October 2026 Operational Update
Service Business Operating Update Preliminary and unaudited
Overview. Otovo ASA ("Otovo") is providing preliminary, unaudited October 2026 service metrics as part of its monthly investor updates. The update reports estimated service work-order volume, average revenue per service work order and estimated gross margin.
August through October service metrics
Metric October 2026 September 2026 August 2026 Reported service work orders 4,049 3,137 2,766 Estimated average revenue per service work order $760 $753 $656 Estimated gross margin 52% 49% 46% October's reported volume was 4,049 service work orders, with estimated average revenue of $760 per work order and estimated gross margin of 52%. Estimated service revenue associated with this activity was $3.1 million, with estimated gross profit of $1.6 million. October's results came higher than in the previous two months. September's reported service work orders were 3,137 with an estimated average revenue per service work order of $753 and estimated gross margin of 49%. August's reported service work orders were 2,766 with an estimated revenue per service work order of $656 and estimated gross margin of 46%. All amounts are in U.S. dollars.
Work orders originated in October again exceeded work orders completed during the month. Additional revenue and gross margin from memberships and projects, which include newbuild and upgrades, are excluded from this report.
Acquisition contribution and proposed transactions
October figures include only half of PV Hawaii's October activity due to the October 16, 2026 closing. The October figures exclude any contribution from three other proposed transactions that Otovo expects to close in the fourth quarter of 2026. None of those three transactions had closed as of October 31, 2026. Their work orders, revenue, margin and anticipated integration benefits are excluded from this update. Completion remains subject to applicable closing conditions.
Overtime and technician hiring
Otovo's U.S. field service headcount was 124 as of November 1, 2026. The three proposed acquisitions are expected to add capacity equivalent to approximately 112 full-time technicians. Otovo targets capacity equivalent to approximately 300 full-time technicians by year-end through organic hiring and acquisitions, assuming all three proposed acquisitions close by December 31, 2026.
Recorded October overtime and double-time costs totaled approximately $0.3 million. Approximately $0.1 million of that total represents costs above regular pay rates. As additional technicians are added and become productive, management expects this spending to decline, supporting further gross-margin improvement in the coming months. Management expects some overtime to continue and does not expect to eliminate it completely. Management expects additional SG&A cost reductions in the fourth quarter of 2026 and the first quarter of 2027 through AI-driven payroll reductions, SaaS software cuts and office space eliminations. Otovo has put a monthly SG&A ceiling and spending controls in place and continues to use AI to drive down SG&A as it grows revenues rapidly, both organically and through acquisitions. The company is demonstrating operating leverage and expects cash flow from operations to increase.
Disclosures
The estimate excludes certain corporate costs, legal costs, restructuring costs such as severance, and non-cash expenses such as bad debt. It is a non-IFRS management measure and should not be interpreted as IFRS net income or cash flow from operating activities as presented under IFRS.
All figures are preliminary and unaudited and remain subject to Otovo's normal financial-close procedures. You are encouraged not to place undue weight on such figures, and the inclusion of such information should not be regarded as a forecast, target, guidance or a representation by us that the results reflected in such figures will be achieved.
Investor Relations Contacts Rodney McMahan Head of Investor Relations rodney.mcmahan@otovo.com Forward Looking Statements This report contains forward-looking statements within the meaning of applicable securities laws. Actual results may differ because of demand, cancellations, technician availability, pricing, costs, project and membership performance, transaction closings, integration and other risks described in Otovo's public disclosures. Forward-looking statements include, but are not limited to, statements regarding Otovo's expectations, plans, objectives, strategy, future operations, business performance, financial condition, prospects, growth opportunities, market position, anticipated benefits of transactions or initiatives, and other statements that are not historical facts. Forward-looking statements may be identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would," and similar expressions. These forward-looking statements are based on current expectations, assumptions, estimates, and projections and are subject to risks, uncertainties, and other factors, many of which are beyond Otovo's control, that could cause actual results, performance, or achievements to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, market conditions, regulatory developments, competitive pressures, customer demand, supply chain constraints, macroeconomic conditions, the impact of our technology, our ability to identify and close acquisitions on the timelines we expect, or at all, execution risks, and other risks described in Otovo's public filings or other disclosures, if applicable. Otovo undertakes no obligation to update or revise any forward-looking statements contained in this report, whether as a result of new information, future events, or otherwise, except as required by applicable law. Readers should not place undue reliance on forward-looking statements, which speak only as of the date of this report. This report is for information purposes only, and the information contained herein does not constitute either an offer to sell, or the solicitation of an offer to purchase or subscribe for securities of Otovo in any jurisdiction. Similarly, it does not give and should not be treated as giving investment advice. It has no connection with the investment objectives, financial situation or specific needs of any recipient. It should not be regarded by recipients as a substitute for exercise of their own judgement. All opinions expressed herein are subject to change without notice. The distribution of this report may be restricted by law in certain jurisdictions. Persons into whose possession this report comes are required to inform themselves about and to observe any such restrictions.