Techstep ASA: Q2 2026 results

Highlights from the second quarter 2026:

Laying the groundwork for the "New Techstep"

· Repositioning the Swedish operations, focusing resources on differentiated and scalable offerings · Launched the Techstep Improvement Programme to strengthen margins, accelerate sales and deliver further decisive cost-base reductions and organisational rightsizing · Completed the Group-wide ERP implementation, establishing a common platform for efficiency gains during the second half of 2026 · Continued to expand the use of AI and automation across product development, marketing, sales, delivery, operations, support and finance to improve speed, scalability and operational efficiency. · Established new financing with Danske Bank at the beginning of the quarter, comprising a revolving credit facility of NOK 45 million and an overdraft facility of NOK 25 million · Subsequent to the quarter, Techstep announced a NOK 40 million bridge facility and a contemplated rights issue to raise gross proceeds of at least NOK 83.3 million

Commercial momentum continues, while delayed rollouts created headwinds

· Delivered devices to Helse Midt-Norge throughout the quarter, contributing to significant revenue in June, while other healthcare rollouts progressed more slowly than anticipated · Reconfirmed customer confidence through contract renewals with Equinor and Bane NOR · Commenced initial deliveries for the large-scale public-sector rollout in Spain under the Generalitat de Catalunya engagement through Vodafone Spain, with potential coverage of up to 80,000 devices for the next 12-18 months · Continued onboarding and development of European partners for the Essentials and Lifecycle platforms, supporting a more scalable and recurring commercial model · Continued to prioritise a higher share of recurring, higher-margin software and services across both direct and indirect channels

Q2 profitability impacted by decreased NGP resulting in restrained liquidity with the need for financial restructuring

· Total revenues at NOK 229 million, with a decline of 7% y/y and Net gross profit at NOK 52.0 million, down 41% y/y, affected by shortfall from discontinued BCM activities, termination of legacy Telecom Expense solution, delays in Health service deliveries and product mix changes with higher hardware sales at lower margin · When excluding the divested business, Techstep experiences an increase in revenues of 12% · EBITA adjusted at NOK -12.9 million affected by decline in NGP, substantially offset by lower personnel and opex cost. We also confirmed a notable reduction of total operating cost in Q2 compared to previous quarter this year · The Techstep Improvement Programme is targeting stronger commercial execution, improved margin management, lower operating costs and a reduction in the number of employees from approximately 190 to 160 into 2027 · Despite the cost reduction efforts, the situation called for a financial restructuring with the Rights issue presented by the Board as the solution

"Q2 represents an important step in building a more focused, efficient and scalable Techstep. We completed the Group-wide ERP implementation, continued to reduce our operating cost base and launched the Techstep Improvement Programme to accelerate commercial execution, strengthen margins and improve cash generation. While delayed healthcare service deliveries and the revenue mix affected the quarter's profitability, the underlying customer demand, contract renewals and progress in our Nordic and European markets reinforce our confidence in the opportunities ahead. With a stronger financing platform, a leaner organisation and a modern operational backbone supported by AI and automation, we are well positioned to translate our commercial pipeline into profitable growth. Our priorities are clear: increase the share of higher-margin software and services, scale our Essentials and Lifecycle platforms, and execute with discipline. I am confident that the measures now underway will strengthen Techstep's performance and create a solid foundation for sustainable, long-term value creation," says Morten Meier, CEO of Techstep.

Material

Please find the report and presentation for Q2 2026 enclosed.

Presentation and Q&A:

A live presentation and Q&A session will take place today at 08:00 CET and can be accessed by registering through the following link:

Microsoft Virtual Events Powered by Teams (https://events.teams.microsoft.com/event/14ece8af-4c9d-4363-857d -1e181b78b9c2@56b3dd67-66b5-4d6a-9954 -22469dfcf18b?source=copyLinkLegacyShareLinkDialog)

Questions for the Q&A session may be submitted in advance to ir@techstep.io or live during the session. A recording of the presentation and Q&A session will be made available on www.techstep.io after the session has concluded.

For more information:

Morten Meier, CEO, Techstep ASA: +47 970 57 717

Håvard Haukdal, CFO, Techstep ASA: +47 481 06 569

About Techstep

Techstep is a mobile & circular technology company, enabling organisations to operate efficiently, securely and more sustainably by combining devices, software and expertise to meet customers' business and ESG goals. We are a leading provider of managed mobility services in Europe, serving more than 2,000 customers in Europe with annual revenue of NOK 1.0 billion in 2025. The company is listed on the Oslo Stock Exchange under the ticker TECH. To learn more, please visit www.techstep.io.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange release was published by Håvard Haukdal, CFO, Techstep ASA, on 20 August 2026 at 07:00 CET.