown in demand for ceramic tiles in China, Meteor grew their business in other segments and regions in 2025 and expects this to continue. Finally, our Xitron subsidiary successfully launched K2, a full-featured workflow for commercial printing designed to replace legacy workflows from printing plate manufacturers who charge heavy SaaS fees for their workflows but have not invested in innovation and automation as Xitron has. Our customers are continually challenged to provide printed packaging faster and at a lower cost. Digital printing is part of the solution, and this segment is well-served by our OEM businesses, Helix and Meteor Inkjet. But most packaging is still printed using analogue technologies: flexography, offset printing, gravure, and screen printing. Hybrid Software’s workflow automation and editing software supports all of these printing technologies and we expect continuing high demand for these products. In 2026 we will continue to grow revenue organically, turbocharged by two significant factors. First, we see a growing demand for workflow automation in developing regions of the world and have increased our sales and support staffing in these regions. Second, we are seeing a real uptick in synergies across our business units. Some people compare synergy to unicorns, often rumoured but rarely seen, but we’ve always understood that synergies across business units are the key to unlocking sustained growth. Printers of labels and packaging buy digital presses and also need software to drive them. Manufacturers of digital presses need electronics to drive inkjet print heads and also need Digital Front End (DFE) software to power the presses. Brands need artwork management software that links to professional prepress tools. And color management is de rigeur in packaging production but has never before been automated as part of an automated workflow. We expect these and many other synergies to continue to drive our growth in 2026 and beyond. Our commitment to innovation is stronger than ever, with more than 100 engineers innovating in partnership with our customers and more than 300 employees of Hybrid Software dedicated to their success. We will continue to execute our strategy of delivering profitable growth for all stakeholders. Mike Rottenborn, Chief Executive Officer 54 55 CFO's review Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Revenue for the year was € 54.37 million (2024: €51.50 million) Gross profit for the year was € 46.72 million (2024: €43.42 million) Adjusted operating profit from continuing operations was € 8.46 million (2024: €7.20 million) EBITDA for the year was € 12.65 million (2024: €11.99 million) Cash at 31st December 2025 was € 14.46 million (2024: €9.51 million) CFO’s review The following financial information relates to continuing operations. Revenue Revenue for the year was €54.37 million compared with €51.50 million in 2024, an increase of €2.87 million (5.6%). Licence royalties accounted for 43.7% (2024: 45.9%) of revenue, driver electronics accounted for 19.3% (2024: 19.8%), maintenance and support accounted for 23.2% (2024: 21.8%), services accounted for 11.4% (2024: 10.1%), hardware and consumables accounted for 1.7% (2024: 2.1%) and other items accounted for 0.7% (2024: 0.3%). Customer concentration and the dependence on a limited number of customers decreased this year. In 2025, the ten largest customers represented 25.3% (2024: 32.3%) of the Group’s revenue, the five largest customers represented 17.9% (2024: 22.0%) of the Group’s revenue and the single largest customer represented 4.2% (2024: 6.5%) of the Group’s revenue. There was no customer (2024: no customer) during the year that represented 10% or more of total revenue. The Group’s sales are made in several different currencies, thus fluctuations in exchange rates can affect the reported revenue. During the year 29.6% (2024: 27.1%) were in euros, 41.8% (2024: 37.3%) were in US dollars, 24.5% (2024: 23.0%) were in pounds sterling, 1.2% (2024: 10.9%) were in Japanese yen and 2.9% (2024: 1.7%) were in other currencies. → Printing Software segment Revenue for the Printing Software Segment was €14.32 million for the year (2024: €16.67 million). During 2025 a new contract was agreed with one existing customer which resulted in €1.69 million of revenue being recognised. During 2024 new contracts were agreed with two existing customers which resulted in €4.3 million of revenue being recognised. → Printhead Solutions segment Revenue for the Printhead Solutions segment was €12.17 million for the year (2024: €11.59 million). This segment is quite dependent on a limited number of customers for a significant portion of sales, although the breath of customers increased in 2025. In 2025, the top 10 customers generated 60.3% of revenue (2024: 65.1%), with the top customer generating 19.0% of revenue (2024: 17.5%). → Enterprise Software segment Revenue for the Enterprise Software segment was €27.88 million for the year (2024: €23.24 million). For the segment year-over-year license royalty income increased by €2.5 million, maintenance and after-sale support services income €1.3 million and services income by €0.7 million. Additionally, revenue grew in all regions served, despite unfavourable foreign exchange evolutions of the United States dollar, pound sterling, Australian dollar and Chinese Yuan against the euro. Pre-tax result The consolidated pre-tax result for continuing operations was a profit of €4.36 million compared with a loss of €3.36 million in 2024. The increase in the profit of €7.72 million is due to: → an increase in revenue of €2.87 million; → a decrease in cost of sales of €0.43million; → an increase in selling, general and administrative expenses of €1.31 million → a decrease in the impairment of goodwill of €6.28 million; → an increase in research and development expenses of €0.50 million; → a decrease in other operating expenses of €0.07 million; → an increase in other income of €0.52 million; → a decrease in net finance expenses of €0.46 million; and → an increase in foreign exchange losses of €1.10 million. Gross profit for the period increased to 86% of revenue (2024: 84%), primarily due to the lower mix of printing electronics related sales during the year, which have a lower level of gross margin than software because of their manufacturing costs. Included in selling, general and administrative expenses is amortisation of €1.00 million (2024: €0.90 million) related to intangible assets recognised as a result of acquisitions. In 2025 the Group recorded a goodwill impairment charge of €nil million (2024: €6.28 million) in aggregate (see Note 16). Research and development expenses includes the capitalisation and amortisation of internally generated intangible assets and the amortisation of certain intangible assets recognised as a result of acquisitions. During the period there was a net capitalisation of development expenditure of €0.98 million (2024: €0.53 million) and amortisation of acquired intangible assets of €4.30 million (2024: €4.57 million). The net capitalisation of development expenditure was comprised of €3.30 million (2024: €3.45 million) of capitalised expenditure less €2.32 million (2024: €2.92 million) of amortisation. Total operating expenses decreased by €5.07 million, or 10.90% compared to the same period in the prior year. When you exclude the goodwill impairment of €6.28 million in the prior year, total operating expenses increased by €1.21 million, or 3.01% compared to the same period in the prior year. Foreign exchange gains and losses are primarily due to the revaluation of currency balances held at the balance sheet date and the change in exchange rates during the year. Joachim Van Hemelen, Chief Financial Officer 56 57 CFO's review Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Alternative performance measures Alternative performance measures (see Note 2) and adjusted financial information have not been audited by the Group’s auditors. → Revenue To eliminate the impact of currency movements when comparing the current year to the comparative, the current year is restated at the comparative’s actual exchange rates. At constant exchange rates (“CER”) (2025 restated at 2024 exchange rates): In thousands of euros Reported 2025 CER 2025 Reported 2024 Revenue from continuing operations 54,372 55,099 51,501 → Adjusted operating result and net profit The Board believes that evaluating the Group’s ongoing results may not be as useful if it is limited to reviewing only IFRS financial measures, particularly because management uses adjusted financial information to evaluate its ongoing operations, for internal planning and forecasting purposes and for the measurement of performance related bonuses. The Group does not suggest that investors should consider these adjusted financial results in isolation from, or as a substitute for, financial information prepared in accordance with IFRS. The Group presents adjusted financial results when reporting its financial results to provide investors with additional performance measures to evaluate the Group’s results in a manner that focuses on what the Group believes to be its underlying business operations. The Group’s management believes that the inclusion of adjusted financial results provides consistency and comparability with past reports. Cashflow Cash flow was positive for the year with a net cash inflow of €4.95 million (2024: net cash inflow of €2.43 million). Cash flow from operating activities was positive at €15.04 million (2024: €8.82 million). Loan repayments of €2.89 million were made to Congra Software SARL, consisting of €2.75 million in principal repayments and €0.14 million of interest (see Note 26 and 31). The Group continues to generate sufficient cash to fund its day to day operational expenditure and capital expenditure on property, plant and equipment and has overdraft facilities available if required. IFRS reported operating profit or loss from continuing operations is adjusted as follows: In thousands of euros 2025 2024 IFRS reported operating profit / (loss) from continuing operations 5,273 (3,090) Add severance costs - 54 Deduct capitalised development expense (see note 15) (3,297) (3,451) Add amortisation of capitalised development 2,847 2,922 Add amortisation of acquired intangibles 4,301 4,569 Add impairment of goodwill (see note 16) - 6,280 Add other operating expenses (see note 8) 5 70 Deduct other income (see note 9) (674) (150) Total adjustments to reported operating profit from continuing operations 3,182 10,294 Adjusted operating profit from continuing operations 8,455 7,204 IFRS reported net profit or loss from continuing operations is adjusted as follows: In thousands of euros 2025 2024 IFRS reported net profit / (loss) from continuing operations 4,237 (2,828) Adjustments to operating result above 3,182 10,294 Tax effect of above-mentioned adjustments (410) (514) Total adjustments to reported net profit from continuing operations 2,772 9,780 Adjusted net profit from continuing operations 7,009 6,952 Adjusted net basic earnings per share for continuing operations €0.21 €0.21 Adjusted net diluted earnings per share for continuing operations €0.21 €0.21 → EBITDA EBITDA is also reported as an alternative measure of profit and is calculated by adding back interest, tax, depreciation and amortisation to net profit from continuing operations. EBITDA from continuing operations was €12.65 million (2024: €11.99 million) and is reconciled to IFRS reported net profit from continuing operations as follows: In thousands of euros 2025 2024 IFRS reported net profit / (loss) from continuing operations 4,237 (2,828) Net finance (income) / expenses (197) 261 Tax expense / (credit) 118 (653) Depreciation 1,333 1,427 Amortisation 7,158 7,502 Impairment of goodwill (see note 16) - 6,280 EBITDA from continuing operations 12,649 11,989 As a % of revenue from continuing operations 23% 23% 58 59 Principal risks and uncertainties Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Global economic conditions 2025 was characterised by above target inflation in the Western world and restrictive but over the year gradually loosening monetary policy by most of the central banks. Higher interest rates increase financing costs for companies, which put more strain on our customers’ capital expenditure budgets. In 2025 Western economies overall have proven to be rather resilient and continue to grow, albeit at varying rates. China, an important market for multiple of the Group’s business segments, continues to face economic headwinds with the construction sector as a diminishing driver of the economy. Since the second half of 2024; the Chinese government in concert with the Chinese central bank launched a series of stimulative programs, all of which are in the process of transpiring in the real economy. War in the Middle East The Group does not have any operations in the Middle East. It does has significant customers in the region, specifically in Israel. The military action undertaken by Israel in Gaza has not impacted business levels in the region in any material way, nor did the military action undertaken by Israel & the United States of America against Iran in June 2025 (the ‘Twelve- Day War’). Early March 2026, heightened military actions involving Iran and ongoing conflicts in the Middle East have increased macroeconomic and geopolitical uncertainty. These developments have contributed to volatility in global energy markets, disrupted trade routes, and elevated risk premia across financial markets. If prolonged or escalated, such instability could adversely affect commodity prices, supply chain continuity, regulatory environments, and investor confidence. The Group is a software and hardware supplier and depends on the demand from customers for its products and services to generate revenue. Any resulting reduction in demand from those customers will adversely affect the Group’s revenue and profitability. Given the fluidity of the geopolitical environment, the ultimate impact on global markets, supply chains, and our business remains uncertain. At present, the Board does not believe these events have materially affected the Group’s financial results or position. The Board continues to monitor developments closely. In the event the situation were to worsen to potentially cause a negative impact on the macroeconomic environment in the medium to long-term, the Group would be able to restructure its cost base to mitigate any ongoing drop in demand. Principal risks and uncertainties The Group does not have a dedicated risk management or internal audit function, consequently the risk management review is carried out by the executive management team on a regular basis. The risks and uncertainties described below are not necessarily set out in order of priority or potential impact on the Group’s financial statements. Russia’s invasion of Ukraine The Group does not have any operations in Ukraine and does not generate any significant revenue from either Russia or Ukraine, thus is not directly affected by the current situation. In the years since the invasion, the Board remains concerned about the economic and political uncertainty across the world. If the situation were to worsen and spread to other countries, there could be a negative impact on the demand for the Group’s products and services, which could impact the Group’s revenue and profitability. Refer to note 2 to the consolidated financial statements for further details about going concern. Risks related to the Group’s financial situation → The Group’s business, results of operations and financial condition could be materially affected by global economic and political conditions The Group sells its products and services throughout the world and economic conditions that affect the global economy or regional economies may significantly impact the demand for printing technology and therefore for the Group’s products and services. The current uncertainty around the global economy, international trade and the pace of growth in the countries and industries in which the Group’s existing and prospective customers and suppliers operate may negatively affect the level of demand for the Group’s products and services. A reduced demand for the Group’s products and services will reduce the Group’s revenue and profitability. In 2025 the Group generated positive cash flow and increased its net cash position. Management expects the Group to generate positive cash flow and further increase its net cash position in 2026. The Group continues to grow in the countries where it is active, hence through its global presence the Group increases its geographic diversification which makes it less vulnerable to individual national or regional adverse events. → A significant portion of the Group’s revenue comes from a small number of large customers The Group is dependent on a relatively small number of large customers for a significant portion of its revenue. For the year ended 31 December 2025, the Group’s ten largest customers represented 25.3% (2024: 32.3%) of the Group’s revenue, with the single largest customer representing 4.2% (2024: 6.5%) of the Group’s revenue. If one or more of these customers choose to source the products or services supplied by the Group from an alternative vendor the effect on revenue, and therefore profitability, could be material. In 2025 multiple actions have been taken to source new, significant customers, which should further increase customer diversification. 60 61 Principal risks and uncertainties Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Risks related to the Group’s business activities and industry → The Group is dependent on the graphic arts and digital printing industries The Group derives all of its revenues from products and services provided to the graphic arts and digital printing industries. Accordingly, the Group’s future success significantly depends upon the continued demand for its products within such industries. The Board believes that an important factor to consider is the substantial change in the graphic arts and digital printing industries, as evidenced by sustained growth in digital printing and low growth in conventional printing. The shift in inkjet printing technology opens up opportunities to the Group when manufacturers develop new products. If this environment of change were to slow, the Group could experience reduced demand for its products which could have a material adverse effect on its operational results. In 2025 the Company continued to invest in research and development at above market levels, in order to enhance or at least protect its technological advantages. This provides best in class products and solutions which allow our customers to harvest maximum productivity gains from purchasing the Company’s products and services. Customers and prospects are always looking to improve efficiency, and any market downturn increases pressure to do so. → Source dependency might lead to higher prices to be paid to suppliers or disruption in the production of certain of the Groups’ products and therefore impacts the Group’s business activities and profitability Meteor Inkjet Limited’s products include some key electronic components which are subject to shortage of supply from time to time. There is a risk that some of the Group’s products could not be manufactured if there is a disruption to that supply, therefore customer orders could be delayed or cancelled, which could result in a reduction in revenue and profits in the Group. Revenue for these products is reported in the Group’s Printhead Solutions segment and for the year ended 31 December 2025, revenue from external customers for that segment was €12.17 million (2024: €11.59 million), which is equal to 22.39% (2024: 22.51% ) of the Group’s total revenue. In 2025 no shortages in critical components have been experienced. Nevertheless management continues to examine how sourcing can be optimised in order to minimise the effects of any supply chain disruption. → Certain contractual arrangements with customers contain extended payment terms which lead to an increased credit risk on such customers The Group sells its products and services to a range of established customers and generally takes payments in advance for the sale of physical goods in the Printhead Solutions segment, thus minimising the credit risk. In the Printing Software and Enterprise Software segments, certain licensing arrangements allow, however for payments to be made over an extended period of time, up to five years in some instances. These extended payment terms increase the credit risk and the chance that the Group may not be paid. During the year ended 31 December 2025, €4.04 million (2024: €3.47 million) of revenue was recognised in respect of a licensing arrangement that includes extended payment terms of up to 5 years. To date, for licensing arrangements where revenue has been recognised in previous years, all contractually due payments have been received in accordance with the contractual terms. The current economic uncertainty has increased the likelihood of the materialisation of such risk, as the liquidity position of certain customers could be affected by the consequences of a downward economy and the payment behaviour of certain customers could change. In 2025 management continued to monitor the financial health of the customers with which it engages in long term licensing arrangements and takes measures to mitigate any risks. → Security breaches and other disruptions could compromise the Group’s confidential and sensitive information and expose the Company to liability, which would cause the Company’s business and reputation to suffer The Group and certain third parties that it relies on for its operations collect and store confidential and sensitive information, and their operations are highly dependent on information technology systems, including internet-based systems, which may be vulnerable to breakdown, wrongful intrusions, data breaches and malicious attack. This information includes, among other things, intellectual property (“IP”) and proprietary information, source codes and commercially sensitive data, both of the Group and of its customers. Although the Group has appropriate measures in place (including appropriate insurance coverage) to protect its business from any potential interruptions, any attack or breach could compromise the Group’s networks or those of related third parties and stored information could be accessed, publicly disclosed, lost, or stolen. For example, if the Group would as a result of such an attack be unable to access its source code needed to develop new products, it might lose customers, which will have an impact on its operational results. In addition, if IP were to be stolen from the Group, such stolen IP could be used by competitors to improve their products or produce products which could reduce the Group’s competitive advantage and therefore impact the Group’s operational results in the long term. In 2025 management continued to monitor and enhance its security systems. → The Group serves, in addition to its traditional client base of original equipment manufacturers, an increasing amount of end customers. Such customer mix needs to be carefully managed to avoid an adverse impact on its business and results of operations 27.9% of the Group’s revenue for the year ending 31 December 2025 (2024: 33.9%) was generated by customers that are original equipment manufacturers (“OEMs”), such as industrial inkjet press manufacturers, who embed the Group’s software in their own products that they sell to end-users. The Group serves an increasing amount of end-customer across the vertical structure of the packaging supply chain, including pre-press service agencies, label & packaging convertors and brand owners and Consumer Packaged Goods companies. Those companies purchase, in varying degrees, the systems and equipment from OEMs including those who are customers of the Group in addition to the Group’s software products. Consequently, the Group increasingly serves certain clients of its own clients. While the Board believes that this customer mix and its evolution will not have an adverse effect, the customer mix needs to be carefully managed in the future in order to avoid an impact on either the OEM sales or end-user sales and therefore on the profitability of the Group. In 2025 management continued to monitor the situation closely. 62 63 Principal risks and uncertainties Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Legal and regulatory risk → Failure to adequately protect the Group’s intellectual property could substantially harm its business and operating results The Group’s success is heavily dependent upon its proprietary technology. To protect its proprietary rights, the Group relies on a combination of patent, copyright, trade secret and trademark laws, as well as the early implementation and enforcement of non-disclosure and other contractual restrictions. As part of its confidentiality procedures, the Group enters into written non-disclosure agreements with its employees, prospective customers, OEMs and strategic partners and takes steps to limit access to, and distribution of, its software, intellectual property and other proprietary information. → The expansion of customer segments to which the Group sells its products and services made the overall environment in which the Group operates more competitive, which could have a material adverse effect on the Group’s business and results of operations Because of the highly technical nature of the products produced by the Group, there is a high barrier for competitors to enter the market. As a result, the limited number of competitors which do exist tend to be larger companies with sufficient resources to compete in these demanding market segments. The acquisitions of Hybrid Software, ColorLogic, IC3D, Artflow and Conics in recent years and merging its products and services mix with the products and services of the Group, has increased the number of competitors the Group is facing, as each of these entities have a distinct set of customer but also competitors. Although Hybrid Software, ColorLogic, IC3D, Artflow and Conics all have been a long-standing partners of the Group and such relationships were already well known in the industry, it cannot be excluded that such increased competition could result in a business disruption from both customers and suppliers of the Group which could have a material adverse effect on the Group’s results of operations. In 2025 management continued to monitor the situation closely and adjusts any business plans when and where it deems appropriate. → Recruitment and retention of key personnel An important part of the Group’s future success depends on the continued service and availability of the Group’s senior management, including its Chief Executive Officer and other members of the executive team. These individuals have acquired specialised knowledge and skills with respect to the Group. The loss of any of these individuals could harm the Group’s business. The Group’s business is also dependent on its ability to attract, retain, and motivate talented, highly skilled personnel, notably in software development, electronic engineering and technical support areas. Such personnel are in high demand and competition for their talents is intense. Should the Group be unable to continue to successfully attract and retain key personnel, its business may be harmed. The Group offers a competitive package of salary and benefits to directors and employees and regularly benchmarks them against similar businesses to ensure that they remain attractive to current and prospective employees. In 2025 management continued to recruit and retain essential staff by applying a multi-faceted approach to reducing staffing and skill risks, including: (I) competitive wage and benefits packages, tailored by location, (II) development opportunities, (III) continuous improvement. Despite these efforts, if such agreements are not made on a timely basis, complied with or enforced, the Group may be unable to effectively protect its proprietary rights and the enforcement of its proprietary rights may be cost- prohibitive. Unauthorised parties may attempt to copy or otherwise obtain, distribute, or use the Group’s products or technology. Monitoring unauthorised use of the Group’s software products is difficult. Management cannot be certain that steps taken to prevent unauthorised use of the Group’s proprietary technology, particularly in countries where the laws may not protect proprietary rights as fully as in the UK, the EU or the United States, will be effective. The Group’s source code is also protected as a trade secret. However, from time to time, the Group licenses its source code to partners, which subjects it to the risk of unauthorised use or misappropriation despite the contractual terms restricting disclosure, distribution, copying and use. In addition, it may be possible for unauthorised parties to obtain, distribute, copy or use the Group’s proprietary information or to reverse engineer its trade secrets. The Group holds patents, and has patent applications pending, in the United States and in the EU. There may be no assurance that patents held by the Group will not be challenged, that patents will be issued from the pending applications or that any claims allowed from existing or pending patents will be of sufficient scope or strength to provide adequate protection for the Group’s intellectual property rights. The failure to adequately protect the Group’s proprietary technology may adversely affect the Group’s business, financial position, result of operations and prospects. In 2025 management continued to monitor and enhance its systems and procedures to protect its intellectual property rights. → Enforcing, acquiring and defending intellectual property rights is costly and could have a material adverse effect on the Group’s financial position and result of operations In connection with the enforcement of its own intellectual property rights, the acquisition of third-party intellectual property rights or disputes relating to the validity or alleged infringement of third-party rights, including patent rights, the Group may be in the future subject to claims, negotiations or protracted litigation. Intellectual property disputes and litigation are typically very costly and can be disruptive to the Group’s business operations by diverting the attention and energies of management and key technical personnel. Although the Group has successfully defended or resolved past litigation and disputes, it may not prevail in any future litigation and disputes. Third-party intellectual property rights could subject the Group to significant expenditures, require the Group to enter into royalty and licensing agreements on unfavourable terms, prevent the Group from licensing certain of its products, cause disruption to the markets where the Group operates or require the Group to satisfy indemnification commitments with its customers including contractual provisions under various license arrangements, any one of which could harm the Group’s business and have a material adverse effect on the Group’s financial position and results of operations. In 2025 management continued to monitor the situation closely. → As a result of Brexit, both Belgian and UK takeover regulations apply in their entirety to the Company, which may render a potential takeover complex and costlier As the Company is a public company limited by shares with its registered office in the United Kingdom, the provisions of the UK City Code on Takeovers and Mergers (the “UK City Code”) apply to the Company. Simultaneously, as the Company’s shares are listed on the regulated market of Euronext Brussels, a voluntary takeover bid for the Shares of the Company would also be subject to the Belgian takeover legislation. Accordingly, any voluntary takeover bid for the Company would be governed by both the UK and Belgian takeover legislation. 64 65 Principal risks and uncertainties Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Contrary to what was the case before Brexit (where certain aspects were governed by UK law and certain other aspects by Belgian law based on the provisions of the European Directive 2004/25/EC of 21 April 2004 (the EU Takeover Directive)), UK and Belgian takeover legislations apply in their entirety to any potential voluntary takeover bid with respect to the Shares and it could not be excluded that these regulations might be conflicting. This may have an impact on the information the potential bidder must disclose, the envisaged timelines and the contents of the prospectus. Moreover, both the Financial Services Market Authority (the “FSMA”) and the Panel on Takeovers and Mergers (the “Takeover Panel”) would be competent authorities with respect to such takeover bid. The process to make a successful bid could therefore be more complex and costlier. This could potentially discourage potential bidders from launching a takeover attempt and thus deprive shareholders of the opportunity to sell their Shares at a premium (which is typically offered in the framework of a takeover bid). In 2025 no acquisitions subject to Belgian and UK takeover regulations have been made. Internal control risk → The Company cannot guarantee that its disaster recovery and business continuity plans will adequately address any potential issue in the future The Company cannot guarantee that the Group’s disaster recovery and business continuity plans will be adequate in the future for its critical business processes nor that they will adequately address every potential event. Although the Group has insured major risks, the Company can give no assurance that the Group’s present insurance coverage is sufficient to meet any claims to which it may be subject, that it will in the future be able to obtain or maintain insurance on acceptable terms or at appropriate levels or that any insurance maintained will provide adequate protection against potential liabilities. Any losses that the Group incurs that are not adequately covered by insurance may decrease the Group’s future operating income. In addition, defending the Group against such claims may strain management resources, affect the Group’s reputation and require the Group to expend significant sums on legal costs. The Group’s business is currently operated from various locations across the UK, Europe, North America, China and Japan. Some business critical IT infrastructure is concentrated at one site in the UK with a continuous backup of those systems and data to a separate UK site. Business continuity plans are intended to ensure that business- critical processes and data are protected from disruption and will continue even after a disastrous event (such as a major fire or weather, political or war event). Without these plans, or if these plans prove to be inadequate, there is no guarantee that the Company or any of its operating subsidiaries would be able to compete effectively or even to continue in business after a disastrous event or major disruption to one or more of its operating subsidiaries. Accordingly, if critical business processes fail or are materially disrupted as a result of a disastrous event or otherwise and cannot recover quickly, this could have a material adverse effect on the Group’s business, financial condition and results of operations. In 2025 the Group continued to enhance and implement extensive information security programmes, to reasonably ensure confidentiality, integrity, availability and security of its systems. The entire security approach is underpinned by policies and procedures, and for selected platforms and entities, it is also formalised in order to obtain certifications such as ISO 27001. Other risk reduction initiatives include an information security training and awareness program and a broad penetration testing schedule, with immediate correction in case of findings. 66 67 Monitoring Key Performance Indicators Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Section 172(1) The board monitors progress on the overall Group strategy and the individual strategic elements by reference to financial KPIs; specifically revenue, gross margin, operating expenses, adjusted operating profit, EBITDA and cash. These KPIs have been addressed in more detail in the Business review and future developments section above. The Directors have considered the requirements of section 172(1) of the Companies Act 2006 and it is a core duty of the Directors above. The key considerations are set out below. It is a core duty of the Directors to promote the success of the company. To do so the Directors consider the main issues and stakeholders when making significant decisions. The Company has never paid a dividend, thus shareholders are invested for capital growth and due to the nature of the business, employees are critical to the success of the Group’s products. The CEO and CFO communicate regularly with analysts and shareholders are encouraged to participate in an annual meeting. Engagement with employees is two-way to ensure that employees are kept well-informed about the business and valuable feedback is received to ensure continuation of being a trusted employer. Initiatives to ensure the well-being of employees and their dependents are regularly reviewed and enhanced. Considering the capital growth aims of shareholders, the Directors are focused on growing the revenue and product portfolio to ensure that the Group continues to grow, whilst remaining profitable, with the continuing move to digital printing and manufacturing in the marketplace. This is done by development of new products, for example SmartDFE and Mako Apex in recent years and by strategic acquisitions such as Meteor, Xitron, Hybrid Software, ColorLogic and iC3D. Products are developed based on an identified market demand. In the case of Mako Apex, this was a need for faster rendering of graphics for digital printing and in the case of SmartDFE, the evolutionof smart factories and Industry 4.0. Acquisitions are evaluated not only for their financial merits, but on the basis that they fit within the strategy and culture of the Group and that synergies and further opportunities can be developed through integration. Relationships with customers and key suppliers are fostered through a collaborative approach through the The board monitors progress on the overall Group strategy and the individual strategic elements by reference to financial KPIs; specifically revenue, gross margin, operating expenses, adjusted operating profit, EBITDA and cash. These KPIs have been addressed in more detail in the Business review and future developments section above. use of technical services, evaluation software and products and customer-specific product development where appropriate. Commercial contracts are written to further strengthen those relationships. It is the Group’s policy to manage and operate worldwide business activities in conformity with applicable laws and regulations as well as with the highest ethical standards. Both the Group’s Board of Directors and executive management are determined to comply fully with the applicable law and regulations, and to maintain the Group’s reputation for integrity and fairness in business dealings with third parties. A strict compliance with the provisions of the Group’s Code of Ethics is mandatory for every member of the Group’s Board, executive officers, every senior executive and every employee at all locations. The Directors consider the impact of the Company’s operations on the environment and consider how it can reduce any negative impact it might have. The Company’s technology and products enable its customers to produce more efficient and less resource consuming products and services, thus saving energy and raw materials and the Company participates in a program to offset the carbon footprint of all its employees, in both their personal and work lives. For more information see page 70. For the EBITDA calculation see page 59 2024 Copyright © Adobe Stock 68 69 Environmental matters Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Environmental matters The Board of Directors is very aware of its responsibilities towards the environment and to employees and believes that driving sustainability goals through the business is not only the right thing to do for future generations but also makes for good business practice. Indeed, in many of the Group’s key growth markets, such as packaging and textiles, environmental factors are influencing how those markets develop. The Group’s business is to develop and market software solutions for printing and electronics for inkjet printing in particular. As a result, management believes the Group has no activities that are likely to have significant, detrimental effects on the environment. In fact, an application of some of the Group’s products is to limit ink use when printing and inkjet printing is inherently more sustainable than analogue printing: generating less waste in all aspects of production. The Group has shown leadership in the industry, advertising its commitment to Net Zero, and reiterating the strategic importance of sustainability issues at industry conferences. For several years the Group has implemented policies aimed at minimising the Group’s environmental footprint, including recycling waste from paper, ink, toner cartridges, other computer consumables and computer hardware. The Group is implementing policies to reduce Scope 1 and Scope 2 footprint such as sourcing renewable energy and prioritising low-carbon forms of travel and is talking with supply chains to measure and push down on Scope 3 carbon footprint. Starting in 2022, the Group has partnered with Octopus Electric Vehicles to allow UK based employees to lease electric vehicles via a salary sacrifice scheme. There are currently eleven employees that are utilising the scheme and have taken delivery of their electric vehicle. As part of our commitment to community engagement, Meteor pruned apple trees in a local orchard, harvested the apples and then bottled the juice. Taking the project one step further, they designed and printed custom labels for the bottles using a range of solutions from Hybrid Software Group. “As a Board we are very aware of our responsibilities towards the environment and to our employees. Driving sustainability goals through the business is not only the right thing to do for future generations but it makes good business sense too. For instance, in many of our key growth markets, such as packaging and textiles, environmental factors are influencing how those markets develop. Improving our environmental credentials shows our commitment to the expansion of these markets as they continue to transition towards digital production.” Guido Van der Schueren Executive Chairman Other employee events to encourage sustainability included joining the Canopy network (within the Cambridge University Institute for Sustainable Leadership), our annual green commute-to-work campaign, and a “sustainability taskforce” of employee volunteers who meet regularly to identify and pursue sustainability ideas within the office or related to company activities. A highlight was employee-led volunteering to support the local community orchard with pruning and harvesting, from which over 100 bottles of apple juice were obtained to share with company visitors. We also support the Cambridgeshire Wildlife Trust, a charity that is committed to creating a sustainable future for wildlife. partnership Since 2021, through a partnership with Ecologi, the Group now offsets the carbon footprint of all Group employees, whether from personal activities at home or from (Scope 1 and Scope 2) activities at work. Ecologi facilitates the funding of carbon offset projects and tree planting around the world, to generate high quality carbon offsets. Since this partnership with Ecologi started, the Group has achieved an offset of over 8,000 tonnes of CO2e and funded over 83,000 trees, which have contributed to 34 environmental projects across the globe. 83,000 trees planted 8,137 tCo2e avoided 70 71 Social and community Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Social and community Staff are encouraged and given time off to participate in charitable and community activities. The Group contributes to employee-led fundraising activities for local and national charities. Activities this year included a Bake Off event (raising money for Jimmy’s – a charity working for the homeless in Cambridge) and Save the Children’s Christmas Jumper Day. Donations Donations to charities amounted to €2,631 (2024: €340) during the year. The Group operates a peer-to-peer recognition system which allows UK employees to nominate awards to colleagues for their outstanding performance. Some operating divisions also issue employee of the quarter awards. Human rights The Group respects all human rights and in conducting its business the Group regards those rights relating to non-discrimination, fair treatment and respect for privacy to be the most relevant and to have the greatest potential impact on its key stakeholder groups of customers, employees and suppliers. 2024 Copyright © Adobe Stock Employee matters The Group places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the Group. This is achieved through formal quarterly company meetings presented by the CEO to all employees. Employment policies The Group gives full and fair consideration to applications for employment from all persons where the candidate’s aptitudes and abilities meet the requirements of the job. In the event of any staff becoming disabled while employed by the Group, every effort is made to ensure that their employment by the Group continues and that appropriate adjustments are made to their work environment. The Group provides long-term health insurance for all staff if they are unable to work due to illness or disability whilst in employment. As a responsible employer, the Group provides modern and professional working environments in all locations. Compliant with all relevant human resources and health and safety regulations, the Group strives to offer competitive employment packages with opportunities for Company level Number of females Number of males Total Board Management Employees 1 1 47 4 28 235 5 29 282 Total Group 49 267 316 personal and professional development. Staff surveys are carried out with follow-up action plans alongside an internal communications programme to provide regular updates on performance. Diversity The Group does not discriminate on the grounds of age, race, sex, sexual orientation or disability. It has a clear and transparent recruitment process with annual appraisals to provide feedback on staff performance and to create individual objectives. The table below shows the number of persons of each sex who were directors, management and employees of the Group as at 31 December 2025. By order of the Board, Mike Rottenborn Chief Executive Officer 72 73 Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Employee matters 74 It was great to have our software solution expert Heysler Hey (Pico) invited to speak at one of the year’s most forward-thinking packaging industry events in Latin America, Pack to the Future 2025. The conversation on the future of packaging production was insightful, and the energy in the room made it clear: Brazilian packaging professionals are ready to lead, not follow, the global transformation. At Labelexpo Barcelona, Christopher Graf, Managing Director and VP Color at Hybrid Software shared the new developments in color, namely the democratisation of color management so entire production teams can operate systems that once required specialised expertise. Lesley Whitfield, Senior Software Engineer, celebrated 25 years with Global Graphics Software, now Hybrid Software Helix. Lesley joined the Harlequin RIP team in 2000 as a software developer, contributing her expertise to our colour management technology and playing a key role in several major development projects, including variable data processing. Over the years, she’s also made valuable contributions to SmartDFE, Support, and QA teams. In October 2025, Meteor Inkjet celebrated the milestone 30-year work anniversary of Managing Director, Clive Ayling. In 2005, Clive co-founded Meteor (now Meteor Inkjet Ltd) and took on the role of managing director in 2016 following Meteor’s acquisition by Global Graphics PLC, now Hybrid Software Group PLC. Clive has been preeminent in instigating and chairing Meteor’s drive to develop sustainably. He has presented several industry talks on the topic, chairs Meteor’s sustainability taskforce and has been appointed ESG Leader for Hybrid Software Group. Bert Van der Perre, VP/GM Labels & Packaging and Sumate Jankasamepong, Director of Sales in Southeast Asia attended Dscoop’s Thailand Summit 2025, where industry leaders gathered to be emboldened to reimagine, reinvent and lead the label and packaging industry forward. 75 GOVERNANCE The Board of Directors of Hybrid Software Group believes in strong corporate governance and transparency, with open, clear, and frequent communications to our shareholders. Board od directors Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Guido Van der Schueren has been Chairman of the Board since 2014 and has close to 50 years of experience in the graphic arts industry. In 1992 he co-founded Artwork Systems and from 1996 to 2007 served as Managing Director and Chairman of the Board of Artwork Systems Company. He served as Vice Chairman of the EskoArtwork Company from June 2007 until April 2011. He runs Powergraph, an investment company mainly active in graphic arts software and technology. He is also the Chairman of Congra Software, the holding company which owns a majority stake in Hybrid Software Group PLC. Mike Rottenborn took up the position of Chief Executive Officer in January 2020. He was formerly the President and CEO of Hybrid Software Inc., which he founded in 2007. He has spent more than 35 years working in the graphic arts industry and began his career as an electrical engineer with DuPont Printing & Publishing. After DuPont, he joined PCC Artwork Systems to focus on prepress workflow software for packaging and commercial printing customers. He received his Bachelor of Science degree in Electrical Engineering from Virginia Tech and his Master of Science degree in Computer Science from Villanova University. Board of directors The Board of Directors guides the Company to create growth and shareholder value. With decades of experience in building successful companies, the Board supports the talented individuals in the senior management teams to execute and deliver on strategy. Guido Van der Schueren Executive Chairman Mike Rottenborn Chief Executive Officer Joachim Van Hemelen was appointed Chief Financial Officer, Company Director and a member of the Company’s executive team in September 2022. He has management responsibility over the firm’s global finance, treasury and corporate development functions. Prior to being appointed he was CFO of Hybrid Software which he joined in 2015. Before this he worked as a corporate finance advisor in an Antwerp-based family office, Portolani, and as a merger and acquisitions advisor in a Flanders- based mid-market M&A boutique. He started his professional career in 2010 as a financial auditor at BDO. Joachim earned his Master of Science in Business Administration at the Lessius Hogeschool Antwerp. Clare Findlay was appointed an independent non-executive director of the Company in March 2019. She was previously a non-executive director of the Company from June 2011 until 2014 and has more than 20 years’ experience at senior level positions in the computer software industry, including as managing director of the UK operations of Concentrix Corporation, the global business process outsourcing division of SYNNEX. In 2013 Clare co-founded Purple Demand, a Demand Creation Agency. Luc De Vos was appointed an independent non-executive director in February 2021. An engineer by training, Luc is credited with championing the early implementations of the internet in Europe and was the founding father of the first sizeable pan-European Internet Service Provider. A notable business angel during the nineties’ new media and internet boom, he was a key player in KPNQwest, Stepstone, and Starlab and more recently, CarsOnTheWeb (now ADESA Europe). He has also been a non-executive chairman to the first mediatech venture capital fund (Arkafund) in Belgium as well as a director to the global leasing and fleet management company Sofico, and advisor to unified threat management security provider AXS GUARD. In all, he has worked with more than 60 companies with a strong focus on growth and corporate governance. Joachim Van Hemelen Chief Financial Officer Clare Findlay Non-executive Director Luc De Vos Non-executive Director 78 79 Director’s report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Directors’ report The Directors present their annual report and the audited financial statements for the year ended 31 December 2025. Hybrid Software Group PLC is a public limited-liability company registered in England and Wales with its shares traded on Euronext Brussels under stock code HYSG. As analogue printing markets are converting to digital production, Hybrid Software Group is the only vertically integrated supplier to this market, supplying products and technology to both manufacturers of digital printing equipment and to manufacturers of packaging and other printed goods who operate them. Directors The board are responsible for the appointment of Directors and the amendment of articles of association (“Articles”) and meet regularly throughout the year. Subject to the provisions of the Company’s Articles, any person who is willing to act as a director, and is permitted by law to do so, may be appointed to be a director by ordinary resolution, or by a decision of the Directors, either to fill a vacancy or as an addition to the existing board provided that the appointment does not result in the total numbers of Directors exceeding any maximum number fixed in accordance with the Company’s Articles. At every annual general meeting all the Directors shall retire from office. If the Company, at the meeting at which a director retires under, does not fill the vacancy, the retiring director shall, if willing to act, be deemed to have been reappointed unless at the meeting it is resolved not to fill the vacancy, or unless a resolution for the reappointment of the director is put to the meeting and lost. The Directors who held office during the year under review were: Guido Van der Schueren Executive Chairman Michael Rottenborn Chief Executive Officer Joachim Van Hemelen Chief Financial Officer Clare Findlay Non-executive Director Luc De Vos Non-executive Director The Company maintains director and officers’ liability insurance. Shareholdings Ordinary shares are entitled to one vote each in any circumstance. Each share is entitled pari passu to dividend payments or any distribution. The shares are not redeemable and there are no transfer restrictions on the shares. Subject to the Company’s Articles, but without prejudice to the rights attached to any existing ordinary share, the Company may issue shares with such rights or restrictions as may be determined by ordinary resolution. The breakdown of the Company’s issued share capital as at 31 December 2025 was: Number of ordinary shares % of issued share capital Congra Software S.à r.l. *** 27,476,064 83.48% Company owned shares 191,981 0.59% Free float 5,241,692 15.93% Total 32,909,737 100.00% *** Congra Software S.à r.l. is controlled by Guido Van der Schueren, the Company’s Chairman. Michael Rottenborn (Chief Executive Officer) and Joachim Van Hemelen (Chief Financial Officer) are also shareholders of Congra Software S.à r.l. Investment in own shares The Company holds some of its own shares in treasury to meet its obligations arising from the Group’s employee share programmes (see notes 23 and 30 to the consolidated financial statements). On 10 December 2024 the Company announced the start of its share repurchase programme, for a total amount of €1 million. The total number of shares held in treasury at 31 December 2025 was 191,981 (2024: 63,822). Further information can be found in note 23 to the consolidated financial statements. During the year, the Company disposed of 9,000 treasury shares (2024: 9,106), transferred to employees to satisfy the Company’s obligations under share schemes. Corporate governance Details of the Group’s corporate governance can be found in the Corporate governance report on page 86. Political contributions The Group made no political contributions during the year (2024: €nil). Dividends The Directors do not recommend the payment of a dividend (2024: €nil). Research and development The Group spent €13.82 million (2024: €13.32 million) on research and development during the year. Under IAS 38 Intangible Assets, €3.30 million (2024: €3.45 million) of research and development was capitalised and €2.32 million (2024: €2.92 million) of capitalised research and development was amortised. There was no impairment of capitalised research and development during the year (2024: €nil). The net effect of capitalisation, amortisation and impairment on profit in the year was a decrease in expense of €0.98 million (2024: €0.53 million decrease in expense). 80 81 Director’s report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Post balance sheet events Details of post balance sheet events are detailed in note 37 to the consolidated financial statements. Financial risk management Details of the Group’s financial risk management are disclosed in the Group strategic report and in note 31 to the financial statements. Streamlined Energy and Carbon Reporting (SECR) The following Streamlined Energy and Carbon Report (SECR) provides environmental impact information in accordance with the Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013 and the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Reporting) Regulations 2018. Global energy use and greenhouse gas (“GHG”) emissions from activities for which the Group is responsible for: 2025 2024 Energy used (kwh) Electricity (scope 2) 336,555 362,588 Gas (scope 1) 273,784 273,501 Fuel (scope 1) 836,992 815,299 Total energy used (kwh) 1,447,331 1,451,388 United Kingdom 202,077 219,946 Rest of the world 1,245,254 1,231,442 Total energy used (kwh) 1,447,331 1,451,388 GHG emissions (CO2e tonnes) Electricity (scope 2) 75.4 83.6 Gas (scope 1) 50.1 50.0 Fuel (scope 1) 204.3 194.9 Total GHG emissions (CO2e tonnes) (a) 329.8 328.5 United Kingdom 35.8 45.5 Rest of the world 294.0 283.0 Total GHG emissions (CO2e tonnes) 329.8 328.5 Intensity ratio Average number of employees 285 271 GHG emissions per employee (CO2e kilogram) 1,157 1,217 Effect of the carbon offset program with Ecologi (CO2e tonnes) (b) (1,484.3) (1,453.4) Net GHG offset (CO2e tonnes) (a+b) (1,154.4) (1,124.9) Electricity and gas are used to power and heat the Group’s offices and transport fuel is used by company cars provided to some employees. Where possible, primary data has been sourced (meter readings and supplier invoices), but where actual energy figures are not available a reasonable approximation has been used to estimate energy usage. There has been a continuation of the existing strategy to reduce the physical number of computers to consolidate into more efficient servers where possible. A senior manager has been appointed to head up and implement group- wide sustainability initiatives, including to reduce energy consumption across the Groups offices. The Company continues to partner with Ecologi, the platform that facilitates the funding of carbon offset projects and tree planting around the world, to offset its carbon footprint. Since October 2021, the Group has been working towards compensating for the environmental footprint of every employee in their work and personal life. At work, the Group is implementing policies to reduce Scope 1 and Scope 2 footprint such as sourcing renewable energy and low-carbon travel, and is talking with supply chains to measure and push down on Scope 3 carbon footprint. Through the partnership with Ecologi, the Group offsets the carbon footprint of all Group employees, whether at home or at work. Statement of Directors’ responsibilities in respect of the annual report and the financial statements The Directors are responsible for preparing the Annual report and the group and parent Company financial statements in accordance with applicable law and regulations. Company law requires the Directors to prepare Group and parent Company financial statements for each financial year. Under that law they are required to prepare the Group financial statements in accordance with UK-adopted international accounting standards and applicable law and have elected to prepare the parent Company financial statements in accordance with UK accounting standards and applicable law, including FRS 101 Reduced Disclosure Framework. In addition, the Group financial statements are required to be prepared in accordance with International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union (“IFRSs as adopted by the EU”). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and parent Company and of the Group’s profit or loss for that period. In preparing each of the Group and parent Company financial statements, the Directors are required to: → select suitable accounting policies and then apply them consistently; → make judgements and estimates that are reasonable, relevant, reliable and prudent; → for the Group financial statements, state whether they have been prepared in accordance with UK-adopted international accounting standards and IFRSs as adopted by the EU; → for the parent Company financial statements, state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the parent Company financial statements; → assess the Group and parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and → use the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or to cease operations or have no realistic alternative but to do so. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent Company’s transactions and disclose with reasonable accuracy at any time the financial position of the parent Company and enable them to ensure that its financial statements comply with the Companies Act 2006. They are 82 83 Directors’ report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities. Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report and a Directors’ Report that complies with that law and those regulations. The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The Directors are responsible for the preparation of the consolidated financial statements in electronic format in accordance with the ESEF requirements set out in the regulatory technical standards as laid down in the EU Delegated Regulation nr. 2019/815 of 17 December 2018. Responsibility statements under the disclosure and transparency rules We confirm that to the best of their knowledge: → the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and → the strategic report includes a fair review of the development and performance of the business and the position of the issuer and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face. Disclosure of information to auditor The Directors confirm that: → so far as each director is aware there is no relevant audit information of which the Company’s Auditor is unaware; and → the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Auditor PKF Littlejohn LLP were re-appointed during the year as auditor of the company. By order of the Board, Michael Rottenborn , Director 2030 Cambourne Business Park Cambourne Cambridge CB23 6DW 12 March 2026 84 85 Corporate governance report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Corporate governance report Directors and Board The Board comprises two executive directors, an executive chairman and two non-executive directors. The Board considers that the non-executive directors are independent. See page 78 for further details about the Board of Directors. The roles of chairman and chief executive officer are separate appointments and it is Board policy that this will continue. The non-executive directors bring their independent judgement to bear on issues of strategy, performance, appointments, resources and standards of conduct. Board committees Audit and remuneration committees provide additional review and scrutiny of the Group’s activities. Relations with shareholders The Company’s executive directors communicate regularly with analysts and private investors are encouraged to participate in the Annual General Meeting. Internal financial control The Group has established policies covering the key areas of internal financial control and the appropriate procedures, controls, authority levels and reporting requirements which must be applied throughout the Group. The key procedures that have been established in respect of internal financial control are: → internal control: the directors review the effectiveness of the Group’s system of internal controls on a regular basis; → financial reporting: there is in place a comprehensive system of financial reporting based on the annual budget approved by the board. The results for the Group are reported monthly along with an analysis of key variances to budget, and year-end forecasts are updated on a regular basis; and → investment appraisal: applications for significant expenditure of either a revenue or capital nature are made in a format which places emphasis on the commercial and strategic justification as well as the financial returns. The Financial Conduct Authority’s Listing Rules (“the Listing Rules”) require that listed companies (but not companies traded on an overseas EU market) incorporated in the UK should state in their report and accounts whether they comply with the UK Corporate Governance Code (“the Code”) and identify and give reasons for any area of non-compliance. The Company is listed on Euronext Brussels and therefore is not required to comply with the Listing Rules or the Code, however, several voluntary disclosures have been given. The Board supports the principles and aims of the Code and intends to ensure that the Group observes the provisions of the Code as it grows, as far as is practical. However, the Board considers that at this stage in the Group’s development the expense of full compliance with the Code is not appropriate. The content of this report is unaudited. All significant projects require specific Board approval. No system can provide absolute assurance against material misstatement or loss but the Group’s systems are designed to provide reasonable assurance as to the reliability of financial information and ensuring proper control over income and expenditure, assets and liabilities. Going concern The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements and have no reason to believe that a material uncertainty exists that may cast significant doubt about the Group’s ability to continue as a going concern, notably because of a cash position of €14.46 million as at 31 December 2025 (2024: €9.51 million). Those forecasts take into account reasonably possible downsides, including the potential impact for increased costs of inflation. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. Refer to note 2 to the consolidated financial statements for further details. 2024 Copyright © Adobe Stock 86 87 Audit committee report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Additionally, the Committee will: → review the effectiveness of the Company’s internal financial control systems, → advise the Board on the Company’s risk strategy, risk policies and current and emerging risk exposures, including the oversight of the overall risk management framework and systems, → assess the adequacy and security of the Company’s arrangements for its employees and contractors to raise concerns, in confidence, about possible wrongdoing in financial reporting or other matters and to ensure proportionate and independent investigation of such matters, → and make recommendations to the Board as it deems appropriate on any area within its remit where action or improvement is required. The Committee operates with clarity, simplicity, fairness, predictability and is aligned to the culture of the organisation. Luc De Vos Chair of the Audit Committee The members of the Committee are Luc De Vos (Chair of the Committee) and Clare Findlay. The Committee oversees the relationship with the Company’s external auditor, monitors its effectiveness and independence and makes recommendations to the Board in respect of the external auditor’s remuneration, appointment and removal. The Committee also reviews the findings from the external auditor, including discussion of significant accounting and audit judgements, levels of errors identified and overall effectiveness of the audit process. The Committee meets as required, typically at least 3 times per year; at the beginning of the financial year to agree on the audit and risk operational plan for that year, at mid-year to evaluate any matters and issues that might have arisen and at the close of the financial year to review the findings of the auditor and to ensure that the group’s audit and risk objectives have been met. The Committee also considers significant financial reporting issues, accounting policies and key areas of judgement or estimation. This review also includes consideration of the clarity and completeness of disclosures on the information presented in the financial statements. Audit committee report The Audit Committee (the “Committee”) is appointed by the Board and consists wholly of the non-executive directors. The Board has delegated to the Committee responsibility for overseeing financial reporting, the review and assessment of the effectiveness of the internal control and risk management systems and maintaining an appropriate relationship with the external auditor. Luc De Vos Chair of the Committee Directors’ remuneration report The members of the Committee are the independent, non-executive directors, Clare Findlay (Chair of the Committee) and Luc De Vos. The report is split into three main areas: the statement by the chair of the Committee, the annual report on remuneration and the policy report. The policy report will be subject to a binding shareholder vote at the 2026 Annual General Meeting and the policy will take effect for the Financial year beginning on 1 January 2026. The annual report on remuneration provides details on remuneration in the period and some other information required by the Regulations. It will be subject to an advisory shareholder vote at the 2026 Annual General Meeting. The Companies Act 2006 requires the auditors to report to the shareholders on certain parts of the Directors’ remuneration report and to state whether, in their opinion, those parts of the report have been properly prepared in accordance with the Regulations. The Chair’s annual statement The information provided in this part of the Directors’ remuneration report is not subject to audit. The remuneration committee reviewed the current level of board fees and salaries payable to the chairman, the CEO and CFO. Clare Findlay Chair of the Committee This report, prepared by the Remuneration Committee (the “Committee”), is on the activities of the board in respect of the remuneration of directors for the year ending 31 December 2025. It sets out the remuneration policy and remuneration details for the executive and non-executive directors of the Group. It has been prepared in accordance with Schedule 8 of The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (the “Regulations”). 88 89 Directors’ remuneration report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Annual report on remuneration The information provided in this part of the Directors’ remuneration report is subject to audit. The remuneration of the executive and non-executive directors of the Group in respect of services to the Group were as follows: For the year ended 31 December 2025: In euros Salary and fees Benefits Bonus LTIP Pension Total Total fixed Total variable Executive directors Guido Van der Schueren 1 472,711 67,332 101,025 - 1,155 642,223 541,198 101,025 Michael Rottenborn, CEO 259,545 35,185 90,410 - 9,135 394,275 303,865 90,410 Joachim Van Hemelen, CFO 270,185 - 84,118 - - 354,303 270,185 84,118 Total executive directors 1,002,441 102,517 275,553 - 10,290 1,390,801 1,115,248 275,553 Non-executive directors Clare Findlay 38,112 - - - - 38,112 38,112 - Luc De Vos 31,000 - - - - 31,000 31,000 - Total non-executive directors 69,112 - - - - 69,112 69,112 - Total directors 1,071,553 102,517 275,553 - 10,290 1,459,913 1,184,360 275,553 For the year ended 31 December 2024: In euros Salary and fees Benefits Bonus LTIP Pension Total Total fixed Total variable Executive directors Guido Van der Schueren 1 425,584 63,960 60,342 - 952 550,838 490,496 60,342 Michael Rottenborn, CEO 262,812 38,731 53,161 - 9,568 364,272 311,111 53,161 Joachim Van Hemelen, CFO 267,395 - 43,914 - - 311,309 267,395 43,914 Total executive directors 955,791 102,691 157,417 - 10,520 1,226,419 1,069,002 157,417 Non-executive directors Clare Findlay 38,550 - - - - 38,550 38,550 - Luc De Vos 31,000 - - - - 31,000 31,000 - Total non-executive directors 69,550 - - - - 69,550 69,550 - Total directors 1,025,341 102,691 157,417 - 10,520 1,295,969 1,138,552 157,417 Salary and fees are the contracted annual salaries and board fees that are payable. Each executive director received board fees, prorated where appointed or resigned during the year, which are included within the Salary and fees column. 1 includes the director’s daughter, who is also an employee of the Group 2 includes the director’s daughter, who is also an employee of the Group Benefits include car allowance, travel allowance, home allowance and private medical insurance payments. The executive directors’ total available bonus for the year was structured as combination of the following elements: → for meeting the board-approved group revenue target, → for meeting the board-approved group adjusted operating profit target, → for fulfilling specific KPIs, as agreed and signed off by the Remuneration Committee. The board-approved KPI-based targets for the year were fully met and the financial targets outperformed. The Remuneration Committee authorised bonus payments based on the realized performance in function of the defined plan criteria. The Group employs various profit share schemes in which a portion of its profit is shared with its employees. The Executive Directors participate in these profit share schemes in according to their allocation over the various business units. Any earned profit share amounts are included in the bonus figure for the year. LTIP (long term incentive plan) is a cash award that will be payable after 3 years of continuous service from the date of award. Contributions totalling €10,000 (2024: €11,000) were made to the personal pension schemes of two (2024: two ) of the directors in accordance with their employment contracts. The Group operates a defined contribution scheme where contributions are calculated as a percentage of gross salary. There are no defined benefit schemes. → Scheme interests awarded during the financial year There were no share-based awards during the year and there are no outstanding share options as at 31 December 2025. The aggregate amount of gains made by directors on the exercise of share options during the year was €nil (2024: €nil). → Directors and their interests in shares of the Company The directors held the following interests in the shares of Hybrid Software Group PLC as at 31 December 2025: Guido Van der Schueren * Michael Rottenborn ** Joachim Van Hemelen *** Clare Findlay Luc De Vos Shares beneficially owned 27,476,064 3,850 - 100 5,000 Total interest in shares 27,476,064 3,850 - 100 5,000 * The interests of Guido Van der Schueren are held in the name of Congra Software S.à r.l., Together with his wife and children, he owns approximately 69.01% of the shares of Congra Software S.à. r.l.. ** Michael Rottenborn is also a shareholder of Congra Software S.à r.l., he owns approximately 0.38% of the shares of Congra Software S.à. r.l.. *** Joachim Van Hemelen is also a shareholder of Congra Software S.à r.l., he owns approximately 0.30% of the shares of Congra Software S.à. r.l.. The information provided in the following sub-sections of the Directors’ remuneration report are not subject to audit. 90 91 Directors’ remuneration report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 → CEO remuneration table The following table shows the CEO’s remuneration and percentage achievement of annual bonuses and long-term incentives over the past 5 years: 2021 2022 2023 2024 2025 Total CEO remuneration (in thousands of euros) 458 358 346 337 394 Annual bonus pay-out against maximum opportunity 100% 44% 20% 68% 78% Long term incentive vesting rates against maximum opportunity n/a n/a n/a n/a n/a → Percentage change in remuneration of directors The table below shows the percentage change over the preceding year, in the base payment currency of remuneration for the directors and for all employees of the Group: Salary and fees Benefits Bonus Director 2024 2025 2024 2025 2024 2025 Guido Van der Schueren (7.4%) 12.0% (3.9%) 0.0% 34.1% 67.4% Michael Rottenborn 3 (4.2%) 2.9% (4.8%) (8.9%) 17.0% 71.7% Joachim Van Hemelen 4 (1.0%) 1.0% 0.0% 0.0% 30.1% 91.6% Clare Findlay 5 47.6% 0.0% 0.0% 0.0% 0.0% 0.0% Luc De Vos 6 55.0% 0.0% 0.0% 0.0% 0.0% 0.0% All employees average 3.7% 4.1% 0.0% 0.0% 0.0% 0.0% For further information with regards to the changes in 2023 and 2024, please refer to the annual report for the relevant financial year. → Relative importance of spend on pay The main operating expense of the Group is the cost of its employees due to the nature of the work of the Group. In order to attract and retain staff, pay and reward levels need to be competitive and commensurate with the highly technical skills that are required. The table below shows the amounts paid to employees (for continuing operations) and the amounts distributed to shareholders. In thousands of euros 2025 2024 % change Staff expenses (see note 12 to the consolidated financial statements) 30,021 28,335 6.0% Dividends paid to shareholders - - 0% → Statement of implementation of remuneration policy in the following financial year There are no significant changes in the way that the remuneration policy will be implemented in the next financial year compared to how it was implemented during this financial year. The remuneration policy will be voted upon during the next AGM to be held during 2026. 3 Michael Rottenborn joined the Group in January 2020 4 Joachim Van Hemelen was appointed a Director in September 2022 5 Clare Findlay joined the Group in March 2019 6 Luc de Vos joined the Group in February 2021 Remuneration policy The information provided in this part of the Directors’ remuneration report is not subject to audit. The board determines the Group’s policy for employee, executive and non-executive remuneration and the individual remuneration packages for executive directors. In setting the remuneration packages, the board considers the pay and benefits that are offered to existing Group employees and the salaries, bonuses and benefits available to directors of comparable companies and the continued commitment to the Group through appropriate long-term incentive schemes, such as the award of shares and share options. The board did not consult with employees when drawing up the remuneration policy set out in this part of the report and no views about the policy have been expressed by shareholders of the Company to the board. → Remuneration of executive directors Consistent with this policy, remuneration packages awarded to executive directors include a mix of basic salary and performance related remuneration that is designed to incentivise the director to achieve the Group’s strategic objectives. The remuneration packages usually include some or all of the following elements: - base salary, as agreed by the board; - bonus scheme, with performance measured against annually set targets and personal objectives all reviewed and approved by the board; - profit share bonus scheme based on component and group performance - equity, by way of shares and share options; - other benefits, such as car allowance, company contribution into a personal pension scheme, private medical insurance, life assurance and long-term sickness insurance; and - recruitment fee, notice period for termination of contract or payments for loss of office. All of the above elements are negotiable between the board and the prospective director. There are no fixed term contracts and each director must resign and be reappointed at each AGM. The executive directors’ total bonus available for the year will be structured as follows: In the forthcoming year the above policy will be applied. The bonus payment for the Chairman, CEO and CFO is divided into 3 elements and weighted dependant on individual role and responsibility: - achievement of the board-approved group adjusted operating profit target, - achievement of the board-approved group’s components adjusted operating profit targets, and - achievement of the individual KPIs as agreed and signed off by the Remuneration Committee. → Remuneration of non-executive directors The fees paid to non-executive directors are determined by the board. The non-executive directors do not receive any other fixed forms of remuneration or benefits. 92 93 Directors’ remuneration report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Future policy table The information provided in this part of the Directors’ remuneration report is not subject to audit. The following table provides a summary of the key components of the remuneration package for executive directors: Salary and fees Purpose Rewards skills and experience and provides the basis for a competitive remuneration package. Operation Salaries and fees, including recruitment and loss of office payments, are agreed with the director with reference to the role, the individual's experience, and market practice and market data. Opportunity 100% of contractual salary and fees are paid for services rendered to the Group. Performance measures Reviewed annually and executive directors' salaries are generally increased in line with company-wide pay increases. Exceptional changes are tied to significant changes in the Group or exceptional performance. Recovery No provision for recovery or withholding of payments unless breach of contract. Taxable benefits Purpose Protects against risks and provides other benefits. Operation The provision of benefits to executive directors includes private medical cover, life insurance and ill-health income protection. Opportunity 100% of the premiums due are paid on behalf of the executive director. Performance measures There are no performance measures associated with the benefits other than being a current executive director. Recovery No provision for recovery or withholding of payments unless breach of contract. Bonuses Purpose Rewards delivery of the near-term business targets set each year, the individual performance of the executive directors in achieving those targets, and contribution to delivering the Group's strategic objectives. Operation Bonuses are agreed in the employment contract with the executive director. The level of bonus payable is determined based on the role, the individual's experience, and market practice and market data. Opportunity Generally 50% to 100% of the annual bonus is achievable on meeting the revenue and expense targets as set by the board. Adjustments can be made to the plan for specific, strategic objectives. Performance measures The performance objectives include only financial measures. The financial measures are generally related to revenue and controlling expenses. Recovery Payment of annual bonuses is usually withheld until the Group's auditors have cleared the audit and the board have approved payment of the bonuses. The following table provides a summary of the key components of the remuneration package for non-executive directors: Board fees Purpose Attract and retain individuals with the required skills, experience and knowledge so that the board is able to effectively carry out its duties. Operation Fees are paid monthly or quarterly. Opportunity 100% of contractual fees are paid for services rendered to the Group. Performance measures Reviewed annually and increased only in exceptional circumstances. Recovery No provision for recovery or withholding of payments if performance obligations have been fulfilled. → Recruitment remuneration For the appointment of a new director, the aforementioned components will be included in their remuneration package and negotiated with consideration of the role, their experience and market data. The fees that may be agreed may include sign-on payments to incentivise the director to take the appointment. These sign-on fees will be negotiated taking into consideration the role, their experience and market data. → Pay policy for other employees The Company values its total workforce and aims to provide remuneration packages that are geographically competitive, comply with any local statutory requirements and are applied fairly and equitably across the Group. Where remuneration is not determined by statutory regulation, the following key principles are applied: - to reward in a manner that allows for stability in the business and for sustainable long-term growth - to reward fairly and consistently for each role with due regard to peers, the economy, the marketplace and the technical skills required → Service contracts It is the Group’s policy that executive directors should have contracts with an indefinite term. Non-executive directors are appointed for an initial six-year term, with provisions for extension, subject to mutual agreement. All Directors offer themselves for annual re-election at each AGM in accordance with the UK Corporate Governance Code. Service agreements and letters of appointment are available for inspection at the registered office address of the Company. None of the directors are entitled to any specific indemnity which would be due or liable to be due on termination of their appointment. Pension Purpose Enables executive directors to build long term retirement savings. Operation The Group pays defined contributions into a pension plan on behalf of the executive director. Opportunity 100% of the contributions due are paid directly to the pension company on behalf of the executive director. Performance measures There are no performance measures associated with the benefits other than being a current executive director. Recovery No provision for recovery or withholding of payments unless breach of contract. 94 95 Directors’ remuneration report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Date of contract Date of appointment Notice from the Company Notice from the director Unexpired term on 31 December 2025 Guido Van der Schueren 4 April 2017 16 May 2014 12 months 12 months - Michael Rottenborn 1 January 2020 2 January 2020 12 months 12 months - Joachim Van Hemelen 1 January 2021 1 September 2022 12 months 12 months - Clare Findlay 1 March 2019 1 March 2019 - - 26 months Luc De Vos 4 February 2021 15 February 2021 - - 13 months → Application of the policy The table below shows the level of remuneration that would be received by the directors’ in accordance with the directors’ remuneration policy. Euro 000s Minimum performance Medium performance Maximum performance 2025 actual Guido Van der Schueren 541 604 667 642 Michael Rottenborn 304 362 420 394 Joachim Van Hemelen 270 317 364 354 Clare Findlay 39 39 39 39 Luc De Vos 31 31 31 31 The scenarios have been illustrated for each executive director based on the following: Minimum performance - Base salary/fee, taxable benefits and pension - No bonus pay-out - No long term incentive plan Medium performance: - Base salary/fee, taxable benefits and pension - 50% bonus pay-out - 50% long term incentive plan Maximum performance: - Base salary/fee, taxable benefits and pension - 100% bonus pay-out - 100% long term incentive plan The report was approved by the board of directors on 12 March 2026 and signed on its behalf by: Clare Findlay Chair of the Remuneration Committee 96 97 Independent auditor’s report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Independent auditor’s report INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF HYBRID SOFTWARE GROUP PLC Opinion We have audited the financial statements of Hybrid Software Group plc (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Position, the Consolidated and Company Statements of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards and as regards the parent company financial statements, as applied in accordance with UK Generally Accepted Accounting Practice (‘UK GAAP’) and the provisions of the Companies Act 2006. In our opinion: • the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December 2025 and of the group’s profit for the year then ended; • the group financial statements have been properly prepared in accordance with UK-adopted international accounting standards; • the parent company financial statements have been properly prepared in accordance with UK GAAP, including FRS 101 Reduced Disclosure Framework, and as applied in accordance with the provisions of the Companies Act 2006; and • the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. Separate opinion in relation to IFRSs as adopted by the European Union As explained in note 2 to the group financial statements, the group, in addition to complying with its legal obligation to apply UK adopted International Accounting Standards, has also applied International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies to the European Union (EU-endorsed IFRSs). In our opinion, the group financial statements give a true and fair view of the consolidated financial position of the group as at 31 December 2025 and of its consolidated financial performance and its cash flows for the year then ended in accordance with EU endorsed IFRSs. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the group’s and parent company’s ability to continue to adopt the going concern basis of accounting included the following audit procedures: 2 • Obtaining an understanding of the controls in place around the preparation of the going concern forecast and future plans for the group through discussions with management; • Obtaining management’s assessment for the going concern period to 31 March 2027 and checking the mathematical accuracy of the cash flow forecasts and budgets prepared; • Comparing budgeted performance for the year ended 31 December 2025 against actual to assess management’s historical forecasting accuracy; • Challenging management where appropriate on the reasonableness of key inputs and assumptions underpinning the going concern model. These challenges included but not limited to: o Performing sensitivity analysis on key inputs and assumptions to assess the headroom across the going concern period. Key inputs and assumptions included: (i) sales growth rates, (ii) loss of key customers and (iii) levels of operating expenditure; o Assessing management’s stress testing performed; o Assessing the prospective accuracy of management’s forecast in 2026 against post year- end bank statements and management financial reports; • Reviewing the terms of loan facilities within the group to confirm their availability across the forecast period and to ensuring compliance with any conditions attached; • Undertaking a review of subsequent events on matters impacting the going concern assessment; and • Considering the adequacy of the disclosures and accounting policies in the financial statements. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Our application of materiality Financial statements - group Financial statements – parent company Overall materiality €800,000 (2024: €641,000) €400,000 (2024: €320,000) Basis for determining overall materiality 1.5% of revenue (2024: 1.25% of revenue) 1% of net assets as constrained by the allocation of overall group materiality (2024: 2% of net assets as constrained by the allocation of overall group materiality) Rationale for the benchmark applied The group derives the majority of its revenue from software licensing, subscription sales and service contracts. While revenue is not the sole financial metric with which management and stakeholders measure and assess financial performance, the nature of the business activities and We considered the nature of the parent company, being a holding company for the investment activities of the group, and determined that net assets was an appropriate basis for the calculation of the overall materiality given the significant 98 99 Independent auditor’s report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 3 operations result in the group being highly revenue driven. We consider total revenue to be the most appropriate basis for determining overall materiality for the group as it provides users of the financial statements with a more stable measure year-on- year of financial performance, compared to profit before tax wh ich has historically been volatile. On this basis, revenue was determined to be an appropriate basis for determining overall materiality. asset base as at 31 December 2025. Performance materiality €560,000 (2024: €448,000) €280,000 (2024: €224,000) Basis for determining performance materiality 70% of the group overall materiality (2024: 70%) 70% of the parent company overall materiality (2024: 70%) Rationale for the benchmark applied In determining the performance materiality, we have considered the following factors: • The level of significant judgements and estimates; • The risk assessment and aggregation of risk and the effectiveness of controls; • The control environment and the group’s financial reporting controls and processes; • It is the third year of our appointment as group auditor; and • The stability of key management personnel. We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the nature and extent of our testing of account balances, classes of transactions and disclosures, for example in determining sample sizes. We agreed with the Audit Committee that we would report to them misstatements identified during our audit above €40,000 (2024: €32,000) for the audit of the consolidated financial statements and €28,000 (2024: €16,000) for the parent company financial statements as well as misstatements below those amounts that, in our view, warranted reporting for qualitative reasons. For each component in the scope of the group audit, we allocated a materiality that was less than the overall group materiality. The range of overall materiality allocated across the components was between €280,000 (2024: €224,000) and €392,000 (2024: €313,600). Our approach to the audit In designing our audit approach, we determined materiality and assessed risk of material misstatement in the financial statements. In particular, we looked at areas involving significant accounting estimates and judgements by the directors, including the recognition of revenue, the impairment of goodwill and other 4 identifiable intangible assets, the recoverability of investments in subsidiaries and the capitalisation of development costs. Procedures were then performed to address the risk identified and for the most significant assessed risks of misstatement, the procedures performed are outlined below in the key audit matters section of this report. We re-assessed the risks throughout the audit process and concluded that the scope remained in line with that determined at the planning stage of the audit. An audit was performed on the financial information of the group’s material operating components which, for the year ended 31 December 2025, were located in the United Kingdom (UK) and Belgium. The audit of the group and parent company financial statements was undertaken by the group audit team based in London, with meetings being held with group management over video-link or in person, in Belgium and the UK. Specific scope procedures were performed over non-material operating components of the Group (United States of America (USA) and the United Kingdom (UK)) by the group audit team and was conducted remotely, with inventory existence procedures being undertaken in person. The component in Belgium was audited by a component auditor operating under our instruction. We communicated regularly with the component audit team during all stages of the audit and we were responsible for the scope and oversight of the audit process, which included an onsite review of the work conducted at the component auditor’s office in Belgium. This, in conjunction with additional procedures performed by the group audit team, provided sufficient appropriate audit evidence for our opinion on the group and parent company financial statements. As a result of our materiality and risk assessments, we determined which components required a full scope audit of their financial information, with consideration of their significance to the group based on their contribution to overall revenue and their risk characteristics. On this basis. we scoped in four components requiring a full scope audit of their financial information for group purposes and two components which were subjected to specified audit procedures due to specific risk characteristics and due to the presence of material classes of transactions and account balances. Key audit matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How our scope addressed this matter Revenue recognition (note 7) Under ISA (UK) 240, there is a rebuttable presumption that revenue recognition is a significant fraud risk. The Group earns revenue from contracts with customers which are required to be recognised under IFRS 15 – ‘Revenue from Contracts with Customers’. The complexity arises due to differing contractual performance obligations, depending on the revenue stream. For example: • Software licences are recognised at a point in time, when the license has been delivered to the customer and all performance obligations are complete. • Multi- year licence and distribution agreements come with licence royalties In addition to the procedures required by ISA (UK) 240, our work on this key audit matter included: • Documenting our understanding of the information system and related controls relevant to each material revenue stream; • Evaluating the appropriateness of the information system and the effectiveness of the design and implementation of the related controls; • Substantive transactional testing of income recognised in the financial statements, including deferred and accrued income balances recognised at the year- end. This included selecting a 100 101 Independent auditor’s report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 5 which are recognised upon receiving confirmations from customers. • Support and Maintenance are both recognised over the duration of the contractually agreed period. • Physical good sales are recorded when control of the item has passed on to the customer. A material error in this balance could affect the decision making of users of the financial statements. As a result, there is a risk of fraud or error in revenue recog nition due to the potential to inappropriately recognise revenue, and therefore revenue recognition is a key audit matter. sample of sales from the ledger and vouching to customer order, invoice and delivery information; • Testing a sample of sales covering pre and post year-end to source documentation to ensure they have been posted to the correct accounting period; • Verifying the recognition of revenue through review of supporting information regarding the satisfaction of performance obligations; and • Reviewing revenue contracts active during the current year and particularly around the year end to ensure revenue had been recognised in the correct period and that performance obligations had been met. Other information The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the group and parent company financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: • the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: 6 • adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or • the parent company financial statements are not in agreement with the accounting records and returns; or • certain disclosures of directors’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit. European Single Electronic Format (ESEF) Hybrid Software Group plc has prepared consolidated financial statements in the form of an electronic file in the European Single Electronic Format (ESEF), which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows and the related notes. The requirements for this format are set out in the regulatory technical standards as laid down in the EU Delegated Regulation. The Board of directors are responsible for the preparation, in accordance with the ESEF requirements in the EU Delegated Regulation, of the digital consolidated financial statements identified. We were engaged by Hybrid Software Group plc to report on whether the digital consolidated financial statements are prepared in all material respects, in compliance with the ESEF regulation under the Delegated Regulation. Our responsibility, under the terms of our engagement, is to obtain sufficient and appropriate information to conclude whether the format and the tagging of the digital consolidated financial statements complies, in all material respects, with the ESEF requirements under the Delegated Regulation. In our opinion, based on our work performed, the format and the tagging of information in the digital consolidated financial statements as per 31 December 2025, complies in all material respects, with the ESEF requirements under the EU Delegated Regulation. Responsibilities of directors As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the group and parent company financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the group and parent company financial statements, the directors are responsible for assessing the group’s and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: • We obtained an understanding of the group and parent company and the sector in which they operate to identify laws and regulations that could reasonably be expected to have a direct effect 102 103 Independent auditor’s report Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 7 on the financial statements. We obtained our understanding in this regard through discussions with management, industry research and experience of the sector. • We determined the principal laws and regulations relevant to the group and parent company in this regard to be those arising from: o The Companies Act 2006; o UK-adopted International Accounting Standards; o EU-endorsed International Financial Reporting Standards (EU-endorsed IFRSs) o United Kingdom Generally Accepted Accounting Practice (UK GAAP); o The UK Corporate Governance Code; o General Data Protection Regulation; o The Bribery Act 2010; o Serious Organised Crime and Police Act 2005; o Proceeds of Crime Act 2002; o Euronext Listing Rules; o UK tax legislation; and o Tax legislation applicable in other jurisdictions • We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the group and parent company with those laws and regulations. These procedures included, but were not limited to: o Making enquiries of management; o Reviewing Board minutes; o Reviewing legal expenditure nominal ledger accounts; and o Reviewing Regulatory News Services announcements. • We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, that the potential for management bias was identified in relation to revenue recognition, the impairment of goodwill and other intangible assets, the recoverability of investments in subsidiaries and the capitalisation of development costs. We addressed this by challenging the assumptions and judgements made by management when auditing these significant accounting estimates. Please refer to the Key audit matters section of our report for further information. • As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. • As part of the group audit, we have communicated with the component auditor the risks associated with the components of the group, including the risk of fraud as a result of management override of controls. To ensure that this has been completed, we reviewed the component auditor working papers in this area and obtained responses to our group instructions from the component auditors. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 8 A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report. Use of our report This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone, other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. Joseph Archer (Senior Statutory Auditor) 15 Westferry Circus For and on behalf of PKF Littlejohn LLP Canary Wharf Statutory Auditor London E14 4HD 1 2 M arc h 2026 104 105 106 107 Hybrid Software Group PLC | Annual Report 2025 FINANCIAL STATEMENTS The following pages contain the detailed audited financial statements for Hybrid Software Group PLC and its subsidiary companies. Consolidated statement of changes in equity Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December In thousands of euros Note 2025 2024 Continuing operations Revenue 7 54,372 51,501 Cost of sales (7,653) (8,078) Gross profit 46,719 43,423 Selling, general and administrative expenses (28,299) (26,989) Impairment of goodwill 16 - (6,280) Research and development expenses (13,816) (13,324) Other operating expenses 8 (5) (70) Other income 9 674 150 Operating profit / (loss) 5,273 (3,090) Finance income 13 532 232 Finance expenses 13 (335) (493) Net finance income / (expenses) 197 (261) Foreign currency exchange losses (1,115) (10) Profit / (Loss) before tax 4,355 (3,361) Tax (expense) / credit 18 (118) 653 Profit / (Loss) from continuing operations 4,237 (2,708) Loss on sale of discontinued operation, net of tax 35 - (120) Profit / (Loss) for the period 4,237 (2,828) Other comprehensive (loss) / income Items that may be reclassified subsequently to profit or loss: Foreign currency translation differences (1,386) 1,162 Other comprehensive (loss) / income for the year (1,386) 1,162 Total comprehensive income / (loss) attributable to equity holders 2,851 (1,666) Earnings per ordinary share Basic earnings per share (euro) 29 0.13 (0.09) Diluted earnings per share (euro) 29 0.13 (0.09) The notes on pages 112 to 150 are an integral part of these consolidated financial statements. CONSOLIDATED STATEMENT OF FINANCIAL POSITION For the year ended 31 December In thousands of euros Note 2025 2024 ASSETS Non-current assets Property, plant and equipment 14 1,235 1,324 Right-of-use assets 24 501 1,591 Other intangible assets 15 33,914 36,752 Goodwill 16 57,330 57,432 Financial assets 17 80 1,020 Deferred tax assets 18 1,359 1,307 Trade and other receivables due after more than one year 7, 20 1,039 - Contract assets due after more than one year 7 4,118 5,599 Other assets due after more than one year 11 17 Total non-current assets 99,587 105,042 Current assets Inventories 19 2,611 3,448 Current tax assets 438 370 Trade and other receivables 7, 20 7,041 6,045 Contract assets 7 4,907 4,416 Other current assets 21 386 468 Prepayments 1,795 1,725 Cash and cash equivalents 22 14,460 9,513 Total current assets 31,638 25,985 TOTAL ASSETS 131,225 131,027 EQUITY AND LIABILITIES Equity attributable to owners of the Parent Share capital 23 13,164 13,164 Share premium 23 1,979 1,979 Merger reserve 23 67,015 67,015 Treasury shares 23 (684) (193) Retained earnings 41,975 37,770 Foreign currency translation reserve (10,894) (9,508) Total equity 112,555 110,227 Non-current liabilities Deferred tax liabilities 18 1,450 1,512 Lease liabilities 24 149 1,051 Retirement benefit obligations 255 1,068 Accrued liabilities 40 36 Loans & borrowings 26 86 4,000 Other liabilities 25 669 112 Contract liabilities 7, 27 442 377 Total non-current liabilities 3,091 8,156 Current liabilities Current tax liabilities 204 66 Trade and other payables 4,711 3,882 Lease liabilities 24 566 940 Accrued liabilities 1,315 1,410 Loans & borrowings 26 3,776 2,500 Other liabilities 25 491 369 Contract liabilities 7,27 4,401 3,477 Provisions 28 115 - Total current liabilities 15,579 12,644 Total liabilities 18,670 20,800 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 131,225 131,027 The notes on pages 112 to 150 are an integral part of these consolidated financial statements. These financial statements on pages 108 to 111 were approved and authorised for issue by the Board of Directors on 12 March 2026 and were signed on its behalf by: Michael Rottenborn Director Company registered number: 10872426 108 109 Notes to the consolidated financial statements Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY In thousands of euros Note Share capital Share premium Merger reserve Treasury shares Retained earnings Foreign currency translation reserve Total equity Balance at 31 December 2023 13,164 1,979 67,015 (179) 40,638 (10,670) 111,947 Total comprehensive income for the year Net loss for the year - - - - (2,828) - (2,828) Foreign currency translation differences - - - - - 1,162 1,162 Total comprehensive loss for the year - - - - (2,828) 1,162 (1,666) Transactions with owners Share-based payment transactions 23 - - - 40 (40) - - Own shares re-purchased 23 - - - (54) - - (54) Total transactions with owners - - - (14) (40) - (54) Balance at 31 December 2024 13,164 1,979 67,015 (193) 37,770 (9,508) 110,227 Total comprehensive income for the year Net income for the year - - - - 4,237 - 4,237 Foreign currency translation differences - - - - - (1,386) (1,386) Total comprehensive income for the year - - - - 4,237 (1,386) 2,851 Transactions with owners Share-based payment transactions 23 - - - 32 (32) - - Own shares re-purchased 23 - - - (523) - - (523) Total transactions with owners - - - (491) (32) - (523) Balance at 31 December 2025 13,164 1,979 67,015 (684) 41,975 (10,894) 112,555 The notes on pages 112 to 150 are an integral part of these consolidated financial statements. CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December In thousands of euros Note 2025 2024 Cash flows from operating activities: Net profit / (loss) for the year 4,237 (2,828) Adjustments to reconcile net profit to net cash: - Impairment of goodwill 16 - 6,280 - Amortisation and impairment of intangible fixed assets 15 7,157 7,502 - Depreciation of right-of-use-assets 24 776 740 - Depreciation and impairment of property, plant & equipment 14 556 687 - (Profit) / Loss on disposal of tangible fixed assets (46) 41 - Net finance (income) / expenses 13 (197) 261 - Net foreign currency exchange losses 1,116 10 - Unrealised foreign exchange loss on intercompany loan (672) - - Tax expense / (credit) 18 362 (653) - Loss on sale of discontinued operation, net of tax 35 - 120 - Other items (54) (20) Total adjustments to net profit 13,235 14,968 Change in operating assets and liabilities: - Financial assets 17 970 (73) - Inventories 19 838 463 - Trade and other receivables 20 (2,035) (614) - Contract assets 990 (1,289) - Other current assets 21 87 (90) - Prepayments (70) 104 - Retirement benefit obligations (814) 86 - Trade and other payables 827 381 - Accrued liabilities 24 (546) - Contract liabilities 27 990 (853) Total change in operating assets and liabilities 1,807 (2,431) Cash generated from operating activities 15,042 9,709 Interest received 13 207 152 Interest paid 13 (239) (493) Taxes paid (290) (553) Net cash flow from operating activities 14,720 8,815 Cash flows from investing activities: Acquisitions, cash consideration net of cash acquired (370) - Capital expenditures on property, plant & equipment 14 (831) (529) Capital expenditures on other intangible assets 15 (1,239) - Capitalisation of development expenses 15 (3,296) (3,451) Proceeds on disposal of property, plant & equipment 70 38 Proceeds on disposal of discontinued operations 35 - 20 Net cash flow used in investing activities (5,666) (3,922) Cash flows from financing activities: Repayment against loans and borrowings 26 (2,750) (1,300) Loans obtained through acquisitions 113 - Deferred consideration paid 25 (310) (310) Deferred consideration obtained through acquisitions 966 - Movements in other liabilities (67) - Contingent consideration paid 25 - (236) Net payments on lease liabilities (991) (787) Own shares re-purchased 23 (523) (54) Net cash flow used in financing activities (3,562) (2,687) Effect of exchange rate fluctuations on cash at 1 January (545) 228 Net increase in cash 4,947 2,434 Cash and cash equivalents at 1 January 9,513 7,079 Cash and cash equivalents at 31 December 14,460 9,513 The notes on pages 112 to 150 are an integral part of these consolidated financial statements. 110 111 Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 112 113 2. BASIS OF PREPARATION (CONTINUED) 1. REPORTING ENTITY Hybrid Software Group PLC (the "Company") and its subsidiaries (together the "Group") is a leading developer of software solutions for pre- press, printing and packaging conversion. It is also a leading supplier of printhead drive electronics for industrial inkjet printing. The Company is a public limited company, registered in England and Wales, domiciled in the United Kingdom and is quoted on Euronext in Brussels. The Company's registered office address is 2030, Cambourne Business Park, Cambourne, Cambridge, CB23 6DW. 2. BASIS OF PREPARATION Statement of compliance These consolidated financial statements have been prepared in accordance with UK-adopted international accounting standards and International Financial Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union. These consolidated financial statements were authorised for issue by the Company’s Board of Directors on 12 March 2026. As defined in article 4 of the Transparency Directive (2004/109/EC), the official version of the annual financial report is the ESEF version. Basis of measurement These consolidated financial statements have been prepared on the historical cost basis. Non-current assets are stated at the lower of amortised cost and fair value less disposal costs when applicable. The methods used to measure fair value are discussed in Note 4 ‘Determination of fair values’. Functional and presentation currency The amounts included in the financial statements for each of the Group’s entities are measured using their respective functional currency, which is then translated to euro using appropriate exchange rates. The functional currency is determined for each of the Group’s entities based on the primary economic environment in which each of the Group’s entities operates and the primary currency used for transactions in those entities. The functional currency for each of the entities in the Group is shown in the table below. Company name Functional currency Hybrid Software Group PLC Euro (EUR) HYBRID Software Inc United States dollar (USD) Hybrid Software Helix Limited (formerly Global Graphics Software Limited) Pound sterling (GBP) HYBRID Software UK Limited Pound sterling (GBP) Conics BV Euro (EUR) HYBRID Software Brandz NV Euro (EUR) HYBRID Software Development NV Euro (EUR) HYBRID Software NV Euro (EUR) HYBRID Software Group SARL Euro (EUR) HYBRID Software France SAS Euro (EUR) HYRBID Software Iberia S.L.U. Euro (EUR) HYBRID Software Italy SRL Euro (EUR) HYBRID Software GmbH Euro (EUR) HYBRID Software China Co. Limited Chinese yuan (CNY) Global Graphics Kabushiki Kaisha Japanese yen (JPY) HYBRID Software Australia Pty Limited Australian dollar (AUD) Meteor Inkjet Limited Pound sterling (GBP) Xitron, LLC United States dollar (USD) These consolidated financial statements are presented in euros and all information which is presented in the following notes has been rounded to the nearest thousand, unless otherwise specified. Use of accounting estimates The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated financial statements is included in Note 5 ‘Critical accounting estimates and judgements’. Going concern The Group’s business activities, together with the factors likely to affect its future development, performance and position are set out in the strategic report. The Directors’ report further describes the financial position of the Group; its cash flows and liquidity position; the Group’s objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments; and its exposure to credit risk and liquidity risk. As a result of the multiple factors playing out at the same time, restrictive monetary policy by central banks in the Western world, a near deflationary economic situation in China, wars in Ukraine & the Middle East there is more uncertainty across the global economy. The Group has considerable financial resources, together with long-standing relationships with customers through its licence and support sales model. The Group’s forecasts and projections, taking account of potential and realistic changes in trading performance, and also including worst case, severe, yet plausible downside scenarios, continue to indicate that the Group is able to operate within the level of existing cash resources. The Directors have considered the impact of a significant reduction in sales against forecasts, which may arise if the economic conditions further worsen in the company’s main markets, being the United States, Europe & Asia. This impact has been considered against a backdrop of rising employment and operating costs due to inflation and increases in cost of living. The Directors have prepared Group cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements which indicate that, taking account of reasonably possible downsides, the Group will have sufficient funds to meet its liabilities as they fall due for that period. The Group is diversified in terms of products, customers and geographies served. Any reductions in revenue in one segment have generally been offset by increased revenue in another segment. Across the Group, there have been no contract cancellations and to the Directors’ knowledge none of the Group’s significant customers have failed. Consequently, the Directors are confident that the Group will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of these financial statements and therefore have prepared these financial statements on a going concern basis. Alternative performance measures The Strategic Report includes IFRS revenue and profit, constant exchange rate (“CER”) revenue, adjusted profit and EBITDA. See page 59 for further details. CER revenue eliminates the impact of currency movements when comparing the current year to the comparative year. The current year is restated at the comparative year’s actual exchange rates. Adjusted profit, in management’s view, reflects the underlying operating performance of the business and provides a more meaningful comparison of how the business is managed and measured from year to year by adjusting for non-recurring or uncontrollable factors which affect the IFRS reported amounts. EBITDA is also reported as an alternative measure of profit and is calculated by adding back interest, tax, depreciation and amortisation to net profit. EBITDA is a common measure used by investors and analysts to comparatively evaluate the financial performance of companies. The Board believes that evaluating the Group’s ongoing results may not be as useful if it is limited to reviewing only IFRS financial measures, particularly because management uses adjusted financial information to evaluate its ongoing operations, for internal planning and forecasting purposes and for the measurement of performance related bonuses. The Board does not suggest that investors should consider these adjusted financial results in isolation from, or as a substitute for, financial information prepared in accordance with IFRS. The Board presents EBITDA and adjusted financial results when reporting its financial results to provide investors with additional tools to evaluate the Group’s results in a manner that focuses on what the Board believes to be its underlying business operations. The Board believes that the inclusion of adjusted financial results provides consistency and comparability with past reports. Parent Company financial statements The parent Company financial statements present information about the Company as a separate entity and not about its group. The Company has elected to prepare its parent company financial statements in accordance with FRS 101. These are presented on pages 151 to 157. 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 114 115 Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 3. MATERIAL ACCOUNTING POLICIES The principal accounting policies applied in the presentation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented. In addition, the Group adopted Presentation of Financial Statements (Amendments to IAS 1) from 1 January 2025. The amendments require the classification of liabilities as current or non-current and non-current liabilities with covenants. The amendments did not result in any changes to the accounting policies or financial statement disclosures. There are no other new or amended interpretations or standards effective for the financial year commencing 1 January 2025 that have had a material impact on the Group. Basis of consolidation Subsidiaries Subsidiaries are all entities controlled by the Group. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Transactions eliminated on consolidation Inter-company balances and transactions, and any unrealised income and expenses arising from inter-company transactions, are eliminated in preparing the consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. Business combinations Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Group. On 8 August 2025, the Group acquired the shares of HYBRID Software Brandz NV (“HS Brandz”) from Congra Software SARL (“Congra”). Notwithstanding that Congra at acquisition date both controlled the Group as HS Brandz, the Board opted to apply the acquisition method under IFRS3 rather than recording the acquisition at net book value. For business combinations with acquisition dates on or after 1 January 2025, the Group has determined whether a particular set of activities and assets is a business by assessing whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set of activities and assets is not a business. This election can be applied on a transaction by transaction basis. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identified asset or group of similar identifiable assets. Foreign currency translation Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items that are measured based on historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign currency differences arising on retranslation are generally recognised in profit or loss. Translation of financial statements of foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to euro at exchange rates at the reporting date. The income and expenses of foreign operations are translated on a monthly basis to euro at average exchange rates for each month. Foreign currency differences are recognised in other comprehensive income and presented in the foreign currency translation reserve in equity. Financial instruments Non-derivative financial instruments Non-derivative financial instruments comprise trade and other receivables, other current assets, cash, trade payables, and other liabilities. Non-derivative financial instruments are recognised initially at fair value plus any directly attributable transaction costs. After initial recognition, non-derivative financial instruments are measured at amortised cost using the effective interest method, less any impairment losses. Derivative financial instruments The Group only uses derivative financial instruments (notably foreign currency forward and option contracts) to manage exposure to foreign exchange risk. In accordance with guidelines established by the board, the Group does not permit the use of derivative financial instruments for speculative purposes. Derivative financial instruments are initially recognised at fair value at the date the derivative contract is entered into and are subsequently re- measured to their fair value at each balance sheet date. The resulting gain or loss is recognised in the income statement immediately. At 31 December 2025 the Group had no derivative financial instrument contracts in place (2024: none). Property, plant and equipment Property, plant and equipment are stated at cost, net of depreciation and any provision for impairment in value. Ongoing repairs and maintenance are expensed as incurred. Depreciation is provided on all property, plant and equipment, at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected economic useful life. Depreciation is recognised within operating expenses within the consolidated income statement. The estimated useful lives for the current and comparative years of significant items of property, plant and equipment are as follows: • leasehold improvements 3 to 10 years, or the remaining lease term • computer equipment and office equipment 3 to 5 years • motor vehicles 5 years Right-of-use assets Right-of-use assets are stated at cost, net of depreciation, any provision for impairment in value and any remeasurement of the associated lease liability. Depreciation is provided on all right-of-use assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over the earlier of its expected useful life or the term of the lease. Depreciation is recognised within operating expenses within the consolidated income statement. Group as lessor The Group only acts as a lessor in the context of sub-lease arrangements. When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease as being either a finance lease or an operating lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. To classify each sub-lease, an overall assessment is made as to whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the right-of-use asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset. The group recognises lease payments received under operating leases as income on a straight-line basis over the lease term as part of selling, general and administrative expenses within the consolidated income statement. Goodwill and intangible assets Goodwill The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured as the fair value of the assets acquired, equity instruments issued and liabilities incurred or assumed at the date of exchange of control. For acquisitions before IFRS 3 (revised) became effective, costs directly attributable to the acquisition are also included. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The excess of the cost of acquisition over the fair value of the Group's share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, thus giving rise to negative goodwill (a bargain purchase), the difference is recognised directly in the income statement within other income. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units for the purposes of impairment testing. Goodwill is not amortised but is tested annually for impairment or more frequently if facts and circumstances warrant a review. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity, if any. Other intangible assets Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses. The amortisation of patents is included in cost of sales, the amortisation charge for software technology and driver electronics is included in research and development expenses and amortisation charges related to any other intangible assets acquired through business combinations are included in selling, general and administrative expenses. Trademarks, know-how, patents and patent applications Trademarks, know-how, as well as patent and patent applications are carried at historical cost (which was estimated to be their fair value on the purchase date by the Group) less accumulated amortisation. Amortisation is calculated over their useful estimated lives from respective acquisition dates, as follows: • trademarks 10 years • patents and patent applications 3 to 10 years • know-how 1 year Customer relationships Customer relationships are carried at historical cost (which was estimated to be their fair value on the acquisition date by the Group) less accumulated amortisation. Amortisation is calculated over the estimated useful lives of the respective relationships, over periods ranging from five to ten years from respective acquisition dates. 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Goodwill and intangible assets (continued) 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 116 117 Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Computer software technology Computer software technology is capitalised on the basis of the costs directly incurred to acquire and bring to use the specific software. These costs are amortised over their estimated useful lives from respective acquisition dates over periods ranging from three to twelve years. Costs associated with maintaining existing computer software technology and programmes are recognised as an expense when incurred. Driver electronics Driver electronics technology is capitalised on the basis of the costs incurred to acquire and bring to use the specific technology. These costs are amortised over their estimated useful lives from respective acquisition dates, currently a period of five years. Costs associated with maintaining the existing driver electronics are recognised as an expense when incurred. Capitalised development costs Direct costs incurred on development projects relating to the design and testing of new or improved products and technology are recognised as intangible assets when all of the following criteria are met: • it is technically feasible to complete the intangible asset so that it will be available for use; • management intends to complete the intangible asset, and use or sell it; • the Group has the ability to use or sell the intangible asset; • it can be demonstrated how the intangible asset will generate probable future economic benefits; • adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available; and • the expenditure attributable to the intangible asset during its development may be reliably measured. Capitalised development costs recognised as intangible assets are amortised from the point the asset is ready for use on a straight-line basis over its estimated useful life, over periods ranging from three (Printing Software segment) to twelve (Enterprise Software segment) years. Printing Software technology has existed for a longer period of time than Enterprise Software technology, therefore any development costs are deemed to have a shorter useful life. The amortisation charge is included in research and development expenses in the income statement. Other development expenditures that do not meet these criteria are recognised as an expense when incurred. Impairment of non-current assets At each balance sheet date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered any impairment. If any such indication exists, the recoverable amount of the asset (being the higher of fair value less costs to sell and value in use) is estimated in order to determine the extent of any impairment. Any impairment loss is recognised as an expense in the income statement in the period in which it was identified. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised through the income statement. Impairment of financial assets Financial assets and contract assets are assessed at each reporting date to determine whether there is any objective evidence that an asset is impaired. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed credit assessment, that includes forward-looking information. The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 90 days past due. A financial asset is impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between the carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. Impairment of non-financial assets The carrying amounts of the Group’s non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or a cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or group of assets ("cash-generating unit"). An impairment loss is recognised if the carrying amount of an asset or a cash-generating unit exceeds its estimated recoverable amount. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units and then, to reduce the carrying amount of the other assets in the unit on a pro rata basis. An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss had decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount, but only to the extent that the carrying amount of the asset does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, had no impairment loss been recognised. Inventories Inventories are stated at the lower of cost and net realisable value. The cost of inventories is based on the standard costing principle, and includes expenditures incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs expected to be incurred to complete the sale. Trade receivables Trade receivables are recognised initially at fair value and subsequently held at amortised cost using the effective interest rate method, less provision for impairment. Trade receivables are first assessed individually for impairment, or collectively where the receivables are not individually significant. Where there is no objective evidence of impairment for an individual receivable, it is included in a group of receivables with similar credit risk characteristics and these are collectively assessed for impairment. Movements in the provision for doubtful debts are recorded in the statement of comprehensive income within selling, general and administrative expenses. Cash Cash comprises cash in hand and deposits held at call with banks at each reporting date. Share capital Ordinary shares Ordinary shares, which are the only class of shares issued by the Company, are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares (whether they are resulting from the exercise of share options or the acquisition of a business) are recognised as a deduction from equity, net of any tax effects. Own shares re-purchased When share capital recognised in equity is re-purchased, the consideration paid, including directly attributable costs, net of any tax effects, is recognised as a deduction from equity. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity. Any resulting surplus over the purchase price is transferred to share premium and any deficit is transferred to retained earnings. Current liabilities Trade payables and accrued liabilities are recognised initially at fair value and are subsequently measured at amortised cost, using the effective interest method. Trade payables and accrued liabilities with a short duration are not discounted, as the carrying amount is a reasonable approximation of fair value. Provisions A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Estimates of dilapidation costs are calculated in accordance with the specific remediation requirements stipulated in each lease contract. At the point at which these remediation costs can be reliably estimated, a provision is recognised. Revenue recognition (continued) Software (continued) Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 118 119 Employee benefits Pension obligations Contributions to the Group’s defined contribution pension schemes and employees’ personal pension plans are charged to the income statement as employee benefit expenses when they are due. The Group has no further payment obligation once the contributions have been paid. Termination benefits Termination benefits are recognised as an expense when the Group is demonstrably committed, without realistic possibility of withdrawal, to a formal, detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the Group has made an offer of voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be measured reliably. Other short-term employee benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount to be paid under short-term cash bonus or commission plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be measured reliably. Revenue recognition Software The Group typically licenses its software to equipment manufacturers through multi-year license and distribution agreements, or direct to end users by a mix of perpetual and subscription-based licences. Multi-year license and distribution agreements generally provide for the periodic payment of licence royalties, the unit value of which has been contractually agreed at the outset of the agreement, and which is typically based upon either the volume sold by the customer or the sale value of those products into which the Group’s software has been integrated. These agreements also include specific provisions with respect to the delivery of maintenance and after-sale support services over the duration of the agreement. Such services are rendered against the payment of a fixed fee, which has been contractually agreed at the outset of the agreement and is typically charged on the anniversary date of the agreement. These agreements may also provide for the delivery of engineering services to ensure a seamless integration of the Group’s software into the customer’s products. End user licences are typically accompanied by annual support and maintenance agreements, which are usually renewed annually by customers. The annual support and maintenance agreements provide technical support and bug fixes. Fees from arrangements involving licences, after-sale customer support, and other related services such as training, are allocated to the performance obligations identified in the contract. The stand-alone selling price of each of the elements of the arrangement is typically established by the contract or the price charged when the same element is sold separately. Where there is no stand-alone selling price, a percentage estimation of the total licence value is performed to identify the stand-alone price. The Group’s performance obligations under software contracts with customers are to deliver a distribution licence, deliver a master copy of the software, at times provide licence keys to enable the use of software and to provide ongoing support and maintenance services. The Group also provides engineering and consulting services under some contracts to enhance functionality or assist with integration. Revenues from software licences or non-refundable minimum royalty agreements are recognised upon satisfaction of all the following criteria: • signing of the license agreement • no additional significant production, modification or customisation of the software is required • performance obligations are complete • the fee is fixed or determinable Fees from perpetual licences relating to software are recognised in the period in which the delivery to the end-customer takes place and based on customer-usage reports, at which point there is no further performance obligation of the Group. Revenue from time-limited licences to use the software is recognised rateably over the period of the licence only if there is an ongoing performance obligation for that licence on the Group during the licence period. If there are no ongoing performance obligations, the licence revenue is recognised when the Group's performance obligation to deliver the software has been fulfilled. All licence fees are non-refundable. Software support and maintenance revenue is recognised over the duration of the support and maintenance period. Engineering and consultancy services revenue is recognised upon satisfaction of the relevant performance obligation where the customer substantially obtains the benefit of the engineering or consultancy work and usually makes a payment for those services rendered. Amounts received in advance of the related services being performed are included in deferred revenue and recognised in revenue based on hours delivered only when the services are provided. Fees are non-refundable and are generally on payment terms of 30 days from date of invoice. For long-term engineering services, payments will be due on the achievement of the performance obligation. License agreements may have extended payment terms and support and maintenance is payable in advance of the period of coverage. Physical goods The Group’s performance obligations with respect to physical goods (principally the Printhead solutions segment) is to deliver a finished product to a customer. Control of the goods transfers to the customer at the point of despatch and revenue is recognised at that point in time. Payment for physical goods is generally received in advance of despatch and is non-refundable. If any item is found to be faulty it will either be returned by the customer for repair or replaced with a new item. Contract assets and contract liabilities Contract assets and liabilities will arise from scheduled payments specified in the contracts when measured against the recognition of revenue under the respective performance obligations. Cost of sales Cost of sales includes the costs of goods sold and services rendered. This includes finished goods, product packaging, royalties paid to third parties, excess and obsolete inventory, amortisation of patents acquired through acquisition, amortisation of purchased software, and employee costs associated with the direct manufacturing and shipping of the Group’s products or rendering of services provided. Tax Tax expense comprises current and deferred tax. Current tax is recognised in profit or loss except to the extent that it relates to items recognised directly in equity or in other comprehensive income. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous tax years. Deferred tax is recognised using the balance sheet liability method on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for taxable temporary differences arising on the initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, or differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. Deferred tax is measured at the tax rates that are expected to apply to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, they relate to income taxes levied by the same tax authority on the same taxable entity, and they have similar maturities. Earnings per share The Group presents basic and diluted earnings per share ("EPS") data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the reporting period. Diluted EPS is determined by adjusting the weighted average number of ordinary shares outstanding for the effects of all potential dilutive ordinary shares. Government grants Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. All such grants relate to expense items. The grant is recognised as other income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. The grant income is disclosed in Other Income in the Consolidated Statement of Comprehensive Income. Operating segments Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group’s chief operating decision-maker has been identified as the Group’s Chief Executive Officer. Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) Estimates (continued) Hybrid Software Group PLC | Annual Report 2025 120 121 Effect of interpretations and amendments to existing and new standards For the purposes of the preparation of these consolidated financial statements, the Group has applied all standards and interpretations that are effective for accounting periods beginning on or after 1 January 2025. New standards which were not adopted by the Group in 2025 A number of new standards and amendments to standards are effective for annual periods beginning on or after 1 January 2026 and earlier application is permitted; however, the Group has not early adopted the following new or amended standards in preparing these consolidated financial statements for the year ended 31 December 2025 and they are not expected to have a significant impact on the Group’s consolidated financial statements: • Lack of Exchangeability – Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates • IFRS S1 General • IFRS S2 Climate-related financial disclosures 4. DETERMINATION OF FAIR VALUES Several of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability. Other intangible assets The fair value of other intangible assets which were acquired in business combinations is based on either the discounted cash flows expected to be derived from the use of these intangible assets, or the average of the discounted cash flows and the total replacement cost of these intangible assets. Non-derivative financial instruments The carrying values less impairment provision of trade and other receivables, current tax assets, other current assets, cash, trade payables, current tax liabilities, accrued liabilities, are assumed to approximate their fair values at each of the balance sheet dates presented herein. Share-based payments The fair value of share options which are granted are valued by using a Black-Scholes valuation model. Measurement inputs include the share price on the measurement date, the exercise price of the share option, the expected volatility, the weighted average expected life of the option, the expected absence of dividends, and a risk-free interest rate (based on government bonds). Service and non-market performance conditions attached to the transactions are not taken into account in determining fair value of the options. 5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of financial information in conformity with IFRS requires the Directors to make critical accounting estimates and judgements that affect the application of policies and reported amounts of assets and liabilities, income and expenses. An assessment of the impact of these estimates and judgements on the financial statements is set out below. Estimates and judgements are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results could differ from these estimates and any subsequent changes are accounted for with an effect on income at the time such updated information is available. Estimates Identification and valuation of separately identifiable intangibles related to acquisitions (see note 15) Where a business combination is considered significant, the Group commissions and relies upon independent valuation reports to identify and value the intangible assets related to that acquisition. For less significant business combinations, internal estimates to calculate a discount rate are determined by the Directors to apply a consistent approach with previous acquisitions. In 2025 the Group acquired 100% of the share capital of two Belgian limited liability companies, Hybrid Software Brandz NV in August and Conics BV in September. In neither case a third party has been engaged to perform an independent valuation report to identify and value the intangible assets of the acquired company. Assessing whether goodwill and acquisition-related intangibles have been impaired (see note 15 and 16) The Group tests annually whether the goodwill has been impaired and assesses acquisition-related intangible assets for indicators of impairment by reference to expected future generation of cash from the relevant intangible assets. In estimating the cash flow, the Directors make estimates, based on forecasts, about the amount of future profits from the relevant products that will be generated and the timing of when these will be realised. See Note 16 ‘Goodwill’ for further details. Deferred tax recognition (see note 18) Deferred tax assets are reviewed at each reporting date and are recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. The Directors make estimates about future sales and expenses, and the timing of their realisation, to derive an estimate of the future profits. The Directors have recognised an amount that they expect to recover in the foreseeable future of €2.73 million (2024: €2.90 million) and if there was a reduction in this period by 2 years the impact would be to reduce the asset by €0.7 million (2024: €1.20 million). See Note 18 ‘Tax’ for further details. Provisions for obsolete inventory (see note 19) Inventory items are reviewed at each reporting date for possible obsolescence. Estimates are made in respect of the future demand and net realisable value of items that are deemed to be slow moving. The estimates of demand are based on a variety of factors, including the number of customers for that have purchased that item and historical transactions. As at 31 December the total gross inventory balance is €3,133,000 (2024: €3,818,000) and the provision against slow moving and obsolete inventory is €522,000 (2024: €370,000). Judgements Assessing whether development costs meet the criteria for capitalisation (see note 15) The point at which development costs meet the criteria for capitalisation is critically dependent on management’s judgement of the point at which technical feasibility is demonstrable, that the asset will probably generate future economic benefit, the intention to complete the asset and that the expenditure can be reliably measured. Furthermore, the useful economic lives of capitalised development costs are based on management’s knowledge of the life cycle of the Group’s products and technology. The carrying value of development assets also depends on management’s ability to demonstrate the future economic benefits they will deliver. This judgement requires assumptions about factors outside the business’s control such as medium-term economic conditions, technological developments, and market changes. The Directors have made a judgement that €3,296,000 (2024: €3,451,000) has been capitalised as eligible, qualifying expenditure for the purposes of IAS 38. There is judgement in determining whether development activity constitutes a substantial enhancement to the underlying assets, and in quantifying the time spent on these substantial enhancements. The Group utilise a timesheet tracking system to monitor the nature of development being undertaken and the time spent on this activity. Allocation of value to performance obligations in contracts with customers (see note 7) The Group enters into contracts with customers, some of which include multiple performance obligations. The allocation of the transaction price to the performance obligations is subject to management’s judgement of the performance obligations that are both explicit and implied in the contract and the subsequent stand-alone selling price of each of those performance obligations. 6. OPERATING SEGMENTS Identification of reportable segments Management has determined the operating segments based on the reports reviewed by the Group’s Chief Executive Officer (“CEO”) that are used for deciding how to allocate resources and also in assessing both operating and financial performance of each segment. The Group’s CEO is considered as the Group’s chief operating decision maker (“CODM”). The Group’s segments are: • Enterprise Software, for enterprise workflow software used primarily for the production of labels & packaging; • Printhead Solutions, for electronics and software developed for industrial inkjet printing; • Printing Software, for digital printing and colour management software; and • Group, for group related expenses that are not allocated to another segment. Measurement of the operating segments’ profit is assessed against revenue forecasts and expense budgets, excluding non-operating IFRS items such as the amortisation of intangible assets acquired through acquisition. The following tables provide information on revenue, operating profit, interest, depreciation and amortisation and tax as reported to the CODM for each of the Group’s operating segments for the years ended 31 December 2024 and 31 December 2025. The Group has disclosed these amounts for each reportable segment because they are regularly provided to the CODM or are required to be disclosed by IFRS 8. Assets and liabilities by segment are not regularly reported to the CODM, hence are not disclosed within this note. Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 6. OPERATING SEGMENTS (CONTINUED) Identification of reportable segments (continued) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 122 123 Inter-segment revenues are included in cost of sales for the reciprocal segment and are eliminated on consolidation. Unallocated amounts relate to expenses incurred by the Group’s parent company (HYBRID Software Group PLC) and exchange gains and losses that are not attributable to a particular operating segment. Segment EBITDA (a non-IFRS reporting measure) is calculated by adding back interest, depreciation, amortisation and tax to segment operating profit/(loss) after tax. The operating segments are unchanged from the previous year. Year ended 31 December 2025: Printing Printhead Enterprise In thousands of euros Software Solutions Software Group Total Revenue from external customers 14,318 12,173 27,881 - 54,372 Inter-segment revenue 445 12 336 - 793 Segment revenue 14,763 12,185 28,217 - 55,165 Segment operating profit / (loss) after tax 1,549 1,763 4,998 (182) 8,128 Included in the operating profit / (loss) after tax are: Interest income 81 53 308 90 532 Interest expense (42) (18) (196) (79) (335) Depreciation and amortisation (2,357) (786) (1,047) - (4,190) Tax credit / (charge) 144 14 (686) - (528) Segment EBITDA 3,723 2,500 6,619 (193) 12,649 Year ended 31 December 2024: Printing Printhead Enterprise In thousands of euros Software Solutions Software Group Total Revenue from external customers 16,666 11,593 23,242 - 51,501 Inter-segment revenue 418 - 381 - 799 Segment revenue 17,084 11,593 23,623 - 52,300 Segment operating profit / (loss) after tax 4,336 1,176 3,441 (1,446) 7,507 Included in the operating profit / (loss) after tax are: Interest income 114 53 37 28 232 Interest expense (302) (25) (101) (65) (493) Depreciation and amortisation (2,572) (798) (990) - (4,360) Tax credit / (charge) 282 - (143) - 139 Segment EBITDA 6,814 1,946 4,638 (1,409) 11,989 Reconciliation of reportable segments’ operating profit after tax to consolidated profit after tax: In thousands of euros 2025 2024 Segment total operating profit after tax 8,128 7,507 Impairment of goodwill - (6,280) Amortisation of acquired intangible assets (4,301) (4,569) Tax effect of above-mentioned items 410 514 Consolidated profit / (loss) after tax 4,237 (2,828) 7. REVENUE Printing Software segment The segment licenses its software directly to end users as a standalone software licence and directly to equipment manufacturers through multi-year license and distribution agreements, some of which provide for the periodic payment of license royalties, the unit value of which has been contractually agreed at the outset of the agreement, and which is typically based upon either the volume sold by the customer or the sale value of those products into which the Group’s software has been integrated. These multi-year agreements also include specific provisions with respect to the delivery of maintenance and after-sale support services over the duration of the agreement. Such services are rendered against the payment of a fixed fee, which has been contractually agreed at the outset of the agreement and is typically charged on the anniversary date of the agreement. These agreements may also provide for the delivery of engineering services to ensure a seamless integration of the Group’s software into the customer’s products. Printhead Solutions segment Driver electronics and accompanying software are initially sold as a development kit to a new customer. Once the customer has completed their design process and their product is put into production, they will typically issue a purchase order for a quantity of products and will draw- down from that order as they require the inventory. Enterprise Software segment Enterprise workflow software is licensed primarily to end users by way of a perpetual software licence. Accompanying training and implementation services are often sold with the licences and customers increasingly purchase ongoing after-sale support services. Training and implementation services are rendered against the payment of a fixed fee, which has been contractually agreed in advance. On-going support and maintenance agreements are annual agreements that renew automatically unless cancelled by the customer within the terms of the cancellation provisions. An analysis of external revenue by revenue type, primary geographical market and timing of recognition is shown below. The table also provides a reconciliation of disaggregated revenue with the Group’s reportable segments. Printhead Enterprise Printing Software Solutions Software Total In thousands of euros 2025 2024 2025 2024 2025 2024 2025 2024 Revenue type Licence royalties 10,934 13,349 888 899 11,956 9,412 23,778 23,660 Maintenance and after-sale support 1,990 1,945 113 61 10,503 9,237 12,606 11,243 Services 469 453 509 276 5,198 4,479 6,176 5,208 Printer hardware and consumables 794 893 127 126 27 51 948 1,070 Driver electronics - - 10,497 10,204 - - 10,497 10,204 Other items 131 26 39 27 197 63 367 116 Total revenue 14,318 16,666 12,173 11,593 27,881 23,242 54,372 51,501 Primary geographical markets United Kingdom 247 330 774 304 1,974 1,483 2,995 2,117 Europe, excluding United Kingdom 3,526 2,268 3,434 2,408 14,769 11,765 21,729 16,441 North & South America 6,709 5,671 2,399 2,583 8,879 8,550 17,987 16,804 Asia 3,836 8,397 5,566 6,298 2,259 1,444 11,661 16,139 Total revenue 14,318 16,666 12,173 11,593 27,881 23,242 54,372 51,501 Timing of revenue recognition Recognised at a point in time 12,320 14,720 12,060 11,532 14,077 11,801 38,457 38,053 Recognised over time 1,998 1,946 113 61 13,804 11,441 15,915 13,448 Total revenue 14,318 16,666 12,173 11,593 27,881 23,242 54,372 51,501 Revenue recognised over time is for performance obligations that are performed over time and include maintenance and after-sale support, some services and some licence royalties that are not perpetual licences. All other revenue is recognised as a point in time. Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 7. REVENUE (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 124 125 For continuing operations, the ten largest customers represented 25.3% (2024: 32.3%) of the Group’s revenue, the five largest customers represented 17.9% (2024: 22.0%) of the Group’s revenue and the single largest customer represented 4.2% (2024: 6.5%) of the Group’s revenue. There was no customer (2024: nil) during the year that represented 10% or more of total revenue. Within the North & South America geographical market, €18.70 million of revenue was generated in the United States of America (2024: €15.38 million). The following table shows revenue expected to be recognised in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as at 31 December 2025. In thousands of euros next 12 months 12-24 months after 24 months Total After-sale support 2,526 267 173 2,966 Products and services 1,875 2 0 1,877 Total 4,401 269 173 4,843 The Group applies the practical expedient in paragraph 63 of IFRS 15 and does not adjust the promised amount of consideration for the effects of a significant financing component for contracts where payments are due within one year. Contract balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. In thousands of euros 2025 2024 Trade receivables (see note 20) 8,080 6,045 Contract assets 9,025 10,015 Contract liabilities (see note 27) (4,843) (3,854) Under some licensing arrangements, the Group recognises revenue at the commencement of the contract and payments become due during the term of the agreement. The movement in the Group’s provision for impairment of trade receivables and accrued revenue was a decrease of €77,000 (2024: a decrease of €137,000). Revenue recognised in the year that was included in the contract liability balance at the beginning of the year was €1.26 million (2024: €1.60 million). 8. OTHER OPERATING EXPENSES Other operating expenses incurred during the year were: In thousands of euros 2025 2024 Loss on disposal of tangible fixed assets 1 70 Other operating expenses 4 - Total other operating expenses 5 70 9. OTHER INCOME In thousands of euros 2025 2024 Gain on disposal of tangible fixed assets 16 28 Government grants 335 23 Other income 323 99 Total other income 674 150 10. EXPENSES BY NATURE In thousands of euros 2025 2024 Employee benefit expense 28,093 26,426 Depreciation of property, plant & equipment (see note 14) 556 687 Depreciation of right-of-use assets (see note 24) 776 740 Impairment of goodwill (see note 16) - 6,280 Capitalisation of R&D expenses (see note 15) (3,296) (3,451) Amortisation of intangible assets (see note 15) 7,148 7,492 Auditor’s remuneration 342 387 Other operating expenses, net of other operating income 8,496 8,032 Total operating expenses, net of other operating income 42,115 46,593 11. REMUNERATION OF DIRECTORS The aggregate amount of remuneration (all salary, fees and bonuses, sums paid by way of expense allowance and money value of other non- cash benefits) paid or receivable by the five Directors for the year was €1,460,000 (2024: €1,296,000). The aggregate value of gains made by Directors during the year on the exercise of share options was €nil (2024: €nil). The Group only operates defined contribution pension schemes for the Directors. During the year, for two Directors (2024: two), €10,000 (2024: €11,000) of pension contributions were paid. Further information is available in the Directors’ remuneration report on pages 89 to 96. 12. EMPLOYEE INFORMATION The average number of people, including executive Directors, employed by the Group during the year was: 2025 2024 By activity Research and development 88 93 Sales, maintenance and support 157 142 General and administrative 40 36 Total average number of people employed 285 271 Employee benefit expenses were made up of: In thousands of euros 2025 2024 Wages and salaries 25,020 23,606 Social security contributions 2,983 2,758 Medical insurance contributions 399 423 Pension contributions to defined contribution plans 834 771 Other employee related expenses 785 777 Total employee benefit expenses 30,021 28,335 Of the total employee benefit expenses, €1,928,000 (2024: €1,909,000) was recognised in cost of sales and €28,093,000 (2024: €26,426,000) was recognised in operating expenses within Selling, general and administrative expenses and Research and development expenses. Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 126 127 13. FINANCE INCOME AND FINANCE EXPENSES In thousands of euros 2025 2024 Interest income 183 127 Finance income on net investment in leases 24 25 Total interest income 207 152 Other financial income 325 80 Total finance income 532 232 Interest expense (5) (1) Interest expense on loan from related undertaking (see note 32) (141) (207) Interest on lease liabilities (see note 24) (93) (120) Remeasurement of deferred consideration on ColorLogic GmbH acquisition (87) (65) Other financial charges (9) (100) Total finance expenses (335) (493) Net finance income / (expenses) 197 (261) 14. PROPERTY, PLANT AND EQUIPMENT Leasehold Computer Office In thousands of euros improvements equipment equipment Motor vehicles Total Cost At 31 December 2023 1,040 3,041 790 1,038 5,909 Additions - 222 1 306 529 Transfers - 17 (17) - - Disposals (19) (795) (50) (86) (950) Effect of movement in exchange rates 42 146 25 9 222 At 31 December 2024 1,063 2,631 749 1,267 5,710 Additions - 499 13 122 634 Additions from acquisitions (see note 36) - 39 17 280 336 Transfers 5 192 (197) - - Disposals - (48) (15) (45) (108) Effect of movement in exchange rates (48) (471) (21) (15) (555) At 31 December 2025 1,020 2,842 546 1,609 6,017 Depreciation At 31 December 2023 905 2,647 549 261 4,362 Charge for the year 52 331 65 239 687 Transfers - 7 (7) - - Disposals (19) (786) (50) (16) (871) Effect of movement in exchange rates 41 141 21 5 208 At 31 December 2024 979 2,340 578 489 4,386 Charge for the year 26 243 27 260 556 Additions from acquisitions (see note 36) - 27 8 104 139 Transfers 4 156 (160) - - Disposals - (43) (15) (25) (83) Effect of movement in exchange rates (47) (129) (21) (19) (216) At 31 December 2025 962 2,594 417 809 4,782 Net book value At 31 December 2024 84 291 171 778 1,324 At 31 December 2025 58 248 129 800 1,235 15. OTHER INTANGIBLE ASSETS Customer Software relation- Trade- Driver In thousands of euros technology ships Patents marks Know-how electronics Total Cost At 31 December 2023 91,018 21,038 2,789 598 1,401 4,746 121,590 Additions – internally developed 2,820 - - - - 631 3,451 Effect of movement in exchange rates 2,361 663 128 28 42 233 3,455 At 31 December 2024 96,199 21,701 2,917 626 1,443 5,610 128,496 Additions – internally developed 2,527 - - - - 769 3,296 Additions from acquisitions (see note 36) 397 362 - - 480 - 1,239 Disposals (20,823) (14,667) (5) (626) (289) - (36,410) Effect of movement in exchange rates (1,885) (31) (142) - (55) (289) (2,402) At 31 December 2025 76,415 7,365 2,770 - 1,579 6,090 94,219 At 31 December 2023 55,831 16,666 2,677 598 1,401 3,810 80,983 Charge for the year 6,091 889 11 - - 511 7,502 Effect of movement in exchange rates 2,218 661 124 28 42 186 3,259 At 31 December 2024 64,140 18,216 2,812 626 1,443 4,507 91,744 Charge for the year 5,561 852 10 - 138 596 7,157 Disposals (20,823) (14,667) (5) (626) (289) - (36,410) Effect of movement in exchange rates (1,732) (30) (138) - (55) (231) (2,186) At 31 December 2025 47,146 4,371 2,679 - 1,237 4,872 60,305 Net book value At 31 December 2024 32,059 3,485 105 - - 1,103 36,752 At 31 December 2025 29,269 2,994 91 - 342 1,218 33,914 The amortisation of patents is included in cost of sales, the amortisation charge for software technology and driver electronics is included in research and development expenses, and amortisation charges related to any other intangible assets acquired through business combinations are included in selling, general and administrative expenses. The amortisation charge is recognised in the following line items in the consolidated statement of comprehensive income: In thousands of euros 2025 2024 Cost of sales 10 10 Selling, general and administrative expenses 991 889 Research and development expenses 6,157 6,603 Total amortisation charge 7,158 7,502 Intangible assets that are subject to amortisation are reviewed annually for indicators of impairment or whenever events or changes in accounting estimates indicate that the carrying amount may not be recoverable. If an indicator of impairment is identified, a full impairment review is performed with the calculations being based on the discounted cash flows over the remaining period of amortisation of the capitalised development expense and use the same discount rate and exchange rates that were used for the impairment review of Goodwill (see Note 16 ‘Goodwill’). These intangible assets are also allocated to a CGU containing goodwill and are tested annually for impairment as part of the goodwill impairment review (see Note 16 ‘Goodwill’). Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 15. OTHER INTANGIBLE ASSETS (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 16. GOODWILL (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 128 129 There was no significant change during the year to the indicators that were used at 31 December 2024 to identify the requirement to impair any of these intangible assets. It was concluded that no impairment was required hence the Directors’ have assessed that full recoverability is expected for all other intangible assets for the year ended 31 December 2025 (2024: €nil). For individual intangible assets material to the financial statements, the following table shows the remaining amortisation periods and the carrying amounts: In thousands of euros Remaining amortisation period 2025 2024 Artflow 4.6 years 364 - Cloudflow 7 to 11.5 years 13,968 15,243 ColorLogic 0.3 to 4.8 years 1,830 2,148 EDL 0.3 to 2.7 years 219 196 Harlequin RIP 0.2 to 2.8 years 1,196 1,654 iC3D 6.25 to 9.5 years 1,232 1,258 Other software 0 to 4 years 65 86 Packz 7 to 11.5 years 9,883 10,877 Xitron 0.2 to 2.8 years 512 597 Total software technology 29,269 32,059 Customer relationships 1.5 to 6.3 years 2,994 3,485 Patents 8.9 years 91 105 Know-how 0.9 year 342 - Driver electronics 0.2 to 4.8 years 1,218 1,103 16. GOODWILL Cash generating units [‘CGU’] The cash generating units can be described as follows: Hybrid Software Helix (formerly GGS) CGU [‘HLX’], part of Printing Software segment Provides award-winning digital front end, core SDKs and technologies to Print OEMs and Independent Software Vendors. Meteor Inkjet CGU [‘MET’] ], part of Printhead Solutions segment Leading independent supplier of industrial inkjet electronics, software, tools and services to industrial inkjet OEM’s. Xitron CGU [‘XIT’] ], part of Printing Software segment Xitron provides Harlequin based RIP’s to drive almost every output device in the market. Hybrid Software Labels & Packaging [‘L&P’] ], part of Enterprise Software segment Provides leading native PDF prepress editing software and workflow software to labels & packaging OEM’s, premedia service agencies and labels and packaging converters. Hybrid Software Brandz CGU [‘Brandz’] ], part of Enterprise Software segment Provides artwork management software and 3D rendering software solutions to brand owners. This CGU has been formed in 2024 as a consequence of setting up dedicated business unit within Hybrid Software oriented at brand owners. ColorLogic CGU [‘Color’] ], part of Printing Software segment Provides color measurement, color profiling and color management solutions to Print OEMs and Independent Software Vendors. Conics CGU [‘Conics’] ], part of Enterprise Software segment Provides software consultancy services focusing on graphic processes. Carrying amounts of goodwill The carrying amount of goodwill per CGU is summarised below: In thousands of euros HLX MET XIT L&P Brandz Color Conics Total Cost At 31 December 2023 12,589 2,238 1,793 51,110 - 1,202 - 68,932 Transfers - - - (1,578) 1,578 - - - Effect of movement in 702 103 109 - - - - 914 exchange rates At 31 December 2024 13,291 2,341 1,902 49,532 1,578 1,202 - 69,846 Additions from acquisitions (see - - - - - - 581 581 note 36) Effect of movement in (655) (114) (215) - - - - (984) exchange rates At 31 December 2025 12,636 2,227 1,687 49,532 1,578 1,202 581 69,443 Amortisation or impairment At 31 December 2023 5,805 - - - - - - 5,805 Impairment - - - 4,750 910 620 - 6,280 Effect of movement in 329 - - - - - - 329 exchange rates At 31 December 2024 6,134 - - 4,750 910 620 - 12,414 Effect of movement in (301) - - - - - - (301) exchange rates At 31 December 2025 5,833 - - 4,750 910 620 - 12,113 Net book value At 31 December 2024 7,157 2,341 1,902 44,782 668 582 - 57,432 At 31 December 2025 6,803 2,227 1,687 44,782 668 582 581 57,330 Weighted cost of capital The applied weighted cost of capital (“WACC”) 2025 and 2024 are: In thousands of euros HLX MET XIT L&P Brandz Color Conics WACC 2024 pre tax 17.82% 17.93% 17.18% 10.30% 10.30% 17.74% - WACC 2025 pre tax 17.63% 17.56% 17.29% 10.86% 10.86% 18.16% 16.92% In general, it is noted that the WACC has been on an downward trend, given that interest rates have decreased over the past year and this has a direct impact on risk premiums. The L&P and Brandz CGU’s enjoy a significantly lower discount rate than the other group CGU’s due to the following elements: (I) an optimized capital structure, and (II) a lower effective tax rate due to a preferential tax regime obtained in 2023 by the intellectual property owner of the CGU: Hybrid Software Development NV. Impairment testing The Group is required to test annually whether goodwill and other intangible assets with indefinite useful lives have suffered any impairment during the year in accordance with the policy set out in Note 3 ‘Material accounting policies’. The recoverable amounts of the CGUs are assessed using a value-in-use model. The value-in-use is calculated using a discounted cash flow approach, discounted with a pretax discount rate applied to the projected pre-tax cash flows and terminal value. The current exercise is executed in the period December 2025 – January 2025. The plan was built, starting from the approved budget 2025, and extended with a business plan for another 4 years per CGU specific growth expectations. Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 16. GOODWILL (CONTINUED) Impairment testing (continued) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 16. GOODWILL (CONTINUED) Meteor Inkjet CGU (continued) Hybrid Software Group PLC | Annual Report 2025 130 131 The recoverable amount of the CGUs has been determined using an estimate of their value in use as at 31 December 2025. These calculations employed cash flow projections based on financial forecasts approved by management and the company directors covering a five-year period ending 31 December 2030 and then into perpetuity using a terminal growth rate. The financial forecasts are most sensitive to changes in the customer base and associated revenues and to changes in staff costs. Revenues were forecasted based on historical trends and anticipated growth. Staffing levels were reviewed against revenue projections and an average increase in staff costs was applied to account for future potential pay increases that could be awarded to employees. Projected cash flows were converted into euros based on the rates used for preparing the Group’s budget for the year ending 31 December 2026. The exchange rates were determined with reference to market forecasts and were 1.1764 euros for 1 pound sterling, 0.9091 US dollars for 1 euro, 7.7 Chinese renminbi for 1 euro and 160 Japanese yen for 1 euro. Management considers that the use of a five-year forecast and then into perpetuity is justified because the core of the products and technology that make up the CGUs have been generating revenue for between 10 and 25 years. The Group’s technology has evolved to meet the changing requirements of the industries in which it operates, and it continues to do so. Combining acquisitions with the continual shift to digital printing and manufacturers looking to differentiate their products, new opportunities continue to be created for the Group and its products. Hybrid Software Helix CGU Key assumptions The following key assumptions have been adopted in the calculations: • The pre-tax discount rate used was 17.63% (2024: 17.82%); • Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 5.12% (2024: 8.2%); • Gross margin was decreased to 94% over the forecasting period compared to recent actual gross margins (2024: 95%), mainly due to an increase in intercompany sourcing of software components; • The staff costs growth rates used in the estimation process are consistent with the approved budget for 2025, compound annual growth rate for the next 4 years is projected at 6.40% (2024: 7.08%); and • The terminal growth rate used was 2% (2024: 2%). Results The impairment test indicates headroom of €3,833,000. Sensitivity The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable amount to be equal to the carrying amount. The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment. Change required for carrying amount to equal recoverable 2025 2024 Revenue growth rate (419bps) (124bps) Discount rate 641bps 642bps Meteor Inkjet CGU Key assumptions The following key assumptions have been adopted in the calculations: • The pre-tax discount rate used was 17.56% (2024: 17.93%); • Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 7.01% (2024: 8.26%); • Gross margin was increased to 62% compared to recent actual gross margins of 61.61% (2024: 58%); • The staff costs growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 8.76% (2024: 8.97%); and • The terminal growth rate used was 2% (2024: 2%). Results The impairment test indicates headroom of €9,608,000. Sensitivity The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment. Xitron CGU Key assumptions The following key assumptions have been adopted in the calculations: • The pre-tax discount rate used was 17.29% (2024: 17.18%); • Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 5.21% (2024: 3%); • Gross margin was decreased to 66.60% compared to recent actual gross margins of 67.04% (2024: 65%); • The staff costs growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 2.72% (2024: 3.34%); and • The terminal growth rate used was 2% (2024: 2%). Results The impairment test indicates headroom of €164,000. Sensitivity The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable amount to be equal to the carrying amount. The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment. Change required for carrying amount to equal recoverable 2025 2024 Revenue growth rate (82bps) (195bps) Discount rate 87bps 637bps) Hybrid Software Labels & Packaging CGU Key assumptions The following key assumptions have been adopted in the calculations: • The pre-tax discount rate used was 10.86% (2024: 10.30%). • Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 7.76% (2024: 9.26%); • Gross margin was reduced to 96.06% compared to recent actual gross margins (2024: 96.6%); • The staff costs growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 6.54% (2024: 7.32%); and • The terminal growth rate used was 2.25% (2024: 2.25%). HYBRID Software enjoys significant competitive advantages in the markets it is active providing for above average pricing power hence the ability to grow its income more than the long term inflation rates of the countries in which it is active. Results The impairment test indicates headroom of €18,529,000. Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 16. GOODWILL (CONTINUED) Hybrid Software Labels & Packaging CGU (continued) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 16. GOODWILL (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 132 133 Sensitivity The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable amount to be equal to the carrying amount. The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment. Change required for carrying amount to equal recoverable 2025 2024 Revenue growth rate (211bps) N/A Discount rate 205bps N/A () Based on the impairment test conducted in 2024, the recoverable amount was considered to be lower than the carrying value, hence an impairment charge has been taken. Hybrid Software Brandz CGU Key assumptions The following key assumptions have been adopted in the calculations: • The pre-tax discount rate used was 10.86% (2024: 10.30%); • Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 16.09% (2024: 11.10%); • Gross margin was reduced over forecasting period from 95.44% to 90.35%, this mainly due to increased hosting cost in function of the forecasted growth in installed base (2024: 100%); • The staff costs growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 7.81% (2024: 10.03%); and • The terminal growth rate used was 2% (2024: 2%) . Results The impairment test indicates headroom of €934,000. Sensitivity The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable amount to be equal to the carrying amount. The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment. Change required for carrying amount to equal recoverable 2025 2024 Revenue growth rate (179bps) N/A Discount rate 245bps N/A () Based on the impairment test conducted in 2024, the recoverable amount was considered to be lower than the carrying value, hence an impairment charge has been taken. ColorLogic CGU Key assumptions The following key assumptions have been adopted in the calculations: • The pre-tax discount rate used was 18.16% (2024: 17.74%); • Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 9.97% (2024: 10.77%); • Gross margin was kept stable at recent actual gross margins of 99% (2024: 99%); • The staff costs growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 9.75% (2024: 9.81%); and • The terminal growth rate used was 2% (2024: 2%). Results The impairment test indicates headroom of €937,000. Sensitivity The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable amount to be equal to the carrying amount. The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment. Change required for carrying amount to equal recoverable 2025 2024 Revenue growth rate (356bps) N/A Discount rate 654bps N/A () Based on the impairment test conducted in 2024, the recoverable amount was considered to be lower than the carrying value, hence an impairment charge has been taken. Conics CGU Key assumptions The following key assumptions have been adopted in the calculations: • The pre-tax discount rate used was 16.92% • Revenue growth rates used in the estimation process are consistent with the approved budget for 2026, compound annual growth rate for the next 4 years is projected at 9.97%; • Gross margin was kept stable at recent actual gross margins of 97%; • The staff costs growth rates used in the estimation process are consistent with the approved budget for 2025, compound annual growth rate for the next 4 years is projected at 7.57%; and • The terminal growth rate used was 2%. Results The impairment test indicates headroom of €375,000. Sensitivity The Directors have identified that a reasonably possible change in key assumptions could cause the carrying amount to match the recoverable amount. The following table shows the amount by which these assumptions would need to change individually for the estimated recoverable amount to be equal to the carrying amount. The Directors believe there were no reasonably possible changes in the other key assumptions that could cause impairment. Change required for carrying amount to equal recoverable 2025 2024 Revenue growth rate (276bps) N/A Discount rate 357bps N/A () The Conics CGU has been acquired in September 2025. Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 18. TAX (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 134 135 17. FINANCIAL ASSETS Financial assets measured at amortised cost. In thousands of euros 2025 2024 Rent and other deposits 12 30 Financial assets not classified as cash or cash equivalent - 900 Non-current finance lease receivables (see note 24) 68 90 Total financial assets 80 1,020 18. TAX Corporation tax Analysis of the tax (expense) / credit in the year: In thousands of euros 2025 2024 Current tax Current year charge (381) (152) Credit related to previous periods 19 237 Total current tax (362) 85 Deferred tax Arising from amortisation of acquired intangibles 389 486 Arising from the capitalisation and amortisation of development expenses 33 66 Recognition of previously unrecognised tax losses (178) 16 Total deferred tax 244 568 Total tax (expense) / credit (118) 653 The tax (expense) / credit for the year differs from that calculated by applying the standard rate of corporation tax of the Company to profit or loss before taxation. The differences are as follows: In thousands of euros 2025 2024 Profit / (Loss) before tax on continuing and discontinued operations 4,355 (3,481) Expected tax (expense) / credit at the Company's tax rate of 25% (2024: 25%) (1,089) 870 Effect of differences in tax rates in foreign jurisdictions (54) 49 Effect of expenses not deductible and items not taxable (364) 677 Recognition of temporary difference previously not recognised 1,298 - Temporary differences not recognised - (1,397) Effect of R&D enhanced expenditure - 455 Effect of taxable R&D expenditure credit (103) - Effect of withholding tax 16 (16) Use of temporary differences previously not recognised 178 15 Total tax (expense) / credit recognised (118) 653 Deferred tax The Group had recognised deferred tax as follows: In thousands of euros 2025 2024 Deferred tax assets Fixed asset temporary differences 1,881 1,827 Unused tax losses 844 1,072 Total recognised deferred tax assets before set-off 2,725 2,899 Deferred tax set-off (1,366) (1,592) Net deferred tax assets 1,359 1,307 Deferred tax liabilities Capitalised development expenses 860 941 As a result of business combinations 1,956 2,163 Total recognised deferred tax liabilities before set-off 2,816 3,104 Deferred tax set-off (1,366) (1,592) Net deferred tax liabilities 1,450 1,512 Deferred tax assets are recognised for tax losses available for carrying forward to the extent that the realisation of the related tax benefit through future taxable profits is probable. Deferred tax is measured at the tax rates that are expected to apply to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. The deferred tax asset at 31 December 2025 has been calculated based on the rates expected to be in force at the time of utilisation. The deferred tax liability at 31 December 2025 has been recognised as a result of acquisitions in different tax jurisdictions at the rates prevailing in those jurisdictions. The rates range from 19% to 30%. Deferred tax assets on trading losses of €13.23 million (2024: €17.61 million) and fixed asset temporary differences of €2.68 million (2024: €3.94 million) have not been recognised. The Group is in a position to control the timing of the reversal of temporary differences relating to unremitted earnings of subsidiaries, and it is probable that such differences will not reverse in the foreseeable future, therefore no deferred tax liability has been recognised. The movement in deferred tax is as follows: In thousands of euros 2025 2024 Deferred tax assets Balance as at 1 January 2,899 2,841 Amounts (charged) / credited to profit & loss (178) 16 Foreign currency translation differences recognised in other comprehensive income 4 42 Total recognised deferred tax assets before set-off as at 31 December 2,725 2,899 Deferred tax liabilities Balance as at 1 January 3,104 3,609 Amounts credited to profit & loss (422) (552) Foreign currency translation differences recognised in other comprehensive income 134 47 Total recognised deferred tax liabilities before set-off as at 31 December 2,816 3,104 Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 136 137 19. INVENTORIES In thousands of euros 2025 2024 Finished goods 1,432 1,838 Components 1,179 1,610 Total inventories 2,611 3,448 20. TRADE AND OTHER RECEIVABLES In thousands of euros 2025 2024 Trade receivables 8,459 6,501 Allowance for doubtful debts (379) (456) Total trade and other receivables 8,080 6,045 Trade receivables less than 90 days past due are not considered impaired. The ageing analysis of total trade receivables is as follows: In thousands of euros 2025 2024 Under 90 days 7,445 5,283 Over 90 days and provided for 379 456 Over 90 days but not provided for 256 306 Total trade receivables 8,080 6,045 Impairment losses during the year were €46,000 (2024: €nil). Movements in the Group's provision for impairment of trade receivables are as follows: In thousands of euros 2025 2024 At 1 January 456 593 Credit during the year (77) (137) At 31 December 379 456 The Directors have considered the nature of the customers, the historic levels of bad debts and the payment profile of customer contracts in reaching the value of the expected credit losses above. See Note 31 ‘Financial risk management’ for further disclosure regarding the credit quality of the Group’s trade debtors. 21. OTHER CURRENT ASSETS In thousands of euros 2025 2024 VAT receivable 269 283 Current finance lease receivables (see note 24) 68 123 Other items 49 62 Total other current assets 386 468 22. CASH AND CASH EQUIVALENTS In thousands of euros 2025 2024 Cash at bank and in hand 14,460 9,513 Total cash and cash equivalents 14,460 9,513 23. CAPITAL AND RESERVES Ordinary shares of €0.40 allotted, called up and fully paid: 2025 2024 In thousands of euros, except number of shares Number Value Number Value As at 31 December 32,909,737 13,164 32,909,737 13,164 Share premium: In thousands of euros 2025 2024 As at 31 December 1,979 1,979 Merger reserve: In thousands of euros 2025 2024 As at 31 December 67,015 67,015 Treasury shares: The Company's investment in its own shares in treasury is as follows: 2025 2024 In thousands of euros, except number of shares Number Value Number Value As at 1 January 63,822 193 58,584 179 Disbursement of shares to employees (9,000) (32) (9,106) (40) Own shares re-purchased 137,159 523 14,344 54 As at 31 December 191,981 684 63,822 193 24. LEASES Group as lessee The Group leases office facilities and motor vehicles. The office leases typically run for a period of 6 years with an option to renew the lease at the end of the term and motor vehicle leases typically run for 3 years. Lease payments are agreed at the inception of the lease and at any subsequent renewal. Right-of-use assets Land and Motor In thousands of euros buildings vehicles Total Balance at 31 December 2023 2,148 53 2,201 Additions - 85 85 Depreciation charge for the year (701) (39) (740) Effect of movement in exchange rates 45 - 45 Balance at 31 December 2024 1,492 99 1,591 Additions 115 - 115 Remeasurements (393) - (393) Depreciation charge for the year (733) (43) (776) Effect of movement in exchange rates (35) (1) (36) Balance at 31 December 2025 446 55 501 Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 24. LEASES (CONTINUED) Group as lessee (continued) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 24. LEASES (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 138 139 These right-of-use assets are depreciated on a straight-line basis over the remaining term of the rental agreement. As at the date of these financial statements, the remaining terms range from 1 month to 4.5 years. Remeasurements are the result of an extension to the term of an existing lease. Lease liabilities In thousands of euros 2025 2024 Current 566 940 Non-current 149 1,051 Total lease liabilities 715 1,991 It is expected that as a lease matures it will either be extended or replaced by a new lease on similar terms. There are no variable lease payments, all lease payments are for fixed amounts agreed at the outset of the lease. Amounts recognised in the Consolidated Statement of Comprehensive Income: In thousands of euros 2025 2024 Interest on lease liabilities 93 120 Expenses relating to short-term leases 29 50 Total recognised in profit or loss 122 170 A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less. The Group has elected to apply the recognition exemption under paragraph 5 of IFRS 16 and recognise the associated payments in profit or loss. The short-term leases are leases for office space with a duration of 12 months or less. Cash out flow for leases: In thousands of euros 2025 2024 Lease liability interest 93 120 Principal payments 1,001 883 Additions (102) (216) Disposals 16 - Effect of movement in exchange rates - (56) Total cash outflow for leases 1,008 731 Maturity analysis of contractual undiscounted cash flows for lease payments: In thousands of euros 2025 2024 Within 1 year 620 1,014 Between 1 and 2 years 84 606 Between 2 and 3 years 22 208 Between 3 and 4 years 1 161 Between 4 and 5 years - 160 After 5 years - - Total undiscounted lease liabilities at 31 December 727 2,149 Group as lessor – finance leases The Group has cancellable leases, as intermediate lessor, of motor vehicles. The terms of these leases vary. The following amounts are recognised in the Consolidated Statement of Comprehensive Income: In thousands of euros 2025 2024 Income received from subleasing right-of-use assets 151 120 Finance income on net investment in leases (24) (25) Total amount recognised in profit or loss 127 95 Future minimum lease payments receivable for motor vehicles under cancellable finance leases are set out below: In thousands of euros 2025 2024 Within 1 year 110 138 Between 1 and 2 years 53 80 Between 2 and 3 years 22 17 Between 3 and 4 years 1 2 Between 4 and 5 years - - After 5 years - - Total undiscounted lease payments receivable 186 237 Unearned finance income (22) (25) Net investment in the lease 164 232 In thousands of euros 2025 2024 Current (see note 21) 96 123 Non-current (see note 17) 68 90 Total finance lease receivable 164 213 25. OTHER LIABILITIES Financial liabilities measured at fair value. In thousands of euros 2025 2024 Deferred consideration 1,160 417 Other liabilities - 64 Total other liabilities 1,160 481 In thousands of euros 2025 2024 Current 491 369 Non-current 669 112 Total other liabilities 1,160 481 Deferred consideration Deferred consideration primarily relates to the acquisition of Conics BV, ColorLogic GmbH and Hybrid Software Iberia SLU. During the year, cash payments of €310,000 (2024: €310,000) were paid against the deferred considerations, of which: - €300,000 (2024: €300,000) in relation of ColorLogic GmbH, and - €10,000 (2024: €10,000) in relation of Hybrid Software Iberia SLU. €918,000 of fixed deferred consideration became due after the acquisition of Conics BV (see Note 36 for further details). Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 140 141 26. LOANS AND BORROWINGS In thousands of euros 2025 2024 Current 3,776 2,500 Non-current 86 4,000 Total loans and borrowings 3,862 6,500 Unsecured loan from related party An unsecured loan has been granted by Congra Software S.à.r.l. (“Congra”) to HYBRID Software Development NV. (“HYBRID”). During the year, payments totalling €2,891,000 (2024: €1,507,000) have been made to Congra in respect of the loan. €2,750,000 (2024: €1,300,000) has been paid as a repayment against the principal and €141,000 (2024: €207,000) has been paid for interest. Interest is calculated and payable at a fixed rate of 3% per annum on the outstanding balance. The balance of the loan outstanding at 31 December 2025 was €3,750,000 (2024: €6,500,000). On 16 February 2023, an addendum to the loan agreement was executed in which an adjustment to the repayment scheme had been agreed to. Subject to the amended repayment scheme, €93,000 was to be repaid in 2023 and the balance in 8 equal quarterly instalments of €1,000,000 each of which the first in the 1 st quarter of 2025 and the last in the 4 th quarter of 2026. The loan is due to be fully repaid on 31 December 2026. It has been contractually agreed that HYBRID is entitled to accelerate repayments by making any additional repayments without any additional cost. In 2025 no advance payments have been made (2024: €1,300,000). As a result, the balance of advance payments as per 31 December 2025 was €250,000 (31 December 2024: €1,300,000). 27. CONTRACT LIABILITIES In thousands of euros 2025 2024 Customer advances 647 579 Deferred revenue 4,196 3,275 Total contract liabilities 4,843 3,854 In thousands of euros 2025 2024 Current 4,401 3,477 Non-current 442 377 Total contract liabilities 4,843 3,854 The contract liabilities relate to consideration received in advance of the provision of goods and services. Customer advances relate to consideration received in advance of the provision of physical goods, engineering and consultancy services. Deferred revenue relates to the consideration received for support and maintenance performance obligations that will be recognised as revenue over a period of time. Movements in the balance are driven by individual contracts and are not expected to necessarily be consistent year on year. 28. PROVISIONS In thousands of euros Total Balance at 31 December 2024 - Amount provided in the year 115 Balance at 31 December 2025 115 In thousands of euros 2025 2024 Current 115 - Non-current - - Total provisions 115 - The Group operates from a number of leasehold premises under full repairing leases. The provision recognises that repairs are required to put the buildings back into the state of repair required under the leases. 29. EARNINGS PER SHARE The basic earnings per share is calculated by dividing the net profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year, excluding those held in treasury. For diluted earnings per share, the weighted average number of ordinary shares in issue during the year, excluding those held in treasury, is adjusted to assume conversion of all dilutive potential ordinary shares. At the year end, those share options where the exercise price is less than the average market price of the Company’s ordinary shares were the only dilutive potential ordinary shares. In thousands of euros unless otherwise stated 2025 2024 Weighted average number of shares (basic), in thousands of shares 32,903 32,851 Profit / (Loss) for the period 4,237 (2,828) Basic earnings per share, in euros 0.13 (0.09) Diluted earnings per share, in euros 0.13 (0.09) 30. SHARE BASED PAYMENTS At 31 December 2025, the Group has the following shared based payment arrangements. Free shares On 24 April 2009 the Group established an HMRC approved Share Incentive Plan (“SIP”) in the UK and also operates an Enterprise Management Incentive Scheme (“EMI”) to enable its UK employees and Directors to participate in a tax efficient manner in the ownership of the Company’s shares. Under these schemes, free shares can be granted by the board to eligible employees and Directors. For non-UK employees and Directors, free shares can be granted directly to the employee. Free shares granted by the board to employees and Directors, either directly or through the SIP or EMI, have a 3 or 4 year vesting period and free shares granted outside of the SIP or EMI have vesting periods of either 12 or 24 months. Employees participating in the SIP are also granted free matching shares in proportion to the partnership shares that they purchased through a deduction from their gross pay before tax, subject to current HMRC limits. The matching shares have a vesting period of 3 years. The number of free shares granted, exercised, lapsed or withdrawn during the year was as follows: As at 31 December As at 31 December 2024 Granted Exercised Withdrawn Lapsed 2025 Number Number Number Number Number Number SIP matching shares 13,283 - (3,227) - - 10,056 Free shares granted 9,000 - (5,354) (3,646) - - 22,283 - (8,581) (3,646) - 10,056 Measurement of fair value The fair value of free shares granted as matching shares under the SIP was assumed to be equal to the purchase price of corresponding partnership shares which were acquired by participants in the SIP. The fair value of free shares granted was assumed to be the closing price reported for the Company’s shares on the last trading day immediately preceding the date when the shares were granted. It was also considered that all of the grantees would be in employment at the date of vesting. During the year the Group recognised €nil (2024: €nil) of share-based payment expense in these financial statements. 31. FINANCIAL RISK MANAGEMENT (CONTINUED) Market risk (continued) Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 142 143 31. FINANCIAL RISK MANAGEMENT The Group’s activities expose it to a variety of financial risks: market (notably foreign exchange risk), credit risk and liquidity risk. The Group’s overall financial risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance. Financial risk management is overseen by the Chief Financial Officer (CFO) under policies approved by the board which has overall responsibility for the establishment and oversight of the Group’s risk management framework The board provides principles for overall risk management, covering specific areas such as foreign exchange risk and the use of derivative financial instruments, whereas the CFO identifies, evaluates, and manages financial risks in close co-operation with the Group’s operating units. The Group does not permit the use of derivative financial instruments for speculative purposes. Market risk The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the US dollar and the British pound. Foreign exchange risk arises from future commercial transactions, recognised assets (notably trade receivables) and liabilities, as well as net investments in foreign operations. The objective of market risk management is to manage and control market risk exposures within acceptable parameters. To help manage these foreign exchange risks the Group may utilise foreign currency option or forward contracts transacted with high-credit-quality financial institutions, after review and approval by the Group’s CFO. There were no such contracts outstanding as at 31 December 2025 (2024: none). The average and year end exchange rates applied during the year to convert currencies to Euros are as follows: Average rate for Rate at 31 December 2025 2024 2025 2024 US dollar 0.8870 0.9236 0.8522 0.9611 Pound sterling 1.1674 1.1791 1.1469 1.2058 Japanese yen 0.0059 0.0061 0.0054 0.0062 Canadian dollar 0.6342 0.6313 0.6222 0.6698 Chinese yuan 0.1233 0.1293 0.1218 0.1317 Australian dollar 0.5712 0.6100 0.5703 0.5975 If sales and results for the year had been converted using the exchange rates prevailing in the prior year, the Group’s 2025 sales would have increased by approximately €0.73 million and the operating result for the year would have increased by approximately €0.02 million. The Group had the following current assets and liabilities denominated in currencies: Pounds Japanese Canadian Chinese Australian In thousands of euros Euros US dollars sterling yen dollars yuan dollars At 31 December 2025 Trade and other receivables 2,935 2,735 1,190 85 - 62 34 Contract assets 2,392 1,280 1,047 5 20 127 36 Other current assets 137 - 168 7 - 74 - Trade and other payables (3,272) (358) (1,072) - - (9) - Accrued liabilities (870) (146) (287) - - (9) (3) Loans & borrowings (3,776) - - - - - - Other liabilities (491) - - - - - - Provisions - - (115) - - - - Net exposure (2,945) 3,511 931 97 20 245 67 At 31 December 2024 Trade and other receivables 2,051 2,740 1,013 170 - 14 57 Contract assets 1,318 1,215 678 1,039 31 109 26 Other current assets 98 - 306 7 - 57 - Trade and other payables (2,169) (397) (1,231) (31) - (30) (24) Accrued liabilities (483) (65) (833) - - (26) (3) Loans & borrowings (2,500) - - - - - - Other liabilities (346) (20) (3) - - - - Net exposure (2,031) 3,473 (70) 1,185 31 124 56 The Group had the following non-current assets and liabilities denominated in currencies: Pounds Japanese Canadian Chinese Australian In thousands of euros Euros US dollars sterling yen dollars yuan dollars At 31 December 2025 Trade and other receivables 954 85 - - - - - Contract assets 1,661 1,574 842 5 14 22 - Other non-current assets 9 - - - - - 2 Retirement benefit obligations (255) - - - - - - Accrued liabilities (40) - - - - - - Loans & borrowings (86) - - - - - - Other liabilities (669) - - - - - - Net exposure 1,574 1,659 842 5 14 22 2 At 31 December 2024 Trade and other receivables - - - - - - - Contract assets 1,080 607 1,820 1,976 52 64 - Other non-current assets 9 6 - - - - 2 Retirement benefit obligations (1,068) - - - - - - Accrued liabilities (36) - - - - - - Loans & borrowings (4,000) - - - - - - Other liabilities (112) - - - - - - Net exposure (4,127) 613 1,820 1,976 52 64 2 Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 31. FINANCIAL RISK MANAGEMENT (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 31. FINANCIAL RISK MANAGEMENT (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 144 145 Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Group is mainly exposed to credit risk from sales to customers. It is Group policy to assess the credit risk of new customers before entering contracts and to have a frequent and proactive collections process. Historically, bad debts across the Group have been extremely low and full or part payment in advance by some customers helps to reduce the overall risk. Credit risk also arises from cash deposits held at banks. At the year-end, the Group’s cash deposits were held with major banks such as HSBC (United States, UK & Australia), PNC Financial Services Group (United States), KBC Bank (United States, UK & Europe), CREDEM (Italy), Bank of China (China), Sumitomo Mitsui Banking Corporation (Japan). The Group’s exposure to credit risk is limited to the carrying amount of financial assets recognised at the balance sheet date. These are summarised within Note 20 ‘Trade and other receivables’ and Note 22 ‘Cash and cash equivalents’. The Group’s management considers that all the above financial assets that are not impaired at the balance sheet date under review are of good credit quality, including those that are past due. The exposure to credit risk for trade receivables by type of counterparty was as follows: In thousands of euros 2025 2024 Equipment manufacturers 1,342 1,873 Resellers and end users 6,738 4,172 Total trade receivables 8,080 6,045 At 31 December 2025, the ten largest accounts receivable represented 37.6% (2024: 30.3%) of the Group’s accounts receivables and the single largest accounts receivable represented 19.9% (2024: 6.8%) of the Group's accounts receivables. The Group measures the loss allowance for trade receivables at an amount equal to lifetime expected credit losses. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and adjusted for factors that are specific to the debtor and general economic conditions of the industry in which the Group operates. The Group has recognised a loss allowance of €379,000 (2024: €456,000) against trade receivables. The loss allowance applies to debt over 90 days and relates to a small number of customers where none of the debt is expected to be recovered through normal trading. A provision is made against trade receivables until such time as the Group believes the amount to be irrecoverable, after which the trade receivable balance is written off. The Directors consider that the carrying amount of trade and other receivables approximates their fair value. Liquidity risk Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The board reviews an annual 12-month financial projection and the CFO and CEO review cash balances and cash flow forecasts regularly. At the balance sheet date liquidity risk was considered to be low, given the fact that the Group is expected to be cash generative and cash and cash equivalents are thought to be at acceptable levels. While the board considers there to be no current need for additional borrowing facilities, it continually monitors the Group’s cash requirements. The Group's financial liabilities have contractual maturities as summarised below: Between 1 and In thousands of euros Within 1 year 10 years Total At 31 December 2025 Retirement benefit obligations - 255 255 Trade and other payables 4,711 - 4,711 Accrued liabilities 1,315 40 1,355 Loans & borrowings 3,776 86 3,862 Other liabilities 491 669 1,160 Total 10,293 1,050 11,343 At 31 December 2024 Retirement benefit obligations - 1,068 1,068 Trade and other payables 3,882 - 3,882 Accrued liabilities 1,410 36 1,446 Loans & borrowings 2,500 4,000 6,500 Other liabilities 369 112 481 Total 8,161 5,216 13,377 Interest rate risk The Group has no variable interest rate debt, therefore the Group currently has no interest rate risk. Capital risk The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern to provide returns for shareholders, maintain investor, creditor and market confidence, and sustain future development of the business. There were no changes in the Group’s approach to capital risk management during the year ended 31 December 2025. In thousands of euros 2025 2024 Capital Total equity 112,555 110,227 Less cash and cash equivalents 14,460 9,513 98,095 100,714 Overall financing Total equity 112,555 110,227 Plus borrowings 3,862 6,500 116,417 116,727 Capital to overall financing ratio 1:1.19 1:1.16 Accounting classifications and fair values The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. Carrying amount Fair value Financial assets at Other financial In thousands of euros FVTPL amortised cost liabilities Total Level 2 At 31 December 2025 Financial assets not measured at fair value Financial assets (see note 17) - 80 - 80 80 Trade and other receivables (see notes 20) - 8,080 - 8,080 8,080 Cash and cash equivalents (see note 22) - 14,460 - 14,460 14,460 - 22,620 - 22,620 22,620 Financial liabilities measured at fair value Deferred consideration (see note 25) 1,160 - - 1,160 1,160 Unsecured loan from related party (see note 26) 3,862 - - 3,862 3,862 5,022 - - 5,022 5,022 Financial assets not measured at fair value Trade and other payables - - 4,711 4,711 4,711 - - 4,711 4,711 4,711 At 31 December 2024 Financial assets not measured at fair value Financial assets (see note 17) - 1,020 - 1,020 1,020 Trade and other receivables (see notes 20) - 6,045 - 6,045 6,045 Cash and cash equivalents (see note 22) - 9,513 - 9,513 9,513 - 16,578 - 16,578 16,578 Financial liabilities measured at fair value Deferred consideration (see note 25) 417 - - 417 417 Unsecured loan from related party (see note 26) 6,500 - - 6,500 6,500 6,917 - - 6,917 6,917 Financial assets not measured at fair value Trade and other payables - - 3,882 3,882 3,882 - - 3,882 3,882 3,882 Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 146 147 32. RELATED PARTIES The controlling party is Congra Software SARL (“Congra”), which owns the majority of the voting rights of the Company. Congra is controlled by Powergraph BV “(Powergraph”) and Powergraph BV is controlled by the Group’s chairman, Guido Van der Schueren. Congra and Powergraph do not produce consolidated financial statements that are publicly available. Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed. Remuneration of key management personnel The remuneration paid to the Directors, who are key management personnel of the Group, is detailed in the Directors' remuneration report on pages 89 to 96. A service agreement between Hybrid Software Group PLC and Powergraph BV provides an arrangement for the remuneration of Guido Van der Schueren. Michael Rottenborn has an employment contract with Hybrid Software Inc. that entitles him to salary, bonus and other benefits in addition to board fees. A service agreement between Hybrid Software Group PLC and Bellevarde Financial BV provides an arrangement for the remuneration of Joachim Van Hemelen. Remuneration of key management personnel, which includes the Directors, was as follows: In thousands of euros 2025 2024 Short-term employee benefits 3,814 3,578 Post-employment benefits 95 107 Shares sold to Hybrid Software Group PLC 28 11 Total key management personnel expenses 3,937 3,696 Unsecured loan from related party An unsecured loan has been granted by Congra Software S.à.r.l. (“Congra”) to HYBRID Software Development NV. (“HYBRID”). During the year, payments totalling €2,891,000 (2024: €1,507,000) have been made to Congra in respect of the loan. €2,750,000 (2024: €1,300,000) has been paid as a repayment against the principal and €141,000 (2024: €207,000) has been paid for interest. Interest is calculated and payable at a fixed rate of 3% per annum on the outstanding balance. The balance of the loan outstanding at 31 December 2025 was €3,750,000 (2024: €6,500,000). On 16 February 2023, an addendum to the loan agreement was executed in which an adjustment to the repayment scheme had been agreed to. Subject to the amended repayment scheme, €93,000 was to be repaid in 2023 and the balance in 8 equal quarterly instalments of €1,000,000 each of which the first in the 1 st quarter of 2025 and the last in the 4 th quarter of 2026. The loan is due to be fully repaid on 31 December 2026. It has been contractually agreed that HYBRID is entitled to accelerate repayments by making any additional repayments without any additional cost. In 2025 no advance payments have been made (2024: €1,300,000). As a result, the balance of advance payments as per 31 December 2025 was €250,000 (31 December 2024: €1,300,000). Additionally, HYBRID was liable for some additional consideration that was payable in respect of a transfer of the Cloudflow intangible assets prior to joining the Group. The additional consideration was €200,000 (2024: €200,000). At 31 December 2025, €200,000 (2024: €200,000) was owed to Congra in respect of these items. Powergraph A total of €492,000 (2024: €446,000) was paid during the year by HYBRID to Powergraph in respect of the aforementioned service agreement for Guido Van der Schueren. This amount is included in the amounts presented in the Directors’ remuneration report on pages 89 to 96. €36,000 (2024: €60,000) was owed at the 31 December 2025. Other related parties A total of €270,000 (2024: €267,000) was paid during the year by HYBRID to Bellevarde Financial BV in respect of the aforementioned service agreement for Joachim Van Hemelen. This amount is included in the amounts presented in the Directors’ remuneration report on pages 89 to 96. €23,000 (2024: €64,000) was owed as per 31 December 2025. 33. GROUP ENTITIES Ownership interest % Country of Company name Registered office address incorporation 2025 2024 HYBRID Software One South State Street, Newtown, Pennsylvania United States of Incorporated 18940, USA America 100% 100% Global Graphics Software 6601 S.Tamiami Trail, Suite 176, Sarasota, FL 34231, United States of Incorporated^ USA America - 100% Global Graphics (UK) 2030 Cambourne Business Park, Cambourne, CB23 United Kingdom - 100% Limited 6DW, UK Hybrid Software Helix Limited (formerly Global 2030 Cambourne Business Park, Cambourne, CB23 Graphics Software 6DW, UK United Kingdom 100% 100% Limited) HYBRID Software UK 2030 Cambourne Business Park, Cambourne, CB23 Limited 6DW, UK United Kingdom 100% 100% Conics BV# Tiendelaan 5/A, 8900 Ieper, Belgium Belgium 100% - HYBRID Software Brandz Guldensporenpark 18, Block B, 9820 Merelbeke, NV< Belgium Belgium 100% - HYBRID Software Guldensporenpark 18, Block B, 9820 Merelbeke, Development NV Belgium Belgium 100% 100% Guldensporenpark 18, Block B, 9820 Merelbeke, HYBRID Software NV Belgium Belgium 100% 100% HYBRID Software Group SARL 19-21 route d’Arlon, LU-8009 Strassen, Luxembourg Luxembourg 100% 100% HYBRID Software France SAS 15 Rue Marsollier, F-75002 Paris, France France 100% 100% HYBRID Software Iberia Riera dels Frares, 8 – E08907 L’Hospitalet, Barcelona, S.L.U. Spain Spain 100% 100% HYBRID Software Italy SRL Viale Sondrio 2, IT-20124 Milano, Italy Italy 100% 100% HYBRID Software GmbH Uhlandstrabe 9, 79102 Freiburg, Germany Germany 100% 100% HYBRID Software China Room 2504, 25 th Floor, Building 2, No. 900 Yishan China 100% 100% Co. Limited Road, Xuhui District, Shanghai, China Global Graphics 610 AIOS Nagatacho Bldg, 2-17-17 Nagatacho, Kabushiki Kaisha Chiyoda-ku, Tokyo 100-0014, Japan Japan 100% 100% HYBRID Software Suite 2, Level 14, 9 Castlereagh Street, Sydney, NSW Australia Pty Limited 2000, Australia Australia 100% 100% Harston Mill, Royston Road, Harston, Cambridge, Meteor Inkjet Limited CB22 7GG, UK United Kingdom 100% 100% 4750 Venture Drive, Suite 200A, Ann Arbor, Michigan United States of Xitron, LLC 48108, USA America 100% 100% See Note 3 ‘Investments’ of the company financial statements for the principal activities of each company. * indirectly held by the Company. ** Global Graphics (UK) Limited was dissolved on 26 August 2024 ^ Global Graphics Software Incorporated legally merged into HYBRID Software Incorporated on 1 November 2025 < HYBRID Software Brandz NV was acquired on 8 August 2025 # Conics BV was acquired on 18 September 2025 Notes to the consolidated financial statements NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 148 149 34. MOVEMENTS IN LIABILITIES ARISING FROM FINANCING ACTIVITIES In thousands of euros Lease liabilities Other liabilities Total Balance at 31 December 2024 1,991 6,981 8,972 Proceeds from loans and borrowings - 113 113 Loan repayment - (2,750) (2,750) Deferred consideration paid - (310) (310) Deferred consideration obtained - 966 966 Principal payments of lease liabilities (1,001) - (1,001) Other debts - (67) (67) Total cashflows (1,001) (2,048) (3,049) Deferred consideration fair value adjustment - 89 89 Recognition of new lease liabilities 102 - 102 Remeasurement of existing lease liabilities (393) - (393) Other non-cash items 109 - 109 Exchange rate effects (93) - (93) Total non-cash items (275) 89 (186) Balance at 31 December 2025 715 5,022 5,737 In thousands of euros Lease liabilities Other liabilities Total Balance at 31 December 2023 2,601 8,695 11,296 Loan repayment - (1,300) (1,300) Deferred consideration paid - (310) (310) Contingent consideration paid - (236) (236) Principal payments of lease liabilities (1,003) - (1,003) - 64 64 Total cashflows (1,003) (1,782) (2,785) Deferred consideration fair value adjustment - 65 65 Contingent consideration fair value adjustment - 3 3 Recognition of new lease liabilities 216 - 216 Other non-cash items 120 - 120 Exchange rate effects 57 - 57 Total non-cash items 393 68 461 Balance at 31 December 2024 1,991 6,981 8,972 Other non-cash items include the unwinding of discounts on lease liabilities and interest on loans and borrowings. 35. DISCONTINUED OPERATIONS In 2025 no operations have been discontinued. On 2 December 2024, (I) Hybrid Software Development NV sold the shares it held in eXplio NV (‘eXplio’), against a cash consideration of €1, and (II) Hybrid Software Group PLC sold a receivable it held on eXplio, against a cash consideration of €20,000. The aggregate loss of the sale of the discontinued operation, net of tax, amounts to €120,000. The subsidiary was not previously classified as held-for-sale or as a discontinued operation. Given the immaterial nature of eXplio’s financial result, the relevant accounting standard IFRS 5 has not been applied as the Consolidated Statement of Comprehensive Income has not been re-presented to show the discontinued operation separately from continuing operations. As per 30 November 2024, eXplio had a total asset value of €193,000 and net asset value of €140,000. In the first 11 months of 2024, eXplio achieved revenue of €168,000 and had a net loss of €9,000. In 2023, over a 12 month period, eXplio achieved revenue of €284,000 and had a net loss of €78,000. 36. ACQUISITIONS Acquisition of HYBRID Software Brandz NV On 8 August 2025, the Group acquired the shares of HYBRID Software Brandz NV (“HS Brandz”) from Congra Software SARL (“Congra”). HS Brandz is a company active in the development and marketing of artwork management software. In the past few years it has developed a new cloud based artwork management system called Artflow. In addition to Artflow it has legacy systems called Artemis and D2P. Notwithstanding that Congra at acquisition date both controlled the Group as HS Brandz, the Board opted to apply the acquisition method under IFRS3 rather than recording the acquisition at net book value. The acquisition date fair value of the consideration was made up of: In thousands of euros Cash, paid on closing - Repayment of debt due to Congra 622 Total consideration 622 The identifiable assets acquired and liabilities assumed were: Fair value In thousands of euros Book value adjustment Total Property, plant and equipment (see note 14) 23 - 23 Other intangible assets (see note 15) - 507 507 Deferred tax assets - 84 84 Trade and other receivables 92 - 92 Other current assets 8 - 8 Cash and cash equivalents 261 - 261 Current tax liabilities (1) - (1) Trade and other payables (82) - (82) Other liabilities (623) - (623) Contract liabilities (269) - (269) Total identifiable net assets acquired (591) 591 - The intangible assets recognised have been valued as follows: Intangible asset Valuation method Technology The average of the present value of cashflows from operating activities in relation to owned technology (using a post-tax discount rate of 19.71%, a forecasted profit level, an assumption that revenue will grow during the valuation period. Know how Cost approach for replacement or reproduction cost. Notes to the consolidated financial statements COMPANY STATEMENT OF FINANCIAL POSITION Hybrid Software Group Strategic report Governance Financial statements Other information 36. ACQUISITIONS (CONTINUED) Hybrid Software Group PLC | Annual Report 2025 150 151 Acquisition of Conics BV On 18 September 2025, the Group acquired the shares of Conics BV (“Conics”) from the founders of the business. Conics is a fully independent software consultancy company focusing on graphic processes. The acquisition date fair value of the consideration was made up of: In thousands of euros Fixed consideration in cash 250 Fixed deferred consideration 918 Working capital adjustment 213 Total consideration 1,381 The identifiable assets acquired and liabilities assumed were: Fair value In thousands of euros Book value adjustment Total Property, plant and equipment (see note 14) 174 - 174 Other intangible assets (see note 15) - 732 732 Trade and other receivables 219 - 219 Other current assets 28 - 28 Current tax assets 15 - 15 Cash and cash equivalents 184 - 184 Deferred tax liability - (183) (183) Non-current loans & borrowings (86) - (86) Current loans & borrowings (39) - (39) Trade and other payables (181) - (181) Contract liabilities (63) - (63) Total identifiable net assets acquired 251 549 800 The intangible assets recognised have been valued as follows: Intangible asset Valuation method Customer The present value of cashflows from operating activities in relation to established recurring customers’ existing at relationships acquisition date over a 10 year period, using a discount rate of 11.97%, an historical profit % level and an assumption that revenue will be subject to 5% annual attrition rate over the forecast period. Know how Cost approach for replacement or reproduction cost. Goodwill was recognised as a result of the acquisition as follows: In thousands of euros Total consideration payable 1,381 Fair value of identifiable net assets (800) Total Goodwill (see note 16) 581 The goodwill represents the ability to develop customer relationships, new technology & opportunities expected from access to potential new customers, any value of intangible assets into perpetuity over their limited useful lives and the assembled workforce that does not meet separate recognition criteria. None of the goodwill recognised is expected to be deductible for tax purposes. For the period from acquisition to 31 December 2025, the revenues and the profit before tax generated by this acquisition were €439,000 and €127,000 respectively. 37. SUBSEQUENT EVENTS In January 2026, three office leases due to expire in 2026 were extended. The remeasurements equate to an increase in the right-of-use asset and lease liability of €1,240,000, based on the year end exchange rate. There are no post balance sheet events requiring disclosure in the financial statements for the year ended 31 December 2025. For the year ended 31 December In thousands of euros Note 2025 2024 Non-current assets Investments 3 90,460 90,460 Trade and other receivables 4 10,890 9,889 Total non-current assets 101,350 100,349 Current assets Trade and other receivables 4 279 1,734 Cash and cash equivalents 6,873 3,608 Total current assets 7,152 5,342 Current Liabilities Creditors: Amounts falling due within one year 5 (622) (1,287) Net current assets 6,530 4,055 Creditors: Amounts falling due in more than one year 6 - (107) Net assets 107,880 104,297 Capital and reserves Called up share capital 8 13,164 13,164 Share premium account 8 1,979 1,979 Merger reserve 8 67,015 67,015 Treasury shares 8 (684) (193) Profit and loss account 26,406 22,332 Total shareholders' funds 107,880 104,297 The notes on pages 153 to 157 form part of these financial statements. Under section 408 of the Companies Act 2006 the Company is exempt from the requirement to present its own income statement and related notes. The result for the year ended 31 December 2025 was a profit of €4,106,000 (2024: loss of €5,289,000). There are no recognised gains or losses for the current year or preceding year other than those disclosed above. These financial statements were approved and authorised for issue by the board of Directors on 12 March 2026 and were signed on its behalf by: Michael Rottenborn Director Company registered number: 10872426 Notes to the consolidated financial statements COMPANY STATEMENT OF CHANGES IN EQUITY Hybrid Software Group Strategic report Governance Financial statements Other information NOTES TO THE COMPANY FINANCIAL STATEMENTS Hybrid Software Group PLC | Annual Report 2025 152 153 Called up Share premium Merger Treasury Profit and loss In thousands of euros Note share capital account reserve shares account Total equity Balance at 31 December 2023 13,164 1,979 67,015 (179) 27,661 109,640 Total comprehensive income for the year Net loss for the year - - - - (5,289) (5,289) Total comprehensive income for the - - - - (5,289) (5,289) year Transactions with owners Share-based payment transactions 8 - - - 40 (40) - Own shares re-purchased 8 - - - (54) - (54) Total transactions with owners - - - (14) (40) (54) Balance at 31 December 2024 13,164 1,979 67,015 (193) 22,332 104,297 Total comprehensive income for the year Net profit for the year - - - - 4,106 4,106 Total comprehensive loss for the year - - - - 4,106 4,106 Transactions with owners Share-based payment transactions 8 - - - 32 (32) - Own shares re-purchased 8 - - - (523) - (523) Total transactions with owners - - - (491) (32) (523) Balance at 31 December 2025 13,164 1,979 67,015 (684) 26,406 107,880 The notes on pages 153 to 157 form part of these financial statements. 1. PRINCIPAL ACCOUNTING POLICIES Hybrid Software Group PLC is a company incorporated and domiciled in the United Kingdom. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Company’s financial statements. Basis of preparation These financial statements were prepared in accordance with Financial Reporting Standard 101 - Reduced Disclosure Framework (“FRS 101”). In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of UK-adopted international accounting standards but makes amendments where necessary to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken. The Company is an ultimate parent undertaking and is included in the Company's consolidated financial statements. The consolidated financial statements are prepared in accordance with IFRS and are available to the public and may be obtained from 2030 Cambourne Business Park, Cambourne, CB23 6DW. In these financial statements, the company has applied the exemptions available under FRS 101 in respect of the following disclosures: • A Cash Flow Statement and related notes; • Comparative period reconciliations for share capitals; • Disclosures in respect of transactions with wholly owned subsidiaries; • Disclosures in respect of capital management; • The effects of new but not yet effective IFRS; and • Disclosures in respect of the compensation of Key Management Personnel. As the consolidated financial statements of the Company include the equivalent disclosures, the Company has also taken the exemptions under FRS 101 available in respect of the following disclosures: • IFRS 2 Share Based Payments in respect of group settled share based payments; • Certain disclosures required by IFRS 3 Business Combinations in respect of business combinations undertaken by the Company; and • Financial instruments. The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements. Group accounting policies also apply to the Company, in addition to those stated below. Investments Investments in subsidiary undertakings are stated at cost, less provision for any impairment in value. Foreign currencies The functional and presentation currency of the Company is euro. Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date or at a contracted rate if applicable and any exchange differences arising are taken to the profit and loss account. Provisions Provisions are recognised when the Company has a present obligation as a result of a past event, and it is probable that the Company will be required to settle that obligation. Provisions are measured at the Directors’ best estimate of the expenditure required to settle the obligation at the balance sheet date and are discounted to present value where the effect is material. Taxation The charge for taxation is based on the profit or loss for the year and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes. Deferred taxation is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date, except as required by IAS 12. Notes to the consolidated financial statements Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED) 1. PRINCIPAL ACCOUNTING POLICIES (CONTINUED) Share based payments The share option programme allows employees of the Group to acquire shares of the Company. The fair value of the options and shares granted is recognised as an employee expense, with a corresponding increase in equity, and is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options or shares. The fair value of the options granted is measured using an appropriate valuation model, taking into account the terms and conditions upon which the options were granted. At each reporting date, the amount recognised as an expense is adjusted to reflect the actual number of share options or shares for which the related service and non-market conditions are met. The proceeds received, net of any directly attributable transaction costs, are credited to share capital for the par value of the shares issued and to share premium for the balance, when the share options are exercised. Going concern The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Directors have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements and have no reason to believe that a material uncertainty exists that may cast significant doubt about the Group’s ability to continue as a going concern, notably because of a cash position of €14.46 million as at 31 December 2025 (2024: €9.51 million). Those forecasts take into account multiple reasonably possible downsides. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. Refer to Note 2 ‘Basis of preparation’ of the consolidated financial statements for further details. Estimates and Judgements Investments (see Note 3 ‘Investments’) are assessed at each reporting date to determine whether there is any indication of impairment. If such indication exists, then the asset’s recoverable amount is estimated. Amounts owed by group undertakings (see Note 4 ‘Trade and Other Receivables’) are assessed for impairment but are deemed by the Directors to be recoverable in more than 12 months. 2. EMPLOYEES AND REMUNERATION OF DIRECTORS The Company employed an average of nil employees (including executive Directors) during the year (2024: nil). Directors’ emoluments are disclosed in the Directors' remuneration report on pages 89 to 96 and in Note 12 ‘Remuneration of Directors’ of the consolidated financial statements. 3. INVESTMENTS In thousands of euros Shares in subsidiary undertakings Cost At 31 December 2024 and 2025 154,498 Provision or impairment At 31 December 2024 and 2025 64,038 Net book value At 31 December 2024 and 2025 90,460 The investment of €4,381,000 in ColorLogic GmbH was transferred during the prior year to HYBRID Software GmbH (a fellow subsidiary undertaking) on 14 May 2024. Investments are assessed at each reporting date to determine whether there is any objective evidence that they are impaired. An investment is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that investment. An impairment loss in respect of an investment is measured as the difference between its carrying amount and the present value of the estimated future cash flows. NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED) 3. INVESTMENTS (CONTINUED) The estimated fair value of the investments has been determined by the present value of future cash flows over a five-year period from 2026 to 2030 using the same discount rate and exchange rates that were used for the impairment review of Goodwill in the consolidated financial statements (see Note 16 ‘Goodwill’ of the consolidated financial statements). Management considers the use of a five-year period is justified because the underlying businesses have been established for between 10 and 25 years, have recurring revenues and continue to develop new products and gain new customers. An impairment of €nil (2024: €6,280,000) has been recognised against the investment in HYBRID Software Group SARL. At 31 December 2025 the Company had the following interests in the ordinary share capital of group undertakings: Class of shares held Ownership interest Company name Registered office address Principal Activities 2025 2024 HYBRID Software Incorporated One South State Street, Newtown, Pennsylvania 18940, USA Computer software sales and technical support. Ordinary 100% 100% Global Graphics Software Incorporated^ 6601 S.Tamiami Trail, Suite 176, Sarasota, FL 34231, USA Computer software development, sales and technical support. Ordinary - 100% Global Graphics (UK) Limited 2030 Cambourne Business Park, Cambourne, CB23 6DW, UK Dormant holding company. Ordinary - 100% Hybrid Software Helix Limited (formerly Global Graphics Software Limited) 2030 Cambourne Business Park, Cambourne, CB23 6DW, UK Computer software development, sales and technical support. Ordinary 100% 100% HYBRID Software UK Limited 2030 Cambourne Business Park, Cambourne, CB23 6DW, UK Computer software sales and technical support. Ordinary 100% 100% Conics BV# Tiendelaan 5/A, 8900 Ieper, Belgium Consultancy services focusing on graphic processes Ordinary 100% - HYBRID Software Brandz NV< Guldensporenpark 18, Block B, 9820 Merelbeke, Belgium Computer software development, sales and technical support. Ordinary 100% - HYBRID Software Development NV Guldensporenpark 18, Block B, 9820 Merelbeke, Belgium Computer software development, sales and technical support. Ordinary 100% 100% HYBRID Software NV Guldensporenpark 18, Block B, 9820 Merelbeke, Belgium Computer software sales and technical support. Ordinary 100% 100% HYBRID Software Group SARL 19-21 route d’Arlon, LU-8009 Strassen, Luxembourg Holding company. Ordinary 100% 100% HYBRID Software France SAS 15 Rue Marsollier, F-75002 Paris, France Computer software sales and technical support. Ordinary 100% 100% HYBRID Software Iberia S.L.U. Riera dels Frares, 8 – E08907 L’Hospitalet, Barcelona, Spain Computer software sales and technical support. Ordinary 100% 100% HYBRID Software Italy SRL Viale Sondrio 2, IT-20124 Milano, Italy Computer software sales and technical support. Ordinary 100% 100% HYBRID Software GmbH Uhlandstrabe 9, 79102 Freiburg, Germany Computer software sales and technical support. Ordinary 100% 100% HYBRID Software China Co. Limited Room 2504, 25 th Floor, Building 2, No. 900 Yishan Road, Xuhui District, Shanghai, China Computer software sales and technical support. Ordinary 100% 100% Global Graphics Kabushiki Kaisha 610 AIOS Nagatacho Bldg, 2-17-17 Nagatacho, Chiyoda-ku, Tokyo 100- 0014, Japan Technical support of computer software. Ordinary 100% 100% HYBRID Software Australia Pty Limited Suite 2, Level 14, 9 Castlereagh Street, Sydney, NSW 2000, Australia Computer software sales and technical support. Ordinary 100% 100% Meteor Inkjet Limited Harston Mill, Royston Road, Harston, Cambridge, CB22 7GG, UK Design and supply of technology for digital inkjet printing. Ordinary 100% 100% Xitron, LLC 4750 Venture Drive, Suite 200A, Ann Arbor, Michigan 48108, USA Computer software development, sales and technical support. n/a 100% 100% * indirectly held by the Company. ** Global Graphics (UK) Limited was dissolved on 26 August 2024 ^ Global Graphics Software Incorporated legally merged into HYBRID Software Incorporated on 1 November 2025 < HYBRID Software Brandz NV was acquired on 8 August 2025 # Conics BV was acquired on 18 September 2025 154 155 Notes to the consolidated financial statements Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED) 4. TRADE AND OTHER RECEIVABLES In thousands of euros 2025 2024 Amounts owed by group undertakings 10,989 11,379 Other receivables 180 244 Total trade and other receivables 11,169 11,623 In thousands of euros 2025 2024 Current 279 1,734 Non-current 10,890 9,889 Total trade and other receivables 11,169 11,623 There are formal intercompany agreements in place, which incur interest charges at 6% per annum and have a fixed repayment schedule. Other amounts owed by group undertakings are interest free and would be repayable on demand. 5. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR In thousands of euros 2025 2024 Trade and other payables 68 85 Amounts owed to group undertakings 3 442 Accruals 357 460 Deferred consideration (see note 6) 194 300 Total creditors due within one year 622 1,287 There are formal intercompany agreements in place, which incur interest charges at 6% per annum and have a fixed repayment schedule. Other amounts owed by group undertakings are interest free and would be repayable on demand. 6. CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR In thousands of euros 2025 2024 Deferred consideration - 107 Total other liabilities - 107 Deferred consideration Deferred consideration relates to the acquisition of ColorLogic GmbH. During the year, cash payments of €300,000 (2024: €300,000) were paid against the deferred consideration. 7. TAX Deferred tax assets are recognised for tax losses available for carrying forward to the extent that the realisation of the related tax benefit through future taxable profits is probable. The Company had no recognised or unrecognised deferred tax assets as at 31 December 2025 (2024: €nil). NOTES TO THE COMPANY FINANCIAL STATEMENTS (CONTINUED) 8. SHARE CAPITAL AND RESERVES Ordinary shares of €0.40 allotted, called up and fully paid: 2025 2024 In thousands of euros, except number of shares Number Value Number Value As at 31 December 32,909,737 13,164 32,909,737 13,164 Share premium: In thousands of euros 2025 2024 As at 31 December 1,979 1,979 Merger reserve: In thousands of euros 2025 2024 As at 31 December 67,015 67,015 Treasury shares: The Company's investment in its own shares in treasury is as follows: 2025 2024 In thousands of euros, except number of shares Number Value Number Value As at 1 January 63,822 193 58,584 179 Disbursement of shares to employees (9,000) (32) (9,106) (40) Own shares re-purchased 137,159 523 14,344 54 As at 31 December 191,981 684 63,822 193 9. SHARE BASED PAYMENTS Information about share based payments for Directors and employees is detailed in Note 30 ‘Share based payments’ of the consolidated financial statements. 10. RELATED PARTY TRANSACTIONS The controlling party is Congra Software SARL (“Congra”), which owns the majority of the voting rights of the Company. Congra is controlled by Powergraph BV and Powergraph BV is controlled by the Group’s chairman, Guido Van der Schueren. The remuneration paid to the Directors is detailed in the Directors’ remuneration report on pages 89 to 96. Other related party relationships are detailed in Note 32 ‘Related parties’ of the consolidated financial statements. The Company has taken advantage of the exemption under paragraph 8(k) of FRS 101 for transactions with wholly owned group companies. 11. SUBSEQUENT EVENTS Details of post balance sheet events requiring disclosure in the financial statements for the year ended 31 December 2025 are in Note 37 ‘Subsequent events’ of the consolidated financial statements. 156 157 OTHER INFORMATION Glossary Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Additive manufacturing Building physical product by digitally ‘printing’ it, often with technology similar to the inkjet heads used for 2D printing. The term “3D printing” is often used for home and small-scale additive manufacturing. Binder jetting A class of additive manufacturing in which the solid form is created by jetting a binder fluid into a bed of powder. This technique can be used for metals, polymers and glass. CAGR Compound Annual Growth Rate. Colour separation Colour can be specified in many different ways in the digital world, but printing uses only a small set of inks. All colours in the source document must be transformed into a set of separations, one for each of the inks to be used. Most commonly in commercial print, labels and packaging this means Cyan, Magenta, Yellow and Black (see also “Extended Gamut”). Converting The design for a label or package is converted from a primary copy, such as a PDF file, through printing on a substrate and then one or more processes such as cutting, folding and gluing to create a label that can be applied or a carton that can be filled. CTP Computer to Plate – imaging a printing plate directly from digital data rather than imaging a film and using that to image the plate. CPG Consumer packaged goods – items used daily by average consumers that require routine replenishment, such as food, beverages, clothing, beauty and household products. Digital Front End (DFE) The controller that manages and drives a digital press, consuming source files such as PDF, processing them as necessary and sending colour separations to the printhead. Enterprise software Computer programs that have common business applications. In relation to printing these typically manage customer relationships, estimation, billing, production management and shipping. EPS Encapsulated PostScript; a subset of the PostScript PDL with extra commenting rules designed to allow graphics to be placed within a larger page in a design application. Extended gamut Printing in the commercial, labels and packaging sectors is often done using four inks: Cyan, Magenta, Yellow and Black (CMYK). Together these can deliver good approximations of most colours. An extended gamut ink set can be used to reproduce more vibrant colours, including some brand colours. This is often achieved by adding one or more of Orange, Green and Violet inks to the CMYK set. Flexo/Flexography A conventional printing technology in which flexible plates with raised areas are used to transfer ink onto the substrate. Widely used in labels and packaging. FMCG Fast-moving Consumer Goods – refers to products that you can sell quickly at relatively low cost. They are considered moving because retailers need to restock the shelves regularly due to high turnover rate. Glossary Functional printing Applying substances to a substrate that do more than represent colour or some other aspect of appearance such as gloss, using a process that’s normally used for printing. Examples include conductive tracks for printed electronics, or materials that change colour in the presence of certain gases for food safety, etc. Gravure Conventional print technology in which a cylinder is engraved with cells which carry ink to transfer it to the substrate. Very expensive to prepare cylinders for each job, so it’s most used for jobs with extremely long run lengths (millions of copies), such as long-run magazines and wall-coverings. Image setter Machine for imaging from digital data to film or photographic paper. The result would then be used to image a plate. Obsolete for offset lithography and increasingly so for other conventional press technologies; replaced by plate setters. Imposition Laying out multiple pages or multiple jobs together to maximise usage of the area of a printing press. Industrial inkjet A term that is used with various different meanings, but is best applied to printing where the substance being printed is a part of the final product, as opposed to carrying information (e.g. in commercial print) orto protect a product (e.g. in packaging). Examples of industrial print include applications of colour and functional coatings to textiles, ceramics and other décor. Industry 4.0 A term for fully automated production, where equipment performing different processes are interconnected and share information. Inkjet printing Application of coloured or functional fluids to a substrate by jetting as drops. JPEG Joint Photographic Experts Company’; a committee (ISO/ IEC JTC1/SC29) and the format that they defined for storing images in a very compact way using (mainly) compression. There are now variants such as JPEG 2000 and JPEG-XR that use rather different and incompatible techniques. Litho Offset lithography – conventional printing press technology using plates treated to make some areas hydrophilic and others hydrophobic (attracting and rejecting water) to control where ink will adhere to them. ‘Offset’ here means that the ink is transferred from the plate to a blanket before then being applied to the media being printed on. Mass customisation Mass produced products where every item is unique. Examples include personalized labels, tee-shirts, phone cases and the like. OEM OEM, or original equipment manufacturer, is an organisation that makes devices from component parts bought from other organisations. Piezoelectric Electricity resulting from pressure and latent heat. Piezo printheads are all based on the principle that a particular type of crystal expands or contracts when an electric current is passed though it and switched off again. This expansion/contraction is used as the basis of a pump in the ink chamber. PDF Portable Document Format, a universal file format that is maintained by the International Standards Organisation. In printing it can contain all the information required to produce an item that matches exactly what the graphic designer intended in terms of fonts, colour specifications etc. PostScript Page description language (PDL) created in the mid 1980s by Adobe Systems; the first general PDL to be 160 161 Glossary Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 widely adopted for both office and production printing, replacing proprietary languages from each vendor. Still used for office printing, but largely replaced by PDF for production printing. Pre-press A department or series of software processes that prepare files for printing. Printhead driver solutions Our software and proprietary driver electronics send data to printheads inside inkjet devices to control the printing process. Printheads Printheads are a component of an inkjet press and generally contain multiple nozzles for jetting ink or other fluids onto substrates. Proofer Device used to make colour-managed prints configured to match the appearance of the same job on a production printing press for use in approval workflows. Increasingly replaced by “soft proofing”, using a calibrated computer display for approval rather than creating printed copy Rasterisation The process of transforming a page description language ( see PostScript), comprising text, vector graphics, images and other complex constructs, into a rectangular grid of pixels that is suitable for delivering to an inkjet head, plate setter or other imaging device. Often equated to ‘rendering’. RIP/ RIPping A Raster Image Processor converts graphic designs into raster data (image pixels) for onward processing by the printing device. Screening Screening (sometimes called halftone screening) converts graphical designs from raster data (such as that delivered by a RIP) into a slightly different format. The process compensates for the fact that most printing technology cannot represent more than a very small number of different tints of each ink. Screening places very small and carefully structured collections of areas of ink in such a way that the human eye is fooled into seeing additional tints from the intended viewing distance. Screen printing In screen printing ink is applied to a surface through a stencil held on a mesh attached to a frame. Smart factory Smart factories are designed to autonomously run the entire production process and this will include the print subsystems. Trapping A process to avoid unpleasant visible effects when the colour separations being printed are not perfectly aligned with each other (in register). It typically works by enlarging some objects slightly, and contracting others. Variable data processing or VDP Printing items where every instance varies at least slightly from the others, often with some graphics in common as well. Examples range from adding serial numbers to labels, through direct mail and variations designed to ensure that packaging has more shelf appeal. Waveform The way in which the voltage applied to an inkjet head is varied over time in order to deliver well-formed ink drops of the desired size and at the desired speed. Wide format Printing on devices with a width that’s usually more than 50cm, usually using inkjet and often related in some way to marketing or photo finishing, including banners, stickers, soft signage and sportswear. 162 163 Info Hybrid Software Group Strategic report Governance Financial statements Other information Hybrid Software Group PLC | Annual Report 2025 Country of incorporation: England and Wales Legal form: Public limited company Company number: 10872426 Directors - Guido Van der Schueren - Michael Rottenborn - Joachim Van Hemelen - Clare Findlay - Luc De Vos Secretary Peter Goodwin Auditors PKF Littlejohn LLP, 15 Westferry Circus, Canary Wharf, London E14 4HD Lawyers Mills & Reeve LLP, Botanic House, 100 Hills Road, Cambridge, CB2 1AR Share registrar MUFG Corporate Markets (UK) Ltd, 6th Floor, 65 Gresham Street, London, EC2V 7NQ Stock market: Euronext Brussels Stock ticker: HYSG Legal Entity Identifier (LEI): 213800ZFW446QIHAB654 Shares ISIN: GB00BYN5BY03 164 165