Serstech

Fourth Quarter Report 2025

SERSTECH GROUP, 1 OCTOBER – 31 DECEMBER 2025

• Net sales amounted to KSEK 6 375 (13 326)
• EBITDA amounted to KSEK -8 255 (-1 515)
• EBIT amounted to KSEK -10 364 (-3 725)
• Cash flow from operating activities amounted to KSEK -5 461 (3 645)
• Earnings per share amounted to SEK -0.04 (-0.02)
• Earnings per average number of shares amounted to SEK -0.04 (-0.02)

SERSTECH GROUP, 1 JANUARY – 31 DECEMBER 2025

• Net sales amounted to KSEK 38 595 (52 262)
• EBITDA amounted to KSEK -20 908 (-1 199)
• EBIT amounted to KSEK -29 246 (-9 040)
• Cash flow from operating activities amounted to KSEK -28 015 (562)
• Earnings per share amounted to SEK -0.12 (-0.04)
• Earnings per average number of shares amounted to SEK -0.12 (-0.04)

Message from the CEO

As a smaller company selling primarily through public tenders to government organizations worldwide, Serstech is particularly sensitive to geopolitical and macroeconomic developments, such as the pandemic and uncertainty related to tariffs. This became evident in 2025, when threats of new tariffs effectively halted incoming orders for more than half of the year. As customers were unable to anticipate which bidders would be affected, or to what extent, many chose to postpone tenders until greater clarity had been achieved. Consequently, Serstech experienced limited order intake during the first seven to eight months of the year, which naturally had a significant impact on both revenue and profitability. Total sales in 2025 amounted to 38.6 MSEK.

Despite sales being lower than anticipated, we reached several important strategic milestones during the year. Our in-house production is now fully operational alongside the continued production by our trusted manufacturing partner. This dual setup not only eliminates single-source risk in our supply chain but also enables a significant reduction in cost of goods sold. We expect our average gross margin in 2026 to improve by approximately ten percentage points compared to 2025 and to continue improving in the years thereafter. Our long-term goal of achieving an 80% gross margin remains unchanged, and we have now taken several major steps toward reaching this important target.

The closure of our Romanian subsidiary was completed in Q2 and has delivered the expected results, with both lower costs and increased R&D productivity. Our budgeted R&D spending for 2026 is slightly lower than in 2025, while we still expect to further accelerate development output. In Q3, we launched our investment in artificial intelligence, which has elevated our product performance to a level we believe surpasses that of many competitors. Handheld Raman spectroscopy is particularly well suited for AI applications, as the instruments must process very large volumes of noisy data that exist in virtually infinite variations. To our knowledge, no competitor currently offers comparable technology.

Until 2025, our main limitation in driving sales was product performance relative to competing solutions. This is no longer the case, and we have therefore begun to invest significantly more in sales. Throughout the year, we have seen a steady increase in our opportunity pipeline, and the combination of strengthened sales capabilities and improved product performance has encouraged us to set ambitious financial targets for the coming five years. Our goal is to achieve an average annual sales growth exceeding 30% through 2030. We expect our EBITDA margin to surpass 20% in 2027 and to improve further each subsequent year.

Serstech has invested heavily in R&D over the past eight years, and particularly in 2025. From 2026 onward, our focus will increasingly shift toward sales and marketing. With a larger sales organization in place since the second half of 2025, high-performing products, and in-house production fully operational, we believe we can substantially increase sales volumes while only marginally increasing OPEX. In 2026, we expect to return to strong and profitable growth.

Stefan Sandor, CEO
February 2026

For further information, please contact:
Stefan Sandor,
CEO, Serstech AB Phone: +46 739 606 067
Email: ss@serstech.com
or
Thomas Pileby,
Chairman of the Board, Serstech AB Phone: +46 702 072 643
Email: tp@serstech.com
or visit: www.serstech.com

This is information that Serstech AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above at 08:45 CET on February 27, 2026.
Certified advisor to Serstech is Svensk Kapitalmarknadsgranskning AB (SKMG).

About Serstech
Serstech delivers solutions for chemical identification and has customers around the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organizations and first responders. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech’s solution. Serstech’s head office is in Sweden and design, development and production are done in Sweden.
Serstech is traded at Nasdaq First North Growth Market and more information about the company can be found at www.serstech.com

Attachment

• Serstech Group - Q4 report 2025