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.
on 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.\