SSH

SSH Communications Security Oyj

Financial Statements and Report of the Board of Directors

2025

SSH Communications Security Group

TABLE OF CONTENTS... 2
REPORT OF THE BOARD OF DIRECTORS FOR 1 JAN – 31 DEC 2025... 3
CONSOLIDATED FINANCIAL STATEMENTS... 15
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT... 16
CONSOLIDATED STATEMENT OF FINANCIAL POSITION... 17
CONSOLIDATED CASH FLOW STATEMENT... 19
STATEMENT OF CHANGES IN CONSOLIDATED EQUITY... 20
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS... 22
PARENT COMPANY FINANCIAL STATEMENTS... 55
PARENT COMPANY INCOME STATEMENT... 56
PARENT COMPANY STATEMENT OF FINANCIAL POSITION... 57
PARENT COMPANY STATEMENT OF FINANCIAL POSITION... 58
PARENT COMPANY CASH FLOW STATEMENT... 59
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS... 60
DIVIDEND PROPOSAL AND SIGNATURES... 69

SSH Communications Security Group

Report of the Board of Directors for 1 Jan – 31 Dec 2025

NET SALES
EUR million	10-12/2025	7-9/2025	4-6/2025	1-3/2025	1-12/2025	10-12/2024	1-12/2024
BY GEOGRAPHICAL SEGMENT
AMERICAS	1.7	1.9	1.8	1.9	7.2	2.2	7.9
APAC	0.5	0.5	0.6	0.7	2.3	0.6	1.9
EMEA	3.1	3.0	3.0	2.9	12.1	4.0	12.3
Total	5.4	5.5	5.4	5.4	21.6	6.8	22.2
BY OPERATION
Subscription sales	3.4	3.3	3.2	3.3	13.2	3.1	11.9
License sales	0.1	0.2	0.2	0.3	0.7	1.4	1.8
Maintenance sales	1.7	1.7	1.8	1.8	7.1	2.0	7.8
Professional services & others	0.1	0.2	0.2	0.1	0.6	0.3	0.7
Total	5.4	5.5	5.4	5.4	21.6	6.8	22.2

Consolidated net sales for January–December totaled EUR 21.6 (EUR 22.2 million), a decrease of 2.4%, year on year.

A significant part of SSH Communications Security’s invoicing is US dollar-based. On average the U.S. dollar has weakened 4.4% against the euro in 2025, while in 2024 the exchange rate remained relatively stable. With comparable exchange rates, in 2025 the year-to-date net sales decrease was 0.8% compared to 2024.

PROFIT AND PROFITABILITY TRENDS

Operating loss for the financial year amounted to EUR -2.2 million (EUR -0.3 million), with net loss totaling EUR -2.3 million (EUR -0.8 million).

Sales, marketing, and customer support expenses amounted to EUR -9.4 million (EUR -9.2 million), while research and development expenses totaled EUR -9.9 million (EUR -8.9 million) and administrative expenses EUR -4.6 million (EUR -4.6 million). Operating expenses increased by 504% compared to the previous year.

BALANCE SHEET AND FINANCIAL POSITION

The financial position of SSH Communications Security was improved during the financial year, primarily due to the investment made by Leonardo S.p.A. in the company. The consolidated balance sheet total on December 31, 2025, stood at EUR 47.4 million (EUR 30.1 million), of which cash and cash equivalents accounted for EUR 11.0 million (EUR 2.9 million), or 23.1% of the balance sheet total. In 2025, the company’s short-term liquid assets amounted to EUR 10.0 million, while in 2024 the company held no such investments. As of the reporting date, the company has fully repaid all interest-bearing loans, including a premium loan from Elo Mutual Pension Insurance Company, amounting to EUR 0.75 million. On December 31, 2025, gearing, or the ratio of net liabilities to shareholders’ equity, was -38.2% (-8.9%), and the equity ratio stood at 78.7% (52.8%).

SSH Communications Security Group

The reported gross capital expenditure for January–December totaled EUR 0.4 million (EUR 1.5 million). The reported financial income and expenses of EUR -0.4 million (EUR -0.3 million) consisted mainly of exchange rate gains or losses, interest expenses, interest expenses arising from revenue contracts, and interest on lease liabilities.

The Group had a cash flow of EUR 1.1 million (EUR 2.7 million) from business operations, and investments showed a cash flow of EUR -10.1 million (EUR -1.4 million). Cash flow from investments includes investment in financial assets of EUR -10.0 million (EUR 1.5 million) and receiving government grants of EUR 0.3 million (EUR 0.3 million). Cash flow from financing totaled EUR 17.2 million (EUR -0.6 million). Cash flow from financing includes EUR 20.0 million received from the directed share issue to Leonardo S.p.A, a change in debt of EUR -0.75 million (EUR -0.5 million), and proceeds from shares subscribed with option rights of EUR 0.6 million (EUR 0.3 million). During 2025, the Group repurchased 2.2 million of the principal from the hybrid instrument and paid 0.4 million interest related to the repurchase of the principal. Total cash flow from operations, investments, and financing was EUR 8.2 million (EUR 0.7 million).

RESEARCH AND DEVELOPMENT

Research and development expenses for January–December totaled EUR -9.9 million (EUR -8.9 million), the equivalent of 45.7% of net sales (40.0%). During January–December, the company has capitalized new product R&D costs in the amount of EUR 0.4 million (EUR 1.4 million). Depreciation from R&D capitalization assets was EUR -1.6 million (EUR -1.7 million).

INTANGIBLE ASSETS

The Group’s research and development activities aim to respond to emerging information security threats and improve product competitiveness, quality, and usability. Also, to increase the mutual integration of products. All product lines have their own R&D team, and in addition, SSH has a shared technology team that serves all product lines of the company. Development costs are capitalized to the balance sheet as intangible assets, depending on the point in the lifecycle of the product.

The Group’s goodwill is based on the acquisition of Secure Collaboration (former Deltagon). The acquisition was closed on 26 April 2021. The transaction strengthened SSH’s position as a supplier of encrypted communication solutions broadening SSH’s offerings portfolio and customer base. The acquisition also supported the Group’s transition to a subscription-based business model.

The Group’s customer-related intangible assets are based on the acquisition of Secure Collaboration (former Deltagon) and were considered as key acquired intangible assets. Other immaterial rights include obtained technology, patents, trademarks, and technology rights. The Group’s patent portfolio has been developed since 1997. SSH’s key intellectual property is protected with trademarks, copyrights and other available means. Obtained technology was recognized in Secure Collaboration acquisition.

SSH Communications Security Group

RISKS AND UNCERTAINTIES

Substantial risks that might affect the profitability of the company have been reviewed and updated to reflect the current macroeconomic environment.

The largest risks are:

Cybercrime, including, e.g., ransomware
Delays in product development and closing new business as well as phasing of new business cases
Ability to execute the strategy
Ability to retain and recruit key personnel
Maintaining the ability to innovate and develop the product portfolio including intellectual property rights (IPR)
IPR litigation and utilization of the patent portfolio
A large portion of the company revenue is invoiced in USD currency, and possible significant fluctuation in USD currency rates during the year could have unpredictable effects on profitability. The company decides on hedging of USD-based contracts case by case.
Uncertainty in the macroeconomic environment, which can affect both the company's operational costs and financial expenses, as well as customer decision-making and product demand. Factors causing uncertainty include, for example, high inflation and increased market interest rates, a global pandemic, or an international conflict such as war.

The principles and organization of risk management of SSH Communications Security can be read from the company's website www.ssh.com.

HUMAN RESOURCES AND ORGANIZATION

SSH Communications Security Group had 135 (134) employees at the end of December, which increased by 1 employee from the end of 2024. The average age among employees was 42 years (41 years). Approximately 21.5% (20.9%) of the employees were women and 78.5% (79.1%) men. At the end of the period, 40.0% (35.8%) of the employees worked in sales, marketing, and customer services, 47.4% (51.5%) in R&D, and 12.6% (12.7%) in corporate administration.

At the end of the financial period, the parent company had 91 (87) employees on its payroll. On average, the parent company had 89 (96) employees during the period under review. Parent company salaries, bonuses, and other personnel expenses during the financial period totaled EUR 8.5 million (9.1 million).

BOARD OF DIRECTORS AND AUDITORS

The Annual General Meeting of SSH Communications Security Oyj was held on March 26, 2025. Henri Österlund, Kai Tavakka, Christian Fredrikson, Catharina Candolin and Tuomo Louhivuori were elected as directors of the company's Board of Directors. At the inaugural meeting of the Board of Directors, Henri Österlund was elected as the Chairman.

The Extraordinary General Meeting held August 7, 2025 approved the Board of Directors' proposal that the Section 4 of the Articles of Association of the Company is amended to include the following: Up to four members may be appointed to the Board of Directors so that each shareholder holding more than 20 percent of the Company's outstanding shares is entitled to appoint

SSH Communications Security Group

one member to the Board of Directors. On 24 October 2025, Leonardo S.p.A. appointed Francesco Di Sandro as a member of the Board of Directors of the Company.

The Authorized Public Accountant Firm Ernst & Young Oy was re-elected as the auditor of the company. Ernst & Young Oy informed the company that Maria Onniselkä, Authorized Public Accountant, will continue as the accountant with the main responsibility.

GROUP MANAGEMENT TEAM

At the end of 2025, the Group Management Team consisted of three members:

Rami Raulas, Chief Executive Officer
Michael Kommonen, Chief Financial Officer
Miikka Sainio, Chief Technology Officer

PRINCIPAL PROVISIONS OF THE ARTICLES OF ASSOCIATION

According to the Articles of Association, the highest decision-making power in the company is wielded by the shareholders at the shareholders' meeting. The Annual General Meeting (AGM) is held within six months of the completion of the company's financial period, at a time decided by the Board. The AGM decides the number of members of the Board of Directors and elects them. Additionally, under the Finnish Limited Liability Companies Act, the AGM has the authority to amend the company's Articles of Association, adopt the financial statements, approve the amount of dividends, and select the company's auditors. Each SSH Communications Security Corporation share conveys one vote at the shareholder's meeting. Under the Articles of Association, the CEO is appointed by the Board of Directors.

CORPORATE GOVERNANCE

SSH Communications Security abides by its Articles of Association as well as principles of transparent and responsible corporate governance, and high ethical standards in its governance and decision-making. The company complies with the Finnish company and securities market legislation, including the market abuse regulation, rules of Nasdaq Helsinki and Finnish Corporate Governance Code 2025 adopted by the Securities Market Association.

For more information see our Corporate Governance Statement that is published annually as a separate report and can be found at SSH's website.

RESPONSIBILITY AND BUSINESS ETHICS

SSH Communications Security is committed to systematically maintain and develop the responsibility and sustainability of the business through its strategy, operations, and actions. The company is committed to operate in socially and ethically responsible way.

The company's ethical principles emphasize values that are important to SSH, such as antibribery, position and treatment of employees, and safety and behavioral culture within workplaces.

SSH Communications Security is a responsible employer and treats all employees equally. The company does not approve harassment or discrimination in any form and for that, the company has created internal guidelines and organized training. The company constantly develops the safety and comfort of its workplaces as well as the management of work-related stress and coping with the workload. In addition, the company offers its employees physical, cultural, and other benefits.

SSH Communications Security Group

SSH Communications Security regards the diversity of its personnel as an essential strength and encourages the appraisal and adoption of diversity throughout the organization including top management.

The company has a separate Anti-Bribery and Anti-Corruption Policy as well as an equality plan focusing on equal and fair treatment of its employees.

The company has also a whistleblowing policy in place to ensure that employees and third parties, if they wish, can report anonymously suspected serious deficiencies, abuses, and crimes within the SSH Group.

SSH has established a Code of Conduct for responsible and transparent activities, employee satisfaction, and ethics for all employees worldwide.

DISCLOSURE ACCORDING TO THE EU TAXONOMY REGULATION

Small and medium sized companies are exempt from the requirements to disclose information according to Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (the "Taxonomy Regulation"). Therefore, SSH has not disclosed Taxonomy Regulation information in the reports for fiscal year 2025.

SHARES, SHAREHOLDING, AND CHANGES IN GROUP STRUCTURE

The reported trading volume of SSH Communications Security shares totaled 23,360,100 shares (valued at EUR 65,644,531) during the reporting period. The highest quotation was EUR 5.66, and the lowest EUR 0.94. The volume-weighted average share price for the period was EUR 2.81, and the share closed at EUR 3.15 (December 31, 2025).

Leonardo S.p.A is the largest shareholder of SSH, with 24.5% of the company shares and votes. Accendo Capital is the second largest shareholder of SSH, with 20.8%, and Tatu Ylönen holds 12.8% of the company's shares. More information about the shareholding can be obtained from the company's website, www.ssh.com.

The company has the following subsidiaries:

SSH Communications Security, Inc. and SSH Government Solutions, Inc. in the USA
SSH Communications Security Ltd. in Hong Kong
SSH Commsec Singapore Pte. Ltd in Singapore
SSH Communications Security UK Ltd. in the UK
SSH Operations Ltd., Kyberleijona Ltd., SSH Technology Ltd., and SSH Secure Collaboration Ltd. in Finland. SSH Operations Ltd. has a branch in Germany.

State Security Networks Group Finland (Suomen Erillisverkot Oy) became a non-controlling interest holder of Kyberleijona Oy on August 14, 2018 with 35% ownership. SSH Communications Security Oyj owns 65% of the shares in Kyberleijona Oy.

During the review period, no dividend or return of capital has been distributed.

SSH Communications Security Group

INFORMATION ON SHAREHOLDERS

Distribution of ownership by sector

Type of sector	Number of shares	Percentage of shares and votes, %
Private individuals	20,701,566	37.96
Private companies and Other	18,577,663	34.06
Investment & PE	11,330,000	20.77
Pension & Insurance	2,539,547	4.66
Fund companies	63,500	0.12
Unknown owner type	1,329,197	2.44
Total	54,541,473	100.00

DISTRIBUTION OF HOLDINGS BY NUMBER OF SHARES

Shares	Number of share-holders	Number of shares	Percentage of shares, %
1–1000	6,995	1,713,882	3.14
1001–5000	1,165	2,665,099	4.89
5001–10,000	198	1,473,407	2.70
10,001–50,000	185	3,976,707	7.29
50,001–100,000	19	1,250,295	2.29
100,001–500,000	13	2,421,580	4.44
500,001–1,000,000	5	3,319,588	6.09
1,000,000-	6	36,391,718	66.72
Unknown holding size	-	1,329,197	2.44
Total	8,586	54,541,473	100.00

The ten largest shareholders Dec 31, 2025

	Percentage of shares, %	Number of shares
Leonardo S.p.A.	24.45	13,333,333
Accendo Capital	20.77	11,330,000
Tatu Ylönen	12.81	6,987,123
Timo Syrjälä	3.66	1,993,663
The Estate of Juha Mikkonen	3.13	1,706,000
Ilmarinen Mutual Pension Insurance Company	1.91	1,041,599
Eva Syrjänen	1.41	768,091
Varma Mutual Pension Insurance Company	1.38	755,300
Elo Mutual Pension Insurance Company	1.27	692,000
Teemu Tunkelo	1.08	591,197
Total	71.87	39,198,306

SSH Communications Security Group

SHARE CAPITAL AND BOARD AUTHORIZATIONS

The company's registered share capital on December 31, 2025, was EUR 1,636,244, consisting of 54,541,473 shares.

During 2025, Leonardo S.p.A. invested in the Company by subscribing to 13,333,333 new shares at a subscription price of EUR 1.50 per share, thereby raising EUR 19,999,999.50 for the company. The increase in share capital was EUR 400,000.

In 2025, share capital increased by EUR 7,203 through the subscription of stock options. Stock options were exercised in the financial year 2025 with 240,109 shares.

The Annual General Meeting approved the Board of Directors' proposal to authorize the Board of Directors to decide upon the issuing of a maximum of 4,000,000 shares as a share issue against payment or without payment or by giving stock options or other special rights entitling to shares, in accordance with Chapter 10 Section 1 of the Finnish Companies Act, either according to the shareholders' pre-emptive right to share subscription or deviating from this right, in one or more tranches. Based on the authorization, it can be either issuing of new shares or transfer of own shares, which the company possibly has in its possession.

Based on the authorization, the Board of Directors shall have the same rights as the Annual General Meeting to decide upon the issuing of shares and special rights (including stock options) in accordance with Chapter 10 Section 1 of the Finnish Companies Act. Thereby, the authorization to be given to the Board of Directors includes, inter alia, the right to deviate from the shareholders' pre-emptive rights with directed issues providing that the company has a weighty financial reason for the deviation.

Furthermore, the authorization includes the Board of Directors' right to decide upon who are entitled to the shares and/or stock options or special rights in accordance with Chapter 10 Section 1 of the Finnish Companies Act as well as upon the related compensation, subscription and payment periods and upon the registering of the subscription price into the share capital or invested non-restricted equity fund within the limits of the Finnish Companies Act.

The authorization can be used as part of the company's incentive and commitment programs up to a maximum of 2,000,000 shares.

The authorization will be valid until the next Annual General Meeting but will however expire at the latest on June 30th, 2026.

The Annual General Meeting approved the Board of Directors' proposal to authorize the Board of Directors to decide upon acquisition of a maximum of 2,000,000 own shares of the company with assets belonging to the company's non-restricted equity, which represents approx. $4.9\%$ of all shares in the company. The shares can also be acquired otherwise than in proportion to the holdings of the existing shareholders. The maximum compensation to be paid for the acquired shares shall be the market price at the time of purchase, which is determined by public trading.

The Board of Directors proposes that the authorization for the acquiring of the company's own shares would be used, inter alia, in order to strengthen the company's capital structure, to finance and realize corporate acquisitions and other arrangements, to realize the share-based incentive programs of the company or otherwise to be kept by the company, to be transferred for other purposes or to be cancelled. The acquisition of shares reduces the company's distributable non-restricted equity.

SSH Communications Security Group

Decision concerning the acquiring of own shares cannot be made so that the combined amount of the own shares, which are in the possession of, or held as pledges by, the company or its subsidiaries exceeds one-tenth of all shares. The Board of Directors shall decide upon all other matters related to the acquisition of shares.

The authorization will be valid until the next Annual General Meeting, but will however expire at the latest on June 30th 2026.

The Company and Leonardo S.p.A. on 1 July 2025 entered into a framework investment agreement, whereby the parties have agreed on their future strategic cooperation and the terms on which Leonardo S.p.A. will make an investment in the Company by subscribing for new shares in the Company (the "Transaction").

To consummate the Transaction, the Extraordinary General Meeting approved the Board of Directors' proposal to authorize the Board of Directors to decide on the share issue against the payment on the following terms:

The authorization entitles the Board of Directors to decide on the issuing of a maximum of 13,333,333 shares as a directed share issue against payment in deviation from the shareholders' pre-emptive rights in one or several instalments. Based on the authorization, either new shares can be issued, or own shares, which the Company possibly has in its possession, can be transferred.

The authorization can be used to execute the Transaction.

Based on the authorization, the Board of Directors has the same right as the Extraordinary General Meeting to decide on the issuing of shares against payment. Thereby, the authorization to be given to the Board of Directors includes, inter alia, the right to deviate from the shareholders' pre-emptive rights with directed issues providing that the Company has a weighty financial reason for the deviation in respect of the share issue against payment.

The authorization also includes the Board of Directors' right to resolve on the consideration paid for or in relation to the shares, subscription and payment periods, as well as the allocation of the subscription price to the Company's share capital or fund for invested unrestricted equity, within the limits permitted by the Finnish Companies Act.

The authorization will be valid until 30 April 2026. The authorization does not reverse previous authorizations granted to the Board of Directors concerning the issuing of shares, stock options and other special rights.

HYBRID CAPITAL SECURITIES

Hybrid capital securities in the amount of EUR 12 million were issued in March 2015 and subscribed by institutional investors. The capital securities bear a fixed interest rate of 11.5 percent. The capital securities have no maturity date, but the issuer has the right to redeem them after 3 but before 5 years from the issue date, upon certain conditions, or after 5 years from the issue date. The investors had the right to convert the capital loan into the Company's shares at EUR 4.76 per share until 30 March 2020.

A hybrid capital security is an instrument that is subordinated to the Company's other debt obligations, and it does not have a maturity date (i.e. it is perpetual). It is treated as equity in the balance sheet in financial statements. Unpaid interest is cumulated but presented in the financial

SSH Communications Security Group

statements only after Board of Directors' interest payment decision. Paid interest on the hybrid capital securities decreases the retained earnings of the group and the parent company. Hybrid capital securities do not confer on their holders any shareholder rights and do not dilute the holdings of the current shareholders.

Payment of the hybrid loan interest and repurchase of the principal are subject to the Board of Directors' decision. The Group's Board of Directors had decided that interest on the hybrid capital securities was not paid in March 2024 and 2025. The accumulated interest on hybrid capital securities at the end of 2025 was EUR 3,416,276. During 2025, the company purchased EUR 2.2 million of the loan principal. The interest paid when repurchasing the principal of the hybrid capital securities decreases the retained earnings of the group and the parent company.

SHARE-BASED PAYMENTS

The share-based payments of SSH Communications Security are stock options. Stock option programs have been in effect in the reporting period or in the comparison year.

The Board of Directors decided on March 26, 2025 on a new stock option program 2025A. The maximum number of stock options is 980,000. The share subscription period will be from February 23, 2027 to March 31, 2029. The share subscription price for the shares is EUR 1.24.

On March 27, 2024 the Board of Directors decided on a stock option program 2024A. The maximum number of stock options is 980,000. The share subscription period will be from February 24, 2026 to March 31, 2028. The share subscription price for the shares is EUR 1.83.

Each option gives the right to subscribe to one new share at a price and at a time specified in the terms of the stock option plan. The option rights will be canceled in case the employee leaves the company before the subscription time has begun. There are no other conditions to the beginning of the option rights.

The shares subscribed with the granted option rights include the rights to any dividend payable for the reporting period during which the shares were subscribed. Other shareholder rights commence as soon as the increase in the share capital has been registered in the Trade Register. More information on stock option plans is given in note 20 in the consolidated financial statements.

RELATED PARTY TRANSACTIONS

During the reporting period, there have not been any significant transactions with related parties, other than agreed remuneration with executive management and board.

EVENTS AFTER THE BALANCE SHEET DATE

On 9 January 2026, SSH Communications Security announced that David Wishart, VP EMEA, was appointed a member of the Executive Management Team, and Harri Pendolin was appointed Chief Product Officer and a member of the Executive Management Team, effective 1 February 2026.

BUSINESS OUTLOOK FOR 2026

We expect net sales to grow during 2026 compared to 2025. We estimate EBITDA and cash flow from operating activities to be positive for 2026.

SSH Communications Security Group

DIVIDEND AND OTHER DISTRIBUTION OF ASSETS

The parent company's distributable funds are EUR 11,459,637.55 of which the loss for the financial year is EUR -2,106,061.96. The Board of Directors proposes to the Annual General Meeting on 26 March, 2026 that no dividend or return of capital shall be distributed. It is proposed that the loss of the financial year shall be entered to the retained earnings in the shareholders' equity.

FINANCIAL INDICATORS

		2025	2024	2023
Net sales	EUR	21,611,100	22,150,410	20,321,947
Operating profit/loss	EUR	-2,177,557	-261,700	-1,646,853
% of net sales		-10.1	-1.2	-8.1
EBITDA	EUR	1,509,424	3,423,006	1,816,713
% of net sales		7.0	15.5	8.9
Profit/loss before taxes	EUR	-2,534,762	-593,477	-2,105,412
% of net sales		-11.7	-2.7	-10.4
Return on equity	%	-13.0	-8.7	-19.4
Return on investments	%	-13.3	-5.1	-16.4
Net interest-bearing debt	EUR	-9,866,633	-805,624	279,993
Gearing	%	-38.2	-8.9	2.9
Equity ratio	%	78.7	52.8	50.0
Gross investments in tangible and intangible assets	EUR	428,843	1,516,110	2,667,457
% of net sales		2.0	6.8	13.1
Research and development costs	EUR	-9,879,892	-8,862,262	-7,850,736
% of net sales		45.7	40.0	38.6
Average number of personnel		132	145	150
Number of personnel 31 Dec		135	134	158
Salaries and fees	EUR	-13,871,730	-13,552,174	-12,201,271

INDICATORS PER SHARE

		2025	2024	2023
Earnings per share^{1,2}	EUR	-0.08	-0.06	-0.10
Earnings per share, diluted^{1,2}	EUR	-0.08	-0.06	-0.10
Equity per share	EUR	0.32	0.23	0.25
Dividends	EUR	0	0	0
Dividends per share	EUR	0.00	0.00	0.00
Dividend payout ratio	%	0	0	0
Effective dividend yield	%	0	0	0
Return of capital	EUR	0	0	0
Return of capital per share	EUR	0	0	0
Adjusted average number of shares during the period	1,000	44,361	40,929	40,482

SSH Communications Security Group

Adjusted number of shares at the end of the period	1,000	54,541	40,968	40,664
Adjusted average number of shares considering dilution effect	1,000	44,361	40,929	40,482
Price per earnings ratio (P/E)		neg.	neg.	neg.
Market capitalization 31 Dec	mEUR	171.8	42.6	54.1

1) Earnings per share is impacted by the accrued unpaid interest of hybrid capital securities. Stock options are excluded from the EPS diluted when the result is negative.
2) The 2024 figure has been corrected to include only the interest on the hybrid loan for the relevant period.

Share performance at Nasdaq Helsinki		2025	2024	2023
Average price	EUR	2.81	1.33	1.64
Share price, year end	EUR	3.15	1.04	1.33
Lowest quotation	EUR	0.94	0.98	1.20
Highest quotation	EUR	5.66	2.24	2.4
Volume of shares traded	millions	23.4	7.8	3.8
Volume of shares traded, % of total number	%	52.7	19.0	9.4
Value of shares traded	mEUR	65.6	11.6	6.1

ALTERNATIVE PERFORMANCE MEASURE

SSH Communications Security presents an alternative performance measure, which is not defined by IFRS standards. Alternative performance measures should not be considered as substitutes for performance measures in accordance with the IFRS.

EBITDA = Operating profit/loss + depreciation, amortization, and impairment

The following table presents the reconciliation of EBITDA to the operating profit/loss.

kEUR	2025	2024
EBITDA	1,509	3,423
Depreciation and amortization	-3,687	-3,685
Operating profit/loss	-2,178	262

Operating profit = profit/loss for the period + income taxes + financial income and expenses

SSH Communications Security Group

CALCULATION OF FINANCIAL RATIOS

| Return on Equity, % (ROE) | = | Profit/loss for the financial year
Equity (average during the financial year) | x 100 |
| --- | --- | --- | --- |
| Return on Investment, % (ROI) | = | Profit/loss before taxes
Balance sheet total - Non-interest-bearing debts (average during the financial period) | x 100 |
| Equity Ratio, % | = | Equity
Balance sheet total - Advance payments received | x 100 |
| Earnings Per Share (EPS) | = | Profit/loss for the financial period attributable to owners of the parent company - Interest on hybrid capital securities
Average number of outstanding shares during the financial period | |
| Diluted Earnings Per Share (EPS) | = | Profit/loss for the financial period attributable to owners of the parent company - Interest on hybrid capital securities
Adjusted average number of shares considering dilution effect | |
| Dividend Per Share | = | Dividend
Number of outstanding shares during the financial period | |
| Dividend Pay-out Ratio, % | = | Dividend per share
Earnings per share | x 100 |
| Equity Per Share | = | Equity
Number of outstanding shares on the financial statement date, adjusted for share issue | x 100 |
| Gearing, % | = | Interest-bearing debt - Liquid assets
Equity | x 100 |

SSH Communications Security Group
15

CONSOLIDATED FINANCIAL STATEMENTS

SSH Communications Security Group

CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED COMPREHENSIVE INCOME STATEMENT

EUR	Note	1 Jan-31 Dec 2025	1 Jan-31 Dec 2024
NET SALES	3	21,611,100	22,150,410
Cost of goods sold		-84,407	-76,519
GROSS MARGIN		21,526,692	22,073,891
Other operating income	4	170,178	346,563
Sales and marketing costs	5, 6	-9,416,376	-9,192,890
R&D costs	5, 6	-9,879,892	-8,862,262
Administrative costs	5, 6	-4,578,159	-4,627,002
OPERATING PROFIT/LOSS		-2,177,557	-261,700
Finance income	7	91,357	96,863
Finance costs	8	-448,561	-428,640
PROFIT/LOSS BEFORE TAXES		-2,534,762	-593,477
Income tax expense	9	262,636	-210,806
PROFIT/LOSS FOR THE YEAR		-2,272,126	-804,282
Profit/loss attributable to:
Owners of the parent company		-2,278,630	-1,082,910
Non-controlling interests		6,504	278,628
TOTAL		-2,272,126	-804,282
OTHER COMPREHENSIVE INCOME
Items that may be reclassified subsequently to profit or loss:
Translation differences		682,510	-352,628
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		-1,589,616	-1,156,910
Total comprehensive income attributable to:
Owners of the parent company		-1,596,120	-1,435,538
Non-controlling interests		6,504	278,628
TOTAL		-1,589,616	-1,156,910
Earnings per share
Basic earnings per share (EUR)1	10	-0.08	-0.06
Diluted earnings per share (EUR)1	10	-0.08	-0.06

1) The 2024 figure has been corrected to include only the interest on the hybrid loan for the relevant period.

SSH Communications Security Group

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS
EUR	Note	31 Dec 2025	31 Dec 2024
NON-CURRENT ASSETS
Property, plant and equipment	11	158,262	201,076
Right-of-use assets	12, 23	894,704	1,300,287
Intangible assets	13	16,690,903	19,449,430
Investments		11,000	11,000
Total non-current assets		17,754,869	20,961,793
CURRENT ASSETS
Inventories	14	384,433	352,312
Trade receivables	15	7,197,260	4,842,207
Other receivables	16	349,233	552,570
Prepaid expenses and accrued expenses		480,549	456,084
Income tax receivables	9	222,475
Current financial assets	19	10,040,209
Cash and cash equivalents	19	10,970,058	2,923,397
Total current assets		29,644,216	9,126,570
TOTAL ASSETS		47,399,085	30,088,363

SSH Communications Security Group

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

EQUITY AND LIABILITIES
EUR	Note	31 Dec 2025	31 Dec 2024
EQUITY ATTRIBUTABLE TO THE PARENT COMPANY SHAREHOLDERS
Share capital	17	1,636,244	1,229,041
Translation differences		-1,153,649	-1,836,160
Unrestricted invested equity fund		46,016,176	25,825,324
Hybrid capital securities		9,780,000	12,000,000
Retained earnings		-37,222,946	-34,924,709
Equity attributable to the parent company shareholders		19,055,825	2,293,496
Non-controlling interests		6,744,407	6,737,902
Total equity		25,800,233	9,031,398
NON-CURRENT LIABILITIES
Non-current interest-bearing liabilities	18,22		245,000
Lease liabilities	18,23	683,888	1,107,425
Other non-current liabilities	24	198,870
Advances received and deferred revenue	15	4,060,447	2,468,629
Deferred tax liabilities		870,118	1,047,299
Total non-current liabilities		5,813,323	4,868,352
CURRENT LIABILITIES
Trade and other payables	15	4,801,230	4,907,826
	18,2
Current interest-bearing liabilities	2		500,000
Lease liabilities	18,23	419,538	265,348
Advances received and deferred revenue	15	10,564,762	10,515,439
Total current liabilities		15,785,530	16,188,614
TOTAL LIABILITIES		21,598,853	21,056,964
TOTAL EQUITY AND LIABILITIES		47,399,085	30,088,363

SSH Communications Security Group

CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED CASH FLOW STATEMENT

EUR	Note	1 Jan-31 Dec 2025	1 Jan-31 Dec 2024
Cash flows from operating activities
Receipts from customers	3, 15	21,059,606	22,091,762
Payments to suppliers and employees	5, 21	-19,855,179	-19,110,511
Cash flows from operating activities before financial items and taxes		1,204,427	2,981,251
Interest paid and payments on other financial costs		-50,871	-104,648
Interest received and other financial income		91,357	42,188
Income taxes paid		-124,498	-190,396
Net cash flows from operating activities		1,120,415	2,728,396
whereof change in working capital		-210,359	-229,361
Cash flows from investing activities
Investments in tangible and intangible assets	11, 13	-428,843	-1,516,110
Investments in financial assets	19	-10,000,000	1,500,000
Acquisition of a subsidiary, net of cash acquired	22		-1,670,000
Receipt of government grants	4	296,203	292,254
Net cash flows from investing activities		-10,132,640	-1,393,857
Cash flows from financing activities
Change in current debt	18,22	-750,000	-500,000
Change in non-current debt	24	198,870
Principal repayments on the hybrid loan		-2,220,000
Interest paid on hybrid capital securities		-371,100
Proceeds from the share issue	17	20,000,000
Proceeds from shares subscribed with option rights		598,055	281,688
Principal portion of finance lease payments	23	-234,223	-402,333
Net cash flows from financing activities		17,221,601	-620,645
Change in cash and cash equivalents		8,209,376	713,895
Cash and cash equivalents in beginning of period		2,923,397	2,153,105
Exchange rate effect		-162,715	56,396
Change in cash and cash equivalents		8,209,376	713,895
Cash and cash equivalents at end of period		10,970,058	2,923,397

SSH Communications Security Group

CONSOLIDATED FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN CONSOLIDATED EQUITY

Attributable to the owners of the Company
EUR	Note	Share capital	Hybrid capital securities	Translation differences	Unrestricted invested equity fund	Retained earnings	Total	Non-controlling interests	Total equity
Equity 1 Jan 2024	17	1,219,933	12,000,000	-1,483,532	25,552,743	-34,218,733	3,070,410	6,459,274	9,529,685
Correction relating to prior years						1,582	1,582		1,582
Equity 1 Jan 2024		1,219,933	12,000,000	-1,483,532	25,552,743	-34,217,151	3,071,992	6,459,274	9,531,267
Comprehensive profit/loss
Profit/loss for the year						-1,082,910	-1,082,910	278,628	-804,282
Other comprehensive items
Translation differences				-352,628			-352,628		-352,628
Comprehensive profit/loss
for financial period, total				-352,628		-1,082,910	-1,435,538	278,628	-1,156,910
Share-based payment plans						375,352	375,352		375,352
Shares subscribed on option rights		9,108			272,580		281,688		281,688
Transactions with shareholders		9,108			272,580	375,352	657,040		657,040
Equity 31 Dec 2024		1,229,041	12,000,000	-1,836,160	25,825,324	-34,924,709	2,293,495	6,737,902	9,031,398

SSH Communications Security Group

Attributable to the owners of the Company
EUR	Note	Share capital	Hybrid capital securities	Translation differences	Unrestricted invested equity fund	Retained earnings	Total	Non-control-ling interests	Total equity
Equity 1 Jan 2025	17	1,229,041	12,000,000	-1,836,160	25,825,324	-34,924,709	2,293,495	6,737,902	9,031,398
Comprehensive profit/loss
Profit/loss for the year						-2,278,630	-2,278,630	6,504	-2,272,126
Other comprehensive items
Translation differences				682,510			682,510		682,510
Comprehensive profit/loss
for financial period, total				682,510		-2,278,630	-1,596,120	6,504	-1,589,616
Hybrid capital securities			-2,220,000			-371,100	-2,591,100		-2,591,100
Share issue		400,000			19,600,000		20,000,000		20,000,000
Share-based payment plans						351,495	351,495		351,495
Shares subscribed on option rights		7,203			590,852		598,055		598,055
Transactions with shareholders		407,203	-2,220,000		20,190,852	-19,605	18,358,450		18,358,450
Equity 31 Dec 2025		1,636,244	9,780,000	-1,153,649	46,016,176	-37,222,945	19,055,826	6,744,407	25,800,233

SSH Communications Security Group

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL ACCOUNTING PRINCIPLES

Basic information about the Group

SSH Communications Security Corporation helps organizations access, secure and control their digital core – their critical data, applications and services. In the rapidly growing global data economy, secure access that enables digital transformation at business velocity is the new competitive advantage.

Our thousands of customers include Fortune 500 companies, the world's largest financial institutions, and major organizations in all verticals. Our solutions guard against the rapidly changing threat landscape that includes both internal and external actors.

We generate shareholder value from a combination of our world-leading expertise, proven enterprise-class solutions, professional services, support offering, and from our strong IP portfolio and well-established licensing operations.

The SSH Communications Security Group consists of SSH Communications Security Corporation and its subsidiaries. SSH Communications Security Corporation (corporate id 1035804-9) is domiciled in Helsinki, Finland and is a publicly traded company, whose share is quoted on NASDAQ Helsinki Oy (SSH1V). SSH Communications Security Corporation has its registered office at address Karvaamokuja 2D, 00380 Helsinki, Finland.

The SSH Communications Security Board of Directors approved this financial statement for publication at its meeting on 16 February 2026. Under the Finnish Limited Liability Companies Act, the shareholders can accept or reject the financial statement at the AGM held after its publication. A copy of the financial statements is published as a part of the company's annual report.

The annual report is available on the company website at www.ssh.com, or at the head office of SSH Communications Security Corporation. All stock exchange bulletins are available on the company website www.ssh.com.

In accordance with the European Single Electronic Format (ESEF) reporting requirements, SSH has published the Board of Directors' report and the financial statements as an XHTML file, which is the official version of the report. In line with the ESEF requirements, the primary statements of the consolidated financial statements have been labelled with XBRL tags, and the notes to the financial statements with XBRL block tags.

The PDF version of the Financial Statements and report of the Board of Directors report is voluntary publication.

Basis of preparation of financial statements

The consolidated financial statements have been prepared in compliance with the International Financial Reporting Standards (IFRS). The forementioned standards are the standards and interpretations thereof approved for use in the EU pursuant to Regulation (EC) No. 1606/2002 implemented in the Finnish Accounting Act and legislation based thereon. The notes to the consolidated financial statements are also compliant with Finnish accounting and company legislation.

SSH Communications Security Group

The consolidated financial statements are based on original acquisition costs unless otherwise noted in the accounting principles. The consolidated financial statements are presented in full euros unless otherwise stated.

Converting Foreign Currency Transactions

Items of each subsidiary included in the consolidated financial statements are measured using the currency of the operating environment of that subsidiary ('functional currency'). The consolidated financial statements are presented in euros, which is the functional and reporting currency of the parent company.

Transactions in Foreign Currency

Foreign currency denominated transactions are recognized at the exchange rate of the functional currency on the transaction date. In practice, the exchange rate used is approximately the rate of the transaction date. Outstanding receivables and liabilities in foreign currencies are measured using the exchange rates on the balance sheet date. Exchange rate differences are recorded in the income statement. Exchange rate gains and losses on financing are included in financing income and costs.

Translation of Financial Statements of Foreign Subsidiaries

The comprehensive income statements and cash flow statements of subsidiaries whose functional currency is other than EUR are translated into euros using the exchange rate of the transaction dates. In practice, the translations are done once a month using the monthly average exchange rate. Balance sheet items are translated into euros with the exchange rate of the balance sheet date. The translation of the comprehensive profit/loss for the financial period using different exchange rates in the comprehensive income statement on the one hand and in the balance sheet on the other causes a translation difference recognized under Group equity under other comprehensive profit/loss items.

Translation differences generated through elimination of the acquisition costs of foreign subsidiaries and translation of equity items accrued after acquisition are recognized under other comprehensive profit/loss items. When a subsidiary is sold, accumulated translation differences are recognized in the income statement as part of the gain or loss on the sale.

Use of estimates

Preparation of the consolidated financial statements in accordance with IFRS requires management to make estimates and assumptions affecting the reported amounts of assets, liabilities, income, and expenses, as well as the disclosure of contingent assets and liabilities. The estimates and assumptions are based on historical experience and other factors that are believed to be reasonable under the circumstances, which form the basis of making the judgments about carrying values. These estimates and assumptions are reviewed on an ongoing basis, and possible effects of changes in estimates and assumptions are recognized during the period they are changed.

The estimates and assumptions that have a significant risk of causing adjustment to the carrying value of assets or liabilities within the next financial year relate to restructuring plans, impairment testing, claims, onerous contracts, and provisions.

SSH Communications Security Group

New and amended standards and interpretations

During 2025, there were no changes in the Group’s accounting principles.

Changes that become effective later

The Group will adopt new and amended standards and interpretations as of the effective date or, if the date is other than the first day of the financial year, from the beginning of the subsequent financial year. There are no new or amended IFRS standards that are expected to have a material impact on the Group from 1 January 2026.

IFRS 18 Presentation and Disclosure in Financial Statements is effective from 1 January 2027 and applies retrospectively. IFRS 18 Presentation and Disclosure in Financial Statements will replace IAS 1 Presentation of Financial Statements. Adaptation of IFRS 18 will be mandatory. IFRS 18 aims to enhance transparency and improve comparability of the presentation and disclosure in the financial statements.

SSH plans to adopt the IFRS 18 accounting standard initially 1 January 2027, however early adoption is permitted. IFRS 18 will impact income statement presentation and disclosing information in notes. The Group’s accounting policies will be amended to include the disclosures for Management performance measures (MPMs) and operating profit according to the IFRS 18. Adaptation of IFRS 18 may impact restructuring income statement including the classification of income and expenses (operating, investing, financing) to ensure that grouping the information in the financial statements is presented according to the standard IFRS 18.

SSH Communications Security Group

2. SEGMENT INFORMATION

SSH Communications Security Oyj has one reportable segment; the software business, due to business model, the nature of its operations and its governance structure.

SSH's operations have similar financial characteristics and are similar in terms of the nature of product and service production processes, types of customers, geographical characteristics, methods used in product or service distribution or service provision.

Segment reporting is consistent with the internal reporting submitted to the chief operating decision-maker. The Executive Management Team acts as the chief operating decision-maker, responsible for allocating resources and assessing performance as well as making strategic decisions.

3. NET SALES

Accounting principles
Revenue Recognition
SSH Communications Security net sales derive mainly from software license sales and subscriptions, related support and maintenance fees, and consulting fees. Net sales comprise the invoiced value for the sale of goods and services adjusted with any discounts given, sales taxes, and exchange rate differences.
The revenue from product sales is recognized at the time when significant risks and rewards of the product or the right of use of the product have been transferred to the buyer and there is a binding contract between the parties, the delivery has taken place in accordance with the contract, the amount of revenue can be measured reliably, and it is probable that the economic benefits associated with the transaction will accrue to the Group. Control is transferred to the buyer at the point of time.
Maintenance sales, or revenue from support and maintenance contracts, are recognized evenly on an accrual basis throughout the contract period. Revenues from services are recognized when the service has been delivered and it is probable that the economic benefits associated with the transaction will accrue to the Group. Revenues from subscription contracts are recognized evenly on an accrual basis throughout the contract period. Revenues from hardware sales are recognized at the time when control of the hardware is transferred to the buyer. In case the hardware component is not determined to be distinct from the other performance obligations in the contract, revenue from hardware is recognized over time throughout the contract and classified as revenue from subscription contracts.
The revenue of royalties from licenses is recognized at the time of payment. Revenue from royalties is not material to the Group.
The Group customarily receives short-term advance payments from customers, but also from time-to-time substantial long-term advance payments for subscription or support and maintenance fees. In these cases, the financing component is accounted for and interest expenses are recorded for the duration of the advance payment.

SSH Communications Security Group

Assets recognized from the costs to fulfill a contract with a customer

The Group recognizes the costs to fulfill a contract with a customer as an asset when expecting to recover the costs, the costs relate directly to a contract that can be identified, and the costs generate resources that are used to satisfy a performance obligation.

Costs recognized as an asset are costs of hardware that relate directly to a contract that is subscription based. Amortization of costs is calculated on a straight-line basis over the period of a contract to which the assets recognized from the costs relates to. Amortized costs are recognized as costs of goods sold.

Incremental costs of obtaining a contract

The Group recognizes the incremental costs of obtaining a contract as an asset when expecting to recover the costs, the costs relate directly to a contract that can be identified, and the costs generate resources that are used to satisfy a performance obligation.

Incremental costs recognized as an asset are sales incentive commissions paid to an employee, that relate directly to a contract that is subscription based. Amortization of costs is calculated on a straight-line basis over the period of a contract to which the assets recognized from the costs relates to. Amortized costs are recognized as commission costs in salaries and staff related costs.

EUR	2025	2024
BY OPERATION
Subscription sales	13,227,532	11,945,458
License sales	696,743	1,782,460
Maintenance sales	7,067,336	7,752,361
Professional services & others	619,487	670,131
Total	21,611,100	22,150,410
BY GEOGRAPHICAL SEGMENT
AMERICAS	7,228,143	7,906,394
APAC	2,331,650	1,926,741
EMEA	4,617,157	4,280,848
Finland	7,434,150	8,036,428
Total	21,611,100	22,150,410

In 2025 or 2024, no customer's revenue accounted for more than ten percent of the Group's net sales.

Obligations for returns are defined to cover the value of hardware purchase price when the company is not able to provide hardware return service based on agreed service level. The return value excludes the value of licenses and other services sold.

The warranty for hardware items is limited to 12 months. Warranty may be extended up to five years by purchasing the warranty service.

SSH Communications Security Group

Revenues presented based on the basis of customer location and non-current assets presented on the basis of their location:

2025

EUR	Finland	Rest of Europe	US	Other countries	Group total
Revenue	7,434,150	4,483,765	6,750,973	2,942,211	21,611,100
Assets	17,504,592	-	205,594	44,683	17,754,869
2024
EUR	Finland	Rest of Europe	US	Other countries	Group total
Revenue	8,036,428	4,092,638	7,909,189	2,112,155	22,150,410
Assets	20,522,188	-	389,992	49,612	20,961,792

4. OTHER OPERATING INCOME

Accounting principles

Grants

Grants received from the government for the purchase of tangible assets are entered into as a deduction of the book value of the asset when there is reasonable assurance that the company will receive the grant and will comply with the conditions attached to the grant. Grants are recognized as income over the life of a depreciable asset by way of a reduced depreciation. Government grants that are intended to compensate for costs are recognized as income over the same period as the related costs are recognized. These government grants are presented under other operating income.

In the year 2025, other operating incomes include EUR 0.2 million received from government grants (EUR 0.4 million).

5. OTHER OPERATING COSTS

EUR	2025	2024
Employee benefit expenses
Wages and salaries	-11,812,996	-12,250,393
Pensions, defined contribution plan	-1,524,155	-1,609,391
Other social security costs	-585,681	-653,563
Stock options issued	-351,495	-375,352
Total	-14,274,328	-14,888,699

Information about remuneration of the key management personnel is presented in note 26. Related party transactions and information on the options granted is presented in the note 20. Share-based payments.

SSH Communications Security Group

Number of personnel	2025	2024
Average during the financial period	132	145
At the end of the financial period	135	134

Personnel distribution by function on 31

Dec

Sales, marketing, and customer support	54	48
Research and development	64	69
Administration	17	17
Total	135	134

Research and development costs recognized as costs

EUR	2025	2024
Total	-9,879,892	-8,862,262

Other operating costs

EUR	2025	2024
External services	-4,940,659	-4,164,123
Depreciation	-3,278,886	-3,684,706
Other costs	-1,375,057	-1,281,151
Total	-9,594,602	-9,129,980

Auditor's fees

Auditor's fees categorized into service groups were:

EUR	2025	2024
Principal auditor Ernst & Young Oy
Statutory auditing	-100,689	-107,674
Other auditing services	-12,997	-17,900
Other auditing firms:
Statutory auditing	-32,971	-20,443
Other services	-500	-408
Total	-147,157	-146,425

6. DEPRECIATIONS AND IMPAIRMENTS

EUR	2025	2024
BY ASSET CATEGORY
Machinery and equipment	144,082	171,550
Right-of-use assets	381,227	489,948
Software & other intangible assets	1,198,137	1,363,451
Capitalized development costs	1,555,441	1,659,757
Total	3,278,887	3,684,705

SSH Communications Security Group

EUR	2025	2024
BY FUNCTION
Sales and marketing	6,899	20,270
Research and development	1,925,740	2,224,350
Administration	1,346,247	1,440,085
Total	3,278,886	3,684,705

7. FINANCIAL INCOME

EUR	2025	2024
Interest revenue	91,357	33,934
Exchange rate gains, loans and other receivables		62,929
Total	91,357	96,863

8. FINANCIAL COSTS

EUR	2025	2024
Exchange rate losses, loans, and other receivables	-240,177	-71,933
Interest arising from revenue contracts	-40,842	-83,945
Interest on lease liabilities	-61,385	-128,359
Other financial costs	-106,157	-144,402
Total	-448,562	-428,640

9. INCOME TAXES

Accounting principles

Income tax

Tax expenses in the income statement comprise tax based on taxable income for the period and deferred tax. Income tax is recognized in the income statement except for taxes related to items recognized under comprehensive profit/loss or directly under equity, in which case the tax impact will be incorporated in the aforementioned items. Tax based on taxable income for the period is calculated using the corporate income tax rate (and tax laws) effective in each country, adjusted for any tax from previous periods.

Deferred taxes are calculated on temporary differences between the book value and taxable value. The largest temporary differences arise from unused tax losses which are deductible later.

Deferred taxes are calculated using the statutory tax bases with confirmed content announced by the closing date or with generally accepted tax bases. Deferred tax assets are recognized to the extent that it is probable that taxable income against which the temporary difference can be applied will materialize in the future.

SSH Communications Security Group

EUR	2025	2024
Income taxes	262 636	-210 806
Total	262 636	-210 806

Reconciliation of income taxes and profit/loss before taxes

EUR	2025	2024
Profit/loss before taxes	-2,534,762	-593,477
Tax at parent company tax rate (20%)	506,952	118,695
Effect of foreign subsidiaries' differing tax rates	-2,432	-1,769
Non-deductible expenses	-1,709	-8,522
Tax exempt revenue	824	11,858
Tax deductible hybrid loan interest expenses	74 220
Use of previously unrecognized tax losses	122 687	97,595
Tax assets not recognized for reported losses	-28,074	-312,581
Tax assets not recognized for unused tax depreciations	-542,055	-3,734
Income taxes from previous years	136,828	-47,066
Other direct taxes	-719
Other temporary differences	-3,886	-62,280
Income taxes	262,636	-210,806

The amount of Group's unused tax losses, for which no deferred tax asset has been recognized based on the prudence principle, is EUR 7.5 million (EUR 7.2 million). EUR 3.8 million (EUR 3.2 million) of the tax losses are in Finland, and EUR 3.7 million (EUR 4.0 million) in the USA. The tax losses expire in Finland between the years 2026-2034, and in the USA between the years 2026-2044. The amount of unrecognized deferred tax assets from the tax losses is EUR 1.5 million (EUR 1.7 million). The figures include use of losses in 2025 which have not yet been confirmed in taxation.

In addition, the parent company has EUR 47.2 million (EUR 44.5 million) research and development expenses and depreciations not deducted in taxation and the amount of unrecognized deferred tax assets resulting from those is EUR 9.4 million (EUR 9.1 million).

The Group's subsidiaries do not have earnings that would cause tax consequences when repatriated.

SSH Communications Security Group

10. EARNINGS PER SHARE

Accounting principles
Earnings per share
Earnings per share
Earnings per share is calculated by dividing the net profit/ loss for the financial year attributable to the owners by the weighted average number of ordinary shares outstanding during the financial year. Earnings per share is impacted by unpaid interest of hybrid capital securities.
Diluted earnings per share
A dilutive effect caused by stock options exists when the subscription price of a share is lower than the fair value of the share. In the calculation of diluted earnings per share, stock options are only considered dilutive when their conversion to ordinary shares would decrease earnings per share or increase the loss per share from continuing operations. In other words, when the Group declares a loss, no dilutive effect will be calculated. Diluted earnings per share is impacted by unpaid interest of hybrid capital securities.
EUR
---
Profit/loss attributable to shareholders of the parent company
Hybrid loan interest expense2
Profit/loss considering dilution effect2
Weighted average number of shares in issue, 1,000
Average number of shares outstanding
Earnings per share
Adjusted average number of shares considering dilution effect, 1,000
Av. nr. of shares considering dilution effect
Earnings per share, diluted1,2

1) Stock options are excluded from the EPS diluted when the result is negative.
2) The 2024 figure has been corrected to include only the interest on the hybrid loan for the relevant period

SSH Communications Security Group

11. PROPERTY, PLANT AND EQUIPMENT

Accounting principles

Property, Plant, and Equipment

The property, plant, and equipment of Group companies are measured in the balance sheet at cost less accumulated straight-line depreciation and eventual impairment losses. When a part of a non-current assets item is treated as a separate asset, expenses related to its replacement are capitalized and any remaining book value is written off. Expenses incurring later are included in the class of property, plant, and equipment only if it is probable that the property will provide future economic benefits to the Group and that the acquisition cost can be reliably determined. Other repair and maintenance expenses are recognized in profit/loss as and when incurred.

Depreciation is calculated on a straight-line basis to reduce the purchase value of each asset item to its residual value over its estimated useful life.

Machinery and equipment: 5 years from month of acquisition.
Computer hardware: 3-5 years from month of acquisition.
Leasehold improvements of rental premises: According to the lease term, though no more than 7 years from year of acquisition.

The residual value and useful life of assets are reviewed for each financial statement and, if necessary, adjusted to indicate changes expected in the assets' economic benefits.

Capital gains and losses are determined by comparing proceeds received with the book value of sold assets. Impairment losses incurred through transfer are recognized under other operating costs.

EUR	2025	2024
Machinery and equipment
Acquisition cost 1 Jan	2,692,223	2,584,694
Exchange rate effect	-38,418	19,259
Increase	106,663	88,271
Acquisition cost 31 Dec	2,760,468	2,692,223
Accumulated depreciation 1 Jan	2,493,944	2,309,130
Exchange rate effect	-35,819	12,734
Depreciation for the financial period	144,082	172,080
Accumulated depreciation 31 Dec	2,602,207	2,493,944
Book value 31 Dec	158,261	198,279
EUR	2025	2024
---	---	---
Other tangible assets
Acquisition cost 1 Jan	81,158	77,738
Exchange rate effect	-6,623	3,420
Acquisition cost 31 Dec	74,535	81,158

SSH Communications Security Group

Accumulated depreciation 1 Jan	78,360	70,144
Exchange rate effect	642	-3,420
Depreciation for the financial period	3,183	11,637
Accumulated depreciation 31 Dec	74,535	78,360
Book value 31 Dec	0	2,798
Book value of tangible assets 31 Dec	158,261	201,076

12. RIGHT-OF-USE ASSETS

EUR	2025	2024
Acquisition cost 1 Jan	3,732,943	3,084,972
Exchange rate effect	-141,147	72,515
Increase	22,411	961,803
Decrease		-386,347
Acquisition cost 31 Dec	3,614,207	3,732,943
Accumulated depreciation 1 Jan	2,432,656	1,897,098
Exchange rate effect	-94,381	45,611
Depreciation for the financial period	381,227	489,948
Accumulated depreciation 31 Dec	2,719,502	2,432,656
Book value of right-of-use assets 31 Dec	894,705	1,300,287

Right-of-use assets include mainly leased offices.

The management of SSH evaluates the lease terms of the agreements that have no fixed expiration date or notice period of less than 12 months.

More information on leases is presented in the note 23. Leases.

SSH Communications Security Group

13. INTANGIBLE ASSETS

Accounting principles

Intangible Assets

Research and Development Costs

Research and development costs are expensed as they are incurred, except for those development costs that are capitalized if the criteria in IAS 38 are met. The most significant development costs to be capitalized constitute R&D personnel costs and sub-contracting costs. Development costs once recognized as costs are not capitalized in subsequent financial periods.

Intangible assets not yet available for use are tested annually for impairment. Subsequently capitalized development costs are measured at cost less accumulated amortization and accumulated impairment losses. They are amortized on a straight-line basis over their useful lives, estimated 5 years.

Software

Software includes acquired software licenses. These assets are entered in the balance sheet at cost and depreciated on a straight-line basis over their economic lifetime. The residual value and useful life of assets are reviewed for each financial statement and, if necessary, adjusted to indicate changes expected in the assets' economic benefits. The economic lifetime does not generally exceed 5 years. The depreciation period for software acquired for internal use is 3–5 years.

Other Immaterial Rights

Immaterial rights include obtained technology patents, trademarks, customer registers, and technology rights. These are entered in the balance sheet at cost and depreciated on a straight-line basis over their economic lifetime. The residual value and useful life of assets are reviewed for each financial statement and, if necessary, adjusted to indicate changes expected in the assets' economic benefits. The economic lifetime is generally 5 to 10 years.

Impairment of Tangible and Intangible Assets

The Group will review on each balance sheet date whether there is any indication of an impaired asset. Whenever indicators of impairment exist, the book value of such an asset is compared with its recoverable amount. The recoverable amount is the fair value of the asset less the costs of its sale, or its value in use, whichever is higher. The value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. The discount rate used to calculate the above is pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the asset.

Whenever the book value of an asset exceeds its recoverable amount, an impairment loss will be recognized for that asset. The impairment loss is recognized immediately in the income statement. After the recognition of an impairment loss, the economic lifetime of an asset subject to depreciation is re-evaluated. An impairment loss recognized in prior period for an asset other than goodwill will be reversed if there is a change in the estimates that have been used in assessing the recoverable amount of that asset.

SSH Communications Security Group

Goodwill

Acquisitions are accounted for using the acquisition method. Goodwill represents the excess of acquisition cost over the fair values of identified acquired assets and liabilities of acquired companies. Goodwill is stated at historical cost less any accumulated impairment losses. Goodwill represents the value of the acquired market share, business knowledge and the synergies obtained in connection with the acquisition. The carrying amount of goodwill is not amortized but is tested for impairment annually or more frequently if any indication of impairment exists.

The Group assesses the carrying amount of goodwill annually or more frequently if any indication of impairment exists. Goodwill is allocated to the cash generating units (CGUs) of the Group, which are identified according to the country of operation and business unit at the level at which goodwill is monitored for internal management purposes. The recoverable amount of a CGU is determined by value-in-use calculations. In assessing the recoverable amount, estimated future cash flows are discounted to their present value. Cash flow estimates are based on operative managerial estimates. The discount rate is the weighted average cost of capital (WACC) for the main currency area in the location of the CGU (country or business area), which reflects the market assessment of the time value of money and the risks specific in SSH Communications Security's business. Any impairment loss of goodwill is recognized immediately as an expense and is not subsequently reversed.

EUR	2025	2024
Development costs
Acquisition cost 1 Jan	19,251,443	17,850,620
Increase	433,956	1,400,823
Acquisition cost 31 Dec	19,685,398	19,251,443
Accumulated depreciation 1 Jan	14,935,750	13,275,994
Depreciation for the financial period	1,555,441	1,659,757
Accumulated depreciation 31 Dec	16,491,191	14,935,750
Book value 31 Dec	3,194,207	4,315,692
EUR	2025	2024
---	---	---
Customer related intangible assets
Acquisition cost 1 Jan	8,188,079	8,188,079
Acquisition cost 31 Dec	8,188,079	8,188,079
Accumulated depreciation 1 Jan	3,046,597	2,232,789
Depreciation for the financial period	813,808	813,808
Accumulated depreciation 31 Dec	3,860,405	3,046,597
Book value 31 Dec	4,327,674	5,141,482

SSH Communications Security Group

EUR	2025	2024
Other immaterial rights
Acquisition cost 1 Jan	6,877,009	6,932,411
Increase	31,443	56,332
Decrease	-57,598	-111,734
Impairment	-623,573
Acquisition cost 31 Dec	6,227,281	6,877,009
Accumulated depreciation 1 Jan	5,479,378	4,916,142
Depreciation for the financial period	348,400	451,503
Impairment	-174,892	33,813
Accumulated depreciation on decrease		77,921
Accumulated depreciation 31 Dec	5,652,886	5,479,378
Book value 31 Dec	574,395	1,397,631
Goodwill	8,594,625	8,594,625
Book value of intangible assets 31 Dec	16,690,903	19,449,430

On April 26, 2021, the group's subsidiary Kyberleijona Oy acquired $100\%$ of the voting shares of SSH Secure Collaboration Oy. SSH Secure Collaboration Oy changed its name from Deltagon Oy in 2023. The acquisition increased the group's customer-related and technology-based intangible assets EUR 8.5 million and goodwill arising on acquisition EUR 8.6 million, the total increase as a result of the acquisition on the intangible assets being EUR 17.1 million. Customer-related and technology-based intangible assets are amortized over time, whereas goodwill has an indefinite useful life. The estimated remaining useful life of customer-related intangible assets is 10 years, and technology-based intangible assets is five years.

During the financial year ended 31 December 2025, the Group recognized an impairment loss of EUR 0.4 million relating to Intangible assets, classified as impairment of other immaterial rights in the table above. SSH management assessed the development work on the new secure email product and deemed it was not sufficiently close to completion that the product could be launched in the near-term future. Therefore, a strategic decision was made to direct R&D resources to other products and development projects, and the development of the new secure email product would cease. As a result, the activated R&D work in the intangible assets became worthless and was written down.

Goodwill

Goodwill is not amortized but is tested at least annually for impairment. The group's goodwill from the acquisition is allocated to one of the cash generating unit (CGU), which is SSH Secure Collaboration. The recoverable amount from CGU is determined with a value in use method, using five-year cash flow projections, based on financial estimates prepared by the management. Cash flows for the period extending over the five-year planning period are calculated using the terminal value method.

The key parameters applied in impairment testing are: an increase in net sales during the next year $10\%$ and the following four years $5\%$ , an annual growth rate in projecting terminal value $1\%$ , and a discount rate $17.9\%$ . The key parameters were determined based on the growth

SSH Communications Security Group

expectations of the CGU. The discount rate is the weighted average pre-tax cost of capital (WACC). The components of the WACC are the risk-free rate, market risk premium, company-specific risk premium (small stock premium 4.0 %), industry-specific equity beta, cost of debt, and debt to equity ratio. Tested assets include goodwill, customer-related and technology-based intangible assets, capitalized R&D costs, and net working capital.

An asset is impaired when its carrying amount exceeds its recoverable amount. On the basis of the impairment calculations made, there has been no need for impairment for the CGU for the period ended December 31, 2025. The value-in-use amount of SSH Secure Collaboration CGU exceeded the book value by EUR 8.0 million.

Sensitivity analyses of goodwill have been carried out for the valuation of CGU by making downside scenarios for key parameters. If other parameters remain unchanged, an increase in discount rate over 11.92 % would result in impairment. In addition, an average annual decrease in revenue of more than 8.4% over the forecast period from the 2025 level could result in a need for an impairment loss, assuming that other variables such as EBITDA percentage relative to revenue remain the same.

No goodwill impairment losses were recognized during the accounting period.

Impairment testing of capitalized development costs

At the end of the year, the company has tested the value of capitalized development costs using a growth rate compared to the year 2025 net sales and the year 2025 cost structure. The cash flow forecasts of new products in the market are based on the 2026 budget and long-term strategy estimates. The discount rate used in the testing was 14.4 %. As a result of the testing, no impairment risk was detected. According to the sensitivity analyses carried out, even a significant change in key variables (net sales, profitability and discount rate) would not create a situation where the carrying value of an asset would exceed its recoverable amount.

14. INVENTORIES

Accounting principles
Inventories
Inventories are valued at cost or at a net realizable value, whichever is lower. Inventories comprise finished goods for sale. Cost is determined by using the weighted average method. Inventories are presented net of write-down recognized for obsolete inventories.
EUR
---
Finished goods
Goods in transit
Total inventories

SSH Communications Security Group

15. TRADE RECEIVABLES AND CONTRACT LIABILITIES

Accounting principles

Impairment of trade receivables

The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets. Credit losses are recognized in the income statement in other operating expenses.

The Group recognizes an impairment loss on trade receivables when it is expected that the receivable will not be recovered in full. Significant financial difficulties, the likelihood of bankruptcy, neglect of payments, or delay of payment by more than 90 days on part of a debtor may be considered to constitute such evidence for an impairment loss on trade receivables.

Trade receivables

EUR	2025	2024
Total trade receivables	7,197,260	4,842,207

By currency

EUR	2025	2024
EUR	5,414,876	3,282,485
USD	1,678,955	1,219,184
HKD	6,571	9,232
SGD		215,978
SEK	96,858	115,329
Total	7,197,260	4,842,207

By age

EUR	ECL rate	2025	2024
Non-matured	0.50%	7,052,342	4,715,111
Matured
< 30 days	2.00%	179,526	138,506
31-60 days	3.00%	408	7,510
61-90 days	10.00%		1,013
91-120 days	20.00%		472
121-180 days	30.00%	575	491
> 181 days	100.00%	1,566	1,482
Allowance for expected credit losses,
Dec 31		-37,156	-22,377
Total		7,197,260	4,842,207

SSH Communications Security Group

Trade receivables' payment terms vary. The majority of trade receivables are sold with payment terms of 30 days net. The Group does not fully record impairment losses on receivables older than 90 days, as historically, credit losses have been very small.

The book value of trade receivables and trade payables equals their fair value because the impact of discounting is not significant considering the maturity of these items.

Contract liabilities

EUR	2025	2024
Deferred revenue	14,499,296	12,984,067
Government grants received	125,913
Total advances received and deferred revenue	14,625,209	12,984,067

OTHER RECEIVABLES

EUR	2025	2024
VAT receivables	47,066	76,666
Deposits	111,897	113,958
Prepaid assets	157,131	272,620
Other current receivables	33,139	89,326
Total	349,233	552,570

Prepaid assets

The Group's prepaid assets consist of costs of goods sold and sales commissions. Costs of goods sold that are costs to fulfill a contract with a customer are recognized as an asset when the contract period is 12 months or longer, costs are material, and revenue from the contract is recognized over time.

Sales incentive commissions that are incremental costs of obtaining a contract with a customer are recognized as an asset when the contract period is 12 months or longer, and costs to fulfill the contract are material, and revenue from the contract is recognized over time.

Assets are amortized over time during the contract period in proportion to the revenue from the contract.

The amortized amount of prepaid assets in 2025 is EUR 44,131 (EUR 64,711). No impairment of prepaid assets was recorded in 2025.

SSH Communications Security Group

17. NOTES TO EQUITY

Accounting principles

Share capital

Share capital consists of ordinary shares of the parent company classified as equity. Dividends paid on ordinary shares are deducted from equity in the period during which the decision to distribute dividends is made in the Annual General Meeting.

Share issue costs

Costs directly related to an issue of new shares, other than costs attributable to a business combination, are deducted, net of tax, from the proceeds recognized under equity.

Own shares

If SSH Communications Security Corporation or its subsidiaries purchase parent company SSH Communications Security Corporation’s shares, the compensation paid, including any related incremental external costs, net of tax, is deducted from total equity as own shares until the shares are canceled or transferred. If own shares are subsequently sold, any compensation received will be recognized under equity. The Group companies held no shares in the parent company on December 31, 2025 or December 31, 2024.

According to the Articles of Association, SSH Communications Security Corporation has a minimum share capital of EUR 600,000 and a maximum share capital of EUR 2,400,000, within which limits the share capital may be raised or lowered without amending the Articles of Association. The nominal value of one share is EUR 0.03; hence, the minimum number of shares is 20 million and the maximum number is 80 million. The company has one series of shares; each share entitles its holder to one vote at the shareholders’ meeting. The share capital of the company, registered in the Trade Register and fully paid up as of 31 December 2025, was EUR 1,636,244.19 (EUR 1,229,040.93), and the number of shares was 54,541,473 (40,968,031).

Changes in the share capital	Number of Shares	Share capital, EUR
31 Dec 2024	40,968,031	1,229,041
Subscriptions under the stock option plan	240,109	7,203
Share issue	13,333,333	400,000
31 Dec 2025	54,541,473	1,636,244

During 2025, Leonardo S.p.A. invested in the Company by subscribing 13,333,333 new shares at a subscription price of EUR 1.50 per share, raising EUR 19,999,999.50. The increase in share capital was EUR 400,000.00.

DESCRIPTION OF THE EQUITY RESERVES:

Share capital

The share capital includes the share subscription prices from share issues and share subscriptions through options unless the conditions of the share issue stipulate that the subscription price shall be registered in the unrestricted invested equity fund. Expenses related to share issue are deducted from retained earnings.

SSH Communications Security Group

Translation differences

The translation differences fund comprises the exchange rate differences arising from the translation of the financial statements of the foreign subsidiaries.

Unrestricted invested equity fund

The unrestricted equity fund consists of the dissolved share premium fund formed by share subscriptions under option rights and includes share subscription prices insofar as not registered as share capital based on a specific decision.

Hybrid capital securities

Hybrid capital securities is an instrument that is subordinated to the Company's other debt obligations and does not have a maturity date (i.e. it is perpetual). It is treated as equity in the IFRS financial statements. Hybrid capital securities do not confer to their holders any rights of shareholders and do not dilute the holdings of the current shareholders.

The other equity fund consists of hybrid capital securities of EUR 12 million issued in March 2015, subscribed by institutional investors. The principal owner of the parent company, Mr. Tatu Ylönen, subscribed EUR 500,000 of the hybrid capital securities. The capital securities had a fixed interest rate of 7.5 percent until 30 March 2020, after which the interest rate increased by four percentage points to 11.5 percent. The capital securities have no maturity date, but the issuer had the right to redeem them after 3 but before 5 years from the issue date, upon certain conditions, or after 5 years from the issue date. The investors had the right to convert the capital loan into the Company's shares at EUR 4.76 per share until 30 March 2020.

18. CAPITAL MANAGEMENT

Accounting principles

Financial liabilities

The Group's financial liabilities are classified into financing liabilities recognized at fair value through profit/loss or other financial liabilities (financing liabilities recognized at amortized acquisition cost). A financial liability is classified as current if the Group does not have the absolute right to postpone repayment to at least 12 months from the end of the period under review. A financial liability (or part thereof) will not be written off the balance sheet until it has ceased to exist, i.e. when the obligation specified in the agreement has been discharged or reversed and its period of validity has expired.

The Group did not have any derivative contracts during 2025 or 2024.

SSH Communications Security Group

Other financial liabilities (financing liabilities recognized at amortized cost) include, most significantly, trade payables.

The objective in managing Group capital is to secure the ability to continue operating. The structure of the capital can be managed through decisions concerning, for instance, dividends and other distributions of assets, purchase of the company's own shares, and share issues. Capital management concerns equity recognized in the balance sheet. There are no requirements imposed by outside parties on the Group's capital management. In March 2015, the Group issued hybrid capital securities, which are included in the Group's equity.

The indicators depicting the capital structure are the equity ratio and gearing.

EUR	2025	2024
Interest-bearing liabilities		745,000
Lease liabilities	1,103,426	1,372,773
Cash and cash equivalents	10,970,058	2,923,397
Net liabilities	-9,866,632	-805,624
Equity total	25,800,233	9,031,398
Equity ratio	78.72 %	52.80 %
Gearing	-38.24 %	-8.92 %

During 2025, the interest-bearing loans, which consisted of EUR 0.75 million of a premium loan received from ELO Mutual Pension Insurance Company was fully repaid.

19. FINANCIAL ASSETS

Accounting principles

Financial assets

The Group has classified its financial assets into the following categories: financial assets at fair value through profit or loss, financial assets at fair value through comprehensive income statement, and financial assets at amortized value.

The assets are classified at initial recognition; the classification is based on the business model used in managing the financial assets and contractual terms of the cash flows. The assets are initially recognized at fair value. Transaction costs are included in the original book value of an asset if the asset is not to be recognized at fair value through profit or loss. Financial assets are written off from the balance sheet when the contractual right to cash flows from an asset included in financial assets ends or when the significant risks and rewards related to the asset are transferred outside the Group. All asset purchases and sales are recognized on the date of the transaction.

Financial assets at fair value through profit or loss include financial assets that are designated as financial assets at fair value through profit and loss upon initial recognition. In SSH this category includes money market investments. Changes in fair values of financial assets and realized and unrealized gains and losses are recognized in the income statement under financial items during the period when they incur. The Group assesses at each balance sheet date whether an individual financial asset or group of financial assets is impaired.

SSH Communications Security Group

Cash and cash equivalents

Cash and cash equivalents include cash on hand, short-term deposits at banks, and other short-term liquid investments. Assets classified as cash and cash equivalents have a maturity of three months or less at the time of acquisition.

Cash and cash equivalents

EUR	2025	2024
Cash and short-term deposits	10,970,058	2,923,397
Other short-term liquid investments	10,040,209
Total financial assets	21,010,267	2,923,397

Financial assets at FVTPL

EUR	2025	2024
Fair value as at Jan 1		1,508,254
Increases	12,000,000
Decreases	-1,999,000	-1,508,254
Change in fair value	39,209
Fair value as at Dec 31	10,040,209

The Group's financial assets at fair value through profit or loss consist of low-risk investment basket, which invests its assets in short-term securities. The fair value of investment basket is based on the market values of the investment objects as reported by the asset management company. Changes in the fair value are recognized in the income statement under financial items. The investment basket is classified at fair value hierarchy level 1, meaning that the fair values are based on the quotation at the end of the reporting period of similar assets or liabilities.

SSH Communications Security Group

20. SHARE-BASED PAYMENTS AND EMPLOYEE BENEFITS

Accounting principles

Employee Benefits

Pensions

The Group’s pension schemes comply with the relevant regulations and practices in each relevant country. Pension security for the Group personnel is handled through external pension insurance companies. The Group applies defined contribution pension plans, in which the Group pays fixed contributions to an outside unit. The Group has no obligation to make additional payments in case the recipient of the contributions cannot discharge its pension payment obligations. Contributions under the defined contribution plan are recognized in the income statement for the financial period during which the contributions were made.

Share-based payments

Option rights have been issued to the Group management and personnel. Option rights are issued with a fixed subscription price determined in the terms and conditions of the option plan.

Option rights are measured at fair value on their date of issue and recognized as a cost in the income statement on a straight-line basis over the vesting period. The expense determined at the time of issuing the stock options is based on the Group’s estimate of the number of stock options to which it is assumed that rights will vest by the end of the vesting period. The fair value is determined using the Black-Scholes pricing model. The non-market criteria are not included in the fair value of the option but considered in the number of stock options that are assumed to vest at the end of the vesting period. On the date of each financial statement, the Group updates its estimate of the final amount of the stock options that will vest, and changes in this estimate are recognized in the income statement. When the option rights are exercised, the proceeds received, net of any transaction costs, are recognized under share capital and unrestricted invested equity fund.

In the company’s industry, it is common practice internationally that incentives are provided to employees in the form of equity settled share-based instruments, such as options. Personnel of the company belong to options plans. An employee leaving the company before the vesting of the options forfeits their options.

On the balance sheet date, SSH Communications Security had 2,809,391 stock options outstanding (2,149,500), representing 5.2% of shares and votes. The weighted average exercise price of outstanding stock options was EUR 1.9 (EUR 2.3). The weighted average of the remaining subscription period was 1.8 years (2.2 years). The exercise price varies from EUR 1.24 to EUR 2.98, and the remaining subscription period is from 0.3 years to 3.3 years.

A person holding option rights is entitled to subscribe shares if employed by SSH at the beginning of the subscription period.

SSH Communications Security Group

Information about option plans

Option plan	Option certificate	Release date	Subscription period		Subscription price, EUR	Options not exer-cised
			Begin	End
2022A	2022A	23 Feb 2022	23 Feb 2024	31 Mar 2026	2.98	898,633
2023A	2023A	27 Mar 2023	23 Feb 2025	31 Mar 2027	2.24	821,258
2024A	2024A	27 Mar 2024	24 Feb 2026	31 Mar 2028	1.83	980,000
2025A	2025A	28 Mar 2025	23 Feb 2027	31 Mar 2029	1.24	980,000
Total						3,679,891

Changes in outstanding stock options:

	2025	2024
At the beginning of the financial period	2,149,500	1,803,809
Stock options granted	967,500	889,000
Stock option forfeited	67,500	202,700
Stock options expired		37,000
Stock options exercised	240,109	303,609
At the end of the financial period	2,809,391	2,149,500
Exercisable option rights at the end of the financial period	2,809,391	2,149,500

The fair value of option programs is determined at the time the options are granted and is recorded as an expense in the profit/loss during the period of inception. The fair value is determined using the Black-Scholes pricing model. The parameters for options granted in 2025 are:

	2025
Share price at grant, EUR	1.14
Share price at financial period end, EUR	3.15
Exercise price, EUR	1.24
Expected volatility1	45.49 %
Maturity, years	3.80
Risk-free rate	2.07 %
Expected dividends, EUR	0.00
Valuation model	Black-Scholes
Fair value 31 Dec, EUR	352,244

1 The expected volatility has been determined by calculating the historical volatility of the company's shares using monthly observations over corresponding maturity.

Share-based payments recognized as an expense, EUR	2025	2024
Share-based payments, equity-settled	351,495	375,352

SSH Communications Security Group

21. TRADE AND OTHER PAYABLES

EUR	2025	2024
Trade payables	842,997	422,519
Personnel related	2,839,948	3,272,968
Accruals	44,348	93,478
VAT liabilities	884,390	737,132
Other liabilities	189,547	381,729
Total	4,801,231	4,907,827

22. FINANCIAL RISK MANAGEMENT

The Group is exposed to financial risks in its normal business. The purpose of the Group's risk management is to minimize the negative impacts of changes on financial markets to Group's income.

The Group's internal and external financing and the management of financing risks are concentrated in the finance and financial management unit of the Group's parent company. The unit is responsible for the Group's liquidity, sufficiency of financing, and the management of interest rate and currency risk. The Group is exposed to several financial risks in the normal course of business.

Foreign Exchange Risk

The Group operates internationally and is exposed to foreign exchange risk, the most significant currency being the U.S. dollar. The company reduces risk based on net position, using foreign exchange forwards or options. Currently, the net position is not hedged. The company decides on the hedging on case by case basis. Currently, the Group is not using hedge accounting. Any gains or losses realized through hedging actions are thus recognized in profit/loss.

A 10 % strengthening of the U.S. dollar against the Euro, using with net position on 31 Dec 2025 would increase the pre-tax profit of the Group by 15,000 euros. Similarly, a 10 % weakening of the U.S. dollar against the Euro would decrease the pre-tax profit of the Group by 13,000 euros.

A 10 % strengthening of the U.S. dollar against the Euro using with net position on 31 Dec 2025 would increase revenue of the Group by 800,000 euros. Similarly, a 10 % weakening of the U.S. dollar against the Euro would decrease the revenue of the Group by 650,000 euros.

Interest Rate Risk

At the end of the review period, the group had no interest-bearing loan, as the premium loan from Elo mutual pension insurance company (EUR 750,000) was fully repaid during the year. The interest rate of the premium loan consists of reference interest rate and added margin 0,50 %. During 2025 the calculated annual rate of premium loan was 0,80 %.

The money market investments of the Group expose the cash flow to interest rate risk, but the impact is not material. As of 31 December 2025, the Group's money market investment amounted to EUR 10,040,209.

SSH Communications Security Group

Market Risk Related to Investments

The Group's cash reserves have been invested in accordance with the policy approved by the Board of Directors. Assets available for investing are determined based on cash and liquidity forecasts. The objective is to generate stable positive returns and, at minimum, ensure that the invested nominal amounts can be redeemed. Market risk arising from investments is managed by defining neutral allocation per asset class. The Board of Directors approves allowed counterparties and issuers for the Group's investment.

Credit Risk

The Group has no significant concentration of credit risk. At the end of the financial year, the Group recorded allowance for expected credit losses of EUR 37,156 to cover doubtful receivables. During 2025 the Group did not record any credit losses. The aging distribution of trade receivables is presented in note 15. Trade receivables and contract liabilities.

Liquidity Risk

The Group's cash and cash equivalents on 31 Dec 2025 were 10,970,058 euros (2,923,397 euros).

During 2025, the Group's net money market investment was EUR 10,000,000.

At the end of 2025, the Group had trade payables and other short-term debts amounting to 4,800,660 euros (4,640,725 euros). The remaining interest-bearing loan of 0,75 million euros related to the premium loan from ELO mutual pension insurance company were paid during 2025.

Cash management is centralized at the HQ, ensuring optimization of the use of liquid funds between the different units of the Group. The Group's management team follows the entities' liquidity minimum on a monthly basis. The cash flows of the Group are forecasted on a current and a non-current level. The Board of Directors monitors the Group's liquidity monthly.

At the end of 2025, SSH did not have any agreements with credit facilities or loan guarantees that would include a covenant.

The tables below present the Group's maturity of the financial liabilities:

31 Dec 2025

EUR	Less than 1 year	1 to 5 years	Total
Lease liabilities	419,538	683,888	1,103,426
Trade and other payables	4,926,572	198,870	5,125,442
Total	5,346,110	882,758	6,228,868

SSH Communications Security Group

31 Dec 2024

EUR	Less than 1 year	1 to 5 years	Total
Interest-bearing liabilities	500,000	245,000	745,000
Lease liabilities	265,348	1,107,425	1,372,773
Trade and other payables	4,640,725		4,640,725
Total	5,406,073	1,352,425	6,758,498

The tables below present changes in liabilities arising from financing activities:

EUR	1 Jan 2025	Cash flows	Foreign exchange movement	New leases	Other	31 Dec 2025
Current lease liabilities	265,348	-234,223	-23,240		411,653	419,538
Current interest-bearing borrowings	500,000	-500,000
Other current liabilities					-
Non-current lease liabilities	1,107,425		-32,179		391,358	683,888
Non-current interest-bearing borrowings	245,000	-245,000
Total liabilities from financing activities	2,117,773	-979,223	-55,419		20,295	1,103,426
EUR	1 Jan 2024	Cash flows	Foreign exchange movement	New leases	Other	31 Dec 2024
---	---	---	---	---	---	---
Current lease liabilities	468,493	-402,333	10,006	116,029	73,152	265,348
Current interest-bearing borrowings	500,000	-500,000			500,000	500,000
Other current liabilities	1,670,000	-1,670,000
Non-current lease liabilities	719,606		24,688	821,275	-458,143	1,107,425
Non-current interest-bearing borrowings	745,000				-500,000	245,000
Total liabilities from financing activities	4,103,099	-2,572,333	34,694	937,304	-384,991	2,117,773

The column "Other" includes non-cash movements, such as reclassification from non-current to current.

SSH Communications Security Group

23. LEASES

Accounting principles

Leases

The Group leases mainly offices. Rental contracts are typically made for fixed periods from two to three years, but may have extension options. Extension options have not been included in the lease liability because the Group could replace the asset without significant cost or business disruption. The lease term is reassessed if the option is exercised.

Leases are recognized in the balance sheet as a right-of-use asset and a corresponding financial liability at the date at which the lease asset is available for the use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is recognized in the income statement over the lease period. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. The right-of-use assets are also subject to impairment.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. The carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset.

Lease liabilities are included in interest-bearing loans and borrowings.

The Group applies the short-term lease recognition exemption to the leases of 12 months or less and the lease of low-value assets recognition exemption. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.

Leases in the balance sheet

The Group has recognized the following amounts related to the leases in the balance sheet:

Right-of-use assets

EUR	2025	2024
Offices	822,122	1,186,228
Furniture	72,582	114,058
Total	894,704	1,300,286

Lease liabilities

EUR	2025	2024
Current	419,538	265,348
Non-current	683,888	1,107,425
Total	1,103,426	1,372,773

SSH Communications Security Group

Additions to the right-of-use assets during 2025 were in total EUR 0.0 million (EUR 1.0 million). Changes in right-of-use assets have been presented in note 12. Right-of-use assets.

The management of SSH evaluates the lease terms of the agreements that have no fixed expiration date or notice period of less than 12 months.

Leases in the income statement

The Group has recognized the following amounts related to the leases in the income statement:

EUR	2025	2024
Depreciation charge of right-of-use assets	-381,227	-489,948
Interest expenses (included in financial costs)	-143,004	-128,359
Expense relating to short-term leases (included in other operating costs)		-1,860
Expense relating to leases of low-value assets (included in other operating costs)	-25,769	-28,690

The cash outflow for leases in 2025 was in total EUR 0.2 million (EUR 0.4 million).

24. OTHER NON-CURRENT LIABILITIES

EUR	2025	2024
Long-term loan	198,870
Total	198,870

The Company received an interest-free long-term loan related to a project from the Government, recognized as a long-term liability, which may be forgiven upon completion of the project, with any forgiven amount recognized as other operating income.

25. GUARANTEES GIVEN AND OTHER COMMITMENTS

Accounting principles

Hybrid capital securities

Hybrid capital securities is an instrument that is subordinated to the Company's other debt obligations and is treated as equity in the Group balance sheet. Unpaid interest is cumulated but presented in the financial statements only after Board of Directors' interest payment decision.

Provisions

Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, when it is probable that expenditure will be required to settle the obligation, and when a reliable estimate of the amount can be made. If the Group expects an obligation to be partly reimbursed by a third party, the reimbursement is recognized as a separate asset but only when the reimbursement is certain in practical terms. The Group recognizes a provision on

SSH Communications Security Group

loss-making agreements when the expected benefits of an agreement are less than the unavoidable costs of meeting the obligations under the agreement.

Provisions are measured at the current value of the costs required to discharge the obligation. The discount rate is determined to reflect current market assessments of the time value of money and the risks specific to the obligation.

EUR	2025	2024
Rental guarantees (pledged)	111,703	113,739
Hybrid Loan, Interest	3,416,276	2,534,025

26. GROUP COMPANIES

Accounting principles

Subsidiaries

The consolidated accounts include the parent company SSH Communications Security Corporation and all its subsidiaries. Subsidiaries are companies in which the Group has a controlling interest. A controlling interest is created when the Group has power over the investee, exposure, or rights, to variable returns from its involvement with the investee and the ability to use its power over the investee to affect the amount of the Group's returns. In practice, controlling interest is established when the Group owns more than half of the votes in a company.

Group-internal share ownership is eliminated using the purchase method. Subsidiaries are consolidated from the date on which control is transferred to the Group and are no longer consolidated from the date on which that control ceases. All Group-internal transactions, receivables and debts, unrealized profit, and profit distribution have been eliminated.

The share of the non-controlling interests of the subsidiaries' profits and equity is presented as a separate item in the consolidated income statement, comprehensive income statement, statement of changes in equity, and in the balance sheet.

SSH Communications Security Group

Group companies Dec 31, 2025

Group company	Domicile	Group holding, %	Votes, %
SSH Communications Security Oyj, Helsinki	Finland
SSH Communications Security Inc., New York City	USA	100	100
SSH Operations Oy, Helsinki	Finland	100	100
SSH Communications Security Ltd., Hong Kong	Hong Kong	100	100
SSH CommSec Singapore Pte. Ltd., Singapore	Singapore	100	100
Kyberleijona Oy, Helsinki	Finland	65	65
SSH Secure Collaboration Oy	Finland	65	65
SSH Government Solutions Inc., New York City	USA	100	100
SSH Technology Oy, Helsinki	Finland	100	100
SSH Communications Security UK Ltd, London	United Kingdom	100	100

Partly owned subsidiaries

Financial information of subsidiaries that have material non-controlling interests is provided below:

Proportion of equity interest held by non-controlling interests:

	Country of incorporation and operation	2025	2024
Kyberleijona Oy	Finland	35 %	35 %
SSH Secure Collaboration Oy	Finland	35 %	35 %

The following key figures presented include Kyberleijona Oy and SSH Secure Collaboration Oy. Intercompany items between the presented entities have been eliminated.

Summarized statement of consolidated key figures before group intercompany eliminations:

EUR	2025	2024
Net sales	6,491,421	6,447,866
Operating profit/loss	429,326	1,770,659
Profit/loss for the year	718,987	1,476,822
Total assets	35,365,038	28,898,193
Equity	24,907,967	24,199,044
Net cash flow	493,775	223,327

No dividend has been distributed to non-controlling interest during 2025 or 2024.

SSH Communications Security Group

27. RELATED PARTY TRANSACTIONS

SSH Communications Security Corporation, its subsidiaries, its CEO, its Group management team, and its Board members, their close family members, and companies controlled by them belong to related party of the Group. In addition, major shareholders with more than 20 percent ownership of shares or of the total voting rights in the company, are included in related parties.

Employee benefits of the management

The key management personnel of the Group are defined as consisting of the CEO and the management team of the parent company. The employee benefits of the CEO are presented on the table below. The sums of employee benefits are shown on an accrual basis. Mr. Teemu Tunkelo was CEO of SSH Communications Security Corporation until 26 February 2024. From then on, the Board of Directors of SSH appointed Rami Raulas as interim CEO of the company. Mr. Raulas has been appointed CEO, effective 8 January 2025.

EUR	2025	2024
Salary and other short-term employee benefits	304,859	203,881
Termination benefits		145,181
Total	304,859	349,062

Salary and other short-term employee benefits of the CEO are presented as payment based.

Fees to Members of the Board of Directors

EUR	2025	2024
Candolin Catharina	28,409	24,000
Fredrikson Christian	28,409	24,000
Di Sandro Francesco (as of October 2025)
Louhivuori Tuomo	28,409	18,000
Tavakka Kai	28,409	24,000
Österlund Henri (Chairman of the Board)	45,313	28,800
Total	158,948	118,800
Share and stock option holdings of
of Board members	31 Dec 2025
---	---	---
	Shares	Options
Candolin Catharina	144
Fredrikson Christian	10,000
Di Sandro Francesco (as of October 2025)
Louhivuori Tuomo	10,000
Tavakka Kai	5,480
Österlund Henri	151,095
Total	176,719

SSH Communications Security Group

Share and stock option holdings of the key management	31 Dec 2025		31 Dec 2024
	Shares	Options	Shares	Options
Tunkelo Teemu (until February 2024)			638,576	50,000
Kommonen Michael	10,000	140,000	5,000	100,000
Raulas Rami	70,000	200,000	70,000	150,000
Sainio Miikka (as of March 2024)		128,000		78,000
Total	80,000	468,000	713,576	378,000

Compensation of the key management personnel of the group

EUR	2025	2024
Salary and other short-term employee benefits	635,317	620,481
Share-based payments	7,851	27,806

On 31 December 2025, the CEO and members of the Board of Directors of SSH Communications Security owned 21.2 % (29.8 %) of the shares and votes in the company, either directly or indirectly through companies they own.

Management group members, including the CEO, directly or indirectly held about 0.1 % (1.7 %) of company shares and have a total of 468,000 (378,000) option rights.

The key conditions of the option right arrangements are described in note 20. Share-based payments.

Related party transactions

During the reporting period, there have not been any significant transactions with related parties, other than agreed remuneration with executive management and board.

28. EVENTS AFTER THE BALANCE SHEET DATE

SSH Communications Security Group
55

PARENT COMPANY FINANCIAL STATEMENTS

SSH Communications Security Group

PARENT COMPANY FINANCIAL STATEMENTS
PARENT COMPANY INCOME STATEMENT

EUR	Note	1 Jan-31 Dec 2025	1 Jan-31 Dec 2024
NET SALES	1	13,152,303.94	13,042,017.79
GROSS MARGIN		13,152,303.94	13,042,017.79
Other operating income		166,589.00	300,767.61
Research and development costs	2, 3, 6	-8,277,597.99	-7,607,291.36
Sales and marketing costs	2, 3, 6	-3,726,383.28	-3,988,099.87
Administrative costs	2, 3, 6	-3,181,330.48	-3,064,352.41
OPERATING PROFIT/LOSS		-1,866,418.82	-1,316,958.24
Financial income	7
Interest revenue and other financing income		109,790.67	52,649.31
Interest costs and other financing costs		-348,714.33	-311,307.80
PROFIT/LOSS BEFORE APPROPRIATIONS AND TAXES		-2,105,342.48	-1,575,616.73
Appropriations	8
Group contribution received			7,000.00
PROFIT/LOSS BEFORE TAXES		-2,105,342.48	-1,568,616.73
Taxes		-719.48
PROFIT/LOSS FOR THE FINANCIAL PERIOD		-2,106,061.96	-1,568,616.73

SSH Communications Security Group

PARENT COMPANY FINANCIAL STATEMENTS

PARENT COMPANY STATEMENT OF FINANCIAL POSITION

ASSETS

EUR	Note	31 Dec 2025	31 Dec 2024
NON-CURRENT ASSETS
Intangible assets	9
Immaterial rights		1,873,257.33	2,975,026.78
Intangible assets, total		1,873,257.33	2,975,026.78
Tangible assets	9
Machinery & equipment		112,657.26	143,337.90
Tangible assets, total		112,657.26	143,337.90
Investments
Shares in Group companies	9,19	14,016,037.61	14,016,037.61
Other shares		11,000.00	11,000.00
Investments, total		14,027,037.61	14,027,037.61
NON-CURRENT ASSETS, TOTAL		16,012,952.20	17,145,402.29
CURRENT ASSETS
Current receivables
Trade receivables^{1}		143,537.55	509,610.78
Receivables from Group companies	10	6,488,136.79	3,398,309.16
Prepaid expenses and accrued income	11	369,650.45	390,321.76
Other receivables	12	166,755.28	205,618.69
Current receivables, total		7,168,080.07	4,503,860.39
Current financial assets		10,040,209.11
Cash and cash equivalents		7,110,541.37	56,878.04
CURRENT ASSETS, TOTAL		24,318,830.55	4,560,738.43
ASSETS, TOTAL		40,331,782.75	21,706,140.72

1) Accounts receivables and advances received have been offset when the performance obligation has not been delivered, or the cash received

SSH Communications Security Group

PARENT COMPANY FINANCIAL STATEMENTS

PARENT COMPANY STATEMENT OF FINANCIAL POSITION

EQUITY AND LIABILITIES

EUR	Note	31 Dec 2025	31 Dec 2024
EQUITY	13
Share capital		1,636,244.19	1,229,040.93
Unrestricted invested equity fund		46,016,174.83	25,825,322.85
Hybrid capital securities	14	9,780,000.00	12,000,000.00
Retained earnings		-30,779,721.56	-28,840,004.84
Profit/loss for financial period		-2,106,061.96	-1,568,616.72
EQUITY, TOTAL		24,546,635.51	8,645,742.22

LIABILITIES

NON-CURRENT LIABILITIES
Pension loan	15		245,000.00
Other long-term liabilities		198,870.00
Loan payables to Group companies	16	6,830,000.00	5,130,000.00
NON-CURRENT LIABILITIES, TOTAL		7,028,870.00	5,375,000.00

CURRENT LIABILITIES

Advances received^{1}		1,875,968.66	962,090.89
Trade payables		602,660.20	289,585.16
Payables to Group Companies	16	3,726,073.29	3,340,609.75
Accrued expenses and deferred income	17	1,933,415.74	2,098,409.74
Pension loan	15		500,000.00
Other liabilities		618,159.35	494,702.96
CURRENT LIABILITIES, TOTAL		8,756,277.24	7,685,398.50
LIABILITIES, TOTAL		15,785,147.24	13,060,398.50
EQUITY AND LIABILITIES, TOTAL	40,331,782.75	21,706,140.72
---	---	---

1) Accounts receivables and advances received have been offset when the performance obligation has not been delivered, or the cash received

SSH Communications Security Group

PARENT COMPANY FINANCIAL STATEMENTS

PARENT COMPANY CASH FLOW STATEMENT

EUR	1 Jan-31 Dec 2025	1 Jan-31 Dec 2024
Cash flow from business operations
Receipts from customers	11,614,741.82	12,433,503.85
Payments to suppliers and employees	-13,921,064.22	-13,559,948.29
Cash flows from operating activities before financial items and taxes	-2,306,322.40	-1,126,444.44
Interest paid and payments on other financial costs	-49,015.00	-92,265.00
Interest received and other financial revenue	40,687.82	10,478.82
Cash flow from operating activities	-2,314,649.58	-1 208 230.62
Cash flow from investing activities
Investments in tangible and intangible assets	-80,013.00	-642,345.83
Investment in subsidiaries		-1,670,000.00
Investments in Financial Assets	-10,000,000.00
Receipt of government grants	292,501.41	292,253.61
Cash flow from investing activities	-9,787,511.59	-2 020 092.22
Cash flow from financing activities
Change in current debt	-750,000.00	-500,000.00
Principal repayments on the hybrid loan	-2,220,000.00
Interest paid on hybrid capital securities	-371,100
Loans received from Subsidiaries	2,700,000.00	3,460,000.00
Loan repayment to group companies	-1,000,000.00	-500,000.00
Proceeds from shares subscribed with option rights	598,055.00	281,688.49
Proceeds from share issue	19,999,999.50
Other long-term Loan	198,870.00
Group contribution received		12,843.60
Cash flow from financing activities	19,155,824.50	2,754,532.09
Change in cash and cash equivalents	7,053,663.33	-473,790.75
Cash and cash equivalents in beginning of period	56,878.04	530,668.79
Change in cash and cash equivalents	7,053,663.33	-473,790.75
Cash and cash equivalents at end of period	7,110,541.37	56,878.04

SSH Communications Security Group

PARENT COMPANY FINANCIAL STATEMENTS

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

The financial statement of the parent company, SSH Communications Security Corporation, is drawn up in accordance with the Finnish Accounting Standards. Figures are given to an accuracy of one cent (EUR 0.01). All items in the balance sheet are recognized at original acquisition cost. Information on financial risk management is presented in the consolidated financial statements (Note 22. Financial Risk Management).

Principles of revenue recognition

The revenue from product sales is recognized at the time when significant risks and rewards of the product or the right of use of the product have been transferred to the buyer and there is a binding contract between the parties, the delivery has taken place in accordance with the contract, the amount of revenue can be measured reliably, and it is probable that the economic benefits associated with the transaction will accrue to the company. Control is transferred to the buyer at the point of time.

Revenue from services rendered under maintenance agreements is amortized across the agreement period. Revenues from services are recognized when the service has been delivered and it is probable that the economic benefits associated with the transaction will accrue to the company. Revenue from subscription contracts is amortized across the agreement period.

The revenue of royalties from licenses is recognized according to the actual content of the contract at the point of time. Revenue from royalties is not material to the company.

The parent company offsets the accounts receivables and advances received in the balance sheet when the performance obligation has not yet been delivered or the cash received.

Apportioning of costs to functions

Costs are apportioned to functions according to the matching principle.

Leases

The parent company has a rental agreement for office premises at Karvaamokuja 2D, Helsinki and minor other assets. Leasing payments paid pursuant to these agreements are recognized as costs over the rental or leasing period under agreements.

Income tax

The income tax in the income statement comprises direct taxes based on the taxable profit for the financial period and adjustments to taxes on previous financial periods. The parent company does not recognize deferred tax receivables or liabilities in its financial statement. The parent company has confirmed tax losses of EUR 3.9 million (EUR 4.4 million). In addition, the parent company has EUR 47.2 million (EUR 44.5 million) research and development expenses and depreciations not deducted in taxation, whereof no deferred tax asset has been recognized.

SSH Communications Security Group

Fixed assets

Fixed assets are recognized in the balance sheet at acquisition cost less planned depreciation and any impairment. Planned depreciations are calculated on a straight-line basis according to the economic life of each asset category.

The asset categories and their depreciation periods are:

Machinery and equipment	5 years from month of acquisition
Computer hardware	3 years from month of acquisition
Immaterial rights	5 years from month of acquisition
Development costs	5 years from month of capitalization
Other capitalized expenditure	5 years from year of capitalization
Leasehold approvements of rental premises	Length of the rental agreement, though no more than 7 years, from year of capitalization

Financial assets

Financial assets have been measured at fair value in accordance with the Finnish Accounting Act 5.2a, and changes in fair value are recognized in the income statements for the financial year. During the financial year 2025, the net investment in financial assets amounted to EUR 10,000,000, and the net change in fair value recognized in the income statement amounted to EUR 39,209.

More information on financial assets is presented in group note 19. Financial assets.

Research and Development Costs

Research and development costs are recognized as costs in the financial period in which they occurred except for those product development costs which are capitalized once certain criteria have been met. Capitalized development expenses are depreciated systematically over their useful lives.

Foreign currency transactions

Transactions denominated in foreign currencies are recognized at the exchange rate on the transaction date. Outstanding receivables and liabilities in foreign currencies are recognized using the exchange rates on the balance sheet date. Exchange rate gains and losses on actual business operations are considered sales adjustment items or adjustment items to materials and services. Exchange rate gains and losses on financing activities are recognized under financing income and costs.

Option rights

Employees of the parent company and its subsidiaries have been granted option rights. The option rights entitle their holders to subscribe shares in the parent company at a fixed subscription price specified in the terms of the option plan. No costs are recognized in the income statement or balance sheet regarding the granting of option rights.

SSH Communications Security Group

Hybrid capital securities

Hybrid capital securities is an equity-related instrument that is presented as a separate item in equity. Interest payments on hybrid capital securities are decided by the Board. Unpaid interest accumulated at the balance sheet date is presented in note 18. Other commitments.

NOTES TO THE INCOME STATEMENT

1. NET SALES

EUR	2025	2024
BY MARKET AREA
Finland	5,465,247.18	4,611,685.69
Rest of Europe	2,794,750.48	2,294,080.78
Other	4,892,306.28	6,136,251.32
Total	13,152,303.94	13,042,017.79
EUR	2025	2024
BY OPERATION
Subscription sales	3,041,131.70	2,241,070.52
License sales	50,071.39	1,166,358.85
Maintenance sales	995,093.87	787,461.80
Professional services & others	447,183.24	404,188.45
Intercompany sales	8,618,823.74	8,442,938.17
Total	13,152,303.94	13,042,017.79

2. OPERATING COSTS

EUR	2025	2024
Other operating costs
External services	-3,393,440.91	-2,685,936.07
Depreciation	-1,212,463.00	-1,375,803.64
Other	-1,870,172.67	-2,127,915.82
Total	-6,476,076.58	-6,189,655.53

Auditor's fees

EUR	2025	2024
Principal auditor (Ernst & Young Oy)
Statutory auditing	-65,289.00	-72,210.00
Other auditing	-12,997.00	-17,900.00
Total	-78,286.00	-90,110.00

SSH Communications Security Group

PERSONNEL COSTS AND AVERAGE NUMBER OF EMPLOYEES

EUR	2025	2024
Wages and salaries	-7,075,127.41	-7,533,264.50
Pension costs	-1,241,530.74	-1,264,488.11
Other ancillary personnel costs	-236,899.88	-321,545.89
Total	-8,553,558.03	-9,119,298.50
	2025	2024
---	---	---
Average number of employees	89	96

PERSONNEL DISTRIBUTION BY BUSINESS AREA AT THE END OF THE FINANCIAL PERIOD

	2025	2024
Research and development	58	56
Sales and marketing	17	16
Administration	16	15
Total	91	87

SALARIES AND FEES PAID TO MANAGEMENT AND MEMBERS OF THE BOARD OF DIRECTORS

See note 26 in the consolidated financial statements.

DEPRECIATION AND IMPAIRMENT

EUR	2025	2024
Immaterial rights	148,016.50	304,290.07
Capitalized development costs	959,154.61	1,030,159.05
Machinery and equipment	105,900.60	119,275.10
Total	1,213,071.71	1,453,724.22

In 2025 the company recorded an impairment of intangible assets EUR 43,928.22. In 2024 the company recorded an impairment of intangible assets EUR 82,786.45.

FINANCIAL INCOME AND COSTS

EUR	2025	2024
Interest revenue	82,405.35	10,478.82
Exchange rate gains and losses (net)	-115,027.64	-77,897.79
Interest and other financial costs	-206,301.37	-191,239.52
Total	-238,923.66	-258,658.49

SSH Communications Security Group

8. APPROPRIATIONS

EUR	2025	2024
Group contribution from SSH Operations Oy	0.00	7,000.00
Total	0.00	7,000.00

NOTES TO THE BALANCE SHEET

9. INTANGIBLE AND TANGIBLE ASSETS AND LONG-TERM INVESTMENTS

EUR	2025	2024
Immaterial rights
Acquisition cost 1 Jan	19,328,733.93	18,746,980.93
Increase	49,233.54	693,486.84
Decrease	44,440.92	111,733.84
Acquisition cost 31 Dec	19,333,526.55	19,328,733.93
Accumulated depreciation 1 Jan	16,353,707.15	15,097,178.61
Depreciation for the financial period	1,106,562.07	1,334,449.12
Accumulated depreciation on decreases		77,920.58
Accumulated depreciation 31 Dec	17,460,269.22	16,353,707.15
Book value 31 Dec	1,873,257.33	2,975,026.78
Tangible assets
Machinery and equipment
Acquisition cost 1 Jan	2,253,619.52	2,193,027.48
Increase	75,220.00	60,592.04
Acquisition cost 31 Dec	2,328,839.52	2,253,619.52
Accumulated depreciation 1 Jan	2,110,281.62	1,991,006.52
Depreciation for the financial period	105,901.00	119,275.10
Accumulated depreciation 31 Dec	2,216,182.62	2,110,281.62
Book value 31 Dec	112,656.90	143,337.90
Investments
Book value 1 Jan	14,027,037.61	14,027,037.61
Book value 31 Dec	14,027,037.61	14,027,037.61

SSH Communications Security Group

10. RECEIVABLES FROM GROUP COMPANIES

EUR	2025	2024
Trade receivables	6,488,136.79	3,391,309.83
Group contribution receivable		7,000.00
Total	6,488,136.79	3,398,309.83

11. PREPAID EXPENSES AND ACCRUED INCOME

EUR	2025	2024
Prepaid expenses	369,650.45	390,321.76
Total	369,650.45	390,321.76

12. OTHER RECEIVABLES

EUR	2025	2024
Other receivables	166,755.28	205,618.69
Total	166,755.28	205,618.69

13. EQUITY

EUR	2025	2024
Share capital 1 Jan	1,229,040.93	1,219,932.66
Increase in share capital	407,203.26	9,108.27
Share capital 31 Dec	1,636,244.19	1,229,040.93
Unrestricted invested equity fund	46,016,174.83	25,825,322.85
Hybrid capital securities	9,780,000.00	12,000,000.00
Retained earnings	-30,779,721.56	-28,840,005.84
Profit/loss for the financial period	-2,106,061.96	-1,568,616.72
Total	24,546,635.51	8,645,742.22
Statement on Distributable Funds, EUR	2025	2024
---	---	---
Retained earnings	-30,779,722.56	-28,840,005.34
Profit/loss for the financial period	-2,106,061.96	-1,568,616.72
Unrestricted invested equity fund	46,016,174.83	25,825,322.85
Capitalised development costs	-1,670,753.76	-2,584,438.78
Total	11,459,637.55	-7,167,737.99

SSH Communications Security Group

14. HYBRID CAPITAL SECURITIES/SHAREHOLDERS' EQUITY

A hybrid capital security is an instrument that is subordinated to the Company's other debt obligations, and it does not have a maturity date (i.e. it is perpetual). It is treated as equity in the financial statements. Hybrid capital securities do not confer to their holders any shareholder rights and do not dilute the holdings of the current shareholders.

Hybrid capital securities in the amount of EUR 12 million were issued in March 2015 and subscribed by institutional investors. The capital securities bear a fixed interest rate of 11.5 per cent. The capital securities have no maturity date, but the issuer has the right to redeem them after 3 but before 5 years from the issue date, upon certain conditions, or after 5 years from the issue date. The investors had the right to convert the capital loan into the Company's shares at EUR 4.76 per share until 30 March 2020.

Payment of the hybrid loan interest and repurchase of the principal are subject to the Board of Directors' decision. The Group's Board of Directors had decided that interest on the hybrid capital securities was not paid in March 2024 and 2025. The accumulated interest on hybrid capital securities at the end of 2025 was EUR 3,416,276. During 2025, the company purchased EUR 2,220,000 of the loan principal. The interest paid when repurchasing the principal of the hybrid capital securities decreases the retained earnings of the group and the parent company.

Unpaid interest from hybrid capital securities is presented in note 18. Other commitments.

15. NON-CURRENT LIABILITIES

EUR	2025	2024
Pension loans payable
Between one and five years		245,000.00
Pension loans, total		245,000.00
Liabilities to subsidiaries
Between one and five years	6,830,000.00	5,130,000.00
Liabilities to subsidiaries, total	6,830,000.00	5,130,000.00
Non-current liabilities, total	6,830,000.00	5,375,000.00

The premium loan received from Elo Mutual Pension Insurance Company in 2021 was fully repaid during the financial year 2025. Non-current liabilities to subsidiaries consist of the loans that company received from SSH Secure Collaboration Oy.

SSH Communications Security Group

16. LIABILITIES TO SUBSIDIARIES

EUR	2025	2024
Non-current liabilities to subsidiaries
Loan payables to Group companies	6,830,000.00	5,130,000.00
Non-current liabilities to subsidiaries, total	6,830,000.00	5,130,000.00
Current liabilities to subsidiaries
Trade payables	3,702,298.79	3,317,967.24
Other liabilities	23,774.50	22,642.51
Current liabilities to subsidiaries, total	3,726,073.29	3,340,609.75
Liabilities to subsidiaries, total	10,556,073.29	8,470,609.75

Non-current liabilities consist of loans received from SSH Secure Collaboration Oy.

17. ACCRUED LIABILITIES AND DEFERRED INCOME

EUR	2025	2024
Personnel related	1,933,415.74	2,098,409.74
Total	1,933,415.74	2,098,409.74

18. OTHER COMMITMENTS

EUR	2025	2024
Non-cancellable lease agreements for office facilities - future rent payments
Within one year	259,200.00	124,200.00
Within more than one year but no more than 5 years	712,800.00	691,979.40
Other commitments
Within one year	49,237.32	113,024.12
Within more than one year but no more than 5 years	36,927.99	86,165.31
Total	1,058,165.31	1,015,368.83
Guarantees given and other commitments
---	---	---
EUR	2025	2024
Rental guarantees (pledged)	94,066.00	94,066.00
Hybrid Loan, Interest	3,416,276.25	2,534,025.00

SSH Communications Security Group

19. GROUP COMPANIES

Parent and subsidiary relationships of the Group 31 December 2025

Group companies	Domicile	Group holding, %	Votes, %
SSH Communications Security Oyj, Helsinki	Finland
SSH Communications Security, Inc., New York City	USA	100	100
SSH Operations Oy, Helsinki	Finland	100	100
SSH Communications Security Ltd., Hong Kong	Hong Kong	100	100
Kyberleijona Oy, Helsinki	Finland	65	65
SSH Government Solutions, Inc., New York City	USA	100	100
SSH Technology Oy, Helsinki	Finland	100	100
SSH Communications Security UK Ltd, London	United Kingdom	100	100
SSH Commsec Singapore Pte. Ltd., Singapore	Singapore	100	100

20. RELATED PARTY

SSH Communications Security Corporation, its subsidiaries, its CEO, its Group management team, and its Board members, their close family members, and companies controlled by them belong to the related party of the Group. In addition, major shareholders with more than 20 percent ownership of shares or of the total voting rights in the company, are included in related parties.

See note 26 in the consolidated financial statements.

SSH Communications Security Group

DIVIDEND PROPOSAL AND SIGNATURES

DIVIDEND PROPOSAL

The parent company's distributable funds are EUR 11,459,637.55 of which the loss for the financial year is EUR -2,106,061.96. The Board of Directors proposes to the Annual General Meeting on 26 March 2026 that no dividend or return of capital shall be distributed. It is proposed that the loss of the financial year shall be entered to the retained earnings in the shareholders' equity.

The Financial statements have been prepared in accordance with applicable accounting laws and regulations and give a true and fair view of the assets, liabilities, financial position, and profit or loss of the parent company and of the companies included in its consolidated financial statements.

We also confirm that the Board of Directors' Review includes:

A true and fair view of the development of the business and the financial result,
A description of the most significant risks and uncertainties and other aspects of the company's condition.

SIGNATURES FOR THE FINANCIAL STATEMENTS AND REPORT OF THE BOARD OF DIRECTORS

Helsinki, 16 February 2026

Henri Österlund
Chairman of the Board of Directors

Kai Tavakka
Member of the Board of Directors

Christian Fredrikson
Member of the Board of Directors

Catharina Candolin
Member of the Board of Directors

Tuomo Louhivuori
Member of the Board of Directors

Francesco Di Sandro
Member of the Board of Directors

Rami Raulas
Chief Executive Officer

SSH Communications Security Group
70

AUDITOR'S NOTE

Our auditors' report has been issued today.

Helsinki, 16 February 2026

Ernst & Young Oy
Authorized Public Accountant Firm

Maria Onniselkä
Authorized Public Accountant

AI assistant

SSH Communications Security — Annual Report 2025

3344_rns_2026-03-05_64329d34-f034-4865-a0a8-acaa748bca9d.pdf

SSH Communications Security Oyj

TABLE OF CONTENTS

Report of the Board of Directors for 1 Jan – 31 Dec 2025

PROFIT AND PROFITABILITY TRENDS

BALANCE SHEET AND FINANCIAL POSITION

RESEARCH AND DEVELOPMENT

INTANGIBLE ASSETS

RISKS AND UNCERTAINTIES

HUMAN RESOURCES AND ORGANIZATION

BOARD OF DIRECTORS AND AUDITORS

GROUP MANAGEMENT TEAM

PRINCIPAL PROVISIONS OF THE ARTICLES OF ASSOCIATION

CORPORATE GOVERNANCE

RESPONSIBILITY AND BUSINESS ETHICS

DISCLOSURE ACCORDING TO THE EU TAXONOMY REGULATION

SHARES, SHAREHOLDING, AND CHANGES IN GROUP STRUCTURE

INFORMATION ON SHAREHOLDERS

SHARE CAPITAL AND BOARD AUTHORIZATIONS

HYBRID CAPITAL SECURITIES

SHARE-BASED PAYMENTS

RELATED PARTY TRANSACTIONS

EVENTS AFTER THE BALANCE SHEET DATE

BUSINESS OUTLOOK FOR 2026

DIVIDEND AND OTHER DISTRIBUTION OF ASSETS

FINANCIAL INDICATORS

INDICATORS PER SHARE

ALTERNATIVE PERFORMANCE MEASURE

CALCULATION OF FINANCIAL RATIOS

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN CONSOLIDATED EQUITY

CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL ACCOUNTING PRINCIPLES

Basic information about the Group

Basis of preparation of financial statements

Converting Foreign Currency Transactions

Transactions in Foreign Currency

Translation of Financial Statements of Foreign Subsidiaries

Use of estimates

New and amended standards and interpretations

Changes that become effective later

2. SEGMENT INFORMATION

3. NET SALES

Assets recognized from the costs to fulfill a contract with a customer

Incremental costs of obtaining a contract

4. OTHER OPERATING INCOME

Accounting principles

Grants

5. OTHER OPERATING COSTS

Personnel distribution by function on 31

Auditor's fees

6. DEPRECIATIONS AND IMPAIRMENTS

7. FINANCIAL INCOME

8. FINANCIAL COSTS

9. INCOME TAXES

Accounting principles

Income tax

10. EARNINGS PER SHARE

11. PROPERTY, PLANT AND EQUIPMENT

Accounting principles

Property, Plant, and Equipment

12. RIGHT-OF-USE ASSETS

13. INTANGIBLE ASSETS

Accounting principles

Intangible Assets

Research and Development Costs

Software

Other Immaterial Rights

Impairment of Tangible and Intangible Assets

Goodwill

Goodwill

Impairment testing of capitalized development costs

14. INVENTORIES

SSH Communications Security Annual Report 2025