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Nordic Semiconductor Earnings Release 2025
3680_rns_2026-02-05_fcd4a86a-1ad8-4539-aaa0-14e068716548.pdf
Earnings Release
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Q4
& preliminary full year 2025 report
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Content
| 3 | Highlights |
|---|---|
| 4 | Key figures |
| 5 | Q4 and FY 2025 review |
| Operational review | |
| Financial results | |
| Financial position | |
| Cash flow | |
| 13 | Outlook |
| 15 | Condensed financial information |
| 19 | Notes to the condensed consolidated financial statements |
| 23 | Alternative performance measures |
| 26 | Cautionary note |
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Q4 Highlights
- Revenue of USD 170 million, up 13% from Q4 2024
- Gross margin of 55%, or 52% adjusted for reversal of write-down
- Reported EBITDA of USD 15 million, and adjusted EBITDA of USD 13 million
- Continuing to expand the nRF54 Series with breakthrough low-voltage SoC for next-generation healthcare wearables and first SoC integrating the Axon Neural Processing Unit (NPU) for edge AI
- nRF9151 modules certified on Skylo's satellite network - ensuring true global IoT coverage
Revenue
EBITDA
Gross margin
EBITDA margin
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Key figures
Q4 & FY2025 financial summary
| Q4 | Full year | |||||
|---|---|---|---|---|---|---|
| Amount in USD million | 2025 | 2024 | Change | 2025 | 2024 | Change |
| Revenue | 169.5 | 150.2 | 12.9% | 667.6 | 511.4 | 30.5% |
| Gross profit | 93.1 | 73.8 | 26.2% | 346.0 | 242.0 | 43.0% |
| Gross margin % | 54.9% | 49.1% | 5.8 p.p. | 51.8% | 47.3% | 4.5 p.p. |
| Adjusted gross profit | 88.2 | 73.8 | 19.5% | 341.1 | 252.0 | 35.4% |
| Adjusted gross margin % | 52.0% | 49.1% | 2.9 p.p. | 51.1% | 49.3% | 1.8 p.p. |
| EBITDA | 15.0 | 8.7 | 73.7% | 66.3 | -5.2 | NA |
| EBITDA % | 8.9% | 5.8% | 3.1 p.p. | 9.9% | -1.0% | 10.9 p.p. |
| Adjusted EBITDA | 12.7 | 11.9 | 7.2% | 66.5 | 8.0 | 735.6% |
| Adjusted EBITDA % | 7.5% | 7.9% | -0.4 p.p. | 10.0% | 1.6% | 8.4 p.p. |
| Operating profit (EBIT) | 1.6 | -1.7 | NA | 23.2 | -45.8 | NA |
| Operating profit % (EBIT) | 0.9% | -1.1% | 2.1 p.p. | 3.5% | -9.0% | 12.4 p.p. |
| Net profit after tax | 4.2 | -3.9 | NA | 16.4 | -38.5 | NA |
| Cash and cash equivalents | 307.4 | 287.9 | 6.8% | |||
| LTM Opex excluding depreciation / LTM revenue | 41.9% | 48.3% | -6.4 p.p. | |||
| Net working capital / LTM revenue | 21.8% | 34.1% | -12.2 p.p. | |||
| Equity ratio | 69.1% | 70.6% | -1.5 p.p. | |||
| Number of employees | 1431 | 1363 | 5.0% |
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Q4 & FY2025 review
Revenue amounted to USD 170 million in the fourth quarter of 2025, a 13% increase from the same quarter in 2024. Full-year revenue increased by 31% to USD 668 million. The revenue growth reflects that Nordic has retained a strong competitive position in a recovering Short-range market, built a gradually stronger position in both cellular and satellite within Longrange, and added Cloud services revenue with the strategic acquisition of Memfault.
Growth across all business units and customer areas
Nordic reported total revenue of USD 169.5 million in Q4 2025, which was an increase of 13% from USD 150.2 million in Q4 2024 and a sequential decline of 5% from Q3 2025.
Nordic reports on the revenue contribution from Short-range wireless components (Short-range), Long-range wireless components (Long-range), and Other. Short-range includes multiprotocol product including Bluetooth Low Energy, Thread, Zigbee, and Matter as well as proprietary products, whereas Longrange includes cellular products and Cloud services, including the recently acquired Memfault business. The Other category includes the early-stage businesses in PMIC and Wi-Fi as well as ASIC components and development tools.
Short-range revenue amounted to USD 158.3 million in Q4 2025, an increase of 13% year-on-year and down 5% from the previous quarter. Short-range's share of total revenue was hence 93% in Q4 2025, and the business area remains the main revenue driver.
The revenue level demonstrates the persisting competitive strength of Nordic's product portfolio in the nRF52 and nRF53 Series of Bluetooth Low Energy products. Revenue contribution from the new and groundbreaking nRF54 Series products was limited in 2025 and will start to contribute meaningfully to revenue from 2026 onwards. The nRF54 Series represents a significant leap in performance, processing power and energy-efficiency, and is set to become a key long-term growth driver for Nordic.
Nordic has broadened its offering in the nRF54 Series throughout the year, adding the low-voltage nRF54LV10A SoC to the portfolio in the fourth quarter. So far, Nordic has introduced seven different nRF54 Series SoCs, ranging from the high-end rRF54H20 and nRF54LM20A to the nRF54L05 for cost-constrained applications.
Long-range revenue amounted to USD 8.7 million in Q4 2025, representing an increase of 25% compared to the fourth quarter 2024, and a decline of 11% compared to the previous quarter. The year-on-year increase reflects higher demand on the back of the nRF9151 launch late 2024 with sales to a broader set of industrial verticals. The growth also reflects increasing Cloud services revenue after the acquisition of Memfault, which has performed in line with the expectations outlined in connection with the acquisition. Long-range's share of total revenue was 5% in Q4 2025.
Other revenue amounted to USD 2.5 million, representing a decrease from USD 3.0 million in the same quarter in 2024.
For the full year 2025, Short-range revenue increased 28% to USD 625.4 million. As earlier communicated the company expects the product renewal program to be a key growth driver, and revenue contribution from the new nRF54 Series is expected to increase going forward.
Long-range revenue doubled to USD 33.6 million in 2025, with the upcoming launch of the nRF92 expected to expand the addressable market and strengthen the competitive position further.
Other revenue increased by 21% to USD 8.7 million in 2025. This includes the early-stage businesses in PMIC and Wi-Fi, where commercial progress continues to depend on expansion of the product portfolios.
| Q4 | Full year | |||||
|---|---|---|---|---|---|---|
| Amounts in USD thousand |
2025 | 2024 | Change | 2025 | 2024 | Change |
| Short-range | 158 305 | 140 227 | 12.9% | 625 361 | 487 336 | 28.3% |
| Long-range | 8 722 | 6 954 | 25.4% | 33 602 | 16 951 | 98.2% |
| Other | 2 481 | 3 013 | -17.7% | 8 655 | 7 128 | 21.4% |
| Total | 169 509 | 150 195 | 12.9% | 667 619 | 511 415 | 30.5% |
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Revenue by end-user market
Nordic reports on the three end-user markets Consumer, Industrial and Healthcare, and Other.
Consumer revenue amounted to USD 100.0 million in Q4 2025, an increase of 4% from Q4 2024 and a decline of 10% from the previous quarter.
Industrial and Healthcare revenue amounted to USD 62.8 million in Q4 2025, representing an increase of 30% compared to Q4 2024 and a 1% increase from Q3 2025. Other revenue amounted to USD 6.1 million, representing a 36% increase compared to Q4 2024 and a 29% increase from the previous quarter.
Consumer share of revenue was 59% in Q4 2025, whereas Industrial and Healthcare accounted for 37%, and Other for 4% of revenue.
Design certifications
Based on data available from Bluetooth SIG, Nordic estimates that it had a 32% share of new Bluetooth SIG design certifications of Bluetooth Low Energy products both in Q4 and the full year 2025.
The total number of new Bluetooth LE designs certified by the Bluetooth SIG was 322 in the fourth quarter, of which 103 featured Nordic components. For the full year 2025 the total number amounted to 1,438, of which 460 with Nordic inside. These numbers continue to show Nordic as a clear market leader in terms of product certifications with 3-4 times as many certified designs featuring Nordic components as any competitor.
The product certifications with Nordic components still mainly reflect nRF52 Series and nRF53 Series products, with around 15% of the certified products in the fourth quarter built on nRF54 Series products.
Consumer Industrial and Healthcare
Other
| Q4 | Full year | |||||
|---|---|---|---|---|---|---|
| Revenues by end-product markets Amounts in USD thousand |
2025 | 2024 | Change | 2025 | 2024 | Change |
| Consumer | 100 013 | 96 585 | 3.5% | 400 303 | 349 560 | 14.5% |
| Industrial and healthcare | 62 779 | 48 183 | 30.3% | 244 490 | 146 812 | 66.5% |
| Other | 6 077 | 4 461 | 36.2% | 20 516 | 12 496 | 64.2% |
| Total revenue excl. ASIC | 168 869 | 149 228 | 13.2% | 665 309 | 508 868 | 30.7% |
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Accelerating momentum in cellular IoT, NTN and space connectivity
During the quarter, Nordic advanced its position in cellular IoT and non-terrestrial networks (NTN), reinforcing growing momentum in space-enabled IoT connectivity. Nordic achieved successful direct-to-LEO satellite transmissions using its nRF91 Series, while also launching NTN-ready software, a development kit (nRF9151 SMA DK), and certifications that lower the barrier for customers targeting satellite IoT at scale.
Nordic demonstrated and enabled connectivity across leading NTN satellite operators, including Iridium, Myriota, Sateliot, Skylo and OQ Technology, highlighting interoperability across different space network architectures. These milestones underline Nordic's role as a key technology enabler in the convergence of cellular, satellite, and space-based IoT, supporting use cases ranging from global asset tracking to remote and mission-critical deployments.
Strong commercial traction in cellular and long-range IoT
Across Q4, Nordic continued to see broad customer adoption of its cellular IoT platforms, with new design wins and commercial deployments. Innovations such as integrated SIM solutions that reduce complexity for customers, while expanding the ecosystem and licensing collaborations, further strengthened Nordic's competitive position. Combined, these activities illustrate increasing scale, customer momentum and ecosystem maturity within Nordic's long-range business.
Executing on short-range leadership with nRF54 Series
Nordic continued to deliver strongly on its core short-range strategy during the quarter, with growing activity around the nRF54 Series. Multiple customer products launched or entered production using nRF54L SoCs, reflecting adoption across consumer, industrial, wearable, and healthcare applications.
A newly announced smart ring based on nRF54L15 illustrated how the nRF54 Series architecture supports local edge processing, ultra-low-power operation, and advanced sensing in highly compact wearable designs, enabling long battery life without compromising performance or security.
Expanding the nRF54L Series with hardware and development tools
In Q4, Nordic expanded the nRF54 Series with the introduction of nRF54LV10A, extending the nRF54L Series with an ultra-compact, low-voltage Bluetooth LE SoC designed for the smallest and most power-constrained devices. Now available for development, nRF54LV10A delivers exceptional power efficiency and high integration, and can be powered directly by a single silver oxide coin cell, making it ideally suited for wearable biosensors, continuous glucose monitors and other medical and healthcare applications.
The launch further strengthens Nordic's leadership in ultra-low-power Bluetooth and expands the addressable market for the nRF54L Series into space-constrained, long-lifetime health and sensing devices.
Nordic also broadened developer access to the nRF54L Series by introducing new development options, including an evaluation board combining the nRF54L Series with the nRF7002 Wi-Fi companion IC. The nRF7002 EBII plug-in board adds Wi-Fi 6 capabilities to the nRF54L Series DK, enabling developers to create high performance, energy-efficient Wi-Fi 6-enabled IoT solutions.
Simplifying edge AI for billions of IoT devices
At the beginning of January 2026, Nordic announced a complete ultra-low-power edge AI solution - including industry-leading hardware, software (models), and tools - bringing on-device intelligence to billions of small, battery-powered devices. The new nRF54LM20B SoC provides the hardware foundation with an integrated NPU based on technology from Nordic's 2023 Atlazo acquisition, enabling AI tasks to run in milliseconds while consuming dramatically less energy than competing solutions.
Nordic's industry-leading Neuton models - originating from the company's 2025 Neuton.AI acquisition - add ultra-tiny, ready-to-use AI that enables practical use cases like gesture, sound, and anomaly detection, up to 10 times faster and more efficient than other CPU‑run models. The Nordic Edge AI Lab ties it all together by allowing developers to easily create, test, and deploy these models on all Nordic ultra-low-power SoCs and SiPs, making advanced ultra-low-power edge AI both accessible and scalable.
With this ultra-low-power edge AI solution, Nordic establishes a clear presence in the edge AI market, enabling local, on-device AI processing in energy-constrained IoT products where cloud-based intelligence is impractical.
Nordic expects to continue expanding the nRF54 Series with additional devices that further broaden the addressable market for battery-powered, intelligent edge applications in the quarters and years to come.
Advancing Bluetooth innovation with Channel Sounding and Auracast
Nordic continued to lead Bluetooth innovation during the quarter with active work on Bluetooth Channel Sounding, an important emerging capability enabling high-accuracy distance measurement and secure ranging. This combination of nRF54 Series hardware with Android devices, underscores readiness for next-generation applications in access control, asset tracking, consumer electronics and industrial automation.
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In audio, Nordic further demonstrated Auracast™-enabled solutions, supporting new broadcast audio use cases and reinforcing its position in advanced Bluetooth audio systems.
Enabling connected health and multi-technology solutions
Q4 also highlighted Nordic's growing presence in connected health, with customer solutions combining short-range, cellular connectivity, and power management to support continuous monitoring in non-critical care settings. These designs emphasize Nordic's strength as a complete wireless solution partner, enabling customers to integrate multiple Nordic technologies within a single product architecture.
The growing strategic importance of nRF Cloud and software
Nordic continued to strengthen its chip-to-cloud strategy with nRF Cloud playing an increasingly central role. The platform received industry recognition during the quarter, validating its value in supporting device management, diagnostics, and lifecycle services at scale.
Beyond awards, nRF Cloud enhances Nordic's ability to deliver differentiated software and services alongside its hardware portfolio, supporting customers as they move from development to deployment and reinforcing long-term engagement across the product lifecycle. Importantly, nRF Cloud also addresses rising software complexity and regulatory requirements associated with securely deployed, remotely managed connected devices. As customers face increasing demands related to security, device identity, lifecycle management and compliance, Nordic's nRF Cloud and software capabilities help reduce time-to-market, mitigate operational risk and enable scalable deployment of connected products.
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Financial results
| Q4 | Full year | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Amounts in USD thousand | 2025 | 2024 | Change | 2025 | 2024 | Change | |||
| Gross profit | 93 127 | 73 789 | 26.2% | 346 025 | 241 969 | 43.0% | |||
| Gross margin % | 54.9% | 49.1% | 5.8 p.p. | 51.8% | 47.3% | 4.5 p.p. | |||
| Adjusted gross margin % | 52.0% | 49.1% | 2.9 p.p. | 51.1% | 49.3% | 1.8 p.p. | |||
| Operating expenses excl. depreciation and amortization | 78 082 | 65 124 | 19.9% | 279 775 | 247 201 | 13.2% | |||
| EBITDA | 15 045 | 8 664 | 73.7% | 66 250 | -5 233 | NA | |||
| EBITDA % | 8.9% | 5.8% | 3.1 p.p. | 9.9% | -1.0% | 10.9 p.p. | |||
| Adjusted EBITDA % | 7.5% | 7.9% | -0.4 p.p. | 10.0% | 1.6% | 8.4 p.p. | |||
| Depreciation, amortization and impairment | 13 441 | 10 377 | 29.5% | 43 059 | 40 573 | 6.1% | |||
| EBIT | 1 605 | -1 712 | NA | 23 191 | -45 806 | NA |
Gross profit
Gross profit was USD 93.1 million in Q4 2025, up from USD 73.8 million in Q4 2024. The reported gross margin increased to 54.9% from 49.1%. Reported gross margin included a partial reversal of a write-down of Cellular products made in Q2 2024, which had a positive effect of USD 5 million in the quarter. Adjusted for reversal of the write-down, the gross margin was 52.0%, reflecting a 2.9 percentage point improvement over the fourth quarter 2024. This improvement was primarily driven by changes in customer and product mix, higher sales in the broad market, and positive contribution from cloud services revenue after the Memfault acquisition.
For the full year 2025 gross profit amounted to USD 346.0 million, an increase of 43.0% from USD 242.0 in 2024. Gross margin for the full year 2025 increased to 51.8% from 47.3% in 2024. Adjusted for the partial reversal of the inventory write-down, gross margin was 51.1% for the full year 2025, whereas the gross margin for the full year 2024 was 49.3% adjusted for the inventory write-down.
Operating expenses
Operating expenses excluding depreciation and amortization amounted to USD 78.1 million in Q4 2025, up from USD 65.1 million in Q4 2024. Nordic is exposed to currency fluctuations, mainly in NOK, EUR and USD. Compared to previous year changes in these exchange rates increased quarterly operating expenses by approximately USD 3.7 million.
Total cash operating expenses were USD 79.7 million in Q4 2025, compared to USD 70.4 million in Q4 2024. Cash operating expenses are calculated by adding back capitalized development expenses and deducting depreciation and equity-based compensation from total operating expenses.
The increase in cash operating expenses mainly reflect payroll expenses, which increased to USD 53.6 million from USD 46.1 million in Q4 2024. Of the increase, approximately USD 2 million relates to net salary adjustments and around USD 4 million relates to Memfault and Neuton AI. The remaining increase is driven by higher bonus accruals in 2025. In addition, the
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increase reflects the impact of a weaker USD, partially offset by restructuring costs in the prior year.
The total number of Nordic employees at the end of Q4 2025 was 1 431, including 59 employees that joined through the acquisitions of Neuton and Memfault. This corresponds to an organic increase of 1% and a total increase of 5% compared to end of 2024.
Other cash operating expenses amounted to USD 26.1 million in Q4 2025, up from USD 24.3 million in Q4 2024.
In Q4 2025, R&D costs amounted to USD 49.8 million, up from USD 40.2 million in Q4 2024. Of this, USD 30.3 million was related to the Short-range business, USD 16.1 million to Long-range, and USD 3.4 million to Wi-Fi. Nordic capitalized a total of USD 6.0 million in development expenses in Q4 2025, compared to USD 7.2 million in Q4 2024.
The reduced capitalization of development costs in Q4 2025 reflects lower allocation of resources to projects in development phases where capitalization is applicable. This will fluctuate depending on project timing and the composition of the R&D portfolio.
For the full year 2025, operating expenses excluding depreciation and amortization amounted to USD 279.8 million, up from USD 247.2 in 2024. Total cash operating expenses increased to USD 278.8 million from USD 254.9 million in 2024.
Profit
EBITDA was USD 15.0 million in Q4 2025, compared to USD 8.7 million in Q4 2024. Adjusted EBITDA was USD 12.7 million in Q4 2025. The adjustment reflects that a portion of the consideration for the acquisition of Memfault is in the form of a share-based remuneration program to retain key employees over a three-year period. This portion of the total consideration is being expensed over the length of the program rather than capitalized as an investment. In addition, adjustments have been made for the reversal of previously written down inventory.
For the full year 2025, EBITDA was USD 66.3 million, a significant improvement from a negative USD 5.2 million in 2024. Adjusted EBITDA improved to USD 66.5 million from USD 8.0 million in 2024.
Depreciation, amortization and impairment increased to USD 13.4 million in Q4 2025, compared to USD 10.4 million in Q4 2024. The increase was partially driven by a USD 2.0 million write-down of a previously capitalized R&D project.
Reported operating profit (EBIT) was USD 1.6 million in Q4 2025, compared to USD 1.7 million in Q4 2024. For the full year of 2025 EBIT was USD 23.2 million, compared to negative USD 45.8 million in 2024.
Net financial items amounted to a loss USD 1.8 million in Q4 2025, compared to a gain of USD 1.7 million in Q4 2024.
Reported loss before tax was USD 0.2 million in Q4 2025, compared to USD 0.1 million in Q4 2024. Tax income in Q4 2025 was USD 4.4 million, compared to a tax expense of USD 3.8 million in Q4 2024. The reported net profit was hence USD 4.2 million in Q4 2025, compared to a net loss of USD 3.9 million in Q4 2024.
For the full year 2025, the profit before tax was USD 12.6 million compared to a loss before tax of USD 43.2 million in 2024, whereas the reported net profit was USD 16.4 million compared to a net loss of USD 38.5 million in the previous year.
The parent company's statutory tax rate is 22%. The company presents its accounts in USD, with the parent company's profits translated into NOK for taxation purposes. The tax income in Q4 2025 and for the full year 2025 is mainly due to currency losses from translating the accounts into NOK.
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Financial position
| Amounts in USD thousand | 31.12.2025 | 31.12.2024 |
|---|---|---|
| Capitalized development expenses | 52 903 | 50 076 |
| Total non-current assets | 400 521 | 253 444 |
| Inventory | 154 994 | 171 907 |
| Cash and cash equivalents | 307 402 | 287 914 |
| Total current assets | 582 840 | 553 262 |
| Total assets | 983 361 | 806 706 |
| Total equity | 679 587 | 569 766 |
| Equity percentage | 69.1% | 70.6% |
| Total liabilities | 303 773 | 236 940 |
| Total equity and liability | 983 361 | 806 706 |
Total shareholders' equity amounted to USD 679.6 million at the end of Q4 2025, up from USD 569.8 million at the end of 2024. The increase mainly reflects a share issue in which the company raised gross proceeds of USD 105 million.
The Group's equity ratio was 69.1% of a total asset base of USD 983.4 million.
Cash and cash equivalents amounted to USD 307.4 million at the end of 2025, compared to USD 287.9 million at the end of 2024.
Net working capital was USD 145.7 million at the end of Q4 2025, down from USD 174.2 million at the end of Q4 2024. Measured as a percentage of last 12 months revenue, net working capital decreased to 21.8% from 34.1% at the end of Q4 2024.
Inventory at the end of Q4 2025 decreased to USD 155.0 million from USD 171.9 million at the end of Q4 2024.
Accounts receivable increased to USD 93.5 million at the end of Q4 2025 from USD 66.4 million at the end of Q4 2024, reflecting higher revenue. Accounts payable increased by USD 17.3 million to USD 41.3 million.
Total current assets amounted to USD 582.8 million at the end of Q4 2025, up from USD 553.3 million at the end of Q4 2024.
Non-current assets amounted to USD 400.5 million at the end of Q4 2025, compared to USD 253.4 million at the end of Q4 2024. The increase is primarily attributable to the acquisition of Memfault and the recognition of goodwill and identifiable intangible assets as part of the purchase price allocation (see note 10 for further details).
Current liabilities amounted to USD 145.4 million at the end of Q4 2025, compared to USD 103.1 million at the end of Q4 2024. Non-current liabilities amounted to USD 158.4 million, compared to USD 133.9 million at the end of Q4 2024. Non-current liabilities include a NOK 1.0 billion bond, with an outstanding balance of USD 99.0 million, and lease liabilities.
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Cash flow
| Q4 | Full year | |||
|---|---|---|---|---|
| Amounts in USD thousand | 2025 | 2024 | 2025 | 2024 |
| Cash flows from operations | 13 634 | 49 166 | 115 696 | 60 351 |
| Cash flows from investing activities | -10 985 | -10 620 | -162 340 | -29 584 |
| Cash flows from financing activities | -5 306 | -4 779 | 51 056 | -23 159 |
| Change in cash and cash equivalents | -1 508 | 27 064 | 19 488 | -3 042 |
| Cash and cash equivalents at the end of the period | 307 402 | 287 914 | 307 402 | 287 914 |
Cash flow from operating activities was USD 13.6 million in Q4 2025, compared to USD 49.2 million in Q4 2024. Operating cash flow in Q4 2025 was weaker due to a working capital reduction in Q4 2024, while Q4 2025 saw a modest increase in net working capital.
Cash outflow from investing activities amounted to USD 11.0 million in Q4 2025, compared to USD 10.6 million in Q4 2024. Cash outflows within investing activities included capital expenditures of USD 5.0 million, up from USD 3.5 million in the same quarter last yea, due to investments in production testers, and capitalized development expenses of USD 6.0 million, down from USD 7.2 million in Q4 2024.
Cash flows from financing activities resulted in an outflow of USD 5.3 million, compared to an outflow of USD 4.8 million in Q4 2024.
Funding
The Group's cash position was USD 307.4 million at the end of Q4 2025, compared to USD 287.9 million at the end of 2024. The cash is mainly kept in the Group's functional currency USD to minimize the impact of currency fluctuations.
In November 2023, Nordic issued a five year bond of NOK 1 billion. The bond is denominated in NOK and a comparable cash and cash equivalent amount is held in this currency to offset currency effects. The currency effect of cash and bond is offset in Net foreign exchange gains (losses) in the P&L. The change in the NOK cash position due to fluctuations in NOK/USD exchange rate is included in the line "Effects of exchange rate changes on cash and cash equivalents" in the cash flow statement, whereas the counterbalancing currency effect will be realized at the future bond settlement, ultimately resulting in a net-zero impact on the maturity date.
Available cash, including overdraft facilities and Nordic's revolving credit facility (RCF), amounted to USD 507 million at the end of Q4 2025. In November 2025, Nordic entered into a new USD 200 million RCF, replacing the previous facility expiring in June 2026. The new RCF, which remains unutilized, matures in January 2029, with an option to extend.
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Outlook
Nordic Semiconductor reported revenue of USD 170 million in the fourth quarter 2025 and USD 668 million for the full year 2025, representing year-on-year growth of 13% and 31%, respectively.
The figures reflect that Nordic has maintained a strong competitive position among both large key customers and the broad market in a recovering market.
Based on current customer orders, forecasts and acquired business, Nordic expects revenue for the first quarter 2026 of USD 175-195 million.
Gross margin was 55% in the fourth quarter 2025 and 52% adjusted for the reversal of an inventory write-down of long-range products. The gross margin is expected above 50% in the first quarter 2026, and Nordic also reiterates its long-term ambition to maintain a gross margin level above 50%.
The revenue and margin developments through 2025 support the long-term financial ambitions presented in 2024; to deliver average annual revenue growth above 20% from 2024 through the end of the decade and to move towards the target operating model profitability level of ~25% EBITDA margin.
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Anita Huun Dieter May Inger Berg Ørstavik
Dr. Helmut Gassel Vegard Wollan Annastiina Hintsa
Board member Chief Executive Officer
Jon Helge Nistad Anja Dekens Monika Lie Larsen
Oslo, February 4, 2026
Board member, employee Board member, employee Board member, employee
Board member, Audit C. Chair Board Chair Board member, Sustainability Com. Chair
Board member, People and Compensation Com. Chair
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Condensed financial information
Income statement
| Q4 | Full year | ||||
|---|---|---|---|---|---|
| Amounts USD thousand | Note | 2025 | 2024 | 2025 | 2024 |
| Total revenue | 4 | 169 509 | 150 195 | 667 619 | 511 415 |
| Cost of materials | -75 158 | -76 406 | -320 058 | -269 446 | |
| Direct project costs | -1 223 | — | -1 536 | — | |
| Gross profit | 93 127 | 73 789 | 346 025 | 241 969 | |
| Payroll expenses | -53 063 | -43 749 | -194 007 | -170 321 | |
| Other operating expenses | -25 019 | -21 376 | -85 768 | -76 880 | |
| EBITDA | 15 045 | 8 664 | 66 250 | -5 233 | |
| Depreciation, amortization and impairments | 6 | -13 441 | -10 377 | -43 059 | -40 573 |
| Operating Profit | 1 605 | -1 712 | 23 191 | -45 806 | |
| Share of profit from associates | — | -28 | -355 | -260 | |
| Net interest income | -690 | -729 | -3 252 | -942 | |
| Net foreign exchange gains (losses) | -1 117 | 2 389 | -6 939 | 3 819 | |
| Profit before tax | -202 | -80 | 12 645 | -43 189 | |
| Income tax expense | 4 449 | -3 815 | 3 740 | 4 685 | |
| Net profit after tax | 4 247 | -3 895 | 16 385 | -38 504 | |
| Earnings per share | |||||
| Ordinary earning per share (USD) | 0.021 | -0.020 | 0.085 | -0.200 | |
| Fully diluted earning per share (USD) | 0.021 | -0.020 | 0.083 | -0.198 | |
| Weighted average number of shares | |||||
| Basic | 198 284 | 192 261 | 193 411 | 192 196 | |
| Fully diluted | 201 675 | 195 126 | 196 567 | 194 717 | |
| Net profit after tax | 4 247 | -3 895 | 16 385 | -38 504 | |
| Other comprehensive income not to be reclassified to profit or loss in subsequent periods: |
|||||
| Actuarial gains (losses) on defined benefit plans (before tax) | 14 | -105 | 14 | -132 | |
| Income tax effect | -3 | 23 | -3 | 29 | |
| Other comprehensive income that may be reclassified to profit or loss in subsequent periods: |
|||||
| Currency translation differences | -1 266 | -2 241 | 3 549 | -1 914 | |
| Total comprehensive income | 2 992 | -6 218 | 19 945 | -40 521 |
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Consolidated statement of financial position
| Amounts USD thousand | Note | 31.12.25 | 31.12.24 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 10 | 101 310 | 10 880 |
| Capitalized development expenses | 5/6 | 52 903 | 50 076 |
| Software and other intangible assets | 5/6 | 54 103 | 13 762 |
| Deferred tax assets | 23 031 | 13 097 | |
| Fixed assets | 6 | 28 805 | 21 955 |
| Right-of-use assets | 6 | 49 660 | 52 358 |
| Investments in joint ventures | — | 177 | |
| Other long term assets | 90 711 | 91 140 | |
| Total non-current assets | 400 521 | 253 444 | |
| Current assets | |||
| Inventory | 154 994 | 171 907 | |
| Accounts receivable | 93 488 | 66 412 | |
| Other current receivables | 26 957 | 27 029 | |
| Cash and cash equivalents | 307 402 | 287 914 | |
| Total current assets | 582 840 | 553 262 | |
| Total assets | 983 361 | 806 706 | |
| EQUITY | |||
| Share capital | 324 | 317 | |
| Treasury shares | -2 | -1 | |
| Share premium | 338 897 | 235 448 | |
| Other equity | 340 368 | 334 001 | |
| Total equity | 679 587 | 569 766 | |
| LIABILITIES | |||
| Non-current liabilities | |||
| Pension liability | 945 | 765 | |
| Borrowings | 7 | 98 377 | 87 336 |
| Deferred tax | 8 217 | — | |
| Non-current lease liabilities | 50 813 | 45 752 | |
| Total non-current liabilities | 158 353 | 133 853 | |
| Current liabilities | |||
| Accounts payable | 41 253 | 23 918 | |
| Income taxes payable | 2 567 | 1 799 | |
| Public duties | 6 737 | 6 024 | |
| Current lease liabilities | 12 408 | 10 360 | |
| Other current liabilities | 82 456 | 60 985 | |
| Total current liabilities | 145 420 | 103 087 | |
| Total liabilities | 303 773 | 236 940 | |
| Total equity and liability | 983 361 | 806 706 |
{16}------------------------------------------------
Consolidated statement of changes in equity
| Amount in USD thousand | Share capital |
Treasury shares |
Share premium |
Other paid in capital |
Currency translation reserve |
Retained earnings |
Total equity |
|---|---|---|---|---|---|---|---|
| Equity as of 1.1.25 | 317 | -1 | 235 448 | 27 180 | -2 204 | 309 027 | 569 766 |
| Net profit for the period | 16 385 | 16 385 | |||||
| Other comprehensive income | 3 549 | 11 | 3 560 | ||||
| Share based compensation | 1 | 16 626 | 16 627 | ||||
| Repurchase of own shares | -2 | -30 205 | -30 207 | ||||
| Capital increase | 7 | 103 449 | 103 456 | ||||
| Equity as of 31.12.25 | 324 | -2 | 338 897 | 43 806 | 1 345 | 295 218 | 679 587 |
| Equity as of 1.1.24 | 317 | -1 | 235 448 | 15 160 | -290 | 351 442 | 602 077 |
| Net profit for the period | -38 504 | -38 504 | |||||
| Other comprehensive income | -1 914 | -103 | -2 017 | ||||
| Share based compensation | 0 | 11 661 | 11 661 | ||||
| Consideration shares in business combination |
0 | 359 | 359 | ||||
| Repurchase of own shares | 0 | -3 808 | -3 808 | ||||
| Equity as of 31.12.24 | 317 | -1 | 235 448 | 27 180 | -2 204 | 309 027 | 569 766 |
Share issue completed in Q3 2025 raised gross proceeds of NOK 1,050 million (approximately USD 105 million). Transaction costs of USD 1.8m net of tax were deducted from the share premium.
{17}------------------------------------------------
Statement of cash flows
| Q4 | Full year | ||||
|---|---|---|---|---|---|
| Amount in USD thousand | Note | 2025 | 2024 | 2025 | 2024 |
| Cash flows from operating activities | |||||
| Profit before tax | -202 | -80 | 12 645 | -43 189 | |
| Taxes paid for the period | -504 | -1 755 | -3 589 | -7 827 | |
| Depreciation, amortization and impairments | 6 | 13 441 | 10 377 | 43 059 | 40 573 |
| Net interest | 690 | 729 | 3 252 | 942 | |
| Interest received | 2 391 | 2 232 | 10 309 | 11 176 | |
| Change in inventories, trade receivables and payables | -10 412 | 45 685 | 7 124 | 69 808 | |
| Share-based compensation | 4 389 | 1 836 | 16 626 | 11 661 | |
| Other operations related adjustments | 3 839 | -9 856 | 26 269 | -22 794 | |
| Net cash flows from operating activities | 13 634 | 49 166 | 115 696 | 60 351 | |
| Cash flows used in investing activities | |||||
| Capital expenditures (including software) | 6 | -5 009 | -3 457 | -40 849 | -9 809 |
| Capitalized development expenses | 6 | -5 976 | -7 162 | -15 628 | -19 343 |
| Investment in associate company | — | — | -518 | -431 | |
| Business Combination, net of cash acquired | — | — | -105 345 | — | |
| Net cash flows used in investing activities | -10 985 | -10 620 | -162 340 | -29 584 | |
| Cash flows from financing activities | |||||
| Repurchase of treasury shares | — | — | -30 205 | -3 808 | |
| Capital increase | — | — | 102 941 | — | |
| Proceeds from bridge loan | — | — | 100 000 | — | |
| Repayment of bridge loan | — | — | -100 000 | — | |
| Payment of interest | -1 823 | -1 782 | -8 503 | -7 353 | |
| Payment of principal portion of lease liabilities | -2 381 | -1 856 | -8 526 | -7 322 | |
| Payment of interest portion of lease liabilities | -948 | -911 | -3 798 | -3 556 | |
| Credit facility fee | -154 | -230 | -853 | -1 120 | |
| Net cash flows from financing activities | -5 306 | -4 779 | 51 056 | -23 159 | |
| Effects of exchange rate changes on cash and cash equivalents |
1 149 | -6 702 | 15 075 | -10 650 | |
| Net change in cash and cash equivalents | -1 508 | 27 064 | 19 488 | -3 042 | |
| Cash and cash equivalents beginning of period | 308 910 | 260 850 | 287 914 | 290 957 | |
| Cash and cash equivalents at end of period | 307 402 | 287 914 | 307 402 | 287 914 |
{18}------------------------------------------------
Notes
Note 1: General
The Board of Directors approved the condensed fourth quarter interim financial statements for the three months ended December 31, 2025 for publication on February 4, 2026.
Nordic Semiconductor is a global leader in low power wireless solutions, providing a complete platform of hardware, software, development tools, and cloud services that simplify and accelerate connected product development and ensure reliable performance throughout their lifecycle. Founded in 1983 and headquartered in Norway, Nordic employs around 1,400 people worldwide. After pioneering Bluetooth LE, Nordic has driven the expansion of wireless IoT with cellular IoT, Wi-Fi, Matter, Thread, Zigbee, DECT NR+, and satellite connectivity – powering the next wave of connected innovation. In 2025, Nordic strengthened its chip-tocloud offering through the acquisition of Memfault, adding advanced device monitoring and cloud-based observability. Nordic's technologies enable secure, scalable, and energy-efficient solutions across consumer, healthcare, and industrial markets, supporting the growth of a smarter, more connected world.
Nordic Semiconductor ASA is listed on the Oslo Stock Exchange under the ticker NOD, and is a public limited liability company registered in Norway. The parent company's head office is located at Otto Nielsens veg 12, 7052 Trondheim.
Note 2: Confirmation of the financial framework
The Group financial statements for Nordic Semiconductor ASA and its wholly owned subsidiaries, together called "The Group" have been prepared in accordance with IAS 34 Interim Financial Statements. The interim financial statements for Q4 2025 do not include all the information required for the full year financial statements and shall be read in conjunction with the Group Annual Accounts for 2024.
The financial statements are presented in thousand USD, unless otherwise stated. As a result of rounding adjustments, the figures in one or more rows or columns included in the financial statements may not add up to the total of that row or column.
In the interim financial statements for 2025, judgments, estimates and assumptions have been applied that may affect the use of accounting principles, book values of assets and liabilities, revenues and expenses. Actual values may differ from these estimates. The major assumptions applied in the interim financial statements for 2025 and the major sources of uncertainty in the statements are similar to those found in the Financial Statements for 2024.
Note 3: Significant accounting principles
Significant accounting principles are described in the Group Financial Statement for 2024. The group accounts for 2024 were prepared in accordance with International Financial Reporting Standards (IFRS), relevant interpretations of this, as well as additional Norwegian disclosure requirements described in the Norwegian GAAP and the Norwegian Securities Trading Act.
The same accounting principles and methods of calculation have been applied as in the Financial Statements for 2024 for the Group.
Note 4: Segment information
In accordance with IFRS 8, the Group has only one business segment, which is the design and sale of integrated circuits and related solutions.
The Group classifies its revenues into the following technology categories: Short-range wireless components, Long-range (cellular IoT), and other, which includes, among other products and services, revenues from Wi-Fi and PMIC.
Within Wireless components, the Group reports its revenues based on the markets to which its components communicate. These include: Consumer, Industrial and Healthcare, and Other.
Note 5: Intangible assets
The Group recognizes intangible assets in the balance sheet if it is likely that the expected future economic benefits attributable to the asset will accrue to the Group and the assets acquisition cost can be measured reliably.
Costs associated with development are capitalized if the following criteria are met in full:
- The product or the process is clearly defined and the cost elements can be identified and measured reliably;
- The technical feasibility is demonstrated;
- The product or the process will be sold or used in the business;
- The asset will generate future financial benefits;
- Sufficient technical, financial and other resources for project completion are in place.
Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and
{19}------------------------------------------------
the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption
of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates.
Note 6: Capitalization, depreciation and amortization
| Amount in USD thousand | Q4 | Full year | ||
|---|---|---|---|---|
| Specification of capital expenditures, balance sheet | 2025 | 2024 | 2025 | 2024 |
| Capitalized development expenses (payroll expenses) | 4 878 | 4 198 | 10 571 | 13 700 |
| Capitalized acquired development expenses | 1 099 | 2 964 | 5 057 | 5 643 |
| Capital expenditures (including software)* | 5 009 | 3 457 | 40 849 | 9 809 |
| Right-of-use assets (non-cash) | 2 581 | 434 | 6 086 | 8 040 |
| Acquisition (net) | — | — | 117 883 | — |
| Investment in associate company | — | — | 518 | 431 |
| Currency adjustments | 11 | -431 | 362 | -677 |
| Total | 13 578 | 10 622 | 181 326 | 36 947 |
| Depreciation, amortization and impairments | ||||
| Capitalized development expenses | 1 151 | 1 357 | 8 794 | 8 205 |
| Software | 2 587 | 1 697 | 7 982 | 7 203 |
| Intangible assets | 345 | — | 690 | — |
| Fixed assets | 5 176 | 3 794 | 14 806 | 14 382 |
| Impairment of capitalized development expenses | 2 003 | — | 2 003 | — |
| Impairment software | — | — | — | 431 |
| Right-of-use assets | 2 178 | 2 211 | 8 784 | 9 034 |
| Impairment right-of-use assets | — | 1 318 | — | 1 318 |
| Total | 13 441 | 10 377 | 43 059 | 40 573 |
*Including the purchase of IP and core technology assets from Neuton.AI
The Group recognized goodwill and other intangible assets in Q3 2025 in connection with the acquisition of Memfault (see note 10 for further details). The intangible assets comprise technology with an estimated useful life of 15.5 years, customer relationships with an estimated useful life of 10.5 years, and a brand assessed as having an indefinite useful life.
At each reporting date the group evaluates whether there is an indication of impairment by reference to internal and external factors.
Note 7: Net interest-bearing debt
The Group has a bond of NOK 1 billion with an interest of NIBOR + 3%. The maturity date of the bond is November 28, 2028. In the event that Nordic loses its Investment Grade Rating, the margin will rise by one percent until the Group regains the Investment Grade Rating. The Group must uphold an equity ratio of 40% in case Nordic loses the Investment Grade Rating.
The Group has a revolving credit facility, which enables it to borrow up to USD 200 million with an interest rate equal to SOFR + margin. The facility matures in January 2029. As of December 31, 2025, the Group had not drawn on the credit facility. The facility includes an uncommitted accordion option of up to USD 100 million, subject to lender approval. Security for the credit facility is provided by inventory, receivables and operating equipment.
The following financial covenants apply for the revolving credit facility: Equity ratio shall not be lower than 40%.
{20}------------------------------------------------
Note 8: RSU and performance shares
Nordic has an Long-term Incentive (LTI) plan for all employees, which include Restricted Stock Units (RSUs) and Performance Shares (PSUs). The executive management team's LTI plan is split into two parts, where 40% is composed of RSUs and the remaining 60% is given as PSUs.
With reference to the Annual general meeting held on May 5, 2025, Nordic Semiconductor, on May 13, 2025, granted 1,111,262 RSUs and PSUs to employees, including the executive management team. On July 9, 2025, an additional 402,000 RSUs were granted to employees of newly acquired Memfault Inc. as part of retention agreement. In total, 1,513,262 RSUs and Performance shares have been granted in 2025, an equivalent to 0.78% of the company's outstanding share capital. The Annual General Meeting of Nordic Semiconductor ASA approved the issue of RSUs and PSUs of an aggregate nominal value of up to 1% of the company's outstanding share capital.
| Full year | |||
|---|---|---|---|
| 2025 | 2024 | ||
| Outstanding RSUs beginning of period | 1 921 826 | 1 404 565 | |
| Granted | 1 425 918 | 1 355 419 | |
| Forfeited | 312 495 | 462 508 | |
| Released | 1 066 956 | 375 650 | |
| Outstanding end of period | 1 968 293 | 1 921 826 |
| Full year | |||
|---|---|---|---|
| 2025 | 2024 | ||
| Outstanding performance shares beginning of period | 355 789 | 77 357 | |
| Granted | 87 344 | 516 983 | |
| Forfeited | 2 872 | 69 431 | |
| Performance adjusted | -10 929 | -169 120 | |
| Released | 258 626 | — | |
| Outstanding end of period | 170 706 | 355 789 |
Note 9: Financial risk
Nordic is exposed to several risks, including currency risk, interest rate risk, liquidity risk and credit risk. For a detailed description of these risks and how the Group manages these risks, please see the annual report for 2024.
Note 10: Business combination
On July 1, 2025, Nordic Semiconductor completed the acquisition of 100% of the shares in Memfault Inc. The acquisition aligns with Nordic's growth strategy, accelerating its position as the first semiconductor company to offer a complete chip-to-cloud platform that combines world-class hardware, software, and chip-to-cloud services.
In line with the stock exchange announcement, the shareholders of Memfault were offered USD 120 million on a cashand debt-free basis. The total consideration recognized under IFRS 3 amounted to USD 111.9 million. The difference relates to a share-based remuneration arrangement for the three founders of the company, conditional upon their continued employment with Nordic Semiconductor for a period of three years following the acquisition. The USD 13.3 million in equity-based payments vest in three tranches and are released annually over the next three years. The consideration consists of:
| Amounts USD thousand | Value |
|---|---|
| Details of the business combination | |
| Amount settled in cash | 111 926 |
| Total consideration | 111 926 |
{21}------------------------------------------------
The assets and liabilities recognized as a result of the acquisition are as follows:
| Amounts USD thousand | Value |
|---|---|
| Recognized amounts of identifiable assets | |
| Customer relationships | 4 800 |
| Brand | 8 400 |
| Technology | 14 300 |
| Fixed assets | 11 |
| Accounts receivable | 541 |
| Other current receivables | 511 |
| Cash and cash equivalents | 6 581 |
| Total assets | 35 144 |
| Recognized amounts of identifiable liabilities | |
| Deferred tax liabilities | 8 195 |
| Accounts payable | 179 |
| Income taxes payable | 58 |
| Public duties | 5 |
| Other current liabilities | 5 153 |
| Total liabilities | 13 590 |
| Net identifiable assets and liabilities at fair value | 21 554 |
| Goodwill | 90 372 |
| Total | 111 926 |
The goodwill is attributable to expected synergies arising from customer and market retention, an enhanced market position, cross-selling opportunities, and the assembled workforce. Goodwill is not deductible for tax purposes. Acquisition-related transaction costs of USD 2 million were expensed in Q2 2025.
The purchase price allocation is preliminary and may be subject to change as the fair value assessment of identifiable assets and liabilities is finalized.
Note 11: Events after the balance sheet
Since December 31, 2025, no significant events have taken place that would affect the assessment of the provided accounts.
Financial Calendar 2026:
- March 24, 2026 Annual Report 2025
- April 28, 2026 1st Quarter 2026
- August 6, 2026 2nd Quarter & half-year 2026
- October 22, 2026 3rd Quarter 2026
- February 5, 2027 4th Quarter 2026
For further information, please contact:
- Ståle Ytterdal, IR, +47 930 37 430
- Pål Elstad, CFO, +47 991 66 293
{22}------------------------------------------------
Alternative performance measures
The financial information is prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by EU. Additionally, it is management's intent to provide alternative performance measures (APM) that are regularly reviewed by management to enhance the understanding of the Group's performance.
The Group has identified the following APMs used in reporting (amount in USD million): Gross margin is presented as it is the main financial KPI to measure the Group's operational performance.
■ Gross margin. Gross profit divided by Total revenue.
| Q4 | Full year | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Gross profit | 93.1 | 73.8 | 346.0 | 242.0 |
| Total revenue | 169.5 | 150.2 | 667.6 | 511.4 |
| Gross margin | 54.9% | 49.1% | 51.8% | 47.3% |
EBITDA terms are presented as they are commonly used by investors and financial analysts.
■ EBITDA. Earnings before interest, taxes, depreciation and amortization.
| Q4 | Full year | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Operating Profit | 1.6 | -1.7 | 23.2 | -45.8 |
| Depreciation, amortization and impairments | 13.4 | 10.4 | 43.1 | 40.6 |
| EBITDA | 15.0 | 8.7 | 66.3 | -5.2 |
■ EBITDA margin. EBITDA divided by Total Revenue.
| Q4 | Full year | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| EBITDA | 15.0 | 8.7 | 66.3 | -5.2 |
| Total revenue | 169.5 | 150.2 | 667.6 | 511.4 |
| EBITDA margin | 8.9% | 5.8% | 9.9% | -1.0% |
{23}------------------------------------------------
■ Total Operating Expenses. Sum of payroll expenses, other operating expenses, depreciation and amortization.
| Q4 | Full year | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Payroll expenses | 53.1 | 43.7 | 194.0 | 170.3 |
| Other operating expenses | 25.0 | 21.4 | 85.8 | 76.9 |
| Depreciation, amortization and impairments | 13.4 | 10.4 | 43.1 | 40.6 |
| Total operating expenses | 91.5 | 75.5 | 322.8 | 287.8 |
■ Cash operating Expenses. Total payroll and other operating expenses adjusted for non-cash related items including option expenses, receivable write-off and capitalization of development expenses. Nordic management believes that this measurement best captures the expenses impacting the cash flow of the Group.
| Q4 | Full year | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Total operating expenses | 91.5 | 75.5 | 322.8 | 287.8 |
| Depreciation, amortization and impairments | -13.4 | -10.4 | -43.1 | -40.6 |
| Share-based compensation | -4.4 | -1.8 | -16.6 | -11.7 |
| Capitalized expenses | 6.0 | 7.2 | 15.6 | 19.3 |
| Cash operating expenses | 79.7 | 70.4 | 278.8 | 254.9 |
■ Last twelve months operating expenses excluding depreciation and amortization divided by last twelve months revenue. Nordic's business is seasonal and by dividing last twelve months operating expenses excl. depreciation by last twelve months revenue, management is able to track cost level trends in relation to revenue. As a growth business it is key to keep cost level under control while still growing the business, and this ratio keeps track on that.
| Q4 | ||
|---|---|---|
| 2025 | 2024 | |
| Total operating expenses | 322.8 | 287.8 |
| Depreciation, amortization and impairments | -43.1 | -40.6 |
| Operating expenses excluding depreciation and amortization | 279.8 | 247.2 |
| Total revenue LTM | 667.6 | 511.4 |
| LTM opex / LTM revenue | 41.9% | 48.3% |
■ Net working capital divided by last twelve months revenue. Net working capital is a measure of both a company's efficiency and its short-term financial health, and by dividing the measure by last twelve months, seasonal effects are excluded. Nordic management uses this ratio to report on liquidity management to the financial market and internally to track performance.
| Q4 | ||
|---|---|---|
| 2025 | 2024 | |
| Current assets | 582.8 | 553.3 |
| Cash and cash equivalents | -307.4 | -287.9 |
| Current financial assets | — | -0.8 |
| Current liabilities | -145.4 | -103.1 |
| Current financial liabilities | 0.7 | 0.6 |
| Current lease liabilities | 12.4 | 10.4 |
| Income taxes payable | 2.6 | 1.8 |
| Net working capital | 145.7 | 174.2 |
| Total revenue LTM | 667.6 | 511.4 |
| NWC / LTM revenue | 21.8% | 34.1% |
{24}------------------------------------------------
■ Adjusted Gross profit and Adjusted Gross margin. This APM excludes the impact of inventory write-downs and other non-recurring items. Management believes that this measure provides a more representative view of the Group's underlying gross profitability by eliminating items that are not reflective of normal operations
| Q4 | Full year | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Reported Gross profit | 93.1 | 73.8 | 346.0 | 242.0 |
| Inventory write-down (reversal) | -5.0 | — | -5.0 | 10.0 |
| Adjusted Gross profit | 88.2 | 73.8 | 341.1 | 252.0 |
| Total revenue | 169.5 | 150.2 | 667.6 | 511.4 |
| Adjusted Gross margin | 52.0% | 49.1% | 51.1% | 49.3% |
■ Adjusted EBITDA and Adjusted EBITDA margin. This APM excludes exceptional items such as acquisition-related share-based compensation, restructuring costs, and other non-recurring items. Nordic management believes that this measure better reflects the Group's underlying profitability.
| Q4 | Full year | ||||
|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||
| Reported EBITDA | 15.0 | 8.7 | 66.3 | -5.2 | |
| Inventory write-down (reversal) | -5.0 | — | -5.0 | 10.0 | |
| Share-based compensation related to acquisitions |
2.6 | — | 5.2 | — | |
| Restructuring costs | — | 3.2 | — | 3.2 | |
| Adjusted EBITDA | 12.7 | 11.9 | 66.5 | 8.0 | |
| Total revenue | 169.5 | 150.2 | 667.6 | 511.4 | |
| Adjusted EBITDA margin | 7.5% | 7.9% | 10.0% | 1.6% |
{25}------------------------------------------------
Cautionary note
Certain statements included in this report contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Nordic management concerning plans, objectives and strategies, such as planned product development projects, investments, divestment, or other projects, (c) targeted volumes and costs and profit objectives, (d) various expectations about future developments in Nordic markets, particularly supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, and (i) qualified statements such as "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty.
In conducting our business, Nordic faces risks that may interfere with our business objectives. Nordic outlines our main strategic, operational, financial, legal, climate & environmental, and social risks in the risk section of our Annual Report and the information of this section
should be carefully considered. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: changes in availability of raw materials and energy; our continued ability to manage the outsourcing of capital intensive production of silicon wafers, packaging and testing of our products; fluctuations of product supply and demand; constant and rapid technological standards; short product life cycles; world economic growth, including rates of inflation; changes in the relative value of currencies; trends in Nordic's key markets and competition; geopolitical risks and trade tensions; and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have been correct. Nordic disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
{26}------------------------------------------------
