Nordic Semiconductor

Quarterly Report • Apr 29, 2025

Report 2025 Q1

NORDIC SEMICONDUCTOR | Q1 REPORT 2025 (UNAUDITED)

Content

NORDIC SEMICONDUCTOR | Q1 REPORT 2025 (UNAUDITED)

3	Highlights
4	Key figures
5	Q1 2025 review
	Operational review Financial results Financial position Cash flow
13	Outlook
15	Condensed financial information
19	Notes to the condensed consolidated financial statements
22	Alternative performance measures
25	Cautionary note

Q1 Highlights

• Revenue of USD 155 million, up 108% from Q1 2024
• Gross margin of 50%
• Reported EBITDA of USD 15 million
• Announced nRF9151 capabilities for nonterrestrial networks (NTN)
• ■ High design activity with nRF54 and on track with the innovative product portfolio renewal

EBITDA

Gross margin

Revenue

Gross Margin

EBITDA margin

EBITDA Margin

Key figures

Q1 2025 financial summary

		Q1
Amount in USD million	2025	2024	Change
Revenue	155.1	74.5	108.1%
Gross profit	76.8	35.8	114.9%
Gross margin %	49.5%	48.0%	1.6 p.p.
EBITDA	14.7	-22.8	NA
EBITDA %	9.5%	-30.6%	40.2 p.p.
Operating profit (EBIT)	5.7	-33.5	NA
Operating profit % (EBIT)	3.7%	-44.9%	48.6 p.p.
Net profit after tax	1.1	-25.7	NA
Cash and cash equivalents	307.5	235.0	30.8%
LTM Opex excluding depreciation / LTM revenue	42.4%	48.8%	-6.4 p.p.
Net working capital / LTM revenue	26.4%	49.7%	-23.3 p.p.
Equity ratio	69.5%	70.0%	-0.4 p.p.
Number of employees	1324	1407	-5.9%

Q1 2025 review

Revenue amounted to USD 155 million in the first quarter of 2025, which was more than a doubling from the same quarter last year. The revenue increase reflects generally higher demand among both key customers and the broad market, and particularly high deliveries to individual large customers in the quarter. Note that the strong year-on-year growth also reflects that revenue in the first quarter last year was significantly impacted by distributor inventory adjustments.

Strong revenue growth compared to low Q1 24

Nordic reported total revenue of USD 155.1 million in Q1 2025, which was an increase of 108% from USD 74.5 million in Q1 2024 and a slight increase of 3% from Q4 2024.

The improvement reflects a continuation of the gradual recovery in the underlying market, as well as particularly high demand from individual large customers. The high year-on-year growth also reflects that revenue in Q1 2024 was significantly impacted by Nordic's efforts to lower the inventory level in the distribution channel. Long-range revenue doubled and Short-range revenue more than doubled year-on-year, reflecting solid growth across all verticals and customer segments.

As communicated in the Q4 2024 report, going forward Nordic will report on the revenue contribution from Short-range wireless components (Short-range), Longrange wireless components (Long-range), and Other. The Other category includes the early-stage businesses in PMIC and Wi-Fi, ASIC components, and development tool sales and services. Short-range consist of Bluetooth and Proprietary.

Short-range revenue amounted to USD 146.0 million in Q1 2025, an increase of 112% year-on-year and up 4% from the previous quarter. Short-range share of total revenue was 94% in Q1 2025.

The revenue increases reflect improving demand from both larger key customers and broad market customers. The top-10 customers accounted for 57% of total revenue in the last twelve months to Q1 2025. Note that this includes all technologies, whereas the company earlier has reported only the top-10 share of Bluetooth revenue.

Short-range revenue mainly reflects sales of the nRF52 and nRF53 Series multiprotocol Bluetooth low energy products, and proprietary products primarily for the PC accessories and home office equipment markets.

Nordic launched its first products in the new and groundbreaking nRF54 Series in Q4 2024, and expect to launch 2-4 product families in this Series from 2025 onwards.

The nRF54 Series offers step-changes in performance in terms of processing power and energy-efficiency, both compared to the competition and Nordic's own nRF52 Series, and is expected to become a major growth driver for Nordic over time.

Design activity is good and nRF54 orders are coming in from both new and existing customers, but allowing time for design-ins and product ramp Nordic reiterates that it expects limited revenue effect of nRF54 in 2025 and accelerating growth from 2026 onwards.

Long-range (cellular IoT) revenue amounted to USD 7.5 million in Q1 2025. This was an increase of 99% year-onyear, reflecting mainly higher demand from customers in the industrial asset tracking market, and an increase of 8% from the previous quarter. The Long-range share of total revenue was 5%.

Nordic continues to see strong interest and increasing demand for the nRF9151 SiP (System-in-Package) that was launched in the second half of 2024. The nRF9151 is 20% smaller, more energy-efficient and more cost-effective than the previous nRF9160/61 long-range products, and broadens the company's addressable market.

	Q1
Amounts in USD thousand	2025	2024	Change
Short-range	146 043	69 025	111.6%
Long-range	7 537	3 778	99.5%
Other	1 487	1 695	-12.3%
Total	155 068	74 498	108.2%

Other revenue amounted to USD 1.5 million, with the decline from USD 1.7 million in the same quarter last year reflecting lower ASIC component sales.

Revenue by end-user market

As communicated in the interim report for Q4 2024, Nordic has with effect from Q1 2025 combined Industrial and Healthcare into one reporting unit to protect the integrity of customers and customer relationships. Going forward, Nordic will hence report on the three enduser markets Consumer, Industrial and Healthcare, and Other.

Additionally, in Q1 2025, Nordic has made changes to the classification of certain market verticals. The main change is that the entire share bike vertical has been reclassified from previously predominately Industrial to Consumer. For 2024, this change results in an increase of USD 12.4 million in Consumer and a decrease of USD 11.6 million and USD 0.8 million in Industrial and Other, respectively.

Other

Consumer revenue amounted to USD 88.5 million in Q1 2025, an increase of 63% compared to the same quarter last year and a decline of 8% from Q4.

Industrial and Healthcare revenue amounted to USD 60.4 million in Q1 25, representing more than a tripling compared to the first quarter last year and a 25% increase over Q4. This reflects high sales to key customers in this end-user market. As discussed in previous quarterly reports, revenue in this area remains dependent on a relatively small number of customers and is exposed to relatively wide variations from quarter to quarter.

Other revenue amounted to USD 5.7 million, more than a doubling from the same period last year and an increase of 27% compared to the previous quarter.

Consumer share of revenue was 57% in the first quarter, whereas Industrial and Healthcare accounted for 39%, and Other at 4%.

Consumer Industrial and Healthcare

	Q1
Revenues by end-product markets Amounts in USD thousand	2025	2024	Change
Consumer1	88 476	54 198	63.2%
Industrial and healthcare	60 362	17 273	249.5%
Other	5 651	2 086	170.9%
Total revenue excl. ASIC & Consulting	154 489	73 557	110.0%

Design certifications

Based on data available from Bluetooth SIG, Nordic estimates that it had a share of 34% of new Bluetooth SIG design certifications of Bluetooth Low Energy products in the first quarter 2025. This is on par with the average level over the last 12 months.

The total number of new Bluetooth LE designs certified by the Bluetooth SIG was 374 in the first quarter, of which 127 featured Nordic components. Consequently, the company remained a clear leader in terms of product certifications, with more than four times as many certified designs featuring Nordic components than any competitor.

Note that product certifications with Nordic components so far include only nRF52 Series and nRF53 Series products. Ongoing design activity with the nRF54 Series is expected to lead to product certifications later in 2025 and into 2026.

As previously communicated, restrictions regarding distribution of Bluetooth SIG data may at some point require Nordic to further modify or discontinue its quarterly reporting of certification data.

Market expansion through complete solutions

This quarter, Nordic continued seeing customers adopt combinations of its products to optimize performance, power efficiency, and integration in their designs. This trend reinforces Nordic's leadership in wireless connectivity solutions while underscoring the value of the company's end-to-end low power wireless solutions approach. The following customer cases illustrate how this approach is driving innovation in healthcare and asset tracking.

Healthcare innovation: A Dutch smart stethoscope integrates the nPM1300 PMIC and nRF5340 SoC, delivering superior battery life and high-quality medical audio streaming. Similarly, ViXion01S smart eyewear employs both the nRF52840 SoC and nPM1300 PMIC to achieve precise sensor management and system-level power optimization in a compact wearable form factor.

Asset tracking efficiency: InVirtus Technologies' solarpowered tracker combines the nRF52840 with cellular IoT to enable ultra-low power operation, supporting up to three weeks of offline functionality. Meanwhile, Moko Smart's multi-use tracker is extending Nordic´s reach into logistics, livestock monitoring, and worker safety applications.

These examples highlight not only the performance advantages of Nordic's product portfolio but also the benefits of a deeply integrated development ecosystem. By offering solutions designed to work seamlessly together—from silicon and software to tools and documentation—Nordic helps reduce design complexity, streamline development workflows, and

accelerate time-to-market for its customers. The in-depth knowledge of the interoperability between components allows Nordic to provide targeted support reducing iteration cycles and lowering the barrier to innovation for developers worldwide.

Accelerating smart home adoption and ecosystem integration

Nordic´s continued investments in Matter and Thread ecosystems are positioning the company at the forefront of the smart home evolution.

This is examplified by luxury pergola manufacturer, StruXure, which recently launched the first U.S.-based Matter-over-Thread smart pergola. Powered by the nRF5340, it allows users to easily set up, control and customize their outdoor environment directly from their smartphone app.

Further advancing the smart home space, Nordic has partnered with Qorvo to support CSA's new Aliro protocol designed to standardize the use of a smartphone or wearable in place of a key. The joint reference design will help developers come up with applications based on Nordic´s Bluetooth LE, Thread, and Wi-Fi solutions, and Qorvo´s UWB technology.

These deployments underscore Nordic´s commitment to simplifying smart home development through robust, interoperable solutions.

Extending global IoT coverage with cellular and satellite integration

This quarter, Nordic continued advancing its longrange strategy by showcasing the nRF9151 SiP module - the company´s latest generation cellular IoT solution—demonstrating both cellular (terrestrial) and non-terrestrial (NTN) connectivity capabilities. At Mobile World Congress (MWC), Nordic revealed the world-leading low power performance of the nRF9151, including live demonstrations in two Geo synchronous/ stationary Earth Orbit (GEO) networks as well as future support for 3GPP-compliant Low Earth Orbit (LEO) NTN connectivity.

The nRF9151 integrates LTE-M/NB-IoT, DECT NR+, and GNSS in an ultra-compact form factor. Its multi-protocol support and exceptional energy efficiency make it a cornerstone of Nordic´s long-range strategy—designed for use cases such as asset tracking, smart metering, remote monitoring, and industrial IoT. With the addition of 915 MHz NR+ support, the nRF9151 now enables smart grid and utility metering applications in North America, complementing its 1.9 GHz global NR+ capabilities.

Leading the way in satellite IoT through strategic partnerships

As part of Nordic´s strategic ambition to drive globally accessible IoT connectivity solutions, the company has entered early and meaningfully into the NTN space through key partnerships with company´s like Keysight and Skylo.

With Keysight, a global leader in test and measurement solutions, Nordic demonstrated live satellite connectivity emulation using the nRF9151 at MWC in March. This demo showed how low power IoT devices, such as the Thingy:91 X, Nordic's multi-sensor platform for prototyping, can connect to satellite networks. This breakthrough is enabling device makers and satellite operators to transform the vision of anywhere connectivity into a reality.

In parallel, Nordic's partnership with Skylo brings reliable satellite IoT services to a wider market. By certifying the nRF9151 to work with Skylo's NTN or satellite network, Nordic is enabling new use cases like remote monitoring, asset tracking and safety applications for IoT devices that previously lacked global connectivity.

By partnering early with industry leaders in the NTN space, Nordic is not only expanding the reach of cellular IoT but is also helping shape the future of satellitebased communication standards - positioning itself as a key enabler of global IoT connectivity. These initiatives are fully aligned with Nordics long-term objective of providing complete low-power wireless solutions, ensuring developers can achieve robust global coverage with shorter development cycles and greater design flexibility.

Accelerating standardization and ecosystem engagement

Nordic is continuing to invest in ecosystem leadership and industry collaboration to shape the future of wireless IoT connectivity.

This quarter, Nordic strengthened its partnership with Deutsche Telekom to launch MECC (Make Everything Cellular Connected) - a turnkey IoT solution using the nRF9151 SiP module. With integrated nuSIM and access to Deutsche Telekom´s extensive network and global roaming partners, MECC delivers seamless, low-power connectivity out-of-the box. The solution removes complexity for developers, enabling reliable and effortless connectivity in the cellular IoT space.

Nordic also continues to play a central role in the NR+ Interest Group. Joining forces with Legrand, Schneider Electric, and Siemens Smart Infrastructure, together with other wireless industry experts, this group of industry players aim to use NR+ as a global connectivity standard for smart buildings, enabling ultra-resilient and interoperable wireless connectivity.

Product innovation recognized: Power management and cellular awards

In March, Nordic officially launched the nPM2100 PMIC, a groundbreaking power management solution designed specifically for primary cell-powered Bluetooth Low Energy applications. With a wide range of energy-saving features, the nPM2100 allows developers to significantly extend the operating time of non-rechargeable battery applications, contributing directly to sustainability goals. It helps access more of the energy stored in primary cells, reducing the frequency of battery replacements and enabling longer product lifetimes. Target applications include wireless mice and keyboards, consumer asset tracking, remote controls, and body-worn medical devices, among others. Early customers have already begun designing it into solutions spanning personal health monitoring to wireless industrial sensors. Now broadly available, the nPM2100 empowers developers to enhance power efficiency and system performance for compact, battery-sensitive designs.

The nPM2100 was honored with an Electronics Excellence Award at Embedded World in March, highlighting its impact on both energy efficiency and product sustainability.

Meanwhile, the nRF9151 SiP module continues establishing itself as a leading cellular IoT solution, earning the Communication Technology Award at the 9th OFweek IoT Awards 2024. Recognized for its ultralow power consumption and the industry´s smallest size, the nRF9151 stands out in a competitive field. The award, judged by industry experts and public voting, celebrates the most innovative and future-forward IoT technologies.

Financial results

	Q1
Amounts in USD thousand	2025	2024	Change
Gross profit	76 834	35 750	114.9%
Gross margin %	49.5%	48.0%	1.6 p.p.
Operating expenses excl. depreciation and amortization	62 092	58 581	6.0%
EBITDA	14 742	-22 830	NA
EBITDA %	9.5%	-30.6%	40.2 p.p.
Depreciation, amortization and impairment	9 030	10 655	-15.3%
EBIT	5 712	-33 485	NA

Gross profit

Gross profit was USD 76.8 million in Q1 2025, an increase from USD 35.8 million in Q1 2024. The reported gross margin increased to 49.5% in Q1 2025 from 48.0% in Q1 2024, reflecting changes in customer and product mix and a positive scale effect of the significant revenue increase compared to the first quarter last year. The gross margin was flat compared to the previous quarter.

Operating expenses

Nordic'has a sharp focus on returning to strong operating profitability, which requires both solid project execution and good cost controls to maintain high operational leverage. Nordic executed a strategic resource realignment in Q4 2024, including a global workforce reduction. Costs associated with this were accounted for in the Q4 numbers, with the cost effects from the headcount reductions taking effect from Q1 2025.

Operating expenses excluding depreciation and amortization amounted to USD 62.1 million in Q1 2025, which was a 6% cost increase compared to USD 58.6 million in Q1 2024. The increase was mainly due to decreased capitalization of development expenses.

The underlying cost base was flat year-on-year, with salary increases during 2024 largely offset by cost measures.

Compared to Q4 2024, operating expenses were down 5%, primarily due to restructuring costs recognized in Q4 and changes in capitalization in Q1 2025.

Total cash operating expenses was USD 61.4 million in Q1 2025, compared to USD 61.3 million in Q1 2024. Cash operating expenses are calculated by adding back capitalized development expenses and deducting depreciation and equity-based compensation from total operating expenses.

USD 41.6 million of the cash operating expenses were related to payroll expenses, compared to USD 42.6 million in Q1 2024.

The total number of Nordic employees at the end of Q1 2025 was 1 324, representing a year-on-year decrease of 6%. Compared to Q4 2024, this reflects a 3% reduction, primarily due to restructuring efforts that had already begun to impact headcount numbers by the end of Q4 2024.

Other cash operating expenses amounted to USD 19.8 million in Q1 2025, compared to USD 18.7 million in Q1 2024. The change reflects specific project-related costs. Compared to Q4 2024, spending decreased by USD 4.5 million. The Q4 2024 figure included a relatively higher level of project-specific costs, contributing to the increased expenditure for that quarter.

Nordic is exposed to currency fluctuations, mainly in NOK, EUR and USD. Compared to the first quarter last year changes in these exchange rates reduced quarterly operating costs by approximately USD 0.3 million.

In Q1 2025, R&D costs amounted to USD 39.3 million, unchanged from Q1 2024. USD 25.6 million was related to the Short-range business, USD 10.1 million to Longrange, and USD 3.5 million to Other. In Q1 2025, Nordic capitalized a total of USD 2.3 million in development expenses, compared to USD 4.8 million in Q1 2024.

The generally high capitalization rate over the past years mainly reflects development of the nRF54 SoC Series. Nordic commenced capitalization of R&D after customer sampling which started late Q1 2023. The decrease from Q1 2024 to Q1 2025 can be attributed to allocation of resources to projects in other stages in the development cycle.

Profit

EBITDA was USD 14.7 million in Q1 2025, compared to a negative USD 22.8 million in Q1 2024. The improved EBITDA can be explained by both higher revenue and improved gross margin compared with Q1 2024, when the key figures were adversely impacted by inventory adjustments in the distribution channel.

Depreciation, amortization and impairment decreased to USD 9.0 million in Q1 2025, compared to USD 10.7 million in Q1 2024. The decrease mainly reflects completion of depreciation or amortization period for existing assets, while awaiting the start of depreciation on current capitalized assets. Amortization of internally developed R&D amounted to USD 1.9 million in Q1 2025 and depreciation of leased assets to USD 2.2 million.

Reported operating profit (EBIT) was USD 5.7 million in Q1 2025, compared to a loss of USD 33.5 million in Q1 2024.

Net financial items resulted in a loss of USD 3.5 million in Q1 2025, compared to a gain of USD 2.9 million in Q1 2024.

Reported profit before tax was USD 2.0 million in Q1 2025, compared to a loss of USD 30.6 million in Q1 2024. The tax expense in Q1 2025 was USD 0.9 million, compared to a tax income of USD 4.9 million in Q1 2024. The reported net profit was hence USD 1.1 million in Q1 2025, compared to a loss of USD 25.7 million in Q1 2024.

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.

Financial position

Amounts in USD thousand	31.03.2025	31.12.2024	31.03.2024
Capitalized development expenses	50 486	50 076	41 435
Total non-current assets	252 625	253 444	259 164
Inventory	144 088	171 907	197 557
Cash and cash equivalents	307 454	287 914	235 013
Total current assets	551 715	553 262	560 954
Total assets	804 341	806 706	820 118
Total equity	559 151	569 766	573 808
Equity percentage	69.5%	70.6%	70.0%
Total liabilities	245 190	236 940	246 311
Total equity and liability	804 341	806 706	820 118

Total shareholders' equity amounted to USD 559.2 million at the end of Q1 2025, down from USD 569.8 million at the end of 2024. The decline is primarily attributable to the share repurchase program announced in February 2025.

The Group equity ratio was 69.5% of a total asset base of USD 804.3 million.

Cash and cash equivalents amounted to USD 307.5 million at the end of Q1 2025, compared to USD 287.9 million at the end of 2024. The increase was mainly driven by a reduction in working capital.

Net working capital was USD 156.5 million at the end of Q1 2025, down from USD 234.6 million at the end of Q1 2024. Measured as a percentage of last 12 months revenue, net working capital decreased to 26.4% from 49.7% at the end of Q1 2024.

Following a period with supply constraints in 2022, Nordic has strategically built inventory of key components through 2023 and 2024. However, inventory at the end of Q1 2025 decreased to USD 144.1 million from USD 197.6 million in Q1 2024. Nordic expect this to increase in Q2.

Accounts receivable decreased to USD 72.8 million at the end of Q1 2025 from USD 102.9 million at the end of Q1 2024, reflecting improved collection. Accounts payable increased by USD 10.7 million to USD 24.4 million.

Total current assets amounted to USD 551.7 million at the end of Q1 2025, down from USD 561.0 million at the end of the Q1 2024.

Non-current assets amounted to USD 252.6 million at the end of Q1 2025, compared to USD 259.2 million at the end of Q1 2024. The change is primarily due to a decrease in fixed assets, software, and other intangible assets, partially offset by an increase in capitalized development expenses.

Current liabilities amounted to USD 101.4 million, compared to USD 105.4 million at the end of Q1 2024. Non-current liabilities amounted to USD 143.8 million, compared to USD 140.9 million at the end of Q1 2024. Non-current liabilities mainly include a NOK 1.0 billion bond, with an outstanding balance of USD 94.0 million, and lease liabilities.

Cash flow

	Q1
Amounts in USD thousand	2025	2024
Cash flows from operations	34 956	-35 367
Cash flows from investing activities	-4 623	-5 919
Cash flows from financing activities	-21 303	-8 686
Change in cash and cash equivalents	19 540	-55 944
Cash and cash equivalents at the end of the period	307 454	235 013

Cash flow from operating activities was USD 35.0 million in Q1 2025, compared to an outflow of USD 35.4 million in Q1 2024. The operating cash flow in Q1 2025 mainly reflects higher revenue and profits as well as a reduction in net working capital in the quarter.

Cash flows from investing activities showed an outflow of USD 4.6 million in Q1 2025, compared to USD 5.9 million in Q1 2024. Capital expenditures (including software) amounted to USD 1.8 million, up from USD 0.7 million in the same period last year. Capitalized development expenses decreased to USD 2.3 million in Q1 2025, down from USD 4.8 million in Q1 2024.

Cash flows from financing activities resulted in an outflow of USD 21.3 million, compared to USD 8.7 million in Q1 2024. The increase is primarily attributable to the share buyback program in Q1 2025 that was announced on February 5th. 2025.

Funding

The Group's cash position was USD 307.5 million at the end of Q1 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 maturity date.

Available cash including overdraft facilities and Nordic's sustainability linked RCF of USD 200 million, amounted to USD 508 million. The undrawn RCF expires in June 2026.

Outlook

Nordic Semiconductor reported revenue of USD 155 million in the first quarter 2025, representing a year-onyear growth of 108% and an increase of 3% from the previous quarter.

The year-on-year revenue increase reflects stronger underlying demand from both large key customers and smaller customers in the broad market although the strong increase also reflects that revenue in the first quarter last year was significantly impacted by inventory adjustments. The first quarter saw particularly high deliveries to certain large customers.

Looking ahead, Nordic recognizes increased risk due to ongoing trade tensions, shifting policies, and tariffs. The complex nature of the global semiconductor value chains makes the broader impact hard to predict, and there are also potential ripple effects on currencies, interest rates, and demand. With increasing uncertainty, Nordic navigates the more uncertain environment by continuing its efforts to strengthen supply chain resilience and maintaining close customer collaborations to support customer needs.

Based on current customer orders and forecasts, Nordic expects revenue for the second quarter 2025 of USD 145-165 million, although it should be noted that the developments over the past months have added risk and uncertainty related to any forward statements or guidance.

Gross margin was 50% in the first quarter 2025, and is expected to stay at around the same level in the second quarter. Nordic reiterates its long-term ambition to maintain a gross margin level above 50%.

Nordic's longer-term financial ambition on the Group level is to deliver average annual revenue growth above 20% through the decade, and to move towards its target operating model profitability level of ~25% EBITDA margin within five years.

Oslo, April 28, 2025

Anita Huun Birger Steen Inger Berg Ørstavik Board member, Audit C. Chair Board Chair Board member, Sustainability Com. Chair

Board member Chief Executive Officer

Jon Helge Nistad Anja Dekens Morten Dammen Board member, employee Board member, employee Board member, employee

Board member Board member Board member, employee

Snorre Kjesbu Vegard Wollan Annastiina Hintsa Board member, People and Compensation Com. Chair

Dieter May Dr. Helmut Gassel Monika Lie Larsen

Condensed financial information

Income statement

		Q1		Full year
Amounts USD thousand	Note	2025	2024	2024
Total revenue	4	155 068	74 498	511 415
Cost of materials		-78 234	-38 748	-269 446
Gross profit		76 834	35 750	241 969
Payroll expenses		-43 137	-40 432	-170 321
Other operating expenses		-18 955	-18 149	-76 880
EBITDA		14 742	-22 830	-5 233
Depreciation, amortization and impairments	6	-9 030	-10 655	-40 573
Operating Profit		5 712	-33 485	-45 806
Share of profit from associates		-131	—	-260
Net interest income		-525	496	-942
Net foreign exchange gains (losses)		-3 022	2 356	3 819
Profit before tax		2 035	-30 633	-43 189
Income tax expense		-886	4 902	4 685
Net profit after tax		1 149	-25 730	-38 504
Earnings per share
Ordinary earning per share (USD)		0.006	-0.134	-0.200
Fully diluted earning per share (USD)		0.006	-0.133	-0.198
Weighted average number of shares
Basic		191 799	192 170	192 196
Fully diluted		194 077	193 751	194 717
Net profit after tax		1 149	-25 730	-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)		—	—	-132
Income tax effect		—	—	29
Other comprehensive income that may be reclassified to profit or loss in subsequent periods:
Currency translation differences		1 720	-784	-1 914
Total comprehensive income		2 869	-26 514	-40 521

Consolidated statement of financial position

Amounts USD thousand	Note	31.3.25	31.12.24	31.3.24
ASSETS
Non-current assets
Goodwill		10 906	10 880	10 887
Capitalized development expenses	5/6	50 486	50 076	41 435
Software and other intangible assets	5/6	12 512	13 762	17 831
Deferred tax assets		14 729	13 097	11 231
Fixed assets	6	20 279	21 955	24 828
Right-of-use assets	6	52 804	52 358	58 043
Investments in joint ventures		561	177	—
Other long term assets		90 348	91 140	94 473
Total non-current assets		252 625	253 444	259 164
Current assets
Inventory		144 088	171 907	197 557
Accounts receivable		72 850	66 412	102 865
Other current receivables		27 324	27 029	25 520
Cash and cash equivalents		307 454	287 914	235 013
Total current assets		551 715	553 262	560 954
Total assets		804 341	806 706	820 118
EQUITY
Share capital		317	317	317
Treasury shares		-2	-1	-1
Share premium		235 448	235 448	235 448
Other equity		323 388	334 001	338 044
Total equity		559 151	569 766	573 808
LIABILITIES
Non-current liabilities
Pension liability		812	765	616
Borrowings	7	93 969	87 336	91 801
Non-current lease liabilities		49 006	45 752	48 526
Total non-current liabilities		143 787	133 853	140 944
Current liabilities
Accounts payable		24 392	23 918	13 736
Income taxes payable		1 599	1 799	3 142
Public duties		10 190	6 024	4 152
Current lease liabilities		11 325	10 360	10 171
Other current liabilities		53 898	60 985	74 165
Total current liabilities		101 403	103 087	105 367
Total liabilities		245 190	236 940	246 311
Total equity and liability		804 341	806 706	820 118

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						1 149	1 149
Other comprehensive income					1 720		1 720
Share based compensation				3 041			3 041
Repurchase of own shares		-1				-16 522	-16 523
Equity as of 31.3.25	317	-2	235 448	30 221	-484	293 654	559 151
Equity as of 1.1.24	317	0	235 448	15 160	-290	351 442	602 077
Net profit for the period						-25 730	-25 730
Other comprehensive income					-784		-784
Share based compensation		0		2 053			2 053
Repurchase of own shares		0				-3 808	-3 808
Equity as of 31.3.24	317	-1	235 448	17 213	-1 074	321 904	573 808

Consolidated statement of changes in equity

Statement of cash flows

		Q1		Full year
Amount in USD thousand	Note	2025	2024	2024
Cash flows from operating activities
Profit before tax		2 035	-30 633	-43 189
Taxes paid for the period		-724	-3 340	-7 827
Depreciation, amortization and impairments		9 030	10 655	40 573
Net interest		525	-496	942
Interest received		2 445	2 972	11 176
Change in inventories, trade receivables and payables		21 836	-2 459	69 808
Share-based compensation		3 041	2 053	11 661
Other operations related adjustments		-3 232	-14 118	-22 794
Net cash flows from operating activities		34 956	-35 367	60 351
Cash flows used in investing activities
Capital expenditures (including software)	6	-1 756	-718	-9 809
Capitalized development expenses	6	-2 349	-4 770	-19 343
Investment in associate company		-518	-431	-431
Net cash flows used in investing activities		-4 623	-5 919	-29 584
Cash flows from financing activities
Repurchase of treasury shares		-16 522	-3 808	-3 808
Payment of interest		-1 762	-1 881	-7 353
Payment of principal portion of lease liabilities		-1 890	-1 894	-7 322
Payment of interest portion of lease liabilities		-899	-888	-3 556
Credit facility fee		-230	-216	-1 120
Net cash flows from financing activities		-21 303	-8 686	-23 159
Effects of exchange rate changes on cash and cash equivalents		10 510	-5 971	-10 650
Net change in cash and cash equivalents		19 540	-55 944	-3 042
Cash and cash equivalents beginning of period		287 914	290 957	290 957
Cash and cash equivalents at end of period		307 454	235 013	287 914

Notes

Note 1: General

The Board of Directors approved the condensed first quarter interim financial statements for the three months ended March 31, 2025 for publication on April 28, 2025.

Nordic Semiconductor is a Norwegian fabless semiconductor company specializing in wireless communication technology that powers the Internet of Things (IoT). Nordic was established in 1983 and has around 1,400 employees across the globe. The company's award-winning Bluetooth Low Energy solutions pioneered ultra-low power wireless, making it the global market leader. Nordic's technology range was later supplemented by ANT+, Thread and Zigbee, and in 2018 Nordic launched its low power, compact LTE-M/ NB-IoT cellular IoT solutions to extend the penetration of the IoT. The Nordic portfolio was further complemented by Wi-Fi technology in 2021.

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 Q1 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 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		Q1
Specification of capital expenditures, balance sheet	2025	2024	2024
Capitalized development expenses (payroll expenses)	1 473	4 190	13 700
Capitalized acquired development expenses	876	580	5 643
Capital expenditures (including software)	1 756	718	9 809
Right-of-use assets (non-cash)	2 616	5 660	8 040
Acquisition (net)	518	431	431
Currency adjustments	265	-127	-677
Total	7 504	11 452	36 947
Depreciation and amortization
Capitalized development expenses	1 939	2 274	8 205
Software and other intangible assets	1 697	1 813	7 203
Fixed assets	3 224	4 282	14 382
Impairment software	—	—	431
Right-of-use assets	2 170	2 287	9 034
Impairment right-of-use assets	—	—	1 318

At each reporting date the group evaluates whether there is an indication of impairment by reference to internal and external factors. In Q1 2025 there were no such indications.

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 sustainability linked revolving credit facility, which enables it to borrow up to USD 200 million with an interest rate equal to SOFR + margin. The line of credit expires in June 2026, with option to extend. As of March 31, 2025, the Group had not drawn on the credit facility. The security for the credit line 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%.

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 50% is composed of RSUs and the remaining 50% is given as PSUs.

With reference to the Annual general meeting held on April 24, 2024, Nordic Semiconductor, on May 3, 2024, granted 946,922 RSUs and PSUs to employees, including the executive management team. This is equivalent to 0.49% 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.

	Q1
	2025	2024
Outstanding RSUs beginning of period	1 921 826	1 404 565
Granted	—	461 672
Forfeited	12 954	51 300
Released	—	—
Outstanding end of period	1 908 872	1 814 937

	Q1
	2025	2024
Outstanding performance shares beginning of period	355 789	77 357
Granted	—	463 808
Forfeited	2 162	14 997
Performance adjusted	-10 929	—
Released	—	—
Outstanding end of period	342 698	526 168

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: Events after the balance sheet

Since March 31, 2025, no significant events have taken place that would affect the assessment of the provided accounts.

Financial Calendar 2025:

• May 5, 2025 Annual General Meeting
• August 13, 2025 2nd Quarter & halfyear 2025 (note revised date)
• October 29, 2025 3rd Quarter 2025
• February 5, 2026 4th Quarter 2025

For further information, please contact:

• Ståle Ytterdal, IR, +47 930 37 430
• Pål Elstad, CFO, +47 991 66 293

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. Gross profit divided by Total revenue. Gross margin is presented as it is the main financial KPI to measure the Group's operational performance.

	Q1		Full year
	2025	2024	2024
Gross profit	76.8	35.8	242.0
Total revenue	155.1	74.5	511.4
Gross margin	49.5%	48.0%	47.3%

EBITDA terms are presented as they are commonly used by investors and financial analysts.

■ EBITDA. Earnings before interest, taxes, depreciation and amortization.

	Q1		Full year
	2025	2024	2024
Operating Profit	5.7	-33.5	-45.8
Depreciation, amortization and impairments	9.0	10.7	40.6
EBITDA	14.7	-22.8	-5.2

■ EBITDA margin. EBITDA divided by Total Revenue.

	Q1		Full year
	2025	2024	2024
EBITDA	14.7	-22.8	-5.2
Total revenue	155.1	74.5	511.4
EBITDA margin	9.5%	-30.6%	-1.0%

■ Total Operating Expenses. Sum of payroll expenses, other operating expenses, depreciation and amortization.

	Q1		Full year
	2025	2024	2024
Payroll expenses	43.1	40.4	170.3
Other operating expenses	19.0	18.1	76.9
Depreciation, amortization and impairments	9.0	10.7	40.6
Total operating expenses	71.1	69.2	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.

	Q1		Full year
	2025	2024	2024
Total operating expenses	71.1	69.2	287.8
Depreciation, amortization and impairments	-9.0	-10.7	-40.6
Share-based compensation	-3.0	-2.1	-11.7
Capitalized expenses	2.3	4.8	19.3
Cash operating expenses	61.4	61.3	254.9

■ EBITDA margin excluding Long-range, Other and restructuring costs. EBITDA excluding Long range, Other and restructuring costs, divided by total revenue excluding Long range revenue. This APM shows Nordic's profitability excluding restructuring costs and products in an investment phase with limited revenue.

	Q1		Full year
	2025	2024	2024
Reported EBITDA	14.7	-22.8	-5.2
Long-range (cellular IoT) EBITDA loss	7.8	11.7	55.3
Other expense	3.5	4.0	16.8
EBITDA excluding Long-range and Other	26.1	-7.2	70.1
Total revenue (excluding cellular IoT revenue)	147.5	70.7	494.5
EBITDA margin excluding Long-range and Other	17.7%	-10.1%	14.2%

■ 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.

	Q1
	2025	2024
Total operating expenses	289.7	273.7
Depreciation, amortization and impairments	-38.9	-43.5
Operating expenses excluding depreciation and amortization	250.7	230.3
Total revenue LTM	592.0	471.9
LTM opex / LTM revenue	42.4%	48.8%

■ 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.

	Q1
	2025	2024
Current assets	551.7	561.0
Cash and cash equivalents	-307.5	-235.0
Current liabilities	-101.4	-105.4
Current financial liabilities	0.7	0.7
Current lease liabilities	11.3	10.2
Income taxes payable	1.6	3.1
Net working capital	156.5	234.6
Total revenue LTM	592.0	471.9
NWC / LTM revenue	26.4%	49.7%

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.

nordicsemi.com

NORDIC SEMICONDUCTOR | Q1 REPORT 2025 (UNAUDITED)