Half Year 2026 Nexstim Oyj Earnings Call

August 14, 2026

[Company Representative] (Nexstim): Participants, welcome to Nexstim's webinar for investors, analysts, and media. Nexstim's CEO, Mikko Karvinen, and CFO, Joonas Juokslahti, will be giving a presentation that will take about half an hour. After that, they are available for answering any questions you might have. You can send questions through the Q&A chat at any time, but they will be replied to only after the presentation. As you send a question, it will first be visible for us organizers only. The webinar will be recorded, and the recording can be accessed on this page after the event ends. You will also be able to access the recording through the event page of the Nexstim website. We have booked an hour for the webinar. In case we do not have time to answer all questions, we will do so by email. Now let's move on to the presentation.

Speaker #1: And participants, welcome to Nexstim's webinar for investors, analysts, and media. Nexstim's CEO, Mikko Karvinen, and CFO, Joonas Juokslahti, will be giving a presentation that will take about half an hour, and after that, they are available to answer any questions you might have.

Speaker #1: You can send questions through the Q&A chat at any time, but they will be replied to only after the presentation. As you send a question, it will first be visible to us organizers only.

Speaker #1: The webinar will be recorded, and the recording can be accessed on this page after the event ends. You will also be able to access the recording through the event page on the Nexstim website.

Speaker #1: We have booked an hour for the webinar. In case we do not have time to answer all questions, we will do so by email.

Speaker #1: And now, let's move on to the presentation. First presenting is Nexstim's CEO, Mikko Karvinen. Go ahead, Mikko.

[Company Representative] (Nexstim): First presenting is Nexstim's CEO, Mikko Karvinen. Go ahead, Mikko.

Speaker #2: Thank you, Patrik. And welcome, everyone. My name is Mikko Karvinen, and I'm the CEO of Nexstim. I'm very happy to present you with our first half 2026 financial results.

Mikko Karvinen: Thank you, Patrick, and welcome everyone. My name is Mikko Karvinen. I am the CEO of Nexstim. I am very happy to present you with our H1 2026 financial results. As an opening slide, you can see in this very first slide, you can see that there is our integrated navigated TMS system that we sell. Everything is integrated and included in a system that we sell that you see on the screen, where you have all the options. Basically, just the physician and the patients that are acting in this picture are, of course, not included. Otherwise, it is a sizable medical device. Going to the presentation line today, I will be presenting together with our CFO, Joonas Juokslahti. We have a bit of a background information there.

Speaker #2: And as an opening slide, you can see in this very first slide that there's our integrated navigated TMS system that we sell.

Speaker #2: And everything is integrated and included in the system that we sell, which you see on the screen. When you have all the options—and basically just the position—and the patients that are acting in this picture are, of course, not included, but otherwise it is a sizable medical device.

Speaker #2: Okay, and going to the presentation line today, I will be presenting together with our CFO, Joonas Juokslahti. We have a bit of background information there.

Speaker #2: We have both been with Nexstim for quite some time, since 2014, and have been part of building the success that we see now in Nexstim.

Mikko Karvinen: We both have been in Nexstim for quite some time, since 2014, and being parts of building this success that we see now in Nexstim. I also have some renowned Finnish international high-tech growth companies mentioned from my experience prior to Nexstim. Very happy to be here both to present our progress during H1 2026 today. Moving on to a quick summary of where we stand right now. We are the leading navigated TMS company. nTMS is a short version of navigated transcranial magnetic stimulation. We are the technology leader in this area and have the most advanced technology and product to consider in the area of nTMS. We are clinically proven and US FDA and EU CE compliant.

Speaker #2: I also have some renowned Finnish international high-tech growth companies mentioned from my experience prior to Nexstim, so I am very happy to be here today to present our progress during the first half of 2026.

Speaker #2: Moving on to a quick summary of where we stand right now. We are the leading navigated TMS company. NTMS is a short version of navigated transcranial magnetic stimulation.

Speaker #2: We are the technology leader in this area and have the most advanced technology and products to consider in the area of nTMS. We are clinically proven and US FDA and EUC compliant.

Mikko Karvinen: We have a strong competitive edge as the only diagnostics player holding both FDA and CE approvals in a highly regulated, high entry barrier field. We have demonstrated profitable growth with strong share of recurring revenue percentage of sales. If we look at H1 numbers, which Joonas Juokslahti will go into more detail in this presentation, our net sales increased 16% when our operating expenses increased only 8% at the same time period. Recurring revenue was 48% of our net sales, and we showed an 80% gross margin. Strong pipeline and traction in new partnerships. There are two partnerships in particular I want to mention and visit later in this presentation. There has been progress with Brainlab AG and Sinaptica Therapeutics collaborations demonstrating growing clinical interest and advancing towards long-term agreements.

Mikko Karvinen: We have a strong competitive edge as the only diagnostics player holding both FDA and CE approvals in a highly regulated, high-entry-barrier field. We have demonstrated profitable growth with strong share of recurring revenue percentage of sales. If we look at H1 numbers, which Joonas Juokslahti will go into more detail in this presentation, our net sales increased 16% when our operating expenses increased only 8% at the same time period. Recurring revenue was 48% of our net sales, and we showed an 80% gross margin. Strong pipeline and traction in new partnerships. There are two partnerships in particular I want to mention and visit later in this presentation. There has been progress with Brainlab AG and Sinaptica Therapeutics collaborations demonstrating growing clinical interest and advancing towards long-term agreements.

Speaker #2: We have a strong competitive edge as the only diagnostics player holding both FDA and CE approvals in a highly regulated, high-entry-barrier field. We have demonstrated profitable growth, with a strong share of recurring revenue as a percentage of sales.

Speaker #2: If we look at H1 numbers, which Joonas will go into more detail about in this presentation, our net sales increased 16%, while our operating expenses increased only 8% during the same period.

Speaker #2: Recurring revenue was 48% of our net sales, and we showed an 80% gross margin. Strong pipeline and traction in new partnerships. There are two partnerships with him in particular.

Speaker #2: I want to mention and revisit this later in the presentation. There's been progress with BrainLab and Synaptica collaborations, demonstrating growing clinical interest and advancing towards long-term agreements.

Speaker #2: And then finally, but importantly, we have a clear strategy period extending to the year 2028. We have demonstrated growth at a compound average rate of over 20% during the previous strategy period, which was between 2020 and 2024.

Mikko Karvinen: Finally, but importantly, we have a clear strategy period extending to the year 2028, and we demonstrated growth in a compound average rate of over 20% during the previous strategy period that was between 2020 and 2024. Moving on into the next slide and our solutions and business areas. Let us take a quick look about what kind of business areas do we have, which systems do we use in these businesses, what applications, business models we apply, the typical customer, and then of course, the regulatory approval. I will try to be quite short in here because this slide has quite a bit of information. First of all, we have three business areas. We have a diagnostic business, we have a therapy business, and we have a research and neuroscience part of our business.

Speaker #2: Now moving on into the next slide, and our solutions and business areas. So let's take a quick look about where we what kind of business areas do we have, which systems do we use in these in this businesses, what applications, business models, we apply, the typical customer, and then of course the regulatory approval.

Speaker #2: I'll try to be quite brief here because this slide has quite a bit of information. First of all, we have three business areas.

Speaker #2: We have a diagnostic business. We have a therapy business, and we have a research and neuroscience part of our business. The current latest version of our technology, the NBS6 system, can be used in all of these business areas.

Mikko Karvinen: The current latest version of our technology, the NBS 6 system, can be used in all of these business areas. We do also have older products such as the NBS System 5 and the NBT system that are being used and are part of our business model from the recurring revenue standpoint. But we do sell new systems now only from the NBS 6 platform. The application in the diagnostic business is presurgical mapping of the motor and speech area of the brain cortex. A typical patient that would utilize this technology in a hospital would be patients that are going to undergo tumor surgery, an epilepsy surgery, or radiotherapy as examples. The business model for more or less all of these businesses is similar, but the emphasis on different type of revenue streams is a bit different. But there is revenue from system sales, typically.

Speaker #2: We do also have older products, such as the NBS5 and the NBT, that are being used and are part of our business model from the recurring revenue standpoint.

Speaker #2: But we do sell new systems now, only from the NBS6 platform. The application in the diagnostic business is pre-surgical mapping of the motor and speech areas of the brain cortex.

Speaker #2: A typical patient that would utilize this technology in a hospital would be patients who are going to undergo tumor surgery, epileptic surgery, or radiotherapy.

Speaker #2: As examples, the business model for more or less all of these businesses is similar, but the emphasis on different types of revenue streams is a bit different.

Speaker #2: But there is revenue from system sales, typically. There are recurring revenue elements from leasing, maintenance, and consumable sales. And then also potential sales-related license fees.

Mikko Karvinen: There is recurring revenue elements from leasing, maintenance, and consumable sales, and then also potential sales-related license fees, in the past, right now, and also when going forward. In our diagnostic business, we mentioned a few customers. Renowned hospitals, Charité – Universitätsmedizin Berlin, King's College Hospital in UK, London, and The University of Texas MD Anderson Cancer Center in Texas, to only mention a few. We have sold over 270 systems for diagnostics purposes until end of June this year. We are the only navigated TMS manufacturer who has both CE marks in Europe and FDA approval in the United States for presurgical mapping of the brain with navigated transcranial magnetic stimulation. Moving on to therapy, we actually got a few new applications or indications approval, approved during H1. We currently have a broad range from depression, so major depressive disorder, chronic pain, chronic neuropathic pain treatment, OCD, and postoperative motor rehabilitation.

Speaker #2: In the past, right now, and also going forward. In our diagnostic business, we mentioned a few customers: renowned hospitals—Charité Berlin, King's College Hospital in London, UK, and MD Anderson Cancer Center in Texas.

Speaker #2: To only mention a few, we've sold over 270 systems for diagnostic purposes up to the end of June this year. We are the only navigated TMS manufacturer who has both CE marking in Europe and FDA approval in the United States for presurgical mapping of the brain with navigated transcranial magnetic stimulation.

Speaker #2: Moving on to therapy, we actually got a few new applications or indications approved during H1. We currently have a broad range from depression—so, major depressive disorder—chronic pain, chronic neuropathic pain treatment, OCD, and post-operative motor rehabilitation.

Speaker #2: So those are indications that are either CE marked, FDA approved, or both. There's a larger recurring revenue portion typically in the therapy business because of the nature of the business—there are more treatments that are being done with the system.

Mikko Karvinen: So those are indications that are either CE mark, FDA approved, or both. There is a larger recurring revenue portion typically in the therapy business because of the nature of the business being more. There are more treatments that are being done with the system in comparison to the diagnostics where brain mappings are less involved. We have renowned customers that we mentioned here, Hôpital Henri-Mondor from France. We have BrainStim Centers from the United States, and then Oulu University Hospital from Finland. As I am mentioning, of course, in the home market, we have a strong therapy customer base from the university hospitals in Finland, which are 5. But also, the largest customer group right now is the therapy clinic customers in the United States. As mentioned, we have CE markings and FDA approvals for the applications mentioned in this presentation. Not all are both.

Speaker #2: In comparison to the diagnostics, where brain mappings are less in volume, we have renowned customers that we mentioned here: Henri Mondor Hospital from France, we have BrainStim Centers from the United States, and then Oulu University Hospital from Finland.

Speaker #2: As I'm mentioning, of course, in the home market, we have a strong therapy customer base from the university hospitals in Finland, which are five.

Speaker #2: But also, the largest customer group right now is the therapy clinic customers in the United States. I've mentioned we have CE markings and FDA approvals for the applications mentioned in this presentation.

Speaker #2: Not all are both. So, depression is, for example, both CE marked and FDA approved. In depression, we have adolescent depression approved also by FDA.

Mikko Karvinen: Depression is, for example, both CE marked and FDA approved. In depression, we have adolescent depression approved also by FDA, but only adult population right now in Europe. Chronic pain is approved in Europe. OCD is approved by the FDA, not in Europe yet. Postoperative motor rehabilitation is currently CE marked and approved in Europe. We are doing, of course, work behind getting approvals in both CE marking in the EU and FDA approvals, and also in other markets around the world, but this is the situation we have right now. Then finally, going into research and neuroscience, we gladly can use the NBS 6 platform also in our very needy customer base, which is pushing the science forward in the research and neuroscience area. The application is usually researching something around either therapy, diagnostics, or something in between or both.

Speaker #2: But only the adult population right now in Europe. Chronic pain is approved in Europe. OCD is approved by the FDA, not in Europe yet. And then post-operative motor rehabilitation is currently CE marked and approved in Europe.

Speaker #2: We are, of course, doing work behind getting approvals for both CE marking in the EU and FDA approvals, as well as in other markets around the world.

Speaker #2: But this is the situation we have right now. Then finally, going into research and neuroscience, we are glad that we can use the NBS6 platform also in our very needy customer base, which is pushing the science forward in the research and neuroscience area.

Speaker #2: The application is usually researching something around either therapy, diagnostics, or something in between or both. TMS and EEG—so, electroencephalography, measuring the brain waves—is something that is very interesting right now.

Mikko Karvinen: TMS and EEG, so electroencephalography, measuring the brain waves is something that is very interesting right now. I have mentioned a few of our customers, Sinaptica Therapeutics, that are researching the use of navigated TMS and EEG combined with their cloud-based engine in treatment of Alzheimer's disease. They have very promising and excellent results from a phase II study already, where they slowed down the disease remarkably. But we have had a long-term relationship also with the University of Milan study and a lab group that are researching, for example, coma patients and diagnosis of coma patients with that TMS EEG. As I mentioned, we have McLean Hospital, the Harvard-related hospital that is doing also research work with our system.

Speaker #2: And I've mentioned a few of our customers—Synaptica Therapeutics, for example—that are researching the use of navigated TMS and EEG combined with their cloud-based engine in the treatment of Alzheimer's disease.

Speaker #2: They have very promising and excellent results from a phase two study already, where they've slowed down the disease remarkably. We have also had a long-term relationship with the University of Milan study.

Speaker #2: And a lab group that is researching, for example, coma patients and the diagnosis of coma patients with TMS-EEG. And then, as I mentioned, we have McLean Hospital, a Harvard-affiliated hospital, that is also doing research work with our system.

Speaker #2: So these do not necessarily require FDA or CE marking, but they do require, of course, for example, ethical approvals and documentation so that we can import them to our research clients, for example, in the United States or in the EU.

Mikko Karvinen: So these do not require necessarily FDA or CE marking, but they do require, of course, for example, ethical approvals and documentation so that we can import them to our research clients, for example, in the United States or in the EU. So that is very much in a nutshell where we are with the solutions and business areas. Let us move on to the next topic, which is the use cases of nTMS. In our case, we have continued to show the diagnostics, depression, and chronic pain use cases since these are the most advanced also in our business. For example, OCD and post-motor rehabilitation are only recently approved, so we have demand for them, but we are also at the same time gathering information about the market in a sense that what type of a target market we have in there.

Speaker #2: So that's very much, in a nutshell, where we are with the solutions and business areas. So let's move on to the next topic, which is the use cases.

Speaker #2: Of NTMS, in our case, we've continued to show the diagnostics, depression, and chronic pain use cases, since these are the most advanced in our—also in our business.

Speaker #2: And, for example, OCD and post-mortem rehabilitation are only recently approved. So we have demand for them, but we are also at the same time gathering information about the market, in the sense of what type of target market we have in there.

Speaker #2: Some of them are very much parallel to what I'm presenting here, for example, in the mental health area. But let's focus on these ones.

Mikko Karvinen: Some of them are very much parallel to what I am presenting here, for example, in the mental health area. Let's focus on these markets. First, in the diagnostics. Brain surgery risks damaging critical speech and motor areas. Nexstim has unmatched MRI-guided accuracy for mapping speech and motor courses of the brain. The market size is roughly EUR 80 million, and this is the tumor patient group that we could help map in the US, EU, and Japan, a very focused group that could benefit from our use of our technology. That is very conservative. That is kind of, I would say, the minimum target market for this application. About 9% compound average growth rate, based on market research.

Speaker #2: So first, in the diagnostics: brain surgery risks damaging critical speech and motor areas. Nexstim has unmatched MRI-guided accuracy for mapping speech and motor cortexes of the brain.

Speaker #2: The market size is roughly €80 million. And this is the tumor patient group that we could help map in the US, EU, and Japan.

Speaker #2: A very focused group that could benefit from our use of our technology. That's very conservative. That's kind of, I would say, the minimum target market for this application.

Speaker #2: About 9% compound average growth rate, based on market research. Example competitors include functional MRI, which is in our opinion less accurate than our technology, or other anatomical brain scans.

Mikko Karvinen: Example competitions include functional MRI, which is, in our opinion, less accurate than our technology or other anatomical brain scans that do not actually produce any stimulation effect that you can response, that you can measure. In our case, you can always measure the response and whether it is motor response or speech interruptions. That can be then recorded and also mapped in the patient's own MRI. Provides valuable information for the surgeon and to plan the surgery and also discuss with the patient. If we look at the therapy area, the most utilized business is around depression. Millions of patients do not respond adequately to antidepressant medications. Personalized stimulation to the exact mood regulation center, improving treatment effectiveness. This is what we can provide with the Nexstim Navigated TMS system. The market size is huge.

Speaker #2: That doesn't actually produce any stimulation effect that you can respond to, that you can measure. And in our case, you can always measure the response, whether it's a motor response or speech interruptions.

Speaker #2: And that can then be recorded and also mapped onto the patient's own MRI. This provides valuable information for the surgeon to plan the surgery and also to discuss with the patients.

Speaker #2: If we look at the therapy area, the most utilized business is around depression. Millions of patients do not respond adequately to antidepressant medications. Personalized stimulation to the exact mood regulation center.

Speaker #2: Improving treatment effectiveness—this is what we can provide with the Nexstim navigated TMS system. The market size is huge. This is also a conservative estimate: 400 to 800 million.

Mikko Karvinen: This is also a conservative estimate, EUR 400 to 800 million worth of market, US and EU patients that have treatment-resistant depression. First of all, patients that have not had help with, for example, the example competition types of treatments of drugs, psychotherapy, transcranial direct current stimulation, or ECT. Typically, TMS lands somewhere in the middle here. A typical patient would have tried drugs or psychotherapy or both, and then ended up diagnosed as a treatment-resistant depression patient, and then getting TMS as a treatment option. That is something that, of course, would be recommended in our case, before going into more side effect treatments such as ECT, so electroconvulsive therapy, which needs, for example, anesthesia and has severe memory losses as a side effect. Moving on into chronic pain. Many chronic pain patients do not achieve relief with existing medications or therapies.

Speaker #2: Euro worth of market, US and EU patients that have treatment-resistant depression. So, first of all, patients that haven't had help with, for example, the competition's types of treatments—so drugs, psychotherapy, transcranial direct stimulation, or ECT.

Speaker #2: Typically, TMS lands somewhere in the middle here. So a typical patient would have tried drugs or psychotherapy, or both, and then ended up diagnosed as having treatment-resistant depression.

Speaker #2: ...patient, and then getting TMS as a treatment option. That is something that, of course, would be recommended in our case before going into more side effect treatments such as ECT, so electroconvulsive therapy.

Speaker #2: Which needs, for example, anesthesia and has severe memory loss as a side effect. Moving on into chronic pain, many chronic pain patients do not achieve relief with existing medications or therapies.

Speaker #2: High-accuracy stimulation for patients who don't respond to standard pain therapies—that is what Nexstim can provide. The addressable market is about 10 million patients.

Mikko Karvinen: High-accuracy stimulation for patients who do not respond to standard pain therapies. That is what Nexstim can provide. The addressable market is about 10 million patients in the US and EU total. The example competition includes, of course, drugs. If drugs do not help, then you can use different stimulation methods, of which TMS is very effective. 40% to 50% of the patients treated with our system for chronic pain have shown clinical meaningful pain relief. There are other ways of stimulation that are competitive, but not shown to be so effective as what I mentioned. That is TDCS and, for example, other nerve stimulators that can be either implantable or. Usually are implantable stimulator versions. That is quickly gone through the major use cases. I would like to next move on to talk a bit about our partnerships, before we move into the financial part.

Speaker #2: In the US and EU combined, the example competition includes, of course, drugs. If drugs don't help, then you can use different stimulation methods, of which TMS is very effective.

Speaker #2: Forty to fifty percent of the patients treated with our system for chronic pain have shown clinically meaningful pain relief. There are other ways of stimulation that are competitive, but none have been shown to be as effective as what I mentioned.

Speaker #2: That is TDCS. For example, there are other nerve stimulators that can be either implanted, or usually, there are implantable stimulator versions. So, that's quickly gone through the major use cases.

Speaker #2: I'd like to next move on to the to talk a bit about our partnerships. So before we move into the financial part. So and in this case, we're looking at BrainLab.

Mikko Karvinen: In this case, we are looking at Brainlab. That is our strategic partner with leading digital surgery solutions. It is a German company that is located in Munich, Germany-headquartered, and operates globally. What we are doing with Brainlab is we are building global access to the neurosurgery market through this collaboration. They have done thousands of system installations of their systems and their software worldwide, and about 4,000 hospitals use Brainlab software, have over 2,000 employees. The extensive global sales and marketing organization gives us access to the leading hospitals that do neurosurgery in the world. I will save you for the whole story about our collaboration to date, but I would want to focus that currently what we are seeing in our collaboration is that we have delivered the first NBS 6 systems to Brainlab, and therefore, they are landing at their end customer sites.

Speaker #2: That is our strategic partner with leading digital surgery solutions. It's a German company that's located in Munich, Germany, and headquartered there. It operates globally. What we're doing with BrainLab is building global access to the neurosurgery market through this collaboration.

Speaker #2: They've done thousands of system installations of their systems and software worldwide, and about 4,000 hospitals use BrainLab software. They have over 2,000 employees, and an extensive global sales and marketing organization that gives us access to the leading hospitals that do neurosurgery in the world.

Speaker #2: I'll save you from the whole story about our collaboration up to today. But I want to focus on the fact that currently, what we're seeing in our collaboration is that we've delivered the first NBS6 systems to Brainlab.

Speaker #2: And then, therefore, they are landing at the end customer sites. We have significantly grown our co-marketing efforts, both digitally and then at the customer physically, whether at events or at the customer sites.

Mikko Karvinen: We have significantly grown our co-marketing efforts, both digitally and at the customer, physically, whether at events or at the customer site. That is something that is right now happening and we are planting the seeds for the future orders. I can tell that right now we are in the stage where we are moving according to our plans, both on the marketing side and also the volumes of systems that we have been receiving orders and that we have delivered to Brainlab. In that way, we are moving according to our plans. We will keep the news flow, of course, rolling as much as there is available at any given point. Very much looking forward for this collaboration to be approved also the H2 of 2026 and in the future. Then looking at Sinaptica, which is our other partner.

Speaker #2: So, that is something that is happening right now, and we are planting the seeds for future orders. I can say that right now we're in the stage where we are moving according to our plans.

Speaker #2: Both on the marketing side and also with the volumes of systems that we've been receiving orders for and that we've delivered to BrainLab. So, in that way, we are moving according to our plans.

Speaker #2: And we will keep the news flow, of course, rolling as much as there is available at any given point. So, very much looking forward to this collaboration being approved also in the second half of '26 and in the future.

Speaker #2: Then, looking at Synaptica, which is our other partner, let's take the Synaptica slide—oh, sorry, it was there, yeah. So, this is a promising Alzheimer therapy collaboration.

Mikko Karvinen: Let us take the Sinaptica slide. Oh, sorry. It was there. This is a promising Alzheimer's therapy collaboration that we have with the leading neurotech company, Sinaptica. In here, we are entering the fast-growing Alzheimer's therapy market and positioning us at the forefront of TMS innovation in Alzheimer's disease. Sinaptica, their core technology is AI-guided TMS therapy targeting memory and cognitive function pathways. We are combining our navigated TMS with EEG targeting and also their cloud-based software engine. It is possible to provide a treatment for, first a diagnosis and then a treatment for the patients that can slow down Alzheimer's disease significantly. It was about an 80% slowdown in 6 months, and then over 40% still in the 12-month published studies. Right now, we are in the stage where we have an exclusivity agreement with Sinaptica, and we have also recognized some revenue related to that.

Speaker #2: That we have with the leading neurotech company, Synaptica. And in here, we're entering the fast-growing Alzheimer therapy market, and positioning us at the forefront of TMS innovation in Alzheimer's disease.

Speaker #2: So, Synaptica has their core technology, which is AI-guided TMS therapy targeting memory and cognitive function pathways. And we're combining our navigated TMS with EEG targeting and then also their cloud-based software engine.

Speaker #2: Is it possible to provide a treatment for, first, a diagnosis and then a treatment for patients that can slow down Alzheimer's disease significantly? So, it was about an 80% slowdown in six months.

Speaker #2: And then over 40% still in the 12-month published studies. Right now, we're in the stage where we have an exclusivity agreement with Synaptica, and we've also recognized some revenue related to that.

Speaker #2: Jonas will go into the financial details. The exclusivity is there until the end of this year. And, of course, we are supporting Synaptica right now in moving to the next stages in their study.

Mikko Karvinen: Joonas will go into the financial details. The exclusivity is there until end of this year. Of course, we are supporting right now Sinaptica in moving to the next stages in their study, including the Nexstim technology and the systems that we have developed together with Sinaptica to provide the best system and platform for the next studies that are en route for their, of course, approvals and the commercial opportunity post-approvals. That is very interesting, and this is a particular partnership that we have strategically also selected with taking the path that TMS EEG is something unique. We have the most accurate, best-navigated TMS system combined with the leading EEG manufacturers is the right combination that we can satisfy also Sinaptica's needs for their studies and hopefully for the commercial future. That is what I wanted to mention.

Speaker #2: Including the next in technology and the systems that we've developed together with Synaptica, to provide the best system and platform for the next studies.

Speaker #2: These are en route for their, of course, approvals, and the commercial opportunity post-approvals. So that's very interesting. And this is a particular partnership that we have strategically also selected, when taking the path that TMS-EEG is something unique.

Speaker #2: We have the most accurate, best-navigated TMS system, combined with the leading EEG manufacturers. It's the right combination so that we can also satisfy Synaptica's needs.

Speaker #2: For their studies and, hopefully, for the commercial future. So that's what I wanted to mention. And now it's time to move on for Jonas to have a chance to explain a bit about our financial performance during the first half.

Mikko Karvinen: And now it is time to move on for Joonas to have a chance to explain a bit about our financial performance during the H1. Thank you.

Speaker #2: Thank you.

Speaker #1: Sure. Thank you, Mikko. And good afternoon, everybody. Next, I'll review some of Nexstim's financial performance in the first half of '26 and also take a look at some of the longer-term trends in our financial development.

Joonas Juokslahti: Sure. Thank you, Mikko. Good afternoon, everybody. Next I will review some of Nexstim's financial performance in the H1 2026, and also take a look at some of the longer-term trends in our financial development. The total group revenue increased by just over 16% to EUR 5.2 million. That is compared to EUR 4.5 million in the H1 2025. We continued on our strong path, our growth path, during the H1 2026, and this time it was supported by the excellent performance of our Research and Neuroscience business. The revenue in Diagnostic business amounted to EUR 2.5 million, and that remained essentially at the same level as last year in 2025. This represented just under half of the company's total revenue.

Speaker #1: Total group revenue increased by just over 16% to €5.2 million, compared to €4.5 million in the first half of '25. So, we continued on our strong path.

Speaker #1: Our growth path during the first half of 2026—and this time, it was supported by the excellent performance of our research and neuroscience business.

Speaker #1: The revenue in the diagnostic business amounted to €2.5 million, and that remained essentially at the same level as last year in '25. This represented just under half of the company's total revenue.

Speaker #1: Looking at the Therapy business, the total revenue was €1.4 million. And here again, the revenue was roughly in line with the comparison period.

Joonas Juokslahti: Looking at the Therapy business, the total revenue was EUR 1.4 million, and here again, the revenue was roughly in line with the comparison period. Here the system sales grew strongly by nearly 87%. This expansion of the installed base, that will support the future recurring revenue growth as we continue transitioning from the disposable head tracker sales towards more of a software licensing model in the Therapy business. The Research and Neuroscience business, that was the strongest growth driver during the reporting period. The revenue increased by 144% to EUR 1.4 million. The growth was supported by both system sales and licensing income, but in addition, the recurring revenue more than tripled compared to the corresponding period last year. Overall, the recurring revenue at group level increased by 21% to EUR 2.5 million. At the same time, licensing revenue increased to EUR 0.8 million.

Speaker #1: But here, the system sales grew strongly by nearly 87%. And this expansion of the installed base will support future recurring revenue growth as we continue transitioning from disposable head tracker sales towards more of a software licensing model in the therapy business.

Speaker #1: The research and neuroscience business was the strongest growth driver during the reporting period. Revenue increased by 144% to €1.4 million, and the growth was supported by both system sales and licensing income.

Speaker #1: But in addition, the recurring revenue more than tripled compared to the corresponding period last year. Overall, the recurring revenue at group level increased by 21% to €2.5 million.

Speaker #1: And at the same time, licensing revenue increased to €0.8 million. So it's good to note here that the newest reported business, the research and neuroscience business, continued its strong growth trajectory during the first half.

Joonas Juokslahti: It is good to note here that the newest reported business, the Research and Neuroscience business, continued its strong growth trajectory during the H1 this year also. Moving to profitability. The gross margin increased by 15% to EUR 4.2 million, and the gross margin ratio remained very strong at close to 80% level, and that reflects the scalability of our business and business models and also the strength of our pricing positioning. The EBITDA increased by nearly 10% to EUR 0.3 million, and this was our fourth consecutive half-year period with a positive EBITDA. The operating expenses increased by 8%, which is clearly below the rate of our revenue growth for the period. The sales and marketing expenses remained essentially unchanged, and this reflects our ongoing transition to more of a distributor-driven sales model for our system sales.

Speaker #1: This year also. Then, moving to profitability—the gross margin increased by 15% to €4.2 million, and the gross margin ratio remained very strong at close to the 80% level.

Speaker #1: And that reflects the scalability of our business and business models, as well as the strength of our pricing positioning. The EBITDA increased by nearly 10% to €0.3 million.

Speaker #1: And this was our fourth consecutive half-year period with a positive EBITDA. The operating expenses increased by 8%, which is clearly below the rate of our revenue growth for the period.

Speaker #1: The sales and marketing expenses remained essentially unchanged, and this reflects our ongoing transition to more of a distributor-driven sales model for system sales.

Speaker #1: The operating profit was minus €0.3 million, and net profit for the period was minus €0.9 million. It's important to note that the result was impacted by approximately €0.6 million of one-off expenses related to the financing round completed during the springtime.

Joonas Juokslahti: The operating profit was EUR -0.3 million, and net profit for the period was EUR -0.9 million. It is important to note that the result was impacted by approximately EUR 0.6 million of one-off expenses related to the financing round completed during the springtime. During the spring, we completed an equity raise with Aito Investments and Brainlab, which strengthened our balance sheet significantly, and our cash position increased to EUR 5.6 million, which is more than double the level of a year ago. In addition, we had EUR 2.4 million worth of opened accounts receivables at the end of June. The group equity increased to EUR 8.4 million, and our equity ratio improved to 61% or a little bit over, compared to just under 32% last year.

Speaker #1: So, during the spring, we completed an equity raise with AFL Investments and Brain Lab, which strengthened our balance sheet significantly. Our cash position increased to €5.6 million.

Speaker #1: This is more than double the level of a year ago. In addition, we had €2.4 million worth of open accounts receivable at the end of June.

Speaker #1: The group equity increased to €8.4 million, and our equity ratio improved to 61%, or a little bit over, compared to just under 32% last year.

Speaker #1: To summarize, the first half of the year progressed well according to plan. Based on this H1 performance, the company keeps its guidance for 2026 unchanged.

Joonas Juokslahti: To summarize, the H1 of the year progressed well according to the plan and based on this H1 performance, the company keeps its guidance for 2026 unchanged. It goes as follows. The company estimates its net sales to grow and operating results to improve. On the next slide, let us take a look at some of the longer-term trends in our financial performance. This slide here illustrates our rolling 12-month performance compared to previous full-year financials. For the two consecutive strategy periods already, the key theme has been profitable growth for us, and this means pursuing stronger business growth, while maintaining continuous focus on improving profitability at the same time. On the left-hand side of the slide, you can see the development of revenue since 2023.

Speaker #1: So it goes as follows: the company estimates its net sales to grow and operating results to improve. Now, on the next slide, let's take a look at some of the longer-term trends in our financial performance.

Speaker #1: This slide here illustrates our rolling 12-month performance compared to previous full-year financials. For the two consecutive strategy periods already, the key theme has been profitable growth for us.

Speaker #1: And this means pursuing stronger business growth while maintaining a continuous focus on improving profitability at the same time. So, on the left-hand side of the slide, you can see the development of revenues since 2023.

Speaker #1: And looking at the rolling 12-month revenue as of the end of the reporting period, we have achieved approximately 21% annual growth over this period shown here.

Joonas Juokslahti: Looking at the rolling 12-month revenue as of the end of the reporting period, we have achieved approximately 21% annual growth over this period shown here. At the same time, our growth margin ratio has stayed consistently strong at around 80% level. In the middle or the bottom of the slide, you can see the development of the operating expenses over the same time period. Expenses have increased approximately by 5% per year on average, and it is also worth noting that 2023, the first comparison period in this graph, was a year of, let us say, significant cost-saving measures. That makes the subsequent expense growth even more moderate. Combining these elements, meaning strong revenue growth and strict cost awareness, the positive impact on our EBITDA becomes evident in the center of the slide.

Speaker #1: And at the same time, our gross margin ratio has stayed consistently strong at around the 80% level. In the middle or the bottom of the slide, you can see the development of the operating expenses over the same time period.

Speaker #1: Expenses have increased by approximately 5% per year on average. It's also worth noting that 2023, the first comparison period in this graph, was a year of, let's say, significant cost-saving measures.

Speaker #1: So that makes the subsequent expense growth even more moderate. So, combining these elements—meaning strong revenue growth and strict cost awareness—the positive impact on our EBITDA becomes evident in the center of the slide.

Speaker #1: And going forward, we are aiming to continue delivering this same kind of positive development, which is in line with the company's guidance and also the long-term strategic objectives.

Joonas Juokslahti: Going forward, we are aiming to continue delivering this same kind of positive development, which is in line with the company's guidance and also the long-term strategic objectives. With that, I will hand the presentation back to Mikko for a few more final slides before we open the floor for your questions. Thanks.

Speaker #1: So, with that, I will hand the presentation back to Miko for a few final slides before we open the floor for your questions.

Speaker #1: Thanks.

Speaker #2: Thank you. Thank you, Jonas, for summarizing the H1 and also the development in comparison to our previous years and rolling 12 months. Okay, so a couple of slides still to wrap up.

Mikko Karvinen: Thank you. Thank you, Joonas, for summarizing the H1 and also development in comparison to our previous years and rolling 12 months. A couple of slides still to wrap up. I will try to keep it short. If we look at the H1 2026, without any EUR numbers that were just mentioned, our deliveries in systems grew 20%, as you can see from the graph on the left side, mainly from therapy systems that grew in numbers. We are strengthening the market presence. Like I mentioned, we are doing co-marketing with Brainlab, and also then marketing independently in various events around the world. There are a few events that I wanted to just mention from the H1 events. The American Association of Neurological Surgeons Annual Scientific Meeting held in San Antonio, Texas, we were part of the Brainlab booth there in their area.

Speaker #2: I'll try to keep it short. If we look at the H1 2026 without any euro numbers that were just mentioned, our deliveries in systems grew 20%.

Speaker #2: As you can see, the graph on the left side, mainly from the therapy systems, grew in numbers. We're strengthening the market presence. Like I mentioned, we're doing marketing, co-marketing with Brainlab.

Speaker #2: And also, the marketing independently in various events around the world. There are a few events that I wanted to just mention. From the H1 events, the AANS Annual Scientific Meeting held in San Antonio, Texas.

Speaker #2: We were part of the Brainlab booth there in their area. That meeting was very, very—of course, it's a great place to present our technology to the neurosurgeons in the United States.

Mikko Karvinen: That meeting was very, of course, it is a great place to present our technology to the neurosurgeons in the United States and also internationally. We were part of a therapy business-related meeting, the annual meeting of the Clinical TMS Society, which was held in Boston, Massachusetts. There we were with our Nexstim team, since the therapy area is what we independently represent. Also, there were various other TMS companies and industry companies, physicians, scientists. Very interesting meeting, and we could see that navigation is very much a topic both for research and clinical use right now, and we got a lot of focus and a lot of interest in that meeting.

Speaker #2: And also internationally, we were part of a therapy business-related meeting—the annual meeting of the Clinical TMS Society—which was held in Boston, Massachusetts.

Speaker #2: And there we were with our Nexstim team, since the therapy area is what we independently represent. Also, there were various other TMS companies and industry companies, physicians, scientists—a very interesting meeting.

Speaker #2: And we could see that navigation is very much a topic both for research and clinical use right now. We've got a lot of focus and a lot of interest in that meeting.

Speaker #2: Then some other ones: European Low-Grade Glioma Network Meeting, Health in Montpellier, France; Annual Meeting of the German Society of Neurosurgery (DGMC) in Aachen, Germany.

Mikko Karvinen: Some other ones, European Low-Grade Glioma Network meeting held in Montpellier, France, annual meeting of the German Society of Neurosurgery, DGNC, in Aachen, Germany, and then here locally, quite close, Conference of the Scandinavian Neurosurgical Society that was held in Tampere here in Finland. There is a lot of groundwork that goes into the marketing of our product, discussions with the physicians, the teams, the nurses, the scientists, and that groundwork is done all the time. This is just a snapshot of few of the major events we were part of. You can look at the full event list at our website, and also if you want to stop by at any event and discuss with our team, then please look at the future ones at the events part of our website. Key highlights, if we look at it.

Speaker #2: And then here, locally, quite close: Conference of the Scandinavian Neurosurgical Society. That was held in Bamberg, here in Finland. So there's a lot of groundwork that goes into the marketing of the product.

Speaker #2: Discussions with the physicians, the teams, the nurses, the scientists. And that groundwork is done all the time. This is just a snapshot—a few of the major events we were part of.

Speaker #2: And you can look at the full event list on our website. Also, if you want to stop by at any event to discuss with our team, then please look at the future ones in the event section of our website.

Speaker #2: So, key highlights, if we look at it: The strong research in neuroscience momentum was during the first half. There was net sales growth of 144%.

Mikko Karvinen: The strong research in neuroscience momentum was during the first half. There was net sales growth of 144%, so the growth was driven by that part of the business. The diagnostics and therapy net sales were at comparison period level. There was growth in the number of systems delivered, but the revenue was at the comparison period level last year. Strategic partnerships advanced. Brainlab collaboration is deepening, specifically in the area of marketing and sales. Sinaptica Therapeutics exclusivity is progressing, and we support them with the validation and delivery of research systems in preparation for upcoming trials. There is a great amount of information at Sinaptica Therapeutics' website to spare some time and, of course, give them the possibility of telling their story. You can find a lot of information about Sinaptica Therapeutics, their progress. Their CEO, Ken Marius, also gives frequently interviews that you can follow.

Speaker #2: So, we were driven—the growth was driven by that part of the business. The diagnostics and therapy net sales were at the comparison period level.

Speaker #2: There was growth in the number of systems delivered, but revenue was at the comparison period level—last year. Strategic partnerships advanced; Brainlab collaboration is deepening.

Speaker #2: Specifically in the areas of marketing and sales, Synaptica exclusivity is progressing. We support them with the validation and delivery of research systems in preparation for upcoming trials.

Speaker #2: And there's a great amount of information that Synaptica's website to spare some time. And of course, give them the possibility of telling their story.

Speaker #2: You can find a lot of information about Synaptica, their progress, and their CEO. Canmarriage also gets frequently interviewed, and you can follow these if you follow, for example, the LinkedIn page.

Mikko Karvinen: If you follow, for example, their LinkedIn page, you can find these links to the interviews there. There is also, finally, growing interest into the brain-computer interface as a research area, and hopefully then utilizing this technology, brain-computer interface, into the future clinical use. Brain-computer interface in our world means typically combining either the navigated TMS with EEG or usage of navigated TMS in helping brain-computer interface access the brain better, which is either to stimulate the brain and then reading which places give the response before having any implanting happening. Then, of course, in various other ways of how to try to diagnose these patients and hopefully also help their therapy in the future, whether they are paralyzed or defects in the motor functions, or they have lost, for example, their ability to speak or produce speech.

Speaker #2: You can find these links to the interviews there. And also, finally, there is growing interest in the brain-computer interface as a research area, and hopefully, utilizing this brain-computer interface technology in future clinical use.

Speaker #2: Brain-computer interface in our world means typically either combining navigated TMS with EEG, or using navigated TMS to help a brain-computer interface access the brain better.

Speaker #2: Which is that either to stimulate the brain and then read which places give the response, before having any implanting happening. And then, of course, in various other ways of how to try to diagnose these patients and hopefully also help their therapy in the future.

Speaker #2: Whether they're paralyzed, have defects in motor functions, or they have lost, for example, their ability to speak or produce speech. And then, of course, we are the experts in showing where the motor and speech areas are located in the brain.

Mikko Karvinen: We are the experts in showing where the motor and speech areas are located in the brain, and this helps the physicians quite a lot, of course, in planning surgeries that are more safe for the implants and also finding the right places for the implants, as only one use case to simplify it. This has received a lot of international interest. As an example, China, in their latest five-year plan, has raised brain-computer interfaces as one of the areas they want to focus in a governmental five-year plan level. That is, of course, raising quite a bit of interest right now. We want to be active and are active in this area. Then moving on to the momentum slide. There is a lot of momentum growing right now with several growth catalysts.

Speaker #2: And this helps the physicians quite a lot, of course, in planning surgeries that are safer for the implants and also in finding the right places for the implants.

Speaker #2: That's the only use case, to simplify it. This has received a lot of international interest. As an example, China, in their latest five-year plan, has raised brain-computer interfaces as one of the areas they want to focus on at the governmental five-year plan level.

Speaker #2: So, that is, of course, raising quite a bit of interest right now. We want to be active, and we are active in this area.

Speaker #2: Then moving on to the momentum slide. So there is a lot of momentum growing right now with several growth catalysts. We do have the CEE and FDA approvals for our NBS6 platform.

Mikko Karvinen: We do have the CE and FDA approvals for our NBS 6 platform, both diagnostics that we reached last year, and then prior we had the therapy. So we have a combined system that has approvals. Brainlab partnership is increasing our system sales volume. Of course, this is a long-term partnership. We are only into the second year of our partnership, and this is a nine-year agreement. But we are seeing a lot of positive progress towards this, and our expectations are to volume increase, of course, to be seen, and that is where we are moving. Then the Nexstim NBS 6, we have launched the combined system. It is now more competitive for diagnostics, therapy, and neuroscience. It is a platform for all of our business areas and will be for quite some time.

Speaker #2: Both diagnostics that we reached last year. And then prior we had the therapy. So we have a combined system. That has approvals. Brain Lab, a partnership is increasing our system sales volume.

Speaker #2: And of course, this is a long-term partnership. We're only into the second year of our partnership, and this is a nine-year agreement. So, we are seeing a lot of positive progress toward this, and our expectations are for volume to increase, of course.

Speaker #2: To be seen. And that is where we're moving. And then next, in NBS6, we've launched this as a combined system. It's now more competitive.

Speaker #2: For diagnostics, therapy, and neuroscience, it's a platform for all of our business areas, and will be for quite some time. It's a modular structure, so we can update modules and have software updates in the future. This will help customers select new features based on their needs.

Mikko Karvinen: It is a modular structure that we can update modules and have software updated in the future, which will help the customers select new features and new needs. We will serve new needs in the future. Sinaptica Therapeutics partnership is a major market opportunity for treatment of Alzheimer's. Through this partnership, we are helping them now move on to the next phases of the trial, and then hopefully after validating data from there, then also getting approvals and moving to the commercial phase. Then finally, very importantly, as Joonas Juokslahti mentioned, every system that we increase into our installed base also increases our recurring net sales. This is just to demonstrate that in 2021, we had EUR 2.7 million of it. Now we have EUR 4.3 million. It is a 59% growth through the latest 12 months.

Speaker #2: We will serve new needs in the future. The Synaptica partnership is a major market opportunity for treatment of Alzheimer's. Through this partnership, we are helping them now move on to the next phases of the trial.

Speaker #2: And then, hopefully, after validating data from there, we'll also get approvals and move to the commercial phase. And then finally, very importantly, as Jonas mentioned, every system that we add to our installed base also increases our recurring net sales.

Speaker #2: This is just to demonstrate that in '21, we had €2.7 million. Now we have €4.3 million. That's 59% growth over the latest 12 months.

Speaker #2: And that is a huge escalation. It's giving us more forecasting ability into our business, and also something that we can rely on regardless of each reporting system's sales.

Mikko Karvinen: That is a huge escalation and giving us more forecast ability into our business and also something that we can rely on irregardless of each reporting system sales. Something for the long-term growth and then the sustainable growth of the company. Finally, the final slide to summarize the highlights that are behind the investment and our strategic objectives. Investor-wise, it is important to understand that we have a broad and attractive market with multiple clinical use cases as we just have presented today. We are the leading proprietary technology with key regulatory approvals. US, EU are the main ones, but also progress in Asia towards approval in Japan and we have India already covered, Australia, Malaysia, we just talked Hong Kong and so on. Strong competitive entry barriers in a highly regulated market.

Speaker #2: But something for the long-term growth and sustainable growth of the company. And then finally, the final slide to summarize the highlights that are behind the investment.

Speaker #2: And our strategic objectives. So, investor-wise, it's important to understand that we have a broad and attractive market with multiple clinical use cases, as I've presented today.

Speaker #2: We are the leading proprietary technology with key regulatory approvals. US, EU are the main ones, but also progress in Asia. Towards approval in Japan and some we have India already covered.

Speaker #2: Australia and Malaysia, we just told Hong Kong and so on. Strong competitive entry barriers in a highly regulated market. It's our technology. It's our IP.

Mikko Karvinen: It is our technology, it is our IP, it is our regulatory approvals that are slowing down the competition. Stellar financial profile, double-digit growth, steady and high gross margins, strong operational leverage, and high share of recurring revenue, 48% in H1 of this year. Several growth catalysts with new partnerships and new regulatory approved product launches. There is a lot of momentum right now for growth. Then finally, the final piece is the strategic objectives for this year. Profitable growth remains the number 1 objective, so increase our net sales and improving operating results for the financial year while minimizing future capital needs. We did raise capital recently with investments from Aito Investments and also Brainlab.

Speaker #2: It's our regulations and regulatory approvals that are slowing down the competition. Stellar financial profile, double-digit growth, steady and high gross margins, strong operational leverage, and a high share of recurring revenue.

Speaker #2: 48% in H1 of this year. Several growth catalysts with new partnerships and new regulatory-approved product launches. So there's a lot of momentum right now for growth.

Speaker #2: Then finally, the final piece is the strategic objectives for this year. Profitable growth remains the number one objective—so increasing our net sales and improving operating results for the financial year.

Speaker #2: While minimizing future capital needs, we did raise capital recently, with investments from Eiffel Investments and also Brain Lab. But now we're at a level where we can satisfy our needs for the foreseeable strategic path that we have right now.

Mikko Karvinen: Now we are at a level where we can satisfy our needs for the foreseeable strategic path that we have right now, and that was needed capital now, and now we have more possibilities to grow our company in a profitable manner. Strategic partnerships support the long-term collaboration between Nexstim and Brainlab as our main partner, as well as expanding the network of other partners and clients. That being, for example, in the therapy area or partnerships such as the Sinaptica Therapeutics partnership. Finally, but very importantly for a technology company, we want to remain leaders in the technology. So technology leadership.

Speaker #2: And that was that was needed capital now. And now we can we have more possibilities to grow our company in a profitable manner. Strategic partnerships.

Speaker #2: Support the long-term collaboration between Nextm and Brain Lab as our main partner, as well as expanding the network of other partners and clinics—that being, for example, in the therapy area.

Speaker #2: Or partnerships such as the Synaptica partnership. And then finally, but very importantly for a technology company, we want to remain leaders in technology.

Speaker #2: So, technology leadership: further improving and innovating the neurosurgical workflow of the NBS6, which helps the neurosurgery field. And also the Brainlab partnership, and then the TMS-EEG research interface.

Mikko Karvinen: Further improving and innovating the neurosurgical workflow of the NBS 6, which helps the neurosurgery field and also the Brainlab partnership, and then the TMS-EEG research interface that helps research customers such as Sinaptica Therapeutics, but also helps other research customers hopefully in the future that operate in the area of brain-computer interface as an example. So very important objectives for this year and a very interesting area to operate right now. With that, I thank you. If you look at the slides later on, it is a bit unclear now. Right now, the text is not focused so much. But if you look at the slides later, we will publish these slides also at our website. Please take a look at the important information part if you happen to flip through the presentation in a further stage. I thank you for the presentation part right now.

Speaker #2: That helps customers such as research customers like Synaptica, but also helps other research customers, hopefully in the future, that operate in the area of brain-computer interface.

Speaker #2: As an example. So very important objectives for this year. And a very interesting area to operate right now. So with that, I thank you.

Speaker #2: If you look at the slides later on, it's a bit unclear right now. The text is not focused so much. But if you look at the slides later, we will publish these slides also on our website.

Speaker #2: Please take a look at the important information part if you happen to flip through the presentation at a later stage. I thank you for the presentation part right now.

Speaker #2: Thank you for staying tuned and listening. I now welcome some questions that we can tackle together with Jonas. It seems like there are two questions posted right now.

Mikko Karvinen: Thank you for staying tuned and listening. I now welcome some questions that we can then tackle together with Joonas. It seems like there are two questions right now posted, and both of them are financial. Do you have a chance, Joonas, to pick up at least the first answer for these?

Speaker #2: And both of them are financial. Do you have a chance, Jonas, to pick up at least the first answer for these?

Speaker #1: Okay, so a question regarding other adjustments on the cash flow statement. One million euros. Okay, thank you for the question. The amount, the H1 2026 amount on that line, mainly relates to the Synaptica exclusivity payment.

Joonas Juokslahti: Okay. So question regarding other adjustments on the cash flow statement of EUR 1 million. Thank you for the question. The H1 2026 amount on that line mainly relates to the Sinaptica exclusivity payment, at least to the extent that it was made through the convertible bond investment. The related revenue has been recognized, but no cash was exchanged as part of that transaction. As a result, it appears as a non-cash adjustment in the cash flow reconciliation. Hope that clarifies the movement in that line item.

Speaker #1: At least to the extent that it was made through the convertible bond investment. The related revenue has been recognized, but no cash was exchanged as part of that transaction.

Speaker #1: So, as a result, it appears as a non-cash adjustment in the cash flow reconciliation. Hope that clarifies the movement in that line item.

Speaker #2: Okay. Yep. Thank you. Thank you, Jonas. And there seems to be the next one is about the system sales and diagnostics. We're down 29%.

Mikko Karvinen: Okay. Yep. Thank you, Joonas. There seems to be the next one is about the system sales and diagnostics were down 29%. Should we read the system sales decline purely as timing and broader order batching effect that reverses in H2? Or does it also reflect the change in underlying demand or average selling price per unit? Well, I can take that one. First of all, this does not reflect the demand. We delivered actually seven diagnostic systems during H1 2026. We had seven delivered also H1 2025. You are quite to the point. It is actually now the average selling price is where the difference is explained. This is because of the transition of our model that most of our business now is being done through distribution partnerships.

Speaker #2: Should we read the system sales decline purely as timing and broader order batching effect that reverses in H2, or does it also reflect a change in underlying demand or average selling price per unit?

Speaker #2: Well, I can take that one. So, first of all, it doesn't reflect the demand. We delivered actually seven diagnostic systems; during H1 2026, we had seven delivered, also H1 2025.

Speaker #2: You're quite to the point. It's actually now the average selling price is where the difference is explained. And this is because of the transition of our model that most of our business now is being done through partnerships.

Speaker #2: Distribution partnerships. And basically, it means that we are working towards growing the volume, more than what we are having to pay, of course, for the distribution services.

Mikko Karvinen: Basically, it means that we are working towards growing the volume more than what we are having to pay, of course, for the distribution services. So in H1, by delivering the same amount of systems through the distribution channel, it gives us less revenue in the system sales side. This is not, of course, in the full company P&L. It is quite not that simple because then again, for example, we receive compensation from Brainlab AG as a partnership if we do not reach as a company our gross margin, so-called gross profit insurance milestones. So partially it gets compensated there, but purely the drop in the system revenue of diagnostics is explained by the average sales price drop in that area because of the transition into the distribution model.

Speaker #2: So in H1, by delivering the same amount of systems through the distribution channel, it gives us less revenue on the system sales side. This is not, of course, in the full company P&L.

Speaker #2: It's quite not that simple because, then again, we do receive—for example, we receive compensation from BrainLab as a partnership if they don't, if we don't reach as a company our gross margin.

Speaker #2: Gross margin, so-called gross profit insurance, milestones. So, partially, it gets compensated there. But purely, the drop in the system revenue of diagnostics is explained by the average sales price across in that area.

Speaker #2: Because of the transition into the distribution model, I now forgot if there was, and then at the H1, H2—so if there was the same amount of systems, we actually have the best order backlog right now that we've ever had in August.

Mikko Karvinen: I now forgot if there was. Then at the H1, H2, if there was the same amount of systems, we actually have the best order backlog right now that we've ever had in August. We had 7 systems at the end of June as an order backlog. Since that, we have released new orders, more than 10 systems ordered in total since then. There is a lot of orders in, and this is a very positive situation we're right now. Of course, all these systems that now have been ordered need to be also delivered during H2, which we are looking forward, and there seems to be nothing to say that we wouldn't do that. There is always that business operation that we need to manufacture and deliver the system.

Speaker #2: So we had seven systems at the end of June as an order backlog. And since then, we've received new orders—more than 10 systems ordered in total since then.

Speaker #2: So, there's a lot of orders in, and this is a very positive situation we're in right now. But of course, all these systems that have now been ordered need to also be delivered during H2, which we are looking forward to.

Speaker #2: And there seems to be nothing to say that we wouldn't do that. But there is always that business operation where we need to manufacture and deliver the systems.

Speaker #2: The other thing is that we will be publishing the orders as we receive them, and also giving, of course, an update about the number of systems delivered, and probably the order backlog at the end of September when we give the business review of Q3.

Mikko Karvinen: The other thing is that we will be publishing the orders that we receive, and also giving, of course, an update about the number of systems delivered and probably the order backlog at the end of September when we give the business review of Q3. You can follow there how things progress. The order backlog right now, we're experiencing a larger order backlog that we've ever seen in August. That's a very positive note. I think we've at least tried to answer the two questions that were left. Thank you for those. Unless there are any other questions posted, I'd like to thank you for your interest in Nexstim and following this webinar. We will be, of course, keeping you updated in the news flow, both our company announcements and press releases.

Speaker #2: So you can follow there how things go progress with the but the order backlog right now, we're experiencing a larger order backlog that we've ever seen in August.

Speaker #2: So, that's a very positive note. I think we've at least tried to answer the two questions that were left—thank you for those. And unless there are any other questions posted, I'd like to thank you for your interest in Nexstim and for following this webinar.

Speaker #2: We will, of course, keep you updated in the news flow. Both company announcements and press releases—please look at our events section if you want to meet with the management or our team.

Mikko Karvinen: Please look at our events part if you want to meet with the management or our team. You can see that there are also investor and business-related events, quite a few coming up. Then I will give my Q3 business review, of course, sometime most likely in late October or latest early November. Then, of course, we will publish our financials for the full year in H2 2026 in late February of 2027. Thank you for your interest. Have a great weekend and great rest of the summer. Thank you.

Speaker #2: You can see that there are also investor and business-related events, quite a few coming up. And then I will give my Q3 business review, of course, sometime most likely in late October or, at the latest, early November.

Speaker #2: And then, of course, we will publish our financials for the full year 2026 in H2, in late February of 2027. So, thank you for your interest.

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Half Year 2026 Nexstim Oyj Earnings Call

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