FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2025
===== SIDA 1 ===== 1 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Interim Report Q3 January – September, 2025 ===== SIDA 2 ===== 2 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Precise, a pioneer in biometrics and cybersecurity, whose technology is used 100,000 times/second, all year round Precise Biometrics (Precise) is a global pioneer in the field of cybersecurity and biometric solutions. The offering includes algorithm products for fingerprint, facial and hand recognition, as well as packaged end -customer products for biometric access (P recise Access) and visitor management (Precise Visit by EastCoast). Our solutions offer secure and seamless access to data, mobile devices, locations and trusted identities. The focus areas are biometric authentication for mobile phones, laptops, security keys and physical access, vehicle applications for in-car payment, driver authentication and personal settings/access – as well as systems for visitor management and physical biometric access. Precise operates through two business units, Digital Identity and Biometric Technologies, and runs the business from its offices in Lund (HQ), Stockholm, Potsdam NY, Seoul, Taipei and Shanghai. The Precise share (PREC) is listed on Nasdaq Stockholm. Find out more at www.precisebiometrics.com. ===== SIDA 3 ===== 3 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Table of Contents The period in brief: Strong position and positive EBITDA ................................................................................................ 4 CEO comments Strong position and positive EBITDA ....................................................................................................... 6 Update from the business areas ................................................................................................................................................. 8 Customer offering .......................................................................................................................................................................... 10 Net sales and operating profit/loss ......................................................................................................................................... 11 Consolidated income statement – in summary .................................................................................................................. 16 Consolidated balance sheet – in summary ........................................................................................................................... 17 Consolidated cash flow statement – in summary .............................................................................................................. 18 Consolidated change in equity – in summary ..................................................................................................................... 19 Notes ................................................................................................................................................................................................... 20 Parent company income statement – in summary ............................................................................................................ 23 Parent company balance sheet – in summary .................................................................................................................... 24 Consolidated key indicators ....................................................................................................................................................... 25 Alternative consolidated key indicators ................................................................................................................................ 26 Analysis of results, in summary ................................................................................................................................................. 27 Financial glossary ......................................................................................................................................................................... 28 ===== SIDA 4 ===== 4 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 The period in brief: Strong position and positive EBITDA Third quarter ▪ Net sales totaled SEK 20.0 (22.8) million. ▪ EBITDA totaled SEK 4.4 (6.8) million. ▪ The operating profit/loss (EBIT) totaled SEK -0.6 (1.2) million ▪ Earnings for the period totaled SEK -0.7 (1.4) million. ▪ Earnings per share before and after dilution totaled SEK -0.01 (0.02) ▪ Cash flow from operating activities totaled SEK 1.7 (3.3) million. ▪ ARR (Annual Recurring Revenue) at the end of the period was SEK 18.4 (18.4) million. Interim period January – September ▪ Net sales totaled SEK 60.8 (65.1) million o A change in revenue allocation in a renegotiated customer agreement results in higher revenue on an annual basis, but has a negative impact of SEK 1.8 million on net sales for the interim period ▪ EBITDA totaled SEK 2.1 (9.9) million. o Adjusted for negative currency effects from operating items of SEK 2.5 million and a change in revenue allocation in a customer agreement of SEK 1.8 million, EBITDA amounts to SEK 6.4 million ▪ The operating profit/loss (EBIT) totaled SEK -13.4 (-7.3) million ▪ Earnings for the period totaled SEK -13.6 (-7.1) million. ▪ Earnings per share before and after dilution totaled SEK -0.17 (-0.09) ▪ Cash flow from operating activities totaled SEK 5.1 (4.3) million. ▪ ARR (Annual Recurring Revenue) at the end of the period was SEK 18.4 (18.4) million. Significant events during the quarter ▪ Precise brings synthetic biometric data generation to products and customers ▪ Precise Biometrics partners with Avigilon to enhance biometric physical access control ▪ Precise Biometrics to join Redeye CyberSecurity Day 2025 Significant events after the end of the interim period ▪ Precise strengthens Precise Visit by EastCoast with new access control capabilities ===== SIDA 5 ===== 5 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Financial data and key indicators See the Financial Glossary for definitions. 2025 2024 2025 2024 2024 Rolling Amounts in SEK thousands unless otherw ise stated Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year 12 mth Net sales 20 006 22 799 60 797 65 065 86 852 82 584 Net sales grow th, % -12,3% 28,7% -6,6% 18,8% 15,7% -3,3% EBITDA 4 351 6 785 2 115 9 943 13 379 5 552 Gross margin, % 75,8% 74,3% 73,8% 72,7% 72,6% 73,4% Operating profit/loss (EBIT) -641 1 150 -13 399 -7 340 -9 414 -15 473 Operating margin, % -3,2% 5,0% -22,0% -11,3% -10,8% -18,7% Cash flow from the operating activities 1 662 3 275 5 071 4 298 10 055 10 828 Cash and cash equivalents 31 275 41 650 31 275 41 650 37 704 Annual Recurring Revenue 18 412 18 434 18 412 18 434 18 980 Presentation and live Q&A Precise has published a video interview with CEO Joakim Nydemark in connection with this report. The interview is designed to complement the report and provide additional depth and a better understanding of the stock market for the company’s business operations. Video interview The video is available on the Investor Relations page: https://www.precisebiometrics.com/investors/ Live Q&A The company also invites you to a live Q&A session on November 14, 2025 at 13:00 (CET). More information and a registration link to the Q&A session may be found on the Investor Relations page: https://www.precisebiometrics.com/investors/ Questions can be asked directly during the Q&A or submitted in advance to investor@precisebiometrics.com. ===== SIDA 6 ===== 6 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 CEO comments Strong position and positive EBITDA We are delivering a positive EBITDA for the quarter of SEK 4.4 million (6.8), reflecting a robust business and our ability to deliver despite a weaker US dollar and a market that remains cautious. Our recurring revenue (ARR) within Digital Identity remains stable compared to the same period last year, affected by a customer bank- ruptcy in the second quarter and by our migration focus to enable accelerated sustainable growth going forward. Net sales for the quarter totaled SEK 20.0 (22.8) million, and for the interim period SEK 60.8 (65.1) million. Oper- ating expenses for the quarter are in line with the corre- sponding period last year. Our position remains strong, and demand for biometric so- lutions is increasing, even though the market situation is af- fecting business in the short term. In the important mobile phone market, we not only won new projects, but also saw several launches of new models using our software. More- over, demand for our anti-spoof solutions for national ID programs is increasing. We have made important progress with Precise Visit by EastCoast (Precise Visit), migrating many customers to our cloud solution, creating a sustainable and scalable business over time. The technological advances we have made with synthetic biometric data are also important, as this creates both competitiveness and new business opportunities. The market Demand for our products is increasing, even though the market situation is prolonging business discussions. The shift to ultrasonic sensors in the mobile industry is pro- gressing as expected, and future volumes look very promis- ing. Growth is expected to continue through both higher market penetration and new segments. We are also experi- encing higher levels of interest in biometric security solu- tions, a consequence of the rapid AI development and the changing security situation around the world. Biometric recognition offers a unique combination of user- friendliness and security, making it an obvious choice for many users, and Precise solutions are very much leading the way. Cybersecurity is also high on the agenda of both com- panies and government agencies all over the world. Biometric Technologies During the period, we integrated synthetic biometric data into our product development and also offer this as a ser- vice. This initiative sees us meeting the rapidly growing de- mand for high-quality biometric data, continuing to build on our expertise in data collection and anti-spoofing. Our offering is experiencing rising demand, and we continue to win new projects together with customers and partners. There is a degree of caution in the mobile vertical, but it continues to deliver stable volumes and we see growth in the market for our product segments. Our customers are ex- periencing strong growth and volumes are expected to in- crease in the years ahead. Revenue in the automotive indus- try is in line with forecasts, despite the industry experiencing a generally fraught situation. The growing market for national ID programs presents good potential, with demand for anti-spoof and liveness technol- ogy continuing to increase. We have several agreements in place with an expected roll-out during the next year. The palm recognition initiative has also taken important steps forward in terms of both technical development and market cultivation. A pilot project is under way in the US, and our business partner HandID is preparing for mass pro- duction of its palm reader during the next few quarters, while more hardware partners are being evaluated. Further- more, governments have started to specify strict require- ments for the technology, further reinforcing its relevance. Digital Identity Sales of Precise Visit continue at a healthy pace, with an increased inflow of new customers and recurring revenue. Since last summer, we have put extra effort into migrating customers from the company’s on-premise solution to the new generation cloud-based solution. This is affecting growth in the short term, but will bring scalability, cost- efficiency and loyalty in the longer term. The benefits of our cloud-based solution include physical access functionality and integrations with many of the lead- ing access systems, opening up an extended offering to ex- isting customers – as well as the possibility of totally hardware-free visitor management in which visitors check in using their own device. ===== SIDA 7 ===== 7 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Our new partnership with Avigilon is also a major event, which sees us integrating Precise Access with their physical access control system. The solution is being sold via Avigilon’s global partner network and includes two-factor authentication for enhanced security. We continue to invest in expanding our market presence and driving sales, including active customer engagement in new markets. Framework agreements with major companies are also expected to support positive growth ahead. Market cultivation Market cultivation continues, and during the quarter we further boosted our digital presence with segmented campaigns aimed at relevant target groups, which have generated results in the form of incoming inquiries. Notable activities include website optimization, activities in Norway, the migration of Precise Visit customers, the GSX security trade show in the US together with Avigilon, and campaigns linked to national ID programs. I also took part in activities including Redeye Cybersecurity Day and the Rapidus podcast Lejonkulan. Future prospects I have a very positive view of the future. In a society where security and user-friendliness are becoming increasingly central, our solutions help create greater peace of mind. Biometrics, cybersecurity and artificial intelligence are the foundation of our business. As one of a small number of actors in the field of ultrasonic algorithms, I see potential for increased revenue, while we make progress in the areas of cybersecurity, biometric solu- tions for government agency projects and visitor manage- ment systems. Moreover, by optimizing our supplier agree- ments and improving efficiency, we have succeeded in in- creasing sales capacity and productivity without a significant increase in costs. I believe this will have a positive effect on earnings going forward. A strong product portfolio, stable finances and long-term partnerships put us in a healthy position, and I look forward with confidence to continuing our journey. Joakim Nydemark CEO My top three: ▪ Positive EBITDA ▪ BioLive and anti-spoofing have never been more relevant ▪ Biometrics, cybersecurity and artificial intelligence are the cornerstones of our business ===== SIDA 8 ===== 8 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Update from the business areas Biometric Technologies Biometric Technologies has experienced a quarter of contin- ued positive growth and a high tempo in both existing pro- jects and new business discussions. Unfortunately, the global situation is affecting sales of many of the company’s cus- tomers, primarily in the mobile industry, which means lower volumes for the quarter compared with the corresponding period last year. The US dollar rate also continues to have a negative impact. At the positive end of the scale, demand remains strong for BioLive and solutions for ultrasonic sen- sors, and during the period the company not only won new projects, but also saw new mobile phones containing BioMatch and BioLive reach the market. Highlights 1. Ultrasonic is growing and winning market share from older technologies, which benefits Precise as the com- pany is one of only few suppliers globally. On the one hand, developments are being driven by new technology in high-resolution displays, and on the other hand, the market is being broadened down to include the mid- range segment. Several new Android phones containing the company’s technology were launched during the quarter, and Precise sees a positive future in this seg- ment. 2. The BioLive anti-spoof and liveness solution is grow- ing in several segments. The security situation and the growth of AI are making anti-spoof solutions increas- ingly central to ensuring the security of biometric au- thentication and identification. Mobile phones and na- tional ID programs are two important segments. The so- lution has been implemented in a number of Android phones, generating recurring revenue for Precise, and also in several certified readers for national ID, where Precise foresees future revenue. BioLive is also attracting interest in other areas such as cybersecurity. 3. National ID programs are an area where there is a lot of activity and plenty of positive discussions. Several agreements have been signed with scanner suppliers and discussions are ongoing with a number of organiza- tions in the area. The implementation of BioLive is simple and does not normally require any technical modifica- tions to sensors or ecosystems, but the overall level of complexity in the projects is high, which means that the lead time from certification and implementation to reve- nue is longer than in other projects. 4. Data collection and synthetic data generation are key to the company’s data-driven solutions, and something on which the company has been working a long time. Data collection operations are well-established and growing steadily. Major steps have been taken in the field of synthetic data generation in terms of implemen- tation in our own products and processes, and work is now under way to package the concept as a service. 5. Interest in palm as a modality remains strong, and the company has product packages ready to go, but is work- ing together with various hardware manufacturers to create a complete solution including hardware. These partnerships have progressed to different stages, with some at an early stage, in some cases integration work is under way and in one case the integration is complete and Precise is awaiting delivery of the hardware. New business discussions were initiated during the quarter, but these are still at a relatively early stage. The quarter also saw improved integration with Precise Access, which is now available as a pre-packaged integration. 6. Physical access to commercial buildings is another area where the company sees potential for palm modal- ity, in combination with the packaged biometric access solution Precise Access, and the company is working on new packaged solutions in this area. The level of ma- turity is increasing – according to reports from HID many companies in the US and Europe are already using bio- metrics for physical access, and its use is expected to ac- celerate as a result of the security situation and techno- logical developments. Biometrics combines security and user-friendliness in a way that traditional access cards and PIN codes cannot match. Biometrics also plays an important role in multi-factor authentication (MFA). ===== SIDA 9 ===== 9 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Digital Identity The quarter was characterized by a high level of activity in the market and numerous sales meetings. The focus for Precise Access was on the US and getting the new partner Avigilon up and running. For Precise Visit by EastCoast, the focus was on new sales in Sweden and Norway, and on mi- grating on-premise customers to the cloud. The ARR stock has been stable in recent months, despite healthy new sales. The reason is the migration focus, and that some older Precise Visit on-premise customers, who previously paid for the product but did not actively use it, have chosen to terminate their agreements in connection with a campaign to encourage migration to the cloud. This churn is of a non-recurring nature and is expected to have a much smaller impact going forward. It has had a negative impact on the ARR stock in the short term, but is in line with the strategic choice to build a scalable cloud solution instead of further developing the older on-premise product. The cloud brings many benefits – more functionality, simpler upgrades and reduced support requirements – which combine to boost the profitability and scalability of the business. The cloud solution is growing steadily, and the management team at Precise is confident that this is the right way to drive long-term, scalable growth. The two products have undergone a process of rebranding to Precise Visit by EastCoast and Precise Access. To achieve efficiency and minimal customer impact, the project is being implemented as an ongoing project that is expected to be completed during the first half of 2026. Precise Visit by EastCoast highlights 1. Numerous new customer meetings and several new pilot installations in Norway. The initiative is going according to plan and the trend is positive. 2. Good new customer activity in Sweden and several new framework agreements with major customers. 3. The cloud migration campaign undertaken during the quarter resulted in several existing customers taking the step to the cloud. 4. New functionality such as event visits and improved inte- grated access functionality, including integrations with leading access management systems. 5. The product has been prepared for online sales via the company’s website, which will be launched during Q4. Precise Access highlights 1. Palm has been integrated into the product, which can now be used with face, palm or QR authentication. 2. Two new partnerships with access management system suppliers have been established in the US market, with Avigilon having been announced. There is a high level of interest in biometrics in this area, both for biometric ac- cess and as an element of multi-factor authentication (MFA). Precise Access has been integrated with Avigilon’s security platform, is being marketed on their website and will be sold via their partner network. The solution was also presented at the GSX trade show in New Orleans at the end of the quarter. 3. Precise Access, integrated with Avigilon, received very positive feedback during the GSX trade show. New customers in Digital Identity There has been a healthy inflow of new customers, with sev- eral new agreements in both private and public sectors. Mi- gration to the cloud platform has also seen a positive trend with customers such as Copenhagen Malmö Port, IF Skadeförsäkringar and Sweco – all with strict requirements for security and scalability. Roadmap Several new functions were launched during the period, while improvements were made in security, integrations and user-friendliness. Examples of new features include event visits and packaged access integrations in Precise Visit, as well as packaged integration to palm and integration to Avigilon in Precise Access. Rebranding to Precise Access and Precise Visit by EastCoast is also part of the roadmap. ===== SIDA 10 ===== 10 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Customer offering In a world where security, user-friendliness and AI are key, Precise offers biometric security and access man- agement solutions that provide secure and convenient access to data, mobile devices, locations and trusted identities. Simplicity and a first-class user experience are combined with high levels of performance and security. Instead of using a PIN, password, key or card, you use your finger, face or hand for authentication or identification – quickly, securely and conveniently. Our offering in the areas of physical access, visitor manage- ment and biometric recognition makes everyday life safe and seamless. Areas of applications cover both digital and physical access – from mobile phones, laptops and logical access to payment, vehicles, visitor and access management systems, as well as government agency initiatives such as national ID programs and Automated Biometric Identification Systems (ABIS). Why Precise? ▪ Unique position and over 25 years of experience. ▪ 100, 000 biometric verifications every second, all year round. ▪ Global reach and trust from over 800 customers – from mid-sized companies and public sector organizations to global technology giants and national ID programs. ▪ 100% software and SaaS, providing flexibility and the fa- cility to make quick changes. ▪ Hardware-independent - our solutions work with multi- ple sensor types and platforms. ▪ Combines different biometric modalities such as finger, palm, and face. ▪ Listed on Nasdaq Stockholm Our products Access and visitor management ▪ Precise Access: Biometric physical access to commercial buildings via palm or facial recognition. ▪ Precise Visit by EastCoast: Cloud-based visitor manage- ment system that offers a premium visitor experience while improving security, administration, and compli- ance. Biometric software suite for palm and finger recognition ▪ BioMatch: Biometric palm and fingerprint matching for identification and authentication. ▪ BioLive: AI-driven anti-spoofing and liveness detection that ensures biometric print authenticity and protects against manipulation, fraud and forgery. ▪ BioEnhance: Image enhancement of biometric prints before matching for increased security and performance. ▪ Biometric Services: Offering for biometric expertise, data collection, spoof creation, and synthetic data gener- ation. ===== SIDA 11 ===== 11 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Net sales and operating profit/loss Net sales for the quarter Net sales during the quarter totaled SEK 20.0 (22.8) million, di- vided between royalty revenues of SEK 9.3 (11.0) million, license fees (including support and maintenance) of SEK 9.7 (11.0) mil- lion and other revenues of SEK 1.0 (0.8) million. Royalty reve - nues during the quarter were affected by slightly lower volumes from our customers, reflecting variations in the production of mobile devices. A weaker USD also contributed to lower reve - nue during the period. Biometric Technologies Net sales for Biometric Technologies totaled SEK 14.9 (17.5) million and are reported under royalties at SEK 9.3 (11.0) mil - lion, licenses at SEK 5.2 (6.4) million, and other revenue at SEK 0.5 (0.1) million. Royalty revenues were slightly lower during the quarter, due to lower customer volumes and a weaker USD. As the biometric algorithm business is affected by customers’ pro- duction levels, which may vary between quarters, the trend should be assessed over time rather than on the basis of indi - vidual quarters. The gross margin during the quarter totaled 84.6% (82.0). The improvement in the gross margin is explained by reduced amortization of previously capitalized development expenses and lower costs of goods. Digital Identity Net sales for Digital Identity totaled SEK 5.1 (5.3) million and are reported under licenses at SEK 4.6 (4.6) million, and other revenues at SEK 0.5 (0.7) million. The proportion of annual recurring revenue (ARR) was SEK 18.4 (18.4) million at the end of the quarter. One consequence of the company’s strategy to increase the proportion of recurring revenue (ARR) and gradually replace older products is that there has been some churn. The comparison is still affected by one customer agreement that was terminated in the previous quarter. The ARR level is otherwise stable, with positive new sales. The gross margin during the quarter totaled 50.0% (49.0). The improved gross margin is due to reduced deprecia tion/ amortization, which in turn is an effect of lower capitaliza tion of development expenses in previous periods. Earnings for the quarter The gross margin during the quarter totaled 75.8% (74.3). The increase is due to both reduced depreciation/amortization and lower cost of goods during the quarter. Amortization of capi - talized development expenses totaled SEK 3.5 (4.1) million. Amortization of acquired intangible assets totaled SEK 0.6 (0.6) million. Operating expenses during the quarter totaled SEK 15.8 (15.8) million, which is on par with the same period in the previous year. The profit/loss at EBITDA level totaled SEK 4.4 (6.8) million, which is primarily due to lower net sales and the exchange rate impact on revenue. The operating profit/loss (EBIT) for the quarter totaled SEK -0.6 (1.2) million. Earnings for the quarter totaled SEK -0.7 (1.4) mil- lion. Total depreciation/amortization was SEK 5.0 (5.6) million. Earnings per share (average number of shares) for the quarter totaled SEK -0.01 (0.02). -8 -6 -4 -2 0 2 4 6 8 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Operating profit/Loss & E B IT DA P rofit/Loss E B IT DA 50% 60% 70% 80% 0 5 10 15 20 25 30 35 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Net sales & G ross margin Net sales G ross margin ===== SIDA 12 ===== 12 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Net sales for the interim period Net sales during the interim period totaled SEK 60.8 (65.1) mil- lion. Net sales were reported under royalty revenues at SEK 26.8 (29.6) million, license fees (including support and maintenance) at SEK 29.5 (31.2) million and other revenue at SEK 4.5 (4.3) mil- lion. Royalty revenues decreased as a consequence of a rene - gotiated customer agreement, which entails increased revenue on an annual basis but lower revenue during the interim period by approximately SEK 1.8 million. License fees were down pri - marily due to changes in the composition of customers and the reduced support needs of some customers. A weaker USD also had a negative impact on revenue. Biometric Technologies Net sales for Biometric Technologies totaled SEK 45.2 (49.2) million and are reported under royalties at SEK 26.8 (29.6) mil- lion, licenses at SEK 15.7 (17.3) million, and other revenue at SEK 2.7 (2.3) million. Royalty revenues during the interim period were slightly lower than in the previous year, affected by a re - negotiated customer agreement and a weaker USD. License fees were down year -on-year mainly as a consequence of changes in the composition of customers and renegotiated li - cense agreements linke d to the reduced support needs of some customers. The gross margin during the interim period was 83.2% (83.9). Digital Identity Net sales for Digital Identity totaled SEK 15.6 (15.9) million and are reported under licenses at SEK 13.8 (13.8) million, and other revenue at SEK 1.8 (2.0) million. The ARR at the end of the in - terim period was SEK 18.4 (18.4) million. One consequence of the company’s strategy to increase the proportion of annual recurring revenue (ARR) and gradually migrate older products, some churn also occurred during the interim period. The im - pact of a customer agreement that was terminated during the first half of the year still affects the comparison. The ARR level remains largely unchanged compared with the previous year, while there was a positive trend in new sales. The gross margin during the interim period was 46.4% (37.9). Earnings for the interim period The gross margin during the interim period was 73.8% (72.7). The improved gross margin is due to reduced deprecia - tion/amortization, which in turn is an effect of lower capitaliza- tion of development expenses in previous periods. Total amor- tization of capitalized development expenses was SEK 11.0 (12.5) million. Amortization of acquired intangible assets to - taled SEK 1.8 (1.8) million. Operating expenses for the interim period increased to SEK 58.2 (54.6) million. During the interim period, the company was negatively affected by the trend in the USD exchange rate, which in its entirety resulted in other operating expenses of SEK -2.5 million. The corresponding interim period in the previous year saw operating income of SEK 0.3 million, which means a currency-related change of SEK 2.8 million between the peri - ods. The profit/loss at EBITDA level fell to SEK 2.1 (9.9) million. This decrease is explained by lower net sales due to a weaker USD and higher operating costs, mainly attributable to exchange rate differences. A renegotiated customer agreement also af - fected earnings, with revenue that was approximately SEK 1.8 million lower in the quarter, but higher revenue on an annual basis. The operating profit/loss for the interim period totaled SEK - 13.4 (-7.3) million. Earnings for the interim period totaled SEK - 13.6 (-7.1) million. Total depreciation/amortization totaled SEK 15.5 (17.3) million. Earnings per share (average number of shares) for the interim period totaled SEK -0.17 (-0.09). Net financial items and tax Net financial items for the quarter totaled SEK -0.1 (0.2) million and the tax expense totaled SEK 0.1 (0.1) million. Net financial items for the interim period totaled SEK -0.5 (-0.1) million and the tax expense totaled SEK 0.3 (0.3) million. Net financial items are attributable to exchange rate differences in cash and cash equivalents, interest income, interest on the lease liability in accordance with IFRS 16, as well as interest ex- pense on the deferred fixed purchase price related to the ac - quisition of EastCoast. Cash flow and investments The cash flow from operating activities during the quarter to - taled SEK 1.7 (3.3) million, of which SEK -2.5 (-3.6) million is at- tributable to changes in working capital. The Group invested SEK 0.4 (0.3) million in property, plant and equipment during the quarter. Total cash flow for the quarter was SEK -2.3 (0.0) million. Cash flow for the interim period from operating activities to - taled SEK 5.1 (4.3) million, primarily attributable to a positive change in working capital of SEK 3.6 ( -5.6) million. The Group invested SEK 1.1 (0.2) million in property, plant and equipment during the interim period. Total cash flow for the interim period was SEK -6.1 (-5.9) million. ===== SIDA 13 ===== 13 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Capitalization and amortization of development work Development expenses of SEK 3.0 (2.5) million were capitalized during the quarter, and amortization of capitalized develop - ment expenses in respect of Digital Identity and Biometric Technologies totaled SEK 3.5 (4.1) million. Development ex - penses of SEK 8.8 (8.1) million were capitalized during the in - terim period, and amortization of capitalized development ex- penses totaled SEK 11.0 (12.5) million. Right of use assets No new rental agreements were added during the quarter, but the interim period saw an extension of rental agreements in Lund and indexation of rent in Lund and Stockholm, which re - sulted in an increase in lease liabilities of SEK 3.4 (5.8) million. Right of use assets totaled SEK 10.7 (7.9) million at the end of the period. Financial position and liquidity Cash and cash equivalents at the end of the period totaled SEK 31.3 (41.7) million. Total equity at the end of the period was SEK 137.4 (152.2) million, and equity per share was SEK 1.75 (1.94). The parent company The parent company’s net sales for the quarter totaled SEK 16.2 (19.0) million and the operating profit/loss for the quarter totaled SEK-1.0 (-0.3) million and was charged with amortiza - tion of goodwill totaling SEK 0.6 (0.6) million. Net sales for the interim period totaled SEK 48.1 (52.2) million. The operating profit/loss totaled SEK -13.7 (-8.6) million and was charged with amortization of goodwill totaling SEK 1.8 (1.8) million. Cash and cash equivalents at the end of the interim period totaled SEK 23.4 (29.2) million, and equity SEK 125.1 (140.8) million. Organization and staff The organization consists of the head office in Lund, Sweden, and offices in Stockholm, Sweden, Potsdam, USA, and Shang - hai, China. At the end of the interim period, the Group had a workforce of 46 (40) people, including on-site consultants. The number of employees was 37 (30), of which 30 (23) were lo - cated in Sweden. Precise works in an agile way together with several partners, creating a fast-moving, scalable organization. The number of employees does not include partners. Financial Calendar ▪ Year-End Report 2025 – February 12, 2026 ▪ Q1 Interim Report 2026 – May 13, 2026 ▪ AGM 2026 – May 21, 2026 ▪ Q2 Interim Report 2026 – August 14, 2026 ▪ Q3 Interim Report 2026 – November 13, 2026 Risk factors The Group and parent company’s business risks and risk man - agement as well as the management of financial risks are de - scribed in detail in the Annual Report for 2024, which was is - sued in April 2025. There have been no incidents of significant importance since then that would affect or change these de - scriptions of the Group or parent company’s risks and how they are managed. Ownership structure Precise Biometrics AB (publ), corporate ID number 556545 - 6596, is the parent company in the Precise Biometrics Group. Precise Biometrics AB’s shares are listed on the Nasdaq OMX Nordic Small Cap list. The number of shareholders at the end of the quarter wa s 20,261 (22,369). 13,668,521 (154,050,244) PREC shares were traded during the quarter. The closing price on September 30 was SEK 3.20 (3.68), and during the quarter the share price fluctuated between SEK 2.57 (3.22) and SEK 3.63 (8.80). -5 0 5 10 15 20 0 10 20 30 40 50 60 70 80 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 S E K m Operating cash flow & C ash C ash C ash flow ===== SIDA 14 ===== 14 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 This interim report has been the subject of a summary audit by the company’s auditors. The undersigned certify that the interim report provides a true and fair view of the parent company and Group’s operations, finan- cial position and financial results, and describes the significant risks and uncertainty factors faced by the parent company and the companies that belong to the Group. Lund, November 14, 2025 Torgny Hellström Chairman of the Board Howard Ro Peter Gullander Victor Kuzmin Maria Rydén Åsa Schwarz Board member Board member Board member Board member Board member Joakim Nydemark CEO For further information, please contact: Joakim Nydemark, CEO Email: joakim.nýdemark@precisebiometrics.com This information is information that Precise Biometrics AB is obligated to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication on November 14, 2025 at 08:00 (CET). ===== SIDA 15 ===== 15 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Review report This is a translation from the Swedish original Precise Biometrics AB (publ), corporate identity number 556545-6596 To the Board of Directors of Precise Biometrics AB (publ) Introduction We have reviewed the condensed interim report for Precise Biometrics AB (publ) as at September 30, 2025 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presenta- tion of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a con- clusion on this interim report based on our review. Scope of review We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company. Malmö, November 14, 2025 Ernst & Young AB Martin Henriksson Authorized Public Accountant ===== SIDA 16 ===== 16 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Consolidated income statement – in summary *Dilution effects are only considered in the event that the earnings per share become worse. Dilution effects have not been considered, as the average price is below the subscription price in current option programs. 2025 2024 2025 2024 2024 Rolling Amounts in SEK thousand Note Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year 12 mth Net sales 2,3 20 006 22 799 60 797 65 065 86 852 82 584 Cost of goods sold -4 838 -5 863 -15 958 -17 771 -23 786 -21 973 Gross profit 15 168 16 936 44 839 47 294 63 066 60 611 Marketing and sales expenses -6 855 -6 705 -24 761 -24 588 -32 982 -33 155 Administrative expenses -2 881 -2 495 -10 711 -10 089 -13 789 -14 411 R&D expenses -6 033 -6 325 -20 279 -20 219 -26 966 -27 026 Other operating income/expenses -40 -260 -2 487 263 1 256 -1 494 -15 809 -15 786 -58 238 -54 634 -72 480 -76 086 Operating profit/loss -641 1 150 -13 399 -7 340 -9 414 -15 473 Finacial income/expenses 4 -100 159 -479 -60 630 211 Profit/Loss before tax -741 1 309 -13 878 -7 400 -8 784 -15 262 Tax 87 88 260 262 351 349 Profit/loss for the period attributable to parent company shareholders -654 1 396 -13 618 -7 138 -8 433 -14 913 Earnings per share, remaining operations, SEK* - before dilution -0,01 0,02 -0,17 -0,09 -0,11 -0,19 - after dilution -0,01 0,02 -0,17 -0,09 -0,11 -0,19 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Profit/Loss for the period -654 1 396 -13 618 -7 138 -8 433 -14 913 Other comprehensive income: Items that may be reclassified to profit or loss Changes in accumulated exchange rate differences -19 -125 -558 16 274 -300 Other comprehensive income for the period -19 -125 -558 16 274 -300 Profit/Loss total attributable to holders of participations in the parent company -673 1 271 -14 176 -7 122 -8 159 -15 213 ===== SIDA 17 ===== 17 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Consolidated balance sheet – in summary Amounts in SEK thousand ASSETS Note 2025-09-30 2024-09-30 2024-12-31 FIXED ASSETS Material assets 12 410 9 645 10 639 Goodw ill and immaterial assets 120 665 126 408 124 741 TOTAL FIXED ASSETS 133 075 136 053 135 380 CURRENT ASSETS Inventories 250 231 242 Accounts receivable 13 023 15 836 23 813 Other current receivabels 4 025 4 388 3 123 Accruals and deferred income 2 561 2 710 2 804 Cash and cash equivalents 4,6 31 275 41 650 37 704 TOTAL CURRENT ASSETS 51 134 64 815 67 686 TOTAL ASSETS 184 209 200 868 203 066 EQUITY AND LIABILITIES EQUITY Equity 137 395 152 200 151 163 TOTAL EQUITY ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS 137 395 152 200 151 163 LONG-TERM DEBT Long term debt 6 18 007 21 150 16 281 TOTAL LONG-TERM DEBT 18 007 21 150 16 281 SHORT-TERM LIABILITIES Short-term liabilities 4,6 28 807 27 518 35 621 Total Short-term liabilities 28 807 27 518 35 621 TOTAL EQUITY AND LIABILITIES 184 209 200 868 203 066 ===== SIDA 18 ===== 18 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Consolidated cash flow statement – in summary 1) The balance sheet item Cash & Cash Equivalents only includes bank balances at both the beginning and end of the period. 2025 2024 2025 2024 2024 Rolling Amounts in SEK thousand Note Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year 12 mth Cash flow from operating activities Operating profit/loss -641 1 150 -13 399 -7 340 -9 414 -15 473 Adjustments for items not included in cash flow 4 938 5 519 15 347 17 267 22 928 21 008 Interest payments, net -101 159 -479 -60 630 211 Tax paid 4 -2 4 -13 -22 -6 Cash flow from operating activities 4 199 6 826 1 472 9 854 14 122 5 740 before changes in working capital Cash flow from changes in working capital Change in inventories -25 60 -8 128 117 -19 Change in current receivables 2 260 3 609 10 087 2 668 -4 113 3 306 Change in current liabilities -4 772 -7 221 -6 480 -8 352 -71 1 801 -2 537 -3 552 3 599 -5 556 -4 067 5 088 Cash flow from operating activities 1 662 3 275 5 071 4 298 10 055 10 828 Acquisition of subsidiaries 6 0 0 0 0 -6 168 -6 168 Investment in fixed assets -380 -343 -1 092 -236 -370 -1 226 Investment in intangible assets -3 035 -2 327 -8 757 -8 056 -10 967 -11 668 Cash flow from investing activities -3 415 -2 670 -9 849 -8 292 -17 505 -19 062 Repurchase of ow n shares 0 0 0 -2 -3 -1 Payment for sale/buy-back of options 0 0 407 0 0 407 Payment of lease liability -572 -641 -1 765 -1 901 -2 542 -2 406 Cash flow from financing activities -572 -641 -1 358 -1 903 -2 545 -2 000 Total Cash flow -2 325 -36 -6 136 -5 897 -9 994 -10 233 Cash & cash equivalents at beginning of year 33 577 41 746 37 704 47 534 47 534 41 650 Exchange rate differences in cash & cash equivalents 24 -60 -294 13 164 -143 Cash & cash equivalents at end of period 1) 31 275 41 650 31 275 41 650 37 704 31 275 ===== SIDA 19 ===== 19 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Consolidated change in equity – in summary Amounts in SEK thousand 2025 2024 2024 Rolling Note Jul-Sep Jul-Sep Full-year 12 mth Equity at start of period 151 163 159 319 159 319 152 200 Comprehensive income Profit/loss for the period -13 618 -7 138 -8 433 -14 913 Other comprehensive income Exchange differences -558 16 274 -300 Total other comprehensive income -558 16 274 -300 Total comprehensive income -14 176 -7 122 -8 159 -15 213 Transactions with shareholders LTI programme 5 409 2 2 409 Total transactions w ith shareholders 409 2 2 409 Equity end of period 137 395 152 200 151 163 137 395 ===== SIDA 20 ===== 20 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Notes Note 1 – Accounting policies This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. The parent company’s financial statements have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Annual Reporting Board’s recommendation RFR 2, Accounting for Legal Entities. The recognition and measurement policies and bases of estimates applied in the Annual Report for 2024 report have also been used in this interim report. Note 2 – Revenue allocation * Sale at a certain time means that revenue is reported point-in-time at the start of the agreement period, when control has been transferred to the customer. ** Sales over time means that revenue is accrued on a straight-line basis over the term of the agreement. 2025 2024 2025 2024 2024 Rolling Amounts in SEK thousand Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year 12 mth Segment Biometric Technologies Royalty 9 300 10 998 26 767 29 583 41 089 38 274 Licenses, incl. support & maintenance 5 162 6 352 15 651 17 347 21 976 20 280 Other 477 114 2 750 2 284 2 358 2 824 Digital Identity Licenses, incl. support & maintenance 4 574 4 607 13 835 13 804 18 588 18 618 Other 493 728 1 795 2 048 2 841 2 587 Total 20 006 22 799 60 797 65 065 86 852 82 584 Timing of revenue recognition At point in time* 10 296 13 599 31 241 35 361 47 777 43 656 Over time** 9 710 9 200 29 556 29 704 39 075 38 927 Total 20 006 22 799 60 797 65 065 86 852 82 584 Region/Country Europe 6 134 7 985 19 020 20 927 27 598 25 691 - w hereof Sw eden 4 735 4 884 14 732 15 199 20 356 19 888 Asia 6 845 6 273 20 481 22 192 29 443 27 732 - w hereof China 246 342 796 1 040 1 372 1 129 - w hereof Taiw an 5 513 5 247 16 827 18 838 24 963 22 953 USA 7 027 8 541 21 296 21 946 29 811 29 161 Total 20 006 22 799 60 797 65 065 86 852 82 584 ===== SIDA 21 ===== 21 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Note 3 – Segment reporting Biometric Technologies Digital Identity Total Segment Biometric Technologies Digital Identity Total Segment Net sales 14 939 5 068 20 006 17 465 5 334 22 799 Cost of goods sold exkl. depreciation -77 -865 -942 -510 -855 -1 365 Depreciation included in cost of sold goods -2 229 -1 667 -3 896 -2 633 -1 865 -4 498 Gross profit 12 633 2 536 15 168 14 322 2 614 16 936 Biometric Technologies Digital Identity Total Segment Biometric Technologies Digital Identity Total Segment Net sales 45 167 15 630 60 797 49 214 15 851 65 065 Cost of goods sold exkl. depreciation -800 -2 875 -3 674 -834 -3 094 -3 928 Depreciation included in cost of sold goods -6 787 -5 496 -12 283 -7 089 -6 754 -13 843 Gross profit 37 580 7 259 44 839 41 291 6 003 47 294 Biometric Technologies Digital Identity Total Segment Biometric Technologies Digital Identity Total Segment Net sales 65 424 21 428 86 852 61 377 21 206 82 584 Cost of goods sold exkl. depreciation -1 259 -4 297 -5 556 -1 225 -4 078 -5 302 Depreciation included in cost of sold goods -9 402 -8 828 -18 230 -9 100 -7 570 -16 670 Gross profit 54 764 8 303 63 066 51 053 9 558 60 611 Other information 2025 2024 2025 2024 2024 Rolling Reconciliation profit/Loss Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year 12 mth Gross profit 15 168 16 936 44 839 47 294 63 066 60 611 Marketing and sales expenses -6 855 -6 705 -24 761 -24 588 -32 982 -33 155 Administrative expenses -2 881 -2 495 -10 711 -10 089 -13 789 -14 411 R&D expenses -6 033 -6 325 -20 279 -20 219 -26 966 -27 026 Other operating income/expenses -40 -260 -2 487 263 1 256 -1 494 Finacial income/expenses -100 159 -479 -60 630 211 Profit/Loss before tax -741 1 309 -13 878 -7 400 -8 784 -15 262 Only net sales and product costs are allocated to each segment. Other costs are not allocated at segment level as these items relate to group operations 2025 2024 Jul-Sep Jul-Sep 2024 Rolling 2025 Jan-Sep 2024 Jan-Sep Full-year 12 mth ===== SIDA 22 ===== 22 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Note 4 – Financial instruments The fair value in respect of financial assets and liabilities corresponds in all material respects with the carrying amount in the balance sheet. Interest-bearing liabilities On November 30, 2022, a supplementary agreement was signed that changed the terms and conditions for the remaining liability of SEK 55,000 thousand for the acquisition of EastCoast Solutions AB (see Note 6). SEK 30,000 thousand was paid on December 1, 2022, SEK 10,000 thousand on November 30, 2023 and SEK 5,000 thousand on November 30, 2024. SEK 5,000 thousand will be paid on November 30, 2025 and SEK 5,000 thousand on November 30, 2026. Interest will be added to the amounts of SEK 5,000 thousand due on November 30, 2025 and SEK 5,000 thousand due on November 30, 2026. Interest for the period from December 1, 2023 to November 30, 2024 was paid on November 30, 2024. The interest, of 3 months STIBOR + 8%, will be added from November 30, 2023 until the amounts have been paid. The liability is recognized as an interest-bearing liability as of September 30, 2025. The liability has been calculated at current value at the original effective interest rate of 1.8% and is recognized as other current liabilities (SEK 5,987 thousand) and other non-current liabilities (SEK 5,386 thousand). Note 5 – LTI program The Annual General Meeting 2022 resolved, in accordance with the Board’s proposal, to establish a long-term share bonus program (LTI 2022/2028) for all employees at Precise Biometrics. In order to facilitate the implementation of LTI 2022/2028 and to ensure the delivery of shares to the participants, and to cover the company’s costs for social security contributions, the meeting also decided to amend the Articles of Association in the form of the introduction of new Class C shares, authorization for the Board of Directors to issue Class C shares, authorization for the Board of Directors to buy back Class C shares, and approval of the transfer of shares to participants in LTI 2022/2028. The implementation of Class C shares took place in Q4 2022. As of June 30, 2025, Precise Biometrics held 1,085,000 Class C shares. The Annual General Meeting 2025 resolved, in accordance with the Board’s proposal, to establish a new long-term incentive plan (LTIP 2025/2028) for senior executives and other current and future employees within the Group by issuing a maximum of 1,200,000 stock options, which means that the company’s share capital may increase by a maximum of SEK 360,000. All stock options have been issued free of charge to the wholly-owned subsidiary, Precise Biometrics Services AB, for onward transfer at market value to current employees who have been offered the opportunity to participate and to future employees within the Group. As of June 30, 2025, approximately 450,000 stock options had been transferred to participants. The stock options have a term of three years and can be exercised for the subscription of shares during the period from August 1, 2028 to September 30, 2028. The conditions for continued holding and the right to exercise the options are regulated in separate transfer agreements, and may be affected by, for example, the termination of employment. Each stock option entitles the holder to subscribe to one new share in the company at a redemption price of SEK 5.63 per share. As the options have been acquired at market value, there is no accounting cost for the company in accordance with IFRS 2. Note 6 – Business combinations As of November 30, 2021, the Group acquired 100% of the shares in EastCoast Solutions AB and Besökssystem Sverige AB. The purchase price totaled SEK 86,203 thousand, of which SEK 24,466 thousand was paid as of December 31, 2021, partly via a cash payment of SEK 18,000 thousand and partly via the issuing of new shares totaling SEK 6,466 thousand. An additional SEK 8,268 thousand was paid in cash in January 2022. On November 30, 2022, a supplementary agreement was signed that changed the terms and conditions for the remaining liability of SEK 55,000 thousand for the acquisition. See Note 4 for details of the new terms and conditions. During the interim period of 2025, there is no impact on the Group’s cash and cash equivalents in respect of business combinations. ===== SIDA 23 ===== 23 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Parent company income statement – in summary 2025 2024 2025 2024 2024 Rolling Amounts in SEK thousand Note Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year 12 mth Net sales 1 16 234 18 994 48 140 52 202 69 959 65 897 Cost of goods sold -6 687 -8 229 -21 351 -23 555 -32 412 -30 208 Gross profit 9 546 10 765 26 789 28 647 37 547 35 689 Marketing and sales expenses -4 189 -4 120 -15 279 -15 429 -20 783 -20 633 Administrative expenses -2 758 -2 386 -10 313 -9 671 -13 227 -13 869 R&D expenses -3 559 -4 140 -12 447 -12 434 -16 031 -16 044 Other operating income/expenses -41 -400 -2 479 267 1 261 -1 485 -10 547 -11 046 -40 517 -37 267 -48 780 -52 030 Operating profit/loss -1 000 -281 -13 728 -8 620 -11 233 -16 341 Financial income/expenses -27 197 -189 152 809 468 Group contributions received 0 0 0 0 151 151 Profit/loss before tax -1 028 -84 -13 917 -8 468 -10 274 -15 723 Tax 0 0 0 0 0 0 Profit/loss for the period -1 028 -84 -13 917 -8 468 -10 274 -15 723 ===== SIDA 24 ===== 24 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Parent company balance sheet – in summary ASSETS Note 2025-09-30 2024-09-30 2024-12-31 Fixed assets Fixed assets 1 287 1 344 1 196 Immaterial assets 18 971 24 579 22 812 Deferred tax assets 90 558 90 558 90 558 TOTAL FIXED ASSETS 110 816 116 481 114 566 CURRENT ASSETS Accounts receivable 10 719 13 713 20 859 Receivable Group 6 068 10 689 8 145 Other receivables 2 260 2 623 1 841 Accruals and deferred income 2 070 2 236 2 449 Cash and cash equivalents 23 421 29 240 25 452 TOTAL CURRENT ASSETS 44 539 58 501 58 746 TOTAL ASSETS 155 355 174 982 173 312 EQUITY AND LIABILITIES Restricted Equity Share capital 23 539 23 539 23 539 Statutory reserve 1 445 1 445 1 445 Reserve for development expenses 14 436 16 885 15 911 Total restricted equity 39 420 41 868 40 895 Unrestricted Equity Share premium reserve 168 316 168 316 168 316 Retained earnings -68 741 -60 916 -59 942 Profit/loss for the year -13 917 -8 468 -10 274 Total non-restricted equity 85 657 98 933 98 100 Total Equity 125 078 140 801 138 995 LONG-TERM DEBT Long term debt 5 386 11 317 5 337 TOTAL LONG-TERM DEBT 5 386 11 317 5 337 SHORT-TERM LIABILITIES Short-term liabilities 24 890 22 864 28 979 Total Short-term liabilities 24 890 22 864 28 979 TOTAL EQUITY AND LIABILITIES 155 355 174 982 173 312 ===== SIDA 25 ===== 25 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Consolidated key indicators * The key indicator is calculated excluding current liabilities to EastCoast International AB. 2025 2024 2025 2024 2024 Rolling Amounts in SEK thousands unless otherw ise stated Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year 12 mth Net sales 20 006 22 799 60 797 65 065 86 852 82 584 Net sales grow th, % -12,3% 28,7% -6,6% 18,8% 15,7% -3,3% Gross margin, % 75,8% 74,3% 73,8% 72,7% 72,6% 73,4% EBITDA 4 351 6 785 2 115 9 943 13 379 5 552 Operating profit/loss -641 1 150 -13 399 -7 340 -9 414 -15 473 Working capital * 28 314 43 386 28 314 43 386 38 019 28 314 Capital employed 148 768 169 606 148 768 169 606 162 455 148 768 Liquidity ratio, % 176,6% 234,7% 176,6% 234,7% 189,3% 176,6% Equity/assets ratio, % 74,6% 75,8% 74,6% 75,8% 74,4% 74,6% Earnings per share before dilution, SEK -0,01 0,02 -0,17 -0,09 -0,11 -0,19 Earnings per share after dilution, SEK -0,01 0,02 -0,17 -0,09 -0,11 -0,19 Equity per share, SEK 1,75 1,94 1,75 1,94 1,93 1,75 Number of shares (thousands) 78 464 78 464 78 464 78 464 78 464 78 464 Weighted avg. number of shares, adjusted for dilution effect (thousands) 78 464 78 464 78 464 78 464 78 464 78 464 Number of employees at the end of the period 37 30 37 30 35 37 Average number of employees during the period 36 30 36 31 32 35 Annual Recurring Revenue 18 412 18 434 18 412 18 434 18 980 ===== SIDA 26 ===== 26 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Alternative consolidated key indicators Amounts in SEK thousands 2025 2024 2025 2024 2024 Rolling unless otherw ise stated Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year 12 mth Net sales 20 006 22 799 60 797 65 065 86 852 82 584 Net sales grow th, % -12,3% 28,7% -6,6% 18,8% 15,7% -3,3% Gross profit 15 168 16 936 44 839 47 294 63 066 60 611 Net sales 20 006 22 799 60 797 65 065 86 852 82 584 Gross margin, % 75,8% 74,3% 73,8% 72,7% 72,6% 73,4% Operating profit/loss -641 1 150 -13 399 -7 340 -9 414 -15 473 Net sales 20 006 22 799 60 797 65 065 86 852 82 584 Operating margin, % -3,2% 5,0% -22,0% -11,3% -10,8% -18,7% EBITDA 4 351 6 785 2 115 9 943 13 379 5 552 Depreciation and amortization -4 992 -5 636 -15 514 -17 283 -22 794 -21 025 Operating profit/loss -641 1 150 -13 399 -7 340 -9 414 -15 473 Current assets 51 134 64 815 51 134 64 815 67 686 51 134 Current liabilities excl. current liabilities EastCoast International* 22 820 21 429 22 820 21 429 29 667 22 820 Working capital 28 314 43 386 28 314 43 386 38 019 28 314 Sales expenses -6 855 -6 705 -24 761 -24 588 -32 982 -33 155 Administrative expenses -2 881 -2 495 -10 711 -10 089 -13 789 -14 411 R&D expenses -6 033 -6 325 -20 279 -20 219 -26 966 -27 026 Other operating income/expenses -40 -260 -2 487 263 1 256 -1 494 Total operating expenses -15 809 -15 786 -58 238 -54 634 -72 480 -76 086 Cost of goods and services sold -4 838 -5 863 -15 958 -17 771 -23 786 -21 973 Depreciation Cost of goods sold 3 896 4 498 12 283 13 843 18 230 16 670 Cost of goods and services sold excluding depreciation -942 -1 365 -3 675 -3 928 -5 556 -5 302 Operating expenses -15 809 -15 786 -58 238 -54 634 -72 480 -76 086 Depreciation Operating expenses 1 096 1 137 3 231 3 441 4 564 4 354 Operating costs excluding depreciation -14 713 -14 649 -55 007 -51 193 -67 916 -71 730 Balance sheet total 184 209 200 868 184 209 200 868 203 066 184 209 Non-interest-bearing liabilities 35 441 31 262 35 441 31 262 40 611 35 441 Capital employed 148 768 169 606 148 768 169 606 162 455 148 768 Closing equity 137 395 152 200 137 395 152 200 151 163 137 395 Average equity 142 565 154 739 142 565 154 739 152 700 142 565 Current assets minus inventories 50 884 64 584 50 884 64 584 67 445 50 884 Current liabilities 28 807 27 518 28 807 27 518 35 621 28 807 Liquidity ratio, % 177% 235% 177% 235% 189% 177% Equity 137 395 152 200 137 395 152 200 151 163 137 395 Total assets 184 209 200 868 184 209 200 868 203 066 184 209 Equity/assets ratio, % 74,6% 75,8% 74,6% 75,8% 74,4% 74,6% ===== SIDA 27 ===== 27 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Analysis of results, in summary 2025 2024 2025 2024 2024 Rolling Amounts in SEK thousand Note Jul-Sep Jul-Sep Jan-Sep Jan-Sep Full-year 12 mth Net sales 2,3 20 006 22 799 60 797 65 065 86 852 82 584 Cost of goods and services sold excluding depreciation -942 -1 365 -3 674 -3 928 -5 556 -5 302 Operating costs excluding depreciation -17 748 -17 127 -63 764 -59 250 -78 883 -83 398 Capitalized development expenses 3 035 2 478 8 756 8 056 10 967 11 668 EBITDA 4 351 6 785 2 115 9 943 13 379 5 552 Total depreciation excluding acquired immaterial assets -4 385 -5 025 -13 701 -15 463 -20 362 -18 601 Total depreciation acquired immaterial assets -607 -610 -1 813 -1 820 -2 431 -2 424 Operating profit/loss -641 1 150 -13 399 -7 340 -9 414 -15 473 ===== SIDA 28 ===== 28 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Financial glossary Annual Recurring Revenue (ARR) ARR is defined as repeat revenues at the end of the quarter for Digital Identity, converted to a 12-month period. Consequently, there is no direct link between the ARR figure and future software revenues for Digital Identity. The ARR metric is used for contractual recurring revenues for the Digital Identity segment, as Digital Identity has a large customer base based on SaaS revenues. There are a small number of large customers in Biometric Technologies, and therefore license fees are not followed up using the definition of ARR in this segment. Gross margin Gross profit/loss divided by net sales. Indicates the proportion of sales that is left over to cover wages, other operating expenses, interest and profit. Earnings before interest, depreciation and amortization (EBITDA) Profit/loss before financial items and depreciation. This key indicator shows the Group’s profit/loss before depreciation/amortization of capitalized assets. This measure makes it possible to make comparisons with other companies, regardless of whether the operation is based on acquisitions or through organic growth. Equity Equity at the end of the period. Equity is the difference between the Group’s assets and liabilities, which corresponds to the Group’s equity that has been contributed by shareholders and the Group’s accumulated profit. Equity per share Equity on the balance sheet date divided by the number of shares on the balance sheet date. A measure of the value of equity per share, which is used when valuing the share in relation to the share price. Average equity The average equity was calculated as equity for the last four quarters divided by four. Cash flow Cash flow from operating activities after changes in working capital. The operating cash flow indicates whether a company can generate a sufficiently positive cash flow to maintain and expand its operation, or whether it needs external financing. Liquidity ratio Current assets excluding inventories divided by current liabilities. This key figure shows the group’s ability to pay in the short term. Net sales growth Percentage change compared with the corresponding period in the previous year. A measure of whether a company’s net sales are increasing. ===== SIDA 29 ===== 29 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 Earnings per share after dilution Profit/loss for the period divided by weighted average number of shares. Earnings per share before dilution Profit/loss for the period divided by average number of shares. Return on equity Profit/loss after tax divided by average equity. This key indicator shows the business’s return on shareholders’ capital invested and is thus a measure of how profitable the Group is. Investors can compare this measure with the current bank interest rate or return from alternative investments. The measure can also be used to compare profitability between companies in the same industry. Working capital Current assets less current liabilities. This measure shows the capital a company needs to finance operating activities. Operating expenses Operating expenses excluding cost of goods sold. Operating expenses are expenses that do not belong directly to a particular product or product group. Common operating expenses include, for example, wages and other personnel expenses, as well as rental of premises. Operating margin Operating profit/loss divided by net sales. Defines what proportion of each Swedish krona of sales is left over to cover interest, taxes and any possible profit. Operating profit/loss Profit/loss before net financial items and tax. A measure of a company’s profit before interest and taxes, i.e., the difference between operating income and operating expenses. Equity/assets ratio Equity divided by assets on the balance sheet date. This key indicator shows what proportion of assets is funded by equity. This measure can be of interest when assessing the Group’s ability to pay in the long term. Capital employed Total assets less non-interest-bearing liabilities and provisions. This measure shows how much capital is used in operations and is thus one component of measuring the return from operations. ===== SIDA 30 ===== 30 Interim Report January – September 2025 Precise Biometrics AB (publ), corp. ID no. 556545-6596 YOU are the key precisebiometrics.com