iZafe Group's Quarterly Report Q4, October-December 2025

STOCKHOLM, SE / ACCESS Newswire / February 16, 2026 / iZafe Group AB (publ.)(STO:IZAFE-B) today, February 16, publishes its report for the fourth quarter.

Financial Performance in Summary

• The Group's total net sales for the quarter amounted to 2,435 TSEK (2,345) and consisted entirely of recurring license revenues, with no hardware sales during the period. This is in contrast to the corresponding quarter of the previous year, when revenues were largely derived from hardware sales. The development demonstrates that iZafe Group has now established a business model focused on recurring revenues. During the quarter, the Group also began consolidating revenues from the Dutch operations, contributing to net sales and strengthening the recurring revenue base. At the beginning of 2026, the Group's annual recurring revenue (ARR) amounted to approximately 10 MSEK, in line with the Company's previously communicated target.

• Operating result (EBIT) for the quarter amounted to -5,714 TSEK (-5,679).

• Earnings before depreciation and amortization (EBITDA) for the quarter amounted to -3,888 TSEK (-4,174). The result represents an improvement compared to the previous year but was during the quarter impacted by the consolidation of the Dutch operations as well as increased investments to support the positive business development and continued growth.

• Result after financial items for the quarter amounted to -4,971 TSEK (-5,908).

• Cash flow from operating activities for the quarter amounted to -2,940 TSEK (-178).

• Earnings per share for the quarter before/after dilution amounted to -0.01 SEK (-0.02).

• Equity per share at the end of the period amounted to 0.03 SEK (0.04).

• The equity ratio at the end of the period was 32.8% (40.1%).

Significant events during the quarter

• iZafe Group AB (publ.) has entered into a distribution agreement with Skand ehf regarding the launch and sale of the Dosell medication dispensing device in Iceland. The agreement represents a step in the Company's Nordic expansion and entails that Dosell is established in an additional European market. As part of the agreement, Skand ehf has placed an initial order of 300 Dosell units with planned delivery during 2026, which, once fully activated, is expected to generate annual recurring revenue (ARR) of approximately 2-3 MSEK.

• iZafe Group AB (publ.) has entered into a strategic partnership with Vakt og Alarm AS regarding the distribution, installation and support of the Dosell medication dispensing device in Norway. As an initial outcome of the collaboration, the parties have jointly won a public procurement covering six municipalities and an initial volume of approximately 100 Dosell units. The agreement is planned to enter into force on 1 February 2026 following the expiry of the standstill period.

• iZafe Group AB (publ.) announces that all participants in the Company's long-term incentive program, LTIP 2023, have exercised their Series A warrants for subscription of shares in the Company. Through the exercise, the Company receives subscription proceeds of approximately 0.26 MSEK and the number of Class B shares increases by 5,271,918, corresponding to a dilution

Significant events after the end of the quarter

• iZafe Group AB (publ.) has launched a modular external Display for Dosell as well as a new remote care system with a web interface and mobile application. The launch means that Dosell is further developed into a more flexible and scalable solution that can be adapted to different user needs. The Display and the remote care system are planned to be made available gradually during 2026, and the commercial impact will depend on customer needs, procurement processes and the pace of implementation.

FORECAST
In this report, we present a forecast chart illustrating our expected growth in both ARR and active Dosell units in the coming years. The forecast is based on our current markets and key metrics and shows a clear path toward continued strong growth in recurring revenues as more units are activated.

At the beginning of 2026, our ARR amounted to approximately SEK 10 million, representing an increase of 488 percent compared with the previous year. During 2026, this growth is expected to accelerate further, with ARR forecasted to reach SEK 22.5 million by year end, an increase of 125 percent. We will follow up on this forecast quarterly to provide you as shareholders with a clear picture of our actual development and how we are progressing toward our financial targets.

Comments from the CEO
2025 has been the year in which iZafe Group firmly established its scalable business model. The fourth quarter confirms this in the numbers. Net sales for the quarter amounted to 2,435 TSEK and consisted entirely of recurring license revenues. We have thereby transitioned from a period in which hardware deliveries dominated revenue to a business now fully driven by subscription-based income.

We enter 2026 with approximately 10 MSEK in annual recurring revenue, in line with our previously communicated forecast for the fourth quarter. This marks an important milestone in the Company's development and demonstrates that our strategy is delivering results.

Today, we are a company fully focused on building annual recurring revenue (ARR). First, we deploy our units with customers. Thereafter, a stable ARR base develops, generating margins and long-term predictable earnings.

A growing customer base with built-in scalability
Today, we have more than 30 municipalities in Sweden and 29 active customers in the Netherlands. Sweden and the Netherlands are our two prioritized core markets and represent significant growth potential going forward. Our established customer base provides a stable and scalable platform for continued expansion.

Nordic and international expansion
During the quarter, we further strengthened our Nordic presence through new partnerships in Norway, Iceland and Finland. These are important steps that confirm the scalability of our model beyond our original markets.

In the Netherlands, we have fully integrated the operations following the acquisition of our former distributor. This provides improved control, a higher revenue share per unit and a clearer growth platform. In 2026, we plan to continue investing in the Dutch organization to accelerate development in the Dutch market, which is the largest in Europe in terms of the use of dose-dispensed medication pouches.

We see clear and growing interest across several European countries for secure and connected solutions for medication management in the home. Our position continues to strengthen through both partnerships and direct market presence.

Product development driving competitiveness
Dosell continues to evolve in line with our growth, which is essential to meet increasing customer requirements and strengthen our market position. After the end of the reporting period, we launched a modular external Display for Dosell as well as a new remote care system with a web interface and mobile application. This makes Dosell more flexible and adaptable to different user needs. With this launch, Dosell together with the remote care system has achieved MDR Class I compliance, strengthening our competitiveness in public procurements and larger contracts.

Outlook and the road ahead
The forecast previously communicated remains unchanged. With an entry level of approximately 10 MSEK in ARR, we enter 2026 with a stable and growing base.

During 2026, we will focus both on expanding our customer base and on increasing the penetration rate among existing customers. While we have won several new customers, the real leverage arises when we increase the number of active units within existing municipalities and customer organizations. As Dosell demonstrates clear value in daily operations, we see usage gradually expand, where customer satisfaction drives both higher penetration and new business opportunities through references and procurements.

An important factor during 2026 is the ongoing ADDA procurement process. The outcome has not yet been communicated, but we see significant strategic value in Dosell potentially becoming part of the framework agreement. Such an outcome would further strengthen our position in the Swedish market and facilitate adoption for a large number of municipalities. However, our current forecast does not include this agreement.

We are operating in a strong phase of development. Our business model is established. Our recurring revenues are growing. Our customer base continues to expand. Our product platform is broader, more flexible and better positioned for continued growth.

We have laid the foundation. In 2026, we continue to scale.

I would like to extend my sincere thanks to our employees, partners and shareholders for your continued trust. The journey continues, and we enter 2026 with focus, structure and a clear ambition for growth.

Anders Segerström
Chief Executive Officer, iZafe Group

Contacts

Anders Segerström, Chief Executive Officer
E-mail: anders.segerstrom@izafegroup.com
Phone number: +46 70-875 14 12

iZafe Group AB (publ.)
David Bagares gata 3
111 38 Stockholm

E-mail: ir@izafegroup.com
www.izafegroup.com
eucaps.com/izafe-group

About iZafe Group AB (publ.)

iZafe Group is a Life Science company that conducts research, development and marketing of digital medical solutions and services for safer medication management at home.

The company leads the development of digital drug dispensing through the drug robot Dosell as well as the SaaS solution Pilloxa with the smart pillbox. The company's solutions reduce the risk of incorrect medication in the home, increase compliance, relieve public health care, increase the quality of life for patients and create a safer environment for relatives.

The customers consist of private individuals, pharmaceutical companies and public and private healthcare providers in Sweden, the Nordics and globally. iZafe Group primarily sells through well-established partners who already have long and deep customer relationships with the prioritized customer groups. The head office is in Stockholm.

iZafe Group AB has been listed on the Nasdaq First North Growth Market since 2018. The company's Certified Adviser is DNB Carnegie Investment Bank AB. Further information is available at www.izafegroup.com

This information is information that iZafe Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-02-16 08:30 CET.

Image Attachments

Q4 2025

Attachments

Interim Report Q4 2025
Q4 2025 CEO interview

SOURCE: iZafe Group