Precise Biometrics

Interim / Quarterly Report • Aug 15, 2025

Interim Report January – June 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596

Interim Report

January – June, 2025

Precise, a pioneer in biometrics and cybersecurity, whose technology is used

times/second, all year round

100,000

Precise Biometrics (Precise) is a global pioneer in the field of cybersecurity and biometric solutions. The offering includes premium algorithm solutions for fingerprint, facial and hand recognition, as well as packaged end-customer products for biometric access (Precise Access) and visitor management (Precise Visit by EastCoast).

Interim Report January – June 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Key segments include mobile phones, laptops, automotive, payments, logical access, physical access, visitor managment, and government initiatives such as ABIS and ID programs. Precise operates through two main business areas, Digital Identity and Biometric Technologies, and runs the business from its offices in Lund (HQ), Stockholm, Potsdam NY, Seoul, Taipei and Shanghai. The Precise share is listed on Nasdaq Stockholm (PREC). Find out more at www.precisebiometrics.com.

The period in brief:	4
CEO comments:	6
Update from the business areas	8
New website for Precise 10
Customer offering11
Net sales and operating profit/loss12
Consolidated income statement – in summary16
Consolidated balance sheet – in summary17
Consolidated cash flow statement – in summary 18
Consolidated change in equity – in summary19
Notes20
Parent company income statement – in summary23
Parent company balance sheet – in summary 24
Consolidated key indicators25
Alternative consolidated key indicators 26
Analysis of results, in summary27
Financial glossary 28

The period in brief:

Continued strong demand and stable performance despite geopolitical shifts

Second quarter

• Net sales totaled SEK 20.8 (20.6) million
  • o A change in revenue allocation in a renegotiated customer agreement has a negative impact of SEK 1.0 million in the quarter, but results in higher revenue on an annual basis primarily in the fourth quarter
• EBITDA totaled SEK -0.5 (0.1) million
  • o Adjusted for negative currency effects from operating items of SEK 0.9 million and a change in revenue allocation in a customer agreement of SEK 1.0 million, EBITDA amounts to SEK 1.4 million
• Cash flow from operating activities totaled SEK 1.3 (3.9) million
• The operating profit/loss (EBIT) totaled SEK -5.7 (-5.7) million
• Earnings for the period totaled SEK -5.8 (-5.6) million
• Earnings per share before and after dilution totaled SEK -0.1 (-0.1)
• ARR (Annual Recurring Revenue) at the end of the period was SEK 18.2 (18.6) million
  • o There is a negative impact on ARR of approximately SEK 0.8 million due to the bankruptcy of an end customer

Interim period Jan – Jun

• Net sales totaled SEK 40.8 (42.3) million
  • o A change in revenue allocation in a renegotiated customer agreement results in higher revenue on an annual basis, but has a negative impact of SEK 2.0 million on net sales for the interim period
• EBITDA totaled SEK -2.2 (3.2) million
  • o Adjusted for negative currency effects from operating items of SEK 2.4 million and a change in revenue allocation in a customer agreement of SEK 2.0 million, EBITDA amounts to SEK 2.2 million
• Cash flow from operating activities totaled SEK 3.4 (1.0) million
• The operating profit/loss (EBIT) totaled SEK -12.8 (-8.5) million
• Earnings for the period totaled SEK -13.0 (-8.5) million
• Earnings per share before and after dilution totaled SEK -0.2 (-0.1)
• ARR (Annual Recurring Revenue) at the end of the period was SEK 18.2 (18.6) million
  • o There is a negative impact on ARR of approximately SEK 0.8 million due to the bankruptcy of an end customer

Significant events during the quarter

(the bullet list below contains links to the relevant press releases)

• Precise continues to expand its visitor management system business.
• Precise launches rebranding initiative to unify and strengthen its offering.

Significant events after the end of the interim period

(the bullet list below contains links to the relevant press releases)

▪ No significant events after the end of the quarter.

Financial data and key indicators

	2025	2024	2025	2024	2024	Rolling
Amounts in SEK thousands unless otherw ise stated	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full-year	12 mth
Net sales	20 784	20 582	40 791	42 266	86 852	85 377
Net sales grow th, %	1,0%	15,1%	-3,5%	14,1%	15,7%	6,3%
EBITDA	-547	89	-2 236	3 158	13 379	7 985
Gross margin, %	73,5%	71,4%	72,7%	71,8%	72,6%	73,1%
Operating profit/loss	-5 707	-5 664	-12 758	-8 490	-9 414	-13 682
Operating margin, %	-27,5%	-27,5%	-31,3%	-20,1%	-10,8%	-16,0%
Cash flow from the operating activities	1 307	3 855	3 410	1 024	10 055	12 442
Cash and cash equivalents	33 577	41 746	33 577	41 746	37 704
Annual Recurring Revenue	18 227	18 645	18 227	18 645	18 980

See the Financial Glossary for definitions.

Presentation and live Q&A Aug 15, 13:00

Precise has published a video interview with CEO Joakim Nydemark in connection with this report. The interview is designed to complement the report and provide additional depth and a better understanding of the stock market for the company's business operations.

The video is available on the Investor Relations page: precisebiometrics.com/investors/

The company also invites you to a live Q&A session. More information and a registration link to the Q&A session may be found on the Investor Relations page: precisebiometrics.com/investors/

Time of Q&A: Friday, Aug 15, 2025, at 13:00 (CET).

Questions can be asked directly during the Q&A or submitted in advance to investor@precisebiometrics.com.

Interim Report January – June 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596

CEO comments:

Continued strong demand and stable performance despite geopolitical shifts

Our position remains strong with growing demand for our products. This quarter brought further progress in our commercialization journey, driven by active sales efforts with both customers and partners. However, we were also affected by the turbulent market environment and a weaker US dollar.

Net sales for the 2 nd quarter totaled SEK 20.8 (20.6) million and EBITDA was SEK -0.5 (0.1) million.

Commercial progress was made in areas such as national ID programs, where we were approved for use in Aadhaar, India. This has resulted in us now launching customer projects in India, with the hope of commercialization early next year.

The market

We feel that demand for the company's products is increasing, even though the market situation is prolonging business discussions. With a number of new customer projects initiated during the quarter, we continue to have a positive outlook for the full year 2025.

We have seen clear indications that the transition in the mobile market to the more advanced ultrasonic sensors is continuing, and the volumes forecast for the years ahead define an upward trend. Interest in biometric security solutions is also growing, with changes in the global security landscape and the rapid development of AI. Biometrics combines userfriendliness and high security in a unique way that attracts users. It is also clear that cybersecurity is a high priority among both companies and government agencies globally, and Precise Biometrics is well positioned.

Biometric Technologies

During the period, we won several new projects, with the company's strong offering in the field of premium solutions satisfying a growing need. The mobile vertical continued to deliver stable volumes, and we see the market growing. Existing customer relationships, especially with Qualcomm, are developing positively and volumes are expected to increase in the years ahead. In the automotive industry, revenues are in line with forecasts, despite the automotive industry experiencing a generally fraught situation.

The growing market for national ID programs also presents good potential. We have signed new contracts here, and there is growing demand for anti-spoof technology.

The hand recognition (palm) initiative has taken important steps forward in terms of both technical development and market cultivation. Pilot projects are under way in the US, and our business partner HandID is preparing for mass production of its palm reader later this year. Furthermore, government agencies have started to specify strict requirements for the technology, further reinforcing its relevance.

Biometric data collection, a field in which we possess unique expertise, is becoming increasingly important for optimizing biometric solutions in terms of performance, security and time to market. End customers, especially mobile manufacturers, are also showing increased interest in this knowledge, and we see an opportunity to further grow the area.

Digital Identity

Sales of Precise Visit by EastCoast performed well during the quarter, resulting in an increased inflow of recurring revenue. A clearer packaging of the Visit product – Go, Professional and Multi-tenant – enables us to better adapt the price level to match customer value and customer needs. By doing this, we expect to reach a broader target group and accelerate the number of installations.

Furthermore, several new Access Management vendors in the US have started to show an interest in Precise, and new partnerships have been initiated. We hope to be able to say more about these later this year. New, improved integration and the palm modality have contributed to this interest, which shows the company's ability to easily adapt the solutions to different access management systems.

While we are seeing some positive signs, overall growth in the Digital Identity business area is still not at the level we want it to be. During the quarter, we were also adversely affected by the bankruptcy of one of our major Precise Access users, which has a negative impact on ARR of approximately SEK 0.8 million.

We have continued to invest in expanding our market presence and driving sales, including active customer

engagement in new markets. Our framework agreements with major companies are also expected to support positive growth ahead.

Market cultivation

Market cultivation continues apace, and our new website was also launched during the quarter. A clearer description of our offerings and a strong focus on the people who use our solutions allow us to create a stronger profile. One element of this change is also to create the conditions for scaling the business within Digital Identity through digital marketing and sales.

LTI Program

In connection with the Annual General Meeting, we launched a long-term incentive plan for the company's employees. Employees have purchased the stock options at market value, and this will also be offered to future employees. As of June 30, 2025, approximately 450,000 stock options had been subscribed by employees in the company. The plan has been well received and everyone in the group executive team chose to participate, which helps to enhance the sense of long-term engagement in the company.

Future prospects

A great deal is happening within biometrics, cybersecurity, seamless physical access and AI. These areas are the cornerstones of our business, where we are well positioned to continue to deliver market-leading visitor systems, security solutions and biometric products with a unique combination featuring high levels of both security and userfriendliness. We also remain cost-conscious, and by renegotiating supplier agreements and achieving efficiency improvements during the first half of the year, we have been able to strengthen our sales capabilities and productivity with only a relatively small increase in costs. This will yield results in 2025.

Within our set commercialization strategy, we continue to launch new offerings, including national ID programs, palm recognition and on-premise access systems. Looking ahead to the coming year, there are strong indications for solid growth. In a society where security and user experience are becoming increasingly central, our solutions help create greater peace of mind.

Joakim Nydemark CEO

My top three:

• Unique position and strong offering
• Increasing new sales of Precise Visit
• Scalable business with growing volumes

▪

Update from the business areas

Digital Identity

The period has been characterized by active market cultivation and numerous customer meetings. The company has seen a positive development in the business, but has also seen business discussions taking longer than normal. While Precise is benefiting in part from the security situation and concerns about cyberattacks, for example, these factors also prolong certain business discussions.

New sales, primarily of Precise Visit by EastCoast, have performed well and the company has seen a good inflow of new recurring revenue, and a number of new customers and framework agreements have been signed. The positive trend of customers migrating to the Visit cloud solution is also continuing.

Another positive change is the high level of interest from new Access Management vendors in the US in Precise Access and biometric access. Several new partnerships have been established, with one important parameter being Precise's ability to easily integrate with different access management systems. The partnership with Genetec continues to develop, and the joint solution with a focus on palm was presented during the period at events including the ISC West security tradeshow in Las Vegas.

On the downside, one of Precise Access's major installations, worth around SEK 0.8 million in ARR, has been closed down after the end customer was declared bankrupt.

New packaging for Precise Visit

The visitor management system offering, Precise Visit by EastCoast, has been divided into three product packages to create a clearer, broader and more attractive offering. Precise Visit Go – a well-packaged software solution at a lower price and with limited functionality for smaller companies with one office and limited needs.

Precise Visit Professional – the "regular" version of Visit, which offers premium functionality for companies that want the best visitor experience, the highest level of security and efficient administration, as well as needing add-on products and multiple locations.

Precise Visit Multi-tenant – for landlords and coworking spaces that want to offer a solution where multiple company names can be included.

A few highlights

• High level of interest in the company's solutions in all markets and segments. Two areas that do stand out are the interest from access management partners in Precise Access in the USA and the number of new customer meetings booked for Precise Visit in Sweden and Norway.
• New partnerships with suppliers of Access Management Systems.
• A new improved integration with palm modality for Precise Access.
• The investments made in the sales force and product packaging are starting to yield results.

New customers

There was a healthy influx of new customers during the quarter, and this also applies to upsales to existing customers in the form of more offices and countries. To name a few: Bonesupport, BSH Home Appliances, Gästrike Vatten, GPV International, Medicon Village, Oriola, Scandic Hotels, Tobii and Wordline. Examples of countries where the solutions have been implemented are Sweden, Norway, Denmark, Finland, Romania, Japan and Poland.

Customers who have migrated to the cloud include Anticimex, BSH Home Appliances, Extenda Retail and GPV International.

Roadmap

Several new functions were launched during the period, while improvements were made in security, integrations and user experience. Rebranding to Precise Access and Precise Visit by EastCoast is also part of the roadmap.

Biometric Technologies

The need for biometric security continues to develop rapidly, and Precise's offering remains particularly relevant. The company has a strong global position as a reliable and leading operator for premium solutions in the field of biometrics, and developments during the quarter were positive from both a customer and an innovation perspective.

Market and sales

The mobile phones vertical continues to deliver, with several new projects won during the quarter. Existing customers continue to generate good volumes, albeit with lower growth due to a degree of uncertainty related to tariffs and the global security situation. The relationship with Qualcomm and EgisTech is developing positively and continues to generate revenues.

The automotive industry is sending out positive signals, and revenues are in line with expectations, although the company is currently experiencing a great deal of and inertia in new business dialogs.

Another area with excellent potential is national ID programs, where several new contracts have been signed. The need for anti-spoofing and liveness has increased as security requirements become stricter, and Precise sees great opportunities in this area. However, the complexity and size of projects linked to national ID programs often means that the lead time is longer compared with projects in other segments, but things are moving forward.

The investment in palm took important steps during the quarter, and the modality is going from strength to strength. A few highlights:

• Technological development continues, with further advances in performance, security, anti-spoofing and a broader offering for Android in embedded environments.
• A fully tested integration with Precise Access is now in place, as well as other access management systems.
• A number of pilot projects are under way in the US in the field of physical access.
• The business partner HandID has, a little belatedly, continued the development of its palm reader and is approaching a final product, with mass production planned for the end of the year.
• Government agency initiatives are showing a growing interest in palm modality, and several actors have started to specify strict performance and security requirements linked to this technology.

Another area of strong development is our biometric services, where there has been a significant increase in interest. This applies in particular to biometric data collection, which aims to optimize performance and security in devices with biometric authentication. End customers – including mobile phone manufacturers – also recognize the tremendous value in Precise's biometric expertise to further develop security, performance and user experience in their products.

Development and innovation

Precise continues to further develop and strengthen its biometric platform, by both further developing individual products and identifying synergies within the overall product suite.

Examples of ongoing initiatives:

• General improvements to performance and security, with an extra focus on BioLive and anti-spoof.
• Support for new sensors and customer projects, especially in the ultrasonic area.
• Synthetic image generation for the faster and more efficient optimization of solutions in respect of performance and security.
• Improved performance and packaging for palm.

New website for Precise

In June, Precise launched its new website, precisebiometrics.com. The website is one of Precise's key channels for external communication, both regarding the company's commercial offering and for communication to the investor target group.

The new website better reflects who Precise is, the company's ambitions, the company's full commercial offering and the IR agenda. The site presents the company's diversified offering in a clear way to relevant target groups.

In connection with the launch, a new additional primary color, purple, is also being introduced, to supplement the existing color palette. The aim is to create a clearer identity for Precise. The project should not, however, be viewed as a branding project, but as a website launch that to a lesser extent involved a review of the structure of the offering and the visual expression.

Interim Report January – June 2025 "The goal with our new website is to create a sales-driven platform that helps visitors understand Precise's diverse offering, the value we deliver, and who we are. It's also designed to give investors a clear and simple way to get the information they need. Now the fun part begins — testing, analyzing, and improving the content, user experience, SEO, CRO, and more."

10

Customer offering

In a society where security and user-friendliness are becoming increasingly central, Precise helps create increased peace of mind by developing innovative technical solutions in the areas of cybersecurity and biometric recognition. Simplicity and a first-class user experience are combined with performance and a high level of security. Instead of using a PIN, password, key, card, etc. you use your finger, face or hand for authentication or identification.

There are areas of application in both digital and physical access, and the applications are found in, for example, mobile phones, laptops, logical access, payment, vehicles, and in visitor management and access systems, and various forms of government initiatives such as national ID systems and Automated Biometric Identification Systems (ABIS).

The offering consists of biometric algorithm products, basic technology, which component manufacturers use in their products, and also end-customer products for access and visitor management.

The focus is on creating a safe and seamless everyday experience for people by combining first class user experience with a high level of security in cybersecurity and biometric security solutions.

Why Precise?

Enables smarter and more secure authentication and identification for mobile phones, vehicles, secure logins, visitor management and physical access, while supporting government agency initiatives such as national ID programs and ABIS.

• Unique position and over 25 years of expertise.
• 100,000 biometric verifications every second.
• Global reach and trust from leading actors.
• 100% software and SaaS, creating flexibility and the facility to make quick changes.
• Hardware-independent.
• Combines different biometric modalities such as finger, palm, and face.

Our products

Access and visitor management

• Precise Access is our biometric access solution for physical entry through palm or facial recognition.
• Precise Visit by EastCoast is our visitor management system that offers a premium visitor experience while improving security, administration and compliance.

Biometric software suite for palm and finger recognition

• BioMatch is our fingerprint and palm matching product.
• BioLive is our product to prevent manipulation, fraud and forgery by ensuring the authenticity of biometric prints.
• BioEnhance is our product for image enhancement, e.g., regarding biometric prints before matching.
• Biometric Services is our offering for biometric expertise, data collection and spoof creation.

Net sales and operating profit/loss

Net sales for the quarter

Net sales for the quarter totaled SEK 20.8 (20.6) million, divided between royalty revenues of SEK 8.8 (8.1) million, license fees (including support and maintenance) of SEK 10.0 (10.4) million and other revenues of SEK 2.0 (2.1) million. Royalty revenues for the second quarter are slightly higher than in the previous year, even though they were negatively impacted by a renegotiated customer agreement. The agreement entails increased revenue on an annual basis, but lower royalty revenue during the quarter by approximately SEK 1 million. The agreement will have a positive effect in the second half of the year, as revenues will be distributed more evenly between the quarters ahead. A weaker USD also had a negative impact on revenues.

Biometric Technologies

Net sales for Biometric Technologies totaled SEK 15.3 (15.1) million and are reported under royalties at SEK 8.8 (8.1) million, licenses at SEK 5.4 (5.7) million, and other revenues at SEK 1.1 (1.3) million. Royalty revenues in the second quarter were slightly higher than in the previous year, despite the negative impact from a renegotiated customer agreement and a weaker USD. The renegotiation of the agreement is positive and entails an increase in revenue on an annual basis, but the change affects how revenue is distributed over the year. The gross margin during the quarter totaled 82.2% (84.6). The decrease is mainly due to higher costs of goods and services sold.

Digital Identity

Net sales for Digital Identity totaled SEK 5.5 (5.5) million and are reported under licenses at SEK 4.6 (4.7) million, and other revenues at SEK 0.9 (0.8) million.

The proportion of annual recurring revenue (ARR) was SEK 18.2 (18.6) million at the end of the quarter. The lower ARR level is explained by an individual customer agreement that was terminated during the period, with a negative impact of approximately SEK 0.8 million.

At the same time, the quarter saw positive new sales. The gross margin during the quarter totaled 49.2% (35.4). The improved gross margin is due to reduced depreciation/amortization, which in turn is an effect of lower capitalization of development expenses in previous periods.

Earnings for the quarter

The gross margin during the quarter totaled 73.5% (71.4). The increase is primarily due to reduced depreciation/amortization. Amortization of capitalized development expenses totaled SEK 3.7 (4.2) million. Amortization of acquired intangible assets totaled SEK 0.6 (0.6) million.

Operating expenses for the quarter increased to SEK 21.0 (20.4) million. During the quarter, the company was negatively affected by the trend in the USD exchange rate, which resulted in other operating expenses of SEK -0.9 million, compared with SEK -0.1 million in the same quarter in the previous year.

The profit/loss at EBITDA level decreased to SEK -0.5 (0.1) million, which is explained by the exchange rate impact as described above, a renegotiated customer agreement which in accounting terms entails approximately SEK 1 million lower income in the quarter, but higher income on an annual basis.

The operating profit/loss (EBIT) for the quarter totaled SEK -5.7 (-5.7) million. Earnings totaled SEK -5.8 (-5.6) million. Total depreciation/amortization was SEK 5.2 (5.8) million.

Earnings per share (average number of shares) for the quarter totaled SEK -0.07 (-0.07).

Interim Report January – June 2025

Precise Biometrics AB (publ), corp. ID no. 556545-6596

Net sales for the interim period

Net sales during the interim period totaled SEK 40.8 (42.3) million. Net sales are reported under royalty revenues at SEK 17.5 (18.6) million, license fees (including support and maintenance) at SEK 19.8 (20.2) million and other revenues at SEK 3.5 (3.5) million. The reduction in royalty revenues is negatively affected by a renegotiated customer agreement. The agreement entails increased revenue on an annual basis, but lower royalty revenue during the interim period by approximately SEK 2 million. License fees were down year-onyear mainly due to changes in the composition of customers and renegotiated license agreements due to the reduced support needs of some customers. A weaker USD also had a negative impact on revenues.

Biometric Technologies

Net sales for Biometric Technologies totaled SEK 30.2 (31.7) million and are reported under royalties at SEK 17.5 (18.6) million, licenses at SEK 10.5 (11.0) million, and other revenues at SEK 2.3 (2.2) million. Royalty revenues during the interim period were slightly lower than in the previous year, with a negative impact from a renegotiated customer agreement and a weaker USD. License fees were down year-on-year mainly due to changes in the composition of customers and renegotiated license agreements due to the reduced support needs of some customers. The gross margin during the interim period was 82.5% (84.9).

Digital Identity

Net sales for Digital Identity totaled SEK 10.6 (10.5) million and are reported under licenses at SEK 9.3 (9.2) million and other revenues at SEK 1.3 (1.3) million. The ARR at the end of the interim period was SEK 18.2 (18.6) million. The lower ARR level is explained by an individual customer agreement that was terminated during the period, with a negative impact of approximately SEK 0.8 million. The gross margin during the interim period was 44.7% (32.2).

Earnings for the interim period

The gross margin during the interim period was 72.7% (71.8). The improved gross margin is due to reduced depreciation/amortization, which in turn is an effect of lower capitalization of development expenses in previous periods. Total amortization of capitalized development expenses was SEK 7.5 (8.5) million. Amortization of acquired intangible assets totaled SEK 1.2 (1.2) million.

Operating expenses for the interim period increased to SEK 42.4 (38.9) million. During the interim period, the company was negatively affected by the trend in the USD exchange rate, which in its entirety resulted in other operating expenses of SEK -2.4 million. The corresponding interim period in the previous year saw operating income of SEK 0.5 million, which means a currency-related change of SEK 2.9 million between the periods.

The profit/loss at EBITDA level fell to SEK -2.2 (3.2) million. This is explained by the exchange rate impact as described above, a renegotiated customer agreement which in accounting terms entails approximately SEK 2 million lower income in the quarter, but higher income on an annual basis. The operating profit/loss for the interim period totaled SEK -12.8 (-8.5) million. Earnings for the interim period totaled SEK -13.0 (-8.5) million. Total depreciation/amortization totaled SEK 10.5 (11.6) million. Earnings per share (average number of shares) for the interim period totaled SEK -0.17 (-0.11).

Net financial items and tax

Net financial items for the quarter totaled SEK -0.2 (0.0) million and the tax expense totaled SEK 0.1 (0.1) million. Net financial items for the interim period totaled SEK -0.4 (-0.2) million and the tax expense totaled SEK 0.2 (0.2) million.

Net financial items are attributable to exchange rate differences in cash and cash equivalents, interest income, interest on the lease liability in accordance with IFRS 16, as well as interest expense on the deferred fixed purchase price related to the acquisition of EastCoast.

Cash flow and investments

The cash flow from operating activities during the quarter totaled SEK 1.3 (3.9) million, of which SEK 2.0 (3.8) million is attributable to changes in working capital. The Group invested SEK -0.7 (0.1) million in property, plant and equipment during the quarter. Total cash flow for the period was SEK –2.3 (0.6) million.

Cash flow for the interim period from operating activities totaled SEK 3.4 (1.0) million, primarily attributable to a positive change in working capital of SEK 6.1 (-2.0) million. The Group invested SEK -0.7 (0.1) million in property plant and equipment during the interim period. Total cash flow for the interim period was SEK -3.8 (-5.9) million.

Capitalization and amortization of development work

Development expenses of SEK 2.8 (2.6) million were capitalized during the quarter, and amortization of capitalized development expenses in respect of Digital Identity and

Biometric Technologies totaled SEK 3.7 (4.2) million. Development expenses of SEK 5.7 (5.6) million were capitalized during the interim period, and amortization of capitalized development expenses totaled SEK 7.5 (8.5) million.

Right of use assets

No new rental agreements were added during the quarter, but the interim period saw an extension of rental agreements in Lund and indexation of rent in Lund and Stockholm, which resulted in an increase in lease liabilities of SEK 3.4 (5.8) million. Right of use assets totaled SEK 11.3 (8.6) million at the end of the period.

Financial position and liquidity

Cash and cash equivalents at the end of the period totaled SEK 33.6 (41.7) million. Total equity at the end of the period was SEK 138.1 (150.9) million, and equity per share was SEK 1.76 (1.92).

The parent company

The parent company's net sales for the quarter totaled SEK 15.8 (15.5) million and operating profit/loss for the quarter totaled SEK -6.0 (-5.3) million and was charged with amortization of goodwill totaling SEK 0.6 (0.6) million. Net sales for the interim period totaled SEK 31.9 million (33.2). The operating profit/loss totaled SEK -12.7 (-8.3) million and was affected by amortization of goodwill totaling SEK 1.2 (1.2) million. Cash and cash equivalents at the end of the interim period totaled SEK 24.8 (29.2) million, and equity SEK 126.1 (140.9) million.

The organization consists of the head office in Lund, Sweden, and offices in Stockholm, Sweden, Potsdam, USA, and Shanghai, China. At the end of the interim period, the Group had a workforce of 45 (44) people, including on-site consultants. The number of employees was 36 (33), of which 29 (24) were located in Sweden. Precise works in an agile way together with several partners, creating a fast-moving, scalable organization. The number of employees does not include partners.

Financial Calendar

• Q3 Interim Report 2025 November 14, 2025
• Year-End Report 2025 February 12, 2026
• Q1 Interim Report 2026 May 13, 2026
• AGM 2026 May 21, 2026

Risk factors

The roup and parent company's business risks and risk management as well as the management of financial risks are described in detail in the Annual Report for 2024, which was issued in April 2025. There have been no incidents of significant importance since then that would affect or change these descriptions of the roup or parent company's risks and how they are managed.

Ownership structure

Precise Biometrics AB (publ), corporate ID number 556545- 6596, is the parent company in the Precise Biometrics Group. Precise Biometrics AB's shares are listed on the Nasdaq O X Nordic Small Cap list. The number of shareholders at the end of the quarter was 21,272 (18,893). 77,604,950 (194,684,836) PREC shares were traded during the quarter. The closing price on June 30 was SEK 3.40 (3.67), and during the quarter the share price fluctuated between SEK 3.32 (1.14) and SEK 4.42 (4.95).

The undersigned certify that the interim report provides a true and fair view of the parent company and roup's operations, financial position and financial results, and describes the significant risks and uncertainty factors faced by the parent company and the companies that belong to the Group.

Lund, August 15, 2025

Torgny Hellström

Chairman of the Board

Howard Ro	Peter Gullander	Victor Kuzmin	Maria Rydén	Åsa Schwarz
Board member	Board member	Board member	Board member	Board member

Joakim Nydemark

CEO

For further information, please contact: Joakim Nydemark, CEO Email: joakim.nýdemark@precisebiometrics.com

This information is information that Precise Biometrics AB is obligated to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication on August 15, 2025 at 08:00 (CET).

Consolidated income statement – in summary

		2025	2024	2025	2024	2024	Rolling
Amounts in SEK thousand	Note	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full-year	12 mth
Net sales	2,3	20 784	20 582	40 791	42 266	86 852	85 377
Cost of goods sold		-5 505	-5 881	-11 120	-11 908	-23 786	-22 998
Gross profit		15 279	14 701	29 671	30 358	63 066	62 379
Marketing and sales expenses		-9 101	-9 399	-17 905	-17 883	-32 982	-33 004
Administrative expenses		-3 886	-3 744	-7 830	-7 594	-13 789	-14 025
R&D expenses		-7 149	-7 086	-14 246	-13 894	-26 966	-27 318
Other operating income/expenses		-850	-135	-2 447	523	1 256	-1 714
		-20 985	-20 365	-42 429	-38 848	-72 480	-76 061
Operating profit/loss		-5 707	-5 664	-12 758	-8 490	-9 414	-13 682
Finacial income/expenses	4	-150	10	-378	-219	630	471
Profit/Loss before tax		-5 858	-5 654	-13 136	-8 709	-8 784	-13 211
Tax		87	88	173	174	351	350
Profit/loss for the period attributable to parent company
shareholders		-5 770	-5 565	-12 963	-8 534	-8 433	-12 862
Earnings per share, remaining operations, SEK*
- before dilution		-0,07	-0,07	-0,17	-0,11	-0,11	-0,16
- after dilution		-0,07	-0,07	-0,17	-0,11	-0,11	-0,16
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Profit/Loss for the period		-5 770	-5 565	-12 963	-8 534	-8 433	-12 862
Other comprehensive income:
Items that may be reclassified to profit or loss
Changes in accumulated exchange rate differences		-198	-17	-540	141	274	-407
Other comprehensive income for the period		-198	-17	-540	141	274	-407
Profit/Loss total attributable to holders of participations in
the parent company		-5 968	-5 582	-13 503	-8 393	-8 159	-13 269

*Dilution effects are only considered in the event that the earnings per share become worse. Dilution effects have not been considered, as the average price is below the subscription price in current option programs.

Consolidated balance sheet – in summary

Amounts in SEK thousand

ASSETS Note		2025-06-30	2024-06-30	2024-12-31
FIXED ASSETS
Material assets		12 944	10 413	10 639
Goodw ill and immaterial assets		121 708	128 620	124 741
TOTAL FIXED ASSETS		134 652	139 033	135 380
CURRENT ASSETS
Inventories		225	291	242
Accounts receivable		15 120	19 897	23 813
Other current receivabels		3 918	3 579	3 123
Accruals and deferred income		2 822	3 091	2 804
Cash and cash equivalents	4,6	33 577	41 746	37 704
TOTAL CURRENT ASSETS		55 662	68 603	67 686
TOTAL ASSETS		190 314	207 636	203 066
EQUITY AND LIABILITIES
EQUITY
Equity		138 069	150 927	151 163
TOTAL EQUITY ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS		138 069	150 927	151 163
LONG-TERM DEBT
Long term debt	6	18 623	21 904	16 281
TOTAL LONG-TERM DEBT		18 623	21 904	16 281
SHORT-TERM LIABILITIES
Short-term liabilities	4,6	33 621	34 805	35 621
Total Short-term liabilities		33 621	34 805	35 621
TOTAL EQUITY AND LIABILITIES		190 314	207 636	203 066

Consolidated cash flow statement – in

summary

		2025	2024	2025	2024	2024	Rolling
Amounts in SEK thousand	Note	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full-year	12 mth
Cash flow from operating activities
Operating profit/loss		-5 707	-5 664	-12 758	-8 490	-9 414	-13 682
Adjustments for items not included in cash flow		5 158	5 737	10 410	11 748	22 928	21 590
Interest payments, net		-150	10	-378	-219	630	471
Tax paid		- 3	- 4	0	-11	-22	-11
Cash flow from operating activities		-702	79	-2 726	3 028	14 122	8 368
before changes in working capital
Cash flow from changes in working capital
Change in inventories		- 3	2	17	68	117	66
Change in current receivables		7 003	6 365	7 827	-941	-4 113	4 655
Change in current liabilities		-4 991	-2 591	-1 708	-1 132	-71	-648
		2 009	3 776	6 136	-2 005	-4 067	4 074
Cash flow from operating activities		1 307	3 855	3 410	1 024	10 055	12 442
Acquisition of subsidiaries	6	0	0	0	0	-6 168	-6 168
Investment in fixed assets		-672	76	-712	107	-370	-1 189
Investment in intangible assets		-2 761	-2 674	-5 722	-5 729	-10 967	-10 960
Cash flow from investing activities		-3 433	-2 598	-6 434	-5 622	-17 505	-18 317
Repurchase of ow n shares		0	- 1	- 1	- 2	- 3	- 2
Options		407	0	407	0	0	407
Payment of lease liability		-593	-639	-1 193	-1 261	-2 542	-2 475
Cash flow from financing activities		-186	-640	-787	-1 263	-2 545	-2 070
Total Cash flow		-2 312	616	-3 810	-5 862	-9 994	-7 943
Cash & cash equivalents at beginning of year		36 036	41 148	37 704	47 534	47 534	41 746
Exchange rate differences in cash & cash equivalents		-147	-18	-317	73	164	-226
Cash & cash equivalents at end of period 1)		33 577	41 746	33 577	41 746	37 704	33 577

1) The balance sheet item Cash & Cash Equivalents only includes bank balances at both the beginning and end of the period.

Consolidated change in equity – in summary

Amounts in SEK thousand		2025	2024	2024	Rolling
	Note	Jan-Jun	Jan-Jun	Full-year	12 mth
Equity at start of period		151 163	159 319	159 319	150 927
Comprehensive income
Profit/loss for the period		-12 963	-8 534	-8 433	-12 862
Other comprehensive income
Exchange differences		-540	141	274	-407
Total other comprehensive income		-540	141	274	-407
Total comprehensive income		-13 503	-8 393	-8 159	-13 269
Transactions with shareholders
LTI programme	5	409	2	2	409
Total transactions w ith shareholders		409	2	2	409
Equity end of period		138 069	150 927	151 163	138 069

Notes

Note 1 – Accounting policies

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The parent company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Annual Reporting Board's recommendation RFR 2, Accounting for Legal Entities. The recognition and measurement policies and bases of estimates applied in the Annual Report for 2024 report have also been used in this interim report.

Note 2 – Revenue allocation

	2025	2024	2025	2024	2024	Rolling
Amounts in SEK thousand	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full-year	12 mth
Segment
Biometric Technologies
Royalty	8 804	8 096	17 468	18 584	41 089	39 972
Licenses, incl. support & maintenance	5 368	5 714	10 489	10 995	21 976	21 471
Other	1 126	1 259	2 272	2 170	2 358	2 460
Digital Identity
Licenses, incl. support & maintenance	4 621	4 682	9 261	9 197	18 588	18 651
Other	865	831	1 302	1 320	2 841	2 822
Total	20 784	20 582	40 791	42 266	86 852	85 377
Timing of revenue recognition
At point in time*	10 686	9 878	20 944	21 762	47 777	46 959
Over time**	10 098	10 704	19 847	20 504	39 075	38 418
Total	20 784	20 582	40 791	42 266	86 852	85 377
Region/Country
Europe	6 412	7 118	12 886	12 941	27 598	27 542
- w hereof Sw eden	4 733	5 496	9 997	10 315	20 356	20 038
Asia	7 241	7 795	13 635	15 920	29 443	27 159
- w hereof China	275	337	551	698	1 372	1 225
- w hereof Taiw an	5 987	6 720	11 314	13 591	24 963	22 686
USA	7 132	5 671	14 269	13 405	29 811	30 675
Total	20 784	20 582	40 791	42 266	86 852	85 377

* Sale at a certain time means that revenue is reported point-in-time at the start of the agreement period, when control has been transferred to the customer. Royalties have been moved to sales at a certain point in time in order to provide a more accurate picture.

** Sales over time means that revenue is accrued on a straight-line basis over the term of the agreement.

Note 3 – Segment reporting

			2025			2024
	Biometric Technologies	Digital Identity	Apr-Jun Total Segment	Biometric Technologies	Digital Identity	Apr-Jun Total Segment
Net sales	15 298	5 486	20 784	15 069	5 514	20 582
Cost of goods sold exkl. depreciation	-451	-954	-1 405	-104	-1 177	-1 280
Depreciation included in cost of sold goods	-2 269	-1 831	-4 100	-2 218	-2 384	-4 601
Gross profit	12 577	2 701	15 279	12 748	1 954	14 701

				2024
	Biometric Technologies	Digital Identity	Jan-Jun Total Segment	Biometric Technologies	Digital Identity	Jan-Jun Total Segment
Net sales	30 228	10 563	40 791	31 749	10 518	42 266
Cost of goods sold exkl. depreciation	-723	-2 011	-2 733	-324	-2 240	-2 564
Depreciation included in cost of sold goods	-4 558	-3 829	-8 387	-4 456	-4 889	-9 345
Gross profit	24 947	4 723	29 671	26 969	3 389	30 358

			2024			Rolling
	Biometric Technologies	Digital Identity	Full-year Total Segment	Biometric Technologies	Digital Identity	12 mth Total Segment
Net sales	65 424	21 428	86 852	63 904	21 473	85 376
Cost of goods sold exkl. depreciation	-1 259	-4 297	-5 556	-1 658	-4 068	-5 725
Depreciation included in cost of sold goods	-9 402	-8 828	-18 230	-9 504	-7 768	-17 272
Gross profit	54 764	8 303	63 066	52 743	9 637	62 379

Other information

Only net sales and product costs are allocated to each segment. Other costs are not allocated at segment level as these items relate to group operations

	2025	2024	2025	2024	2024	Rolling
Reconciliation profit/Loss	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full-year	12 mth
Gross profit	15 279	14 701	29 671	30 358	63 066	62 379
Marketing and sales expenses	-9 101	-9 399	-17 905	-17 883	-32 982	-33 004
Administrative expenses	-3 886	-3 744	-7 830	-7 594	-13 789	-14 025
R&D expenses	-7 149	-7 086	-14 246	-13 894	-26 966	-27 318
Other operating income/expenses	-850	-135	-2 447	523	1 256	-1 714
Finacial income/expenses	-150	10	-378	-219	630	471
Profit/Loss before tax	-5 858	-5 654	-13 136	-8 709	-8 784	-13 211

Precise Biometrics AB (publ), corp. ID no. 556545-6596

Note 4 – Financial instruments

The fair value in respect of financial assets and liabilities corresponds in all material respects with the carrying amount in the balance sheet.

Interest-bearing liabilities

On November 30, 2022, a supplementary agreement was signed that changed the terms and conditions for the remaining liability of SEK 55,000 thousand for the acquisition of EastCoast Solutions AB (see Note 6). SEK 30,000 thousand was paid on December 1, 2022, SEK 10,000 thousand on November 30, 2023 and SEK 5,000 thousand on November 30, 2024. SEK 5,000 thousand will be paid on November 30, 2025 and SEK 5,000 thousand on November 30, 2026. Interest will be added to the amounts of SEK 5,000 thousand due on November 30, 2025 and SEK 5,000 thousand due on November 30, 2026. Interest for the period from December 1, 2023 to November 30, 2024 was paid on November 30, 2024. The interest, of 3 months STIBOR + 8%, will be added from November 30, 2023 until the amounts have been paid. The liability is recognized as an interest-bearing liability as of June 30, 2025.

The liability has been calculated at current value at the original effective interest rate of 1.8% and is recognized as other current liabilities (SEK 5,961 thousand) and other non-current liabilities (SEK 5,351 thousand).

Note 5 – LTI program

The Annual eneral eeting 2022 resolved, in accordance with the Board's proposal, to establish a long-term share bonus program (LTI 2022/2028) for all employees at Precise Biometrics. In order to facilitate the implementation of LTI 2022/2028 and to ensure the delivery of shares to the participants, and to cover the company's costs for social security contributions, the meeting also decided to amend the Articles of Association in the form of the introduction of new Class C shares, authorization for the Board of Directors to issue Class C shares, authorization for the Board of Directors to buy back Class C shares, and approval of the transfer of shares to participants in LTI 2022/2028. The implementation of Class C shares took place in Q4 2022. As of June 30, 2025, Precise Biometrics held 1,085,000 Class C shares.

The Annual eneral eeting 2025 resolved, in accordance with the Board's proposal, to establish a new long-term incentive plan (LTIP 2025/2028) for senior executives and other current and future employees within the Group by issuing a maximum of 1,200,000 stock options, which means that the company's share capital may increase by a maximum of SEK 360,000. All stock options have been issued free of charge to the wholly-owned subsidiary, Precise Biometrics Services AB, for onward transfer at market value to current employees who have been offered the opportunity to participate and to future employees within the Group.

As of June 30, 2025, approximately 450,000 stock options had been transferred to participants. The stock options have a term of three years and can be exercised for the subscription of shares during the period from August 1, 2028 to September 30, 2028. The conditions for continued holding and the right to exercise the options are regulated in separate transfer agreements, and may be affected by, for example, the termination of employment. Each stock option entitles the holder to subscribe to one new share in the company at a strike price of SEK 5.63 per share. As the options have been acquired at market value, there is no accounting cost for the company in accordance with IFRS 2.

Note 6 – Business combinations

As of November 30, 2021, the Group acquired 100% of the shares in EastCoast Solutions AB and Besökssystem Sverige AB.

The purchase price totaled SEK 86,203 thousand, of which SEK 24,466 thousand was paid as of December 31, 2021, partly via a cash payment of SEK 18,000 thousand and partly via the issuing of new shares totaling SEK 6,466 thousand. An additional SEK 8,268 thousand was paid in cash in January 2022.

On November 30, 2022, a supplementary agreement was signed that changed the terms and conditions for the remaining liability of SEK 55,000 thousand for the acquisition. See Note 4 for details of the new terms and conditions.

During the second quarter of 2025, there is no impact on the roup's cash and cash equivalents in respect of business combinations.

Parent company income statement – in

summary

		2025	2024	2025	2024	2024	Rolling
Amounts in SEK thousand	Note	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full-year	12 mth
Net sales	1	15 841	15 498	31 906	33 208	69 959	68 657
Cost of goods sold		-7 039	-7 113	-14 663	-15 326	-32 412	-31 750
Gross profit		8 802	8 385	17 243	17 882	37 547	36 907
Marketing and sales expenses		-5 452	-5 625	-11 090	-11 309	-20 783	-20 564
Administrative expenses		-3 740	-3 558	-7 555	-7 285	-13 227	-13 497
R&D expenses		-4 731	-4 492	-8 888	-8 294	-16 031	-16 625
Other operating income/expenses		-852	12	-2 439	667	1 261	-1 845
		-14 775	-13 662	-29 972	-26 221	-48 780	-52 531
Operating profit/loss		-5 973	-5 277	-12 729	-8 339	-11 233	-15 624
Financial income/expenses		-62	95	-162	-45	809	692
Group contributions received		0	0	0	0	151	151
Profit/loss before tax		-6 035	-5 182	-12 891	-8 384	-10 274	-14 781
Tax		0	0	0	0	0	0
Profit/loss for the period		-6 035	-5 182	-12 891	-8 384	-10 274	-14 781

Parent company balance sheet – in summary

Amounts in SEK thousand

ASSETS	Note	2025-06-30	2024-06-30	2024-12-31
Fixed assets
Fixed assets		1 223	1 487	1 196
Immaterial assets		19 918	26 910	22 812
Deferred tax assets		90 558	90 558	90 558
TOTAL FIXED ASSETS		111 699	118 955	114 566
CURRENT ASSETS
Inventories		0	0	0
Accounts receivable		12 640	16 607	20 859
Receivable Group		6 129	1 392	8 145
Other receivables		2 393	11 571	1 841
Accruals and deferred income		2 296	2 663	2 449
Cash and cash equivalents		24 794	29 176	25 452
TOTAL CURRENT ASSETS		48 252	61 409	58 746
TOTAL ASSETS		159 951	180 364	173 312
EQUITY AND LIABILITIES
Restricted Equity
Share capital		23 539	23 539	23 539
Statutory reserve		1 445	1 445	1 445
Reserve for development expenses		14 597	20 002	15 911
Total restricted equity		39 581	44 986	40 895
Unrestricted Equity
Share premium reserve		168 316	168 316	168 316
Retained earnings		-68 902	-64 033	-59 942
Profit/loss for the year		-12 891 86 523	-8 384 95 899	-10 274 98 100
Total non-restricted equity
Total Equity		126 104	140 885	138 995
LONG-TERM DEBT
Long term debt		5 369	11 357	5 337
TOTAL LONG-TERM DEBT		5 369	11 357	5 337
SHORT-TERM LIABILITIES
Short-term liabilities		28 478	28 122	28 979
Total Short-term liabilities		28 478	28 122	28 979
TOTAL EQUITY AND LIABILITIES		159 951	180 364	173 312

Consolidated key indicators

	2025	2024	2025	2024	2024	Rolling
Amounts in SEK thousands unless otherw ise stated	Apr-Jun	Apr-Jun	Jan- Jun	Jan-Jun	Full-year	12 mth
Net sales	20 784	20 582	40 791	42 266	86 852	85 377
Net sales grow th, %	1,0%	15,1%	-3,5%	14,1%	15,7%	6,3%
Gross margin, %	73,5%	71,4%	72,7%	71,8%	72,6%	73,1%
EBITDA	-547	89	-2 236	3 158	13 379	7 985
Operating profit/loss	-5 707	-5 664	-12 758	-8 490	-9 414	-13 682
Working capital *	28 015	39 923	28 015	39 923	38 019	28 015
Capital employed	149 413	168 409	149 413	168 409	162 455	149 413
Liquidity ratio, %	164,9%	196,3%	164,9%	196,3%	189,3%	164,9%
Equity/assets ratio, %	72,5%	72,7%	72,5%	72,7%	74,4%	72,5%
Earnings per share before dilution, SEK	-0,07	-0,07	-0,17	-0,11	-0,11	-0,16
Earnings per share after dilution, SEK	-0,07	-0,07	-0,17	-0,11	-0,11	-0,16
Equity per share, SEK	1,76	1,92	1,76	1,92	1,93	1,76
Number of shares (thousands)	78 464	78 464	78 464	78 464	78 464	78 464
Weighted avg. number of shares, adjusted for dilution
effect (thousands)	78 464	78 464	78 464	78 464	78 464	78 464
Number of employees at the end of the period	36	32	36	32	35	36
Average number of employees during the period	36	33	36	32	32	34
Annual Recurring Revenue	18 227	18 645	18 227	18 645	18 980

* The key indicator is calculated excluding current liabilities to EastCoast International AB.

Alternative consolidated key indicators

Amounts in SEK thousands	2025	2024	2025	2024	2024	Rolling
unless otherw ise stated	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full-year	12 mth
Net sales	20 784	20 582	40 791	42 266	86 852	85 377
Net sales grow th, %	1,0%	15,1%	-3,5%	14,1%	15,7%	6,3%
Gross profit	15 279	14 701	29 671	30 358	63 066	62 379
Net sales	20 784	20 582	40 791	42 266	86 852	85 377
Gross margin, %	73,5%	71,4%	72,7%	71,8%	72,6%	73,1%
Operating profit/loss	-5 707	-5 664	-12 758	-8 490	-9 414	-13 682
Net sales	20 784	20 582	40 791	42 266	86 852	85 377
Operating margin, %	-27,5%	-27,5%	-31,3%	-20,1%	-10,8%	-16,0%
EBITDA	-547	89	-2 236	3 158	13 379	7 985
Depreciation and amortization	-5 160	-5 752	-10 522	-11 648	-22 794	-21 668
Operating profit/loss	-5 707	-5 664	-12 758	-8 490	-9 414	-13 682
Current assets	55 662	68 603	55 662	68 603	67 686	55 662
Current liabilities excl. current liabilities EastCoast
International*	27 646	28 681	27 646	28 681	29 667	27 646
Working capital	28 015	39 923	28 015	39 923	38 019	28 015
Sales expenses	-9 101	-9 399	-17 905	-17 883	-32 982	-33 004
Administrative expenses	-3 886	-3 744	-7 830	-7 594	-13 789	-14 025
R&D expenses	-7 149	-7 086	-14 246	-13 894	-26 966	-27 318
Other operating income/expenses	-850	-135	-2 447	523	1 256	-1 714
Total operating expenses	-20 985	-20 365	-42 429	-38 848	-72 480	-76 061
Cost of goods and services sold	-5 505	-5 881	-11 120	-11 908	-23 786	-22 998
Depreciation Cost of goods sold	4 100	4 600	8 387	9 344	18 230	17 272
Cost of goods and services sold excluding
depreciation	-1 405	-1 281	-2 733	-2 564	-5 556	-5 725
Operating expenses	-20 985	-20 365	-42 429	-38 848	-72 480	-76 061
Depreciation Operating expenses	1 060	1 152	2 134	2 304	4 564	4 395
Operating costs excluding depreciation	-19 926	-19 212	-40 294	-36 543	-67 916	-71 666
Balance sheet total	190 314	207 636	190 314	207 636	203 066	190 314
Non-interest-bearing liabilities	40 900	39 228	40 900	39 228	40 611	40 900
Capital employed	149 413	168 409	149 413	168 409	162 455	149 413
Closing equity	138 069	150 927	138 069	150 927	151 163	138 069
Average equity	146 265	157 833	146 265	157 833	152 700	146 265
Current assets minus inventories	55 437	68 312	55 437	68 312	67 445	55 437
Current liabilities	33 621	34 805	33 621	34 805	35 621	33 621
Liquidity ratio, %	165%	196%	165%	196%	189%	165%
Equity	138 069	150 927	138 069	150 927	151 163	138 069
Total assets	190 314	207 636	190 314	207 636	203 066	190 314
Equity/assets ratio, %	72,5%	72,7%	72,5%	72,7%	74,4%	72,5%

Analysis of results, in summary

		2025	2024	2025	2024	2024	Rolling
Amounts in SEK thousand	Note	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Full-year	12 mth
Net sales	2,3	20 784	20 582	40 791	42 266	86 852	85 377
Cost of goods and services sold excluding depreciation		-1 405	-1 281	-2 733	-2 564	-5 556	-5 725
Operating costs excluding depreciation		-22 686	-21 818	-46 015	-42 123	-78 883	-82 776
Capitalized development expenses		2 760	2 605	5 721	5 579	10 967	11 110
EBITDA		-547	89	-2 236	3 158	13 379	7 985
Total depreciation excluding acquired immaterial assets		-4 555	-5 147	-9 316	-10 437	-20 362	-19 241
Total depreciation acquired immaterial assets		-605	-605	-1 206	-1 211	-2 431	-2 426
Operating profit/loss		-5 707	-5 664	-12 758	-8 490	-9 414	-13 682

Financial glossary

Annual Recurring Revenue (ARR)

ARR is defined as repeat revenues at the end of the quarter for Digital Identity, converted to a 12-month period. Consequently, there is no direct link between the ARR figure and future software revenues for Digital Identity. The ARR metric is used for contractual recurring revenues for the Digital Identity segment, as Digital Identity has a large customer base based on SaaS revenues. There are a small number of large customers in Biometric Technologies, and therefore license fees are not followed up using the definition of ARR in this segment.

Gross margin

Gross profit/loss divided by net sales. Indicates the proportion of sales that is left over to cover wages, other operating expenses, interest and profit.

Earnings before interest, depreciation and amortization (EBITDA)

Profit/loss before financial items and depreciation. This key indicator shows the roup's profit/loss before depreciation/amortization of capitalized assets. This measure makes it possible to make comparisons with other companies, regardless of whether the operation is based on acquisitions or through organic growth.

Equity

Equity at the end of the period. Equity is the difference between the roup's assets and liabilities, which corresponds to the roup's equity that has been contributed by shareholders and the roup's accumulated profit.

Equity per share

Equity on the balance sheet date divided by the number of shares on the balance sheet date. A measure of the value of equity per share, which is used when valuing the share in relation to the share price.

Average equity

The average equity was calculated as equity for the last four quarters divided by four.

Cash flow

Cash flow from operating activities after changes in working capital. The operating cash flow indicates whether a company can generate a sufficiently positive cash flow to maintain and expand its operation, or whether it needs external financing.

Liquidity ratio

Current assets excluding inventories divided by current liabilities. This key figure shows the group's ability to pay in the short term.

Net sales growth

Percentage change compared with the corresponding period in the previous year. A measure of whether a company's net sales are increasing.

Earnings per share after dilution

Profit/loss for the period divided by weighted average number of shares.

Earnings per share before dilution

Profit/loss for the period divided by average number of shares.

Return on equity

Profit/loss after tax divided by average equity. This key indicator shows the business's return on shareholders' capital invested and is thus a measure of how profitable the Group is. Investors can compare this measure with the current bank interest rate or return from alternative investments. The measure can also be used to compare profitability between companies in the same industry.

Working capital

Current assets less current liabilities. This measure shows the capital a company needs to finance operating activities.

Operating expenses

Operating expenses excluding cost of goods sold. Operating expenses are expenses that do not belong directly to a particular product or product group. Common operating expenses include, for example, wages and other personnel expenses, as well as rental of premises.

Operating margin

Operating profit/loss divided by net sales. Defines what proportion of each Swedish krona of sales is left over to cover interest, taxes and any possible profit.

Operating profit/loss

Profit/loss before net financial items and tax. A measure of a company's profit before interest and taxes, i.e., the difference between operating income and operating expenses.

Equity/assets ratio

Equity divided by assets on the balance sheet date. This key indicator shows what proportion of assets is funded by equity. This measure can be of interest when assessing the roup's ability to pay in the long term.

Capital employed

Total assets less non-interest-bearing liabilities and provisions. This measure shows how much capital is used in operations and is thus one component of measuring the return from operations.

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precisebiometrics.com

Interim Report January – June 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596