NAPATECH
HALF-YEAR REPORT 2026
Napatech HALF-YEAR REPORT 2026 page 2 of 17
MANAGEMENT'S REPORT
Dear Readers,
The first half of 2026 marked an important period of progress for Napatech. We delivered strong growth in our Core Infrastructure
business, advanced our AI Infrastructure strategy from design wins toward production, and expanded the customer and partner
ecosystem that supports our long-term growth ambitions.
Revenue for the first half was $13.1 million (DKK 84.7 million), representing growth of 61% in USD and 53% in DKK compared with H1
2025, while maintaining a gross margin of 68%. This performance reflects the continued strength and quality of our Core
Infrastructure business, which remains a strong foundation for Napatech.
At the same time, we are seeing encouraging progress in AI Infrastructure. During the first half, a major AI inference design win
progressed into production with an initial production order. Following the end of the period, we received a significant follow-on
production order, signaling the start of scaling to higher production volumes. This transition validates both our technology and our
strategy in AI Infrastructure.
As AI inference moves toward large-scale production, we believe the architecture of the underlying infrastructure is changing.
Efficiently moving and processing data across increasingly heterogeneous compute environments is becoming critical to overall
system performance. We see a differentiated role for Napatech in this evolving architecture, with our programmable NIC technology
combining high-performance hardware and software to enable efficient, programmable data movement across heterogeneous AI
systems.
We are also strengthening our broader customer and partner ecosystem. Our design-win pipeline is expanding across both Core and
AI Infrastructure, while strategic relationships are broadening our routes to market and creating opportunities to participate in larger
infrastructure deployments. Converting these opportunities into production remains one of our highest priorities.
We are making this progress while maintaining financial discipline. EBITDA improved to negative DKK 24.8 million in H1 2026 from
negative DKK 48.7 million in H1 2025, while staff costs and other external costs declined to DKK 85.6 million from DKK 91.5 million.
We continue to balance investment in product development and customer engagements with disciplined management of our cost
base.
Free cash flow was negative DKK 41.1 million compared with negative DKK 50.6 million in H1 2025. Net working capital increased to
DKK 99.1 million, primarily reflecting backloaded invoicing in Q2 and increased inventory as we prepare for expected demand in the
second half. Cash available at the end of H1 was DKK 84.3 million.
Looking ahead, our 2026 revenue guidance remains unchanged. Our priorities are clear: continue the momentum in our Core
Infrastructure business, convert our growing pipeline into production revenue, support the scaling of our AI Infrastructure programs,
and execute with financial discipline.
We entered 2026 focused on positioning Napatech for its next phase of growth. At the halfway point, we are making tangible
progress. Our Core business is demonstrating strength, our AI Infrastructure opportunities are advancing toward scale, and our
technology is increasingly relevant to the evolving architecture of the data center.
Thank you to our employees, customers, partners and shareholders for your continued support.
Best regards,
Kartik Srinivasan
Chief Executive Officer
Napatech HALF-YEAR REPORT 2026 page 3 of 17
Highlights H1:
• Revenue in USD amounted to 13.1M in H1 2026, an increase of 61% compared to H1 2025. In DKK, revenue amounted to
84.7M, an increase of 53% compared to H1 2025.
• The gross margin in H1 2026 was 68% compared to 68% in H1 2025.
• Staff costs and Other external costs in H1 2026 amounted to DKK 85.6M compared to DKK 91.5M in H1 2025.
• EBITDAC
1
in H1 2026 amounted to negative DKK 27.8M compared to negative DKK 53.6M in H1 2025.
• EBITDA in H1 2026 amounted to negative DKK 24.8M compared to negative DKK 48.7M in H1 2025.
• Depreciation, amortization, and impairment for H1 2026 were DKK 5.9M compared to DKK 12.3M in H1 2025.
• Net Cash flow from operating activities in H1 2026 was negative DKK 36.9M compared to negative DKK 44.3M in H1 2025.
• Net working capital end of H1 2026 amounted to DKK 99.1M compared to DKK 95.2M end of H1 2025 and DKK 83.2M end
of 2025.
• Net cash used in investing activities in H1 2026 amounted to DKK 4.3M compared to DKK 6.3M in H1 2025.
• Cash and cash equivalents at the end of H1 2026 amounted to DKK 62.7M compared to DKK 133.4M at the end of H1 2025.
• Cash available at the end of H1 2026 amounted to DKK 84.3M compared to DKK 136.8M at the end of H1 2025.
Highlights Q2:
• Revenue in USD amounted to 7.4M in Q2 2026, an increase of 55% compared to Q2 2025. In DKK, revenue amounted to
48.1M, an increase of 52% compared to Q2 2025.
• The gross margin in Q2 2026 was 67% compared to 67% in Q2 2025.
• Staff costs and Other external costs in Q2 2026 amounted to DKK 41.2M compared to DKK 42.6M in Q2 2025.
• EBITDAC in Q2 2026 amounted to negative DKK 8.8M compared to negative DKK 21.5M in Q2 2025.
• EBITDA in Q2 2026 amounted to negative DKK 6.6M compared to negative DKK 19.6M in Q2 2025.
• Depreciation, amortization, and impairment for Q2 2026 were DKK 2.6M compared to DKK 5.9M in Q2 2025.
• Net Cash flow from operating activities in Q2 2026 was negative DKK 32.1M compared to negative DKK 18.6M in Q2 2025.
• Net cash used in investing activities in Q2 2026 amounted to DKK 3.3M compared to DKK 2.5M in Q2 2025.
Key figures
2
:
Q2 2026 Q2 2025 YTD 2026 YTD 2025
Revenue USD M 7.4 4.8 13.1 8.2
Growth YoY USD M 55% 43% 61% 26%
Revenue DKK M 48.1 31.6 84.7 55.4
Growth YoY DKK M 52% 36% 53% 24%
Gross Margin 67% 67% 68% 68%
EBITDAC DKK M -8.8 -21.5 -27.8 -53.6
EBITDA DKK M -6.6 -19.6 -24.8 -48.7
Net Cash Flow from Operating Activities DKK M -32.1 -18.6 -36.9 -44.3
Net Working Capital, end of period DKK M 99.1 95.2 99.1 95.2
Cash and cash equivalents, end of period DKK M 62.7 133.4 62.7 133.4
Unused credit facilities, end of period DKK M 21.6 3.4 21.6 3.4
Cash available, end of period DKK M 84.3 136.8 84.3 136.8
This is Napatech
Napatech is a Danish tech company developing high-performance, programmable network interface cards and software for programmable NICs. The
Napatech software suite ensures broad compatibility and seamless integration for our family of FPGA-based SmartNICs. With support for all major
systems and a common API that easily integrates with custom-developed, open source, or commercial applications, we enable significantly reduced
time-to-market for new products. Additional information is available at www.napatech.com\investor.
1
EBITDAC: Earnings before depreciation, amortization and impairment, and cost transferred to development projects.
2
Definitions: Gross Margin is calculated as ‘Gross Profit’ / ‘Revenue’; EBITDAC is calculated as ‘Earnings Before Interest, Taxes, Depreciation and Amortization’ before
staff costs transferred to capitalized development costs; EBITDA is calculated as ‘Earnings Before Interest, Taxes, Depreciation and Amortization’; Net working capital
represents the value of inventories, trade receivables of other current operating assets less trade payables and other current operating liabilities. Cash and cash
equivalents and income tax receivable or payable are not part of the net working capital; Cash flows from operating activities are profit or loss before tax added or
deducted changes in the net working capital, added or deducted changes in provisions and added the yearly depreciation and amortization; Free cash flow is net cash
flow from operating activities added or deducted investing activities.
Napatech HALF-YEAR REPORT 2026 page 4 of 17
Revenue and Gross Margin
H1
Napatech reports revenue of DKK 84.7M in the first half
of 2026 compared to DKK 55.4M in the same period in
2025, equivalent to an increase of 53%. In USD, revenue
was up 61% compared to H1 2025.
The gross margin in H1 2026 was 68% compared to 68%
in H1 2025.
Q2
Napatech reports revenue of DKK 48.1M in Q2 2026
compared to DKK 31.6M in the same period in 2025,
equivalent to an increase of 52%. In USD, revenue grew
55% compared to Q2 2025.
The gross margin in Q2 2026 was 67% compared to 67%
in Q2 2025.
Costs
H1
Staff costs and Other external costs in H1 2026 amounted
to DKK 85.6M, compared to DKK 91.5M in H1 2025.
Operating expenses after transferal of staff costs to
capitalized development costs in H1 2026 amounted to
DKK 82.6M, compared to DKK 86.6M in H1 2025.
Q2
Staff costs and Other external costs in Q2 2026 amounted
to DKK 41.2M, compared to DKK 42.6M in Q2 2025.
Operating expenses after transferal of staff costs to
capitalized development costs in Q2 2026 amounted to
DKK 39.0M, compared to DKK 40.8M in Q2 2025.
EBITDAC and EBITDA
H1
Earnings before Interest, Tax, Depreciation,
Amortization, and Capitalization of development cost
(EBITDAC) amounted to negative DKK 27.8M in H1 2026
compared to negative DKK 53.6M in H1 2025.
EBITDA in H1 2026 was negative DKK 24.8M compared to
negative DKK 48.7M in H1 2025.
Q2
EBITDAC amounted to negative DKK 8.8M in Q2 2026
compared to negative DKK 21.5M in Q2 2025.
EBITDA in Q2 2026 was negative DKK 6.6m compared to
negative DKK 19.6M in Q2 2025.
Depreciation, amortization, and impairment
H1
Depreciation, amortization, and impairment in H1 2026
were DKK 5.9M compared to DKK 12.3M in Q2 2025.
Q2
Depreciation, amortization, and impairment in Q2 2026
were DKK 2.6M compared to DKK 5.9M in Q2 2025.
Financial Items
H1
Financial items for H1 2026 were negative DKK 0.2M
compared to a negative DKK 4.0M in H1 2025. H1 2025
was impacted by transaction costs related to the capital
increase.
Q2
Financial items for Q2 2026 were negative DKK 0.2M
compared to a negative DKK 2.7M in Q2 2025. Q2 2025
was impacted by transaction costs related to the capital
increase.
Taxes
H1
Taxes for H1 2026 amounted to a cost of DKK 0.7M
compared to a a cost of DKK 0.1M in H1 2025.
Q2
Taxes for Q2 2026 amounted to a cost of DKK 0.7M
compared to a cost of DKK 0.1M in Q2 2025.
Investments
H1
The total net cash used in investing activities in H1 2026
was DKK 4.3M, of which DKK 3.3M was invested in new
product development. In H1 2025, the total net cash used
in investing activities was DKK 6.3M, of which DKK 5.7M
was invested in new product development.
Q2
The total net cash used in investing activities in Q2 2026
was DKK 3.3M, of which DKK 2.5M was invested in new
product development. In Q2 2025, the total net cash used
in investing activities was DKK 2.5M, of which DKK 2.2M
was invested in new product development.
Cash Flow
H1
Net cash flow from operating activities in H1 2026 was
negative DKK 36.9M compared to negative DKK 44.3M in
H1 2025. H1 2026 was impacted by a negative
development in working capital primarily due to invoicing
being backloaded in Q2 2026 and ramp-up of inventories
to meet the expected demand in H2 2026.
Free cash flow in H1 2026 amounted to negative DKK
41.1M compared to negative DKK 50.6M in H1 2025.
Net cash from financing activities in H1 2026 was
negative DKK 23.5M, compared to positive DKK 121.6M
in H1 2025. H1 2025 was positively impacted by the
capital raise last year, whereas H1 2026 is negatively
impacted by short-term credit facilities not being drawn.
Cash and cash equivalents at the end of H1 2026 was DKK
62.7M compared to DKK 133.4M at the end of H1 2025.
Q2
Net cash flow from operating activities in Q2 2026 was
negative DKK 32.1M compared to negative DKK 18.6M in
Q2 2025. Q2 2026 was impacted by a negative
development in working capital primarily due to invoicing
Napatech HALF-YEAR REPORT 2026 page 5 of 17
being backloaded in Q2 2026 and ramp-up of inventories
to meet the expected demand in H2 2026.
Free cash flow in the quarter amounted to negative DKK
35.3M compared to negative DKK 21.2M in Q2 2025.
Net cash from financing activities in Q2 2026 was
negative DKK 0.8M, compared to a positive DKK 121.1M
in Q2 2025. Q2 2025 was positively impacted by the
capital raise last year.
Changes in equity
The company's equity amounted to DKK 179.1M on June
30, 2026, this is a decline of DKK 25.6M from December
31, 2025.
In H1 2026, Group equity decreased by the
comprehensive income with DKK -31.1M and increased
with DKK 5.5M by transactions with shareholders.
Shareholders and Share Information
Napatech, as of June 30, 2026, had 110,442,933 shares,
each with a nominal value of DKK 0.25. The share capital
is DKK 27,610,733.25, divided among the 3,814
shareholders.
Events after the end of the period
No significant events occurred after the end of the
reporting period.
Outlook for 2026
2026 guidance:
Target in DKK million
Guidance
Revenue
200-240
Units sold
7,700-9,700
(previously 8,700-10,700)
Gross margin
60-70%
Staff costs & Other external costs
170-180
Staff costs transferred to
capitalized development costs
5-8
While the revenue guidance is maintained, the guidance
for units sold has been adjusted based on the results for
the first half year and expectations for the second half
year of 2026. The demand moves towards higher-speed,
higher-value products, which carry higher average selling
prices. As that mix continues to evolve, revenue growth
will not necessarily translate proportionally into unit
growth. Furthermore, we are expecting lower units to be
sold within the AI Infrastructure segment in 2026 than
originally anticipated.
With performance in the middle of the guided ranges,
EBITDA would be negative at around DKK 25M, and units
sold would be around 9,700.
The Company is exposed to risks that might affect our
ability to reach our goals, such as currency fluctuations,
general market uncertainty, and material changes in our
large OEMs' needs for Napatech's products.
Additionally, in 2025 and ongoing in 2026, we have seen
increasing market uncertainty, particularly related to
potential trade barriers, including tariff increases in the
United States. With our products manufactured in the US
and the majority of our customers also located in the US,
the group is not significantly exposed. However, the lack
of predictability and uncertainty surrounding tariff
increases is a concern, and we will be monitoring the
development closely. Further, we have seen an elevated
risk driven by a supply-constrained, high-volatile
environment across several key areas. This leads to
extended and volatile lead times as well as increased
prices for certain components.
Disclaimer:
This report may contain statements regarding the future in
connection with Napatech's growth initiatives, profit figures,
outlook, strategies, and objectives. All statements regarding the
future are subject to inherent risks and uncertainties, and many
factors can lead to actual profits and developments deviating
substantially from those expressed or implied in such
statements.
Investor
Number of
shares
% of
total
SUNDT AS 18,307,427 16.58%
VERDANE CAPITAL VIII K/S 10,013,618 9.07%
ARBEJDSMARKEDETS TILLAEGSPENSION 7,800,000 7.06%
LUDVIG LORENTZEN AS 6,800,000 6.16%
DNB BANK ASA 4,182,560 3.79%
BROWNSKE BEVEGELSER AS 4,030,483 3.65%
BANK PICTET & CIE (EUROPE) AG 3,308,329 3.00%
MANARA AS 2,605,000 2.36%
DANSKE BANK A/S 2,324,722 2.10%
VERDIPAPIRFONDET DNB SMB 2,121,991 1.92%
BAHIA AS 2,120,280 1.92%
PRIVATE INVESTOR 2,005,244 1.82%
AREPO AS 1,915,200 1.73%
THE BANK OF NEW YORK MELLON 1,879,749 1.70%
NORDNET BANK AB 1,405,075 1.27%
MP PENSJON PK 1,323,999 1.20%
J.P. MORGAN SE 1,304,638 1.18%
OSM FREDENLUND AS 1,135,232 1.03%
FOLKETRYGDFONDET 1,132,701 1.03%
F2 FUNDS AS 1,045,000 0.95%
Total number owned by top 20 76,761,248 69.50%
Total -20 other shareholders 33,681,685 30.50%
Total Number of shares 110,442,933 100.00%
Napatech HALF-YEAR REPORT 2026 page 6 of 17
Executive Management
Board of Directors
Napatech HALF-YEAR REPORT 2026 page 7 of 17
INCOME STATEMENT
For the period ended June 30, 2026
DKK'000
Note
2026 2025 2026 2025
R evenue 3 48,087 31,571 84,675 55,420
Cost of goods sold (15,738 ) (10,445 ) (26,803 ) (17,523 )
Gross p rofit 32,349 21,126 57,872 37,897
Staff costs (31,557 ) (29,443 ) (64,700 ) (64,502 )
Other external costs (9,605 ) (13,165 ) (20,927 ) (27,011 )
EBIT DAC (8,813 ) (21,482 ) (27,755 ) (53,616 )
Transferred to capitalized development costs 2,195 1,843 3,005 4,926
EBIT DA (6,618 ) (19,639 ) (24,750 ) (48,690 )
Depreciation, amortization and impairment (2,625 ) (5,870 ) (5,926 ) (12,327 )
Op erat ing result (EBIT ) (9,243 ) (25,509 ) (30,676 ) (61,017 )
Finance income 108 182 425 209
Finance costs (335 ) (2,907 ) (634 ) (4,241 )
R esult before tax (9,470 ) (28,234 ) (30,885 ) (65,049 )
Income tax (718 ) (100 ) (721 ) (94 )
R esult for the p eriod (10,188 ) (28,334 ) (31,606 ) (65,143 )
Earning s / (loss) p er share: 4 2026 2025
Basic, DKK (0.29 ) (0.64 )
Diluted, DKK (0.29 ) (0.64 )
H1
H1
2nd quarter
STATEMENT OF COMPREHENSIVE INCOME
For the period ended June 30, 2026
DKK'000 2026 2025
R esult for t he period (31,606 ) (65,143 )
Items that may be reclassified to profit and loss in subsequent periods:
Exchange differences on translation of foreign operations 524 (1,835 )
Net other com prehensive incom e / (loss) to be reclassified to profit or loss in
subsequent periods
Total other comprehensive income / (loss) for the period, net of tax
Total comprehensive incom e / (loss) for the period, net of tax (31,082 ) (66,978 )
H1
Napatech HALF-YEAR REPORT 2026 page 8 of 17
CASH FLOW STATEMENT
For the period ended June 30, 2026
DKK'000 2026 2025 2026 2025
Op erating act ivities
Income/Loss before tax (9,470 ) (28,234 ) (30,885 ) (65,049 )
A d just m ent s to reconcile p rofit before t ax t o net cash flows
Finance income (108 ) (182 ) (425 ) (209 )
Finance costs 335 2,907 634 4,241
Depreciation, amortisation and impairment 2,625 5,870 5,926 12,327
Share-based payment expense 2,232 2,049 4,728 4,815
Working ca p it al a d justm ents
Change in inventories (19,525 ) 15 (23,919 ) (4,994 )
Change in trade and other receivables and prepayments (16,330 ) 478 (2,368 ) 3,006
Change in trade and other payables and contract liabilities 9,720 (870 ) 11,031 2,694
Interest received 162 182 425 209
Interest paid (276 ) (754 ) (575 ) (1,253 )
Income tax received/paid, net (1,448 ) (104 ) (1,448 ) (104 )
Net ca sh flows from op erat ing activit ies (32,083 ) (18,643 ) (36,876 ) (44,317 )
Investing act ivities
Purchase of tangible assets (698 ) (248 ) (885 ) (555 )
Investments in intangible assets (2,505 ) (2,232 ) (3,318 ) (5,671 )
Investments in leasehold deposits (49 ) (56 ) (49 ) (56 )
Net ca sh used in invest ing activit ies (3,252 ) (2,536 ) (4,252 ) (6,282 )
F ree cash flow (35,335 ) (21,179 ) (41,128 ) (50,599 )
F ina ncing activit ies
Capital increase 459 129,943 740 130,243
Transaction costs on issue of shares - (4,874 ) - (4,874 )
Payment of financial lease liabilities (803 ) (678 ) (1,604 ) (1,587 )
Proceeds from borrowings - (1,144 ) - -
Repayment of borrowings (498 ) (2,185 ) (22,634 ) (2,185 )
Net ca sh flows from financing act ivities (842 ) 121,062 (23,498 ) 121,597
Net chang e in ca sh and cash eq uivalents (36,177 ) 99,883 (64,626 ) 70,998
Net foreign exchange difference (205 ) (1,070 ) (173 ) (1,928 )
Cash and cash equivalents at the beginning of the period 99,053 34,598 127,470 64,341
Ca sh and cash eq uivalents at the end of the period 62,671 133,411 62,671 133,411
2nd q uarter
H1
Napatech HALF-YEAR REPORT 2026 page 9 of 17
BALANCE SHEET
ASSETS
30 J une 31 D ec. 30 June
DKK'000
Not e
2026 2025 2025
Development projects, completed 4,747 6,910 10,516
Development projects, in progress 11,822 9,226 9,940
Patents 562 691 855
Intang ib le assets 5 17,131 16,827 21,311
Plant and equipment 2,467 3,401 4,005
Right-of-use assets 4,610 6,180 7,840
Leasehold improvements 883 404 487
Ta ngible assets 6 7,960 9,985 12,332
Leasehold deposits 1,685 1,636 1,643
Ot her non- current a sset s 1,685 1,636 1,643
Non- current a sset s 26,776 28,448 35,286
Inventories 7 80,597 56,678 74,870
Trade receivables 40,064 37,733 18,051
Prepayments 4,705 4,446 4,525
Other receivables 12,638 12,350 19,814
Income tax receivable 5,563 4,830 6,253
Cash and cash equivalents 62,671 127,470 133,411
Current assets 206,238 243,507 256,924
Total assets 233,014 271,955 292,210
Napatech HALF-YEAR REPORT 2026 page 10 of 17
EQUI TY A ND LIA BI LI TI ES
30 J une 31 Dec. 30 J une
DKK'000
Not e
2026 2025 2025
Share capital 8 27,611 27,535 27,513
Share premium 608,051 606,871 606,169
Treasury shares 9 (619 ) (619 ) (619 )
Foreign currency translation reserve (863 ) (1,387 ) (1,282 )
Share-based payment reserve 22,442 25,120 23,468
Retained earnings (477,545 ) (452,827 ) (438,619 )
Equit y 179,077 204,693 216,630
Interest-bearing loans and borrowings 3,666 4,678 5,929
Other non-current financial liabilities 4,330 4,652 4,624
Non-current lease liabilities 1,713 3,349 5,000
Non-current contract liabilities 1,969 1,344 2,058
Non- current liab ilit ies 11,678 14,023 17,611
Interest-bearing loans and borrowings 2,074 23,374 34,706
Current lease liabilities 3,244 3,211 3,214
Trade payables 19,287 8,109 5,247
Other payables 13,039 12,712 11,438
Contract liabilities 4,615 5,833 3,364
Current lia b ilit ies 42,259 53,239 57,969
Total liab ilit ies 53,937 67,262 75,580
Total eq uit y a nd liab ilities 233,014 271,955 292,210
Napatech HALF-YEAR REPORT 2026 page 11 of 17
STATEMENT OF CHANGES IN EQUITY
DKK'000
Share
capital
Share
premium
Treasury
shares
Foreign
currency
translation
reserve
Share
based
payment
reserve
Retained
earnings
Total
equity
2026
Equity at January 1 27,535 606,871 (619 ) (1,387 ) 25,120 (452,827 ) 204,693
Result for the period - - - - - (31,606 ) (31,606 )
Total other comprehensive income - - - 524 - - 524
Total com prehensive income for the period - - - 524 - (31,606 ) (31,082 )
Transactions w ith shareholders
Issue of shares 76 664 - - - - 740
Reversal, exercised and lapsed options - 516 - - (7,406 ) 6,888 (2 )
Share-based payments - - - - 4,728 - 4,728
Equity at June 30 27,611 608,051 (619 ) (863 ) 22,442 (477,545 ) 179,077
H1 2025
Equity at January 1 24,999 483,062 (619 ) 553 18,946 (373,518 ) 153,423
Result for the period - - - - - (65,143 ) (65,143 )
Total other comprehensive income - - - (1,835 ) - - (1,835 )
Total com prehensive income for the period - - - (1,835 ) - (65,143 ) (66,978 )
Transactions w ith shareholders
Issue of shares 2,514 127,729 - - - - 130,243
Transaction costs - (4,874 ) - - - - (4,874 )
Reversal, exercised and lapsed options - 252 - - (293 ) 42 1
Share-based payments - - - - 4,815 - 4,815
Equity at June 30 27,513 606,169 (619 ) (1,282 ) 23,468 (438,619 ) 216,630
2025
Equity at January 1 24,999 483,062 (619 ) 553 18,946 (373,518 ) 153,423
Result for the period - - - - - (80,655 ) (80,655 )
Total other comprehensive income - - - (1,940 ) - - (1,940 )
Total com prehensive income for the period - - - (1,940 ) - (80,655 ) (82,595 )
Transactions w ith shareholders
Issue of shares 2,536 128,188 - - - - 130,724
Transaction costs - (4,954 ) - - - - (4,954 )
Reversal, exercised and lapsed options - 575 - - (1,921 ) 1,346 -
Share-based payments - - - - 8,095 - 8,095
Equity at Decem ber 31 27,535 606,871 (619 ) (1,387 ) 25,120 (452,827 ) 204,693
Napatech HALF-YEAR REPORT 2026 page 12 of 17
NOTES TO THE FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The interim condensed consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial
Reporting, as adopted by the EU, and additional Danish disclosure requirements for listed companies.
All new or amended standards (IFRS) and interpretations (IFRIC), as adopted by the EU and effective for the financial year
beginning on January 1, 2026, have been adopted. The implementation of these new or amended standards and interpretations
had no impact on the interim condensed consolidated financial statements.
The accounting policies are consistent with those applied to the consolidated financial statements for 2025.
The consolidated financial statements for 2025 contain a full description of accounting policies.
The interim condensed consolidated financial statements
The interim condensed consolidated financial statements comprise the parent company, Napatech A/S, and its subsidiary. The
subsidiary is fully consolidated from the date of acquisition and/or incorporation, the date on which the parent company obtains
control, until such control ceases. The subsidiary's financial statements are prepared for the same reporting period as the parent
company's financial statements, using consistent accounting policies. The consolidated financial statements are prepared by
consolidating the financial statements of the parent company and the subsidiary, eliminating all intragroup balances,
transactions, unrealized gains and losses, and dividends.
The interim condensed consolidated financial statements are prepared on a historical cost basis.
The interim condensed consolidated financial statements are presented in thousand Danish kroner (DKK'000).
2. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES, AND ASSUMPTIONS
The preparation of the interim condensed consolidated financial statements requires the Management to make judgments,
estimates, and assumptions that affect the reported revenues, expenses, assets, and liabilities.
The accounting judgments, estimates, and assumptions that Management makes are the same for these interim condensed
consolidated financial statements as for the consolidated financial statements for 2025.
3. OPERATING SEGMENTS
Business segment reporting has changed in H1 2026 due to enhanced focus from Management on the AI infrastructure part of
the business diverting this part from the original Core Infrastructure business of Napatech.
Previously the business segments consisted of the two segments SmartNIC products and Engineering services.
The new business segment reporting consists of the two segments Core infrastructure and AI infrastructure. The segments are
further explained in connection with the table below. Each segment includes revenue related to SmartNIC products, engineering
services and other services. According to IFRS 15, revenue from engineering services is recognized in the income statement based
on the stage of completion (over time), whereas revenue from SmartNIC products is recognized in the income statement at a
point in time. Revenue from engineering services is no longer considered a separate business segment due to change in
management focus.
Comparative figures for the segment information have been adjusted according to the new segment reporting.
The Group monitors the segments' performance at the level of gross profit. All other income statement items, as well as assets
and liabilities, are managed on a group basis and therefore not allocated to individual segments.
The following tables present revenue and gross profit information about the Group's operating segments for H1 2026 and H1
2025, respectively:
Napatech HALF-YEAR REPORT 2026 page 13 of 17
3. OPERATING SEGMENTS (CONTINUED)
Geographical segments
DKK'000 AMERICAS ROW
CONSOLI-
DATED
AMERICAS ROW
CONSOLI-
DATED
Revenue
Total revenue 46,982 37,693 84,675 38,982 16,438 55,420
- Sales of goods 46,109 37,063 83,172 36,213 16,135 52,348
- Sales of services 873 630 1,503 2,769 303 3,072
Cost of goods sold (17,312) (9,491) (26,803) (13,188) (4,335) (17,523)
Segm ent gross profit 29,671 28,201 57,872 25,794 12,103 37,897
2026 H1
2025 H1
Explanation of abbreviations:
AMERICAS = North & South America ROW = Rest of the World
The geographical segmentation is based on the location of the end-user customers, where Napatech deliver the products to.
In 2026, the method used for the geographic allocation has been refined to better reflect the location of the actual end users.
This resulted in a reallocation of revenue of DKK 4.2 million and a reallocation of cost of goods sold of DKK 0.7 million from
AMERICAS to ROW for H1 2025. The comparative figures have been adjusted.
In H1 2026, revenue from sales to customers located in Denmark amounted to 0% of total revenue (H1 2025: 0%). The Group has
material revenue from customers located in the USA. In H1 2026, sales to customers in the USA accounted for 54% of total
revenue (H1 2025: 66%).
Business segments
DKK'000
Core
Infrastruc-
ture
AI
Infrastruc-
ture
CONSOLI-
DATED
Core
Infrastruc-
ture
AI
Infrastruc-
ture
CONSOLI-
DATED
Revenue
Total revenue 82,726 1,949 84,675 52,695 2,725 55,420
Cost of goods sold (24,852) (1,951) (26,803) (17,175) (348) (17,523)
Segm ent gross profit 57,874 (2) 57,872 35,519 2,378 37,897
2026 H1
2025 H1
The AI infrastructure consists of a layer of data center architecture built around production AI workloads. This includes inference
pipeline acceleration for applications such as RAG and Mixture-of-Experts, scale-up and scale-out networking, checkpoint
acceleration, storage acceleration, and multi-tenant security. Please note, that the H1 2026 revenue and gross profit was driven
by early customer qualification orders coming at a low margin, whereas H1 2025 mainly consisted of engineering services.
The Core infrastructure segment consists of the foundational data center and network architecture that supports mission-critical
enterprise, service provider, and financial workloads. This includes cybersecurity and network security, packet capture and
monitoring, deep packet inspection, telecommunications infrastructure, financial services networking, virtualized networking,
storage and data pipeline acceleration, and secure, deterministic data movement at scale.
Each segment includes both SmartNIC, engineering services and other services.
Napatech HALF-YEAR REPORT 2026 page 14 of 17
4. EARNINGS PER SHARE
DKK'000 2026 2025
(31,606) (65,143)
Thousands 2026 2025
Weighted average number of shares for basic earnings per share 110,258 101,536
Effect of dilution:
Share options - -
Weighted average num ber of shares adjusted for the effect of dilution 110,258 101,536
Number of share options w ith potential effect of dilution:
2,644 2,987
H1
Net profit attributable to equity holders of the parent company for basic
earnings and the effect of dilution
H1
According to IAS 33, the effect of dilution from share options is not allowed to decrease the loss of earnings per share.
5. INTANGIBLE ASSETS
DKK'000
Development
projects,
completed
Development
projects,
in progress
Patents Total
Cost at 1 January 2026 205,771 9,226 5,728 220,725
Additions in the period - 3,318 - 3,318
Cost at 30 June 2026 206,493 11,822 5,728 224,043
Accumulated amortisation at 1 January 2026 198,861 - 5,037 203,898
Amortisation for the period 2,885 - 129 3,014
Accumulated amortisation and impairm ent 30 June 2026 201,746 - 5,166 206,912
Carrying am ount at 30 June 2026 4,747 11,822 562 17,131
The annual impairment test for the intangible assets will be performed on December 31, 2026. As of June 30, 2026, the
Management has assessed that there were no indications of impairment concerning the Group's intangible assets in the reporting
period.
Napatech HALF-YEAR REPORT 2026 page 15 of 17
6. TANGIBLE ASSETS
DKK'000
Plant and
equipm ent
Leasehold
improve-
ments
Total
Cost at 1 January 2026 20,232 2,121 22,353
Additions in the period 296 589 885
Presentation currency adjustment 20 - 20
Cost at 30 June 2026 20,548 2,710 23,258
Accumulated depreciation and impairment at 1 January 2026 16,831 1,717 18,548
Depreciation for the period 1,231 110 1,341
Presentation currency adjustment 19 - 19
Accumulated amortisation and im pairment 30 June 2026 18,081 1,827 19,908
Carrying amount at 30 June 2026 2,467 883 3,350
7. INVENTORIES
30 June 30 June
DKK'000 2026 2025
Consumables and components 35,954 18,771
Finished goods and goods for resale 44,943 56,099
Total inventories at 30 June 80,897 74,870
Carrying value of inventories recognised at fair value - -
The cost of goods sold also includes movements in inventory write-down. Movements in inventory write-down are as follows:
DKK'000 2026 2025
Inventory w rite-dow n at 1 January 1,163 3,090
Inventory w rite-dow n for the year 10 -
Reversal of inventory w irte-dow n - (243)
Inventory w rite-dow n at 30 June 1,173 2,847
8. ISSUED SHARE CAPITAL AND RESERVES
Authorised shares 2026 2025
Thousands Thousands
Ordinary shares of DKK 0.25 each at 1 January 110,139 99,997
Increase in ordinary shares DKK 0.25 each 304 10,057
Ordiniary shares of DKK 0.25 each at 30 June 110,443 110,054
9. TREASURY SHARES
Treasury shares have been acquired to settle share options in the Group's share option program.
Napatech HALF-YEAR REPORT 2026 page 16 of 17
10. COMMITMENTS AND CONTINGENCIES
Collaterals
The Group has issued a floating charge of DKK 40 million secured on receivables, inventories, patents, and plant and equipment
as collateral for loans.
Contingent liabilities
The Group has engaged in a contract providing engineering services with an earn-back: clause to provide a one-time rebate of
part of the consideration paid by the customer for engineering services once the Group sells a specific number of cards to the
customer. The potential rebate amounts to DKK 2.3 million. It is uncertain if the sales will exceed the threshold for the earn-back.
