Kista, Sweden - August 13, 2026 - Sivers Semiconductors AB (STO:SIVE), today provides an update regarding the impact of share price appreciation on the Company's social tax liability during the second quarter of 2026.
During the quarter, Sivers' share price increased from SEK 10.71 to SEK 63.15. As a consequence of this increase, Sivers expects to recognize a 42.9 MSEK non-cash social security accounting expense in the second quarter related to employee share-based incentive programs.
Under applicable accounting standards, social tax liabilities associated with share-based compensation are remeasured based on the Company's share price at each reporting date. Unlike many U.S. companies, Swedish companies are required to accrue employer social security charges linked to the value of employee equity awards. As a result, changes in the share price can create significant fluctuations in reported operating expenses from quarter to quarter.
The expense recognized in Q2 does not impact the operating cash flow, or the underlying performance of the business. Future movements in Sivers' share price may continue to impact reported social security expenses. Higher share prices may increase the accrued liability and related expense, while lower share prices may reduce them. These accounting adjustments may create volatility in reported earnings but do not necessarily reflect changes in the Company's operational performance. While the social tax liability may result in future cash payments when employees exercise equity awards, Sivers holds treasury shares that are intended to be sold in connection with such exercises. Proceeds from these share sales are expected to offset the related social security payments.
As previously communicated, the Company also expects certain revenues originally anticipated during the first half of 2026 to be recognized during the second half of the year due to customer program timing and delays associated with U.S. government budget approvals.
Sivers remains focused on executing its growth strategy across both its Photonics and Wireless businesses and looks forward to providing a broader update on operational progress, customer engagements and market opportunities in connection with its Q2 2026 earnings release on August 27.
About Sivers Semiconductors
We are Critical Enablers of a Greener Data Economy with Energy Efficient Photonics & Wireless Solutions. Our differentiated high-precision laser and RF beamformer technologies help our customers in key markets such as AI Data Centers, SATCOM, Defense, and Telecom solve essential performance challenges while enabling a much greener footprint. Visit us at: www.sivers-semiconductors.com.
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