ENVAR HOLDINGS INTERIM REPORT FOR THE FIRST QUARTER 2026

CEO Atey Ghailan comments:

The increased sales for the quarter demonstrate Envar Entertainment’s strong position in the outsourcing market. With the first quarter of the year reaching net revenue of SEK 25,760 thousand, the customer Sony is the one that has increased the most in order volume in percentage terms, and overall, there has been a very strong inflow of orders from existing customers.

Within Envar Games, we have established an additional development team that we internally refer to as Envar Blue. We see a business opportunity in creating attractive game experiences for players looking for more varied experiences—more specifically, development projects that at the same time require smaller development teams. The Envar Blue team’s mission is to launch indie titles within more limited development budgets, as a complement to Envar’s production of larger titles such as Witchspire. Our newly recruited Game Director for Envar Blue is responsible for tailoring the team and leveraging close collaboration with other competencies within Envar Games and the Group as a whole.

FIRST QUARTER│JANUARY – MARCH 2026

• Net sales amounted to SEK 25,760 thousand (22,677), an increase of 13.60 percent compared to the same period last year.
• Operating profit before depreciation (EBITDA) totaled SEK 3,535 thousand (5,061), representing an operating margin of 13.72 percent (22.32) before depreciation.
• Operating profit (EBIT) totaled SEK 3,344 thousand (4,883), representing an operating margin of 12.98 percent (21.53). EBIT for the period is affected by SEK 1,114 thousand in marketing expenses connected to the release of Witchspire which, in accordance with the applied accounting policies, cannot be capitalized.
• Earnings per share, basic, amounted to SEK 0.23 (0.26).
• Cash and cash equivalents totaled SEK 37, 238 thousand (53,285). Cash flow from operating activities amounted to SEK -4,258 thousand (-4,553).
• Net cash totaled SEK 37,238 thousand. The Company has no interest-bearing liabilities.

(Figures for comparison in parentheses refer to the corresponding period of the previous year).

SIGNIFICANT EVENTS DURING THE QUARTER

• In February, Envar Games announced that the number of wishlists for Witchspire on Steam had reached over 200,000.

SIGNIFICANT EVENTS AFTER THE QUARTER

• Notice of the Annual General Meeting in Envar Holding AB was published in April. The AGM will be held on Monday, 11 May 2026.
• In April, Envar Holding AB published the annual report for 2025.
• In April, Envar Games announced via press release that the launch date for Witchspire is set for 10 June 2026.
• In April, Envar Games announced via press release that Witchspire had surpassed 300,000 wishlists on Steam.

INTERIM REPORT
Envar Holding's report is attached and available at https://www.envarholding.com/interim-reports