Financial Performance in Summary

• The Group’s net sales for the quarter amounted to 1,768 (1,102) TSEK. The comparative period does not include the Dutch operations, the consolidation of which explains the increase at Group level. Net sales decreased in the Sweden segment, which comprises Dosell AB, including sales outside Sweden but excluding the Netherlands. The decrease is partly attributable to certain municipalities moving away from directly awarded contracts and planning to make future call-offs under Adda’s framework agreement. To safeguard customer relationships during the delivery delays, certain customers were offered discounted prices, which is the main reason for the lower net sales. The communicated ARR level of approximately 10 MSEK refers to an annualised recurring revenue run rate, while net sales represent revenues recognised during the quarter and are affected by the timing of call-offs, deliveries and installations. The Company’s forward-looking ARR forecast has been revised in this report.
• Operating result (EBIT) for the quarter amounted to -8,232 TSEK (-3,273). The deterioration compared with the previous year is mainly attributable to the consolidation of the Dutch operations and higher amortization of acquisition-related excess values. The quarter was also impacted by a write-down of Pilloxa’s inventory in accordance with the prudence principle, in line with the Company’s current focus on Dosell.
• Operating result before depreciation and amortization (EBITDA) for the quarter amounted to -6,451 TSEK (-2,297). The deterioration compared with the previous year is mainly attributable to the consolidation of the Dutch operations and a higher cost base, partly due to an increase in the number of employees. Costs have therefore increased ahead of the expected revenue growth from new agreements and upcoming installations.
• Result after financial items amounted to -8,302 (-3,537) TSEK.
• Cash flow from operating activities amounted to -6,290 TSEK (-2,890). The quarter was affected by approximately 1,500 TSEK in payments for audit fees, legal expenses, and employer contributions and tax related to the warrant program, which do not recur every quarter. During the period, the Company also purchased additional units, tying up capital before the units are activated and begin generating recurring revenues. The payback period for the hardware is estimated at approximately 6–9 months, depending on the market, and some inventory is required to meet delivery needs.
• Earnings per share for the quarter before and after dilution amounted to -0.02 (-0.01) SEK.
• Equity per share at the end of the quarter amounted to 0.03 (0.05) SEK.
• The equity/assets ratio at the end of the period amounted to 35.4 (41.0) percent.

Significant Events During the Quarter

• iZafe Group announces that the Board of Directors has completed a directed set-off issue of 10,386,409 B shares to Stichting TCCN as partial payment for the acquisition of the Dutch operations. The issue corresponds to approximately EUR 310,000 and results in dilution of approximately 2.36 percent.
• iZafe Group announces that its subsidiary Dosell AB has signed agreements with the municipalities of Mora, Orsa and Älvdalen after being selected as the winning supplier in their joint procurement of medication dispensers and associated remote care systems under Adda’s national framework agreement. The municipalities’ estimated requirement amounts to approximately 120 units. Volumes are not guaranteed.
• iZafe Group announces that Dosell is now commercially available in Iceland through the pharmacy chain Lyfja and the local distribution partner SKAND. The first unit is now in use by a customer, and Dosell is available for demonstration at selected Lyfja pharmacies. The launch marks the activation of the previously announced distribution partnership and establishes Dosell’s presence in the Icelandic market.

Forecast
In this report, we present an updated forecast chart illustrating our expected growth in both ARR and active Dosell units over the coming years. The forecast is based on our current markets and key metrics and shows a clear path towards continued strong growth in recurring revenues as more units are activated.

Comments from the CEO

Our existing agreements show the potential for more Dosell units
The third quarter was financially weaker than we had expected. Net sales amounted to 1.8 MSEK compared with 2.6 MSEK in the previous quarter, while EBITDA amounted to -6.5 MSEK compared with -5.9 MSEK in the previous quarter. This is an outcome I am not satisfied with. Customer discounts offered in connection with delivery delays have resulted in slightly lower net sales for the period, while planned customer implementations have been postponed. We also carry the costs of an organization built for larger volumes, which is a necessary investment to support the growth we now see.

Agreements and usage have progressed at different rates
Our existing B2B agreements cover 72 Swedish municipalities, approximately 30 private healthcare organizations in the Netherlands and 14 Norwegian municipalities.

In Sweden, Dosell has not yet been brought into operation in all municipalities covered by the agreements. In the Netherlands, the product is used by almost all contracted healthcare organizations, where the opportunity primarily lies in expanding usage to more users. In Norway, Dosell is in operation in three municipalities through local partners.

In Iceland, the commercial launch through our distribution partner SKAND and the pharmacy chain Lyfja has been completed, and the first unit has been put into use. The markets are at different stages of development, and we prioritize resources to the customer implementations where we believe the path to invoicing is clearest.

Growth opportunities in the short and long term
In the short term, we prioritize planned implementations under existing agreements and increased usage among customers where Dosell is already established. This provides opportunities for more installations within the customer relationships and agreements we have built up.

In the longer term, opportunities exist in the broader market for people using pre-packed medication sachets. We can reach new municipalities and healthcare organizations, as well as more users through pharmacies, prescriptions and direct sales. This potential extends over several years and depends on how the use of medication dispensing systems develops.

On pages 6–7, we show the scope of our existing agreements, the overall B2B sales pipeline and the broader market opportunity. The illustrative calculations show the opportunities based on the stated assumptions. Customer needs, decisions and implementation rates determine which volumes are actually realized.

Delivery delays have postponed implementations
Deliveries of the new generation of Dosell were originally scheduled to begin in April. Longer component lead times and production delays postponed the start of deliveries. As described in the Q2 report, deliveries from the new production batch have commenced, but the delay has postponed several planned customer implementations and, consequently, the associated revenues.

Our assessment is that the business opportunities affected by the delay remain. At the same time, new opportunities have emerged and the overall sales pipeline has grown. Work over the coming months therefore includes both previously planned implementations and new customer dialogues.

The impact has been greatest in the Netherlands, where the updated hardware is required for several implementations. The new units now enable us to carry out previously postponed implementations. Customer planning, training and installations are underway in both Sweden and the Netherlands. The pace depends on our own capacity and customers’ ability to put the solution into use.

Updated ARR forecast following postponed implementations
In Q2, we maintained our forecast of 22.5 MSEK in annual recurring revenue, ARR, at the end of 2026. We now see that the postponed customer implementations have delayed the revenue ramp-up, and we have therefore updated the forecast. We now forecast ARR of approximately 16 MSEK at the end of 2026 and approximately 36 MSEK at the end of 2027, as shown in the updated forecast chart in the report.

Our assessment remains that the previous forecast level of 22.5 MSEK in ARR can be reached by June 30, 2027. The forecast is based on more units being installed, activated and becoming billable, alongside increased usage among existing customers.

Costs and working capital require continued control
Cash flow from operating activities amounted to -6.3 MSEK during the quarter, and cash and cash equivalents amounted to 3.1 MSEK at the end of the period. In addition, Dosell AB has secured an overdraft facility of 5 MSEK to support further unit purchases. The facility was undrawn as of September 30, 2026. Hardware purchases tie up capital before the units are installed and begin generating recurring revenues. This requires advance production planning and coordination with customers’ implementations.

Ongoing efficiency improvements have contributed to lower costs in certain areas, and further cost measures are underway. Our assessment is that more billable units, together with these measures, can gradually reduce the quarterly loss. This requires planned customer implementations to proceed and continued control of costs and capital tied up in the business.

The quarterly result shows that implementation has taken longer than we expected. At the same time, our existing agreements and sales pipeline make the business opportunities more concrete. The decisive factor now is how these opportunities translate into new installations, increased usage and actual invoicing.