Modulight: Significant customer project advances toward commercialization

Modulight Corporation | Company Release | August 21, 2026 at 10:30:00 EEST

This release is a summary of Modulight's half-year financial report for January-June 2026. The whole report is attached to this stock exchange release as a pdf file, and is also available on the Modulight website at https://modulight.com/reports-presentations/.

The figures in brackets refer to the corresponding period of the previous year. This half-year financial report is unaudited.

Highlights in April–June 2026

• In one Phase 3 study, the planned patient enrollment was completed ahead of schedule. The R&D pipeline grew to 36 (32) projects, remaining at the same level as at the end of Q1. Several projects progressed well.
• The positive impact of our in-house semiconductor production increased across several customer accounts and is reflected in growing customer interest.
• Revenue was EUR 1,604 (1,962) thousand.
• EBITDA was EUR 37 (-43) thousand.
• EBITDA margin was 2.3 % (-2.2) % of revenue.
• Operating result (EBIT) was EUR -1,346 (-1,055) thousand.
• Operating result margin (EBIT-%) was -83.9 % (-53.8) % of revenue.
• Result for the reporting period was EUR -1,366 (-1,110).
• Operating cash flow was EUR 22 (-478) thousand.  
• Net cash flow was EUR -1,283 (-2,199) thousand.
• Earnings per share was EUR -0.03 (-0.03).

Highlights in January–June 2026

• Revenue was EUR 3,099 (3,568) thousand.
• EBITDA was EUR 367 (-625) thousand.
• EBITDA margin was 11.8 % (-17.5) % of revenue.
• Operating result (EBIT) was EUR -2,410 (-2,640) thousand.
• Operating result margin (EBIT-%) was -77.8 % (-74.0) % of revenue.
• Result for the reporting period was EUR -2,324 (-2,726) thousand.
• Operating cash flow was EUR 841 (-1,808) thousand.
• Net cash flow was EUR -1,757 (-5,066) thousand.
• Earnings per share was EUR -0.05 (-0.06).

 
Key figures

¹⁾ Audited
²⁾ Figure refers to the end of the review period

Outlook for 2026 unchanged

Modulight estimates that the company’s revenue and profitability will increase compared with the previous year.
 
On 21 April 2026, Modulight Corporation announced that, as of that date, it would begin providing financial guidance regarding its revenue and EBITDA. The purpose of the guidance is to increase transparency and improve the predictability of the company’s financial performance for investors and other stakeholders. The guidance reflects management’s expectations regarding the company’s financial performance and is based on the information available at the time of publication. The company will update or revise its guidance, as necessary, in connection with its interim reports or in the event of material changes.

Most of Modulight’s customer projects are various types in the early stages of development. These projects are focused on commercializing Modulight’s own products. The progress of individual projects is difficult to predict, and macroeconomic and geopolitical uncertainty continues to impact market development and the company’s revenue. In line with its strategy, Modulight is also transitioning from device delivery-based payments to a new treatment session-based payment model (PPT business model). In 2025, the number of PPT sites increased to 80, and the business grew rapidly. Strong growth has continued in 2026; however, the pace of the transition remains difficult to assess.

Seppo Orsila, CEO

Projects in the company's R&D pipeline progressed well, and I am especially pleased that in one Phase 3 study the patient enrollment was completed ahead of expectations. We worked on a broad front, particularly in prototype deliveries, while completing important patient recruitments in clinical studies. Order intake did not meet our expectations, as the follow-up phases of a few projects were postponed. On the other hand, the activity of certain globally significant companies strengthened our R&D pipeline and our medium-term potential, and at the same time we were approved as an official supplier to one of the largest semiconductor companies. After the end of the period, this has also led to potential new projects. Order intake has picked up during the summer.
The company's EBITDA increased and cash flow improved despite the decline in revenue. Profitability continued to improve and remained positive despite the 18% decrease in revenue compared to the corresponding period. The improvement in profitability was the result of a better margin structure on certain products and increased operational efficiency. The development of profitability was also supported by the renewed PPT pricing model for certain projects. Profitability improved despite our proactive investments in customer relationships and the increasing volume of low-priced prototypes sold to large customers. The decline in revenue was also attributable to a growing number of early-stage prototypes delivered to large customers and their increasing share of total revenue. Certain large companies require prototypes to be delivered at mass-production prices, whereas, with small and medium-sized companies, prototype sales have historically carried a good margin. Nevertheless, we considered this justified due to the significant short- and long-term potential of these customer relationships.

Our cost structure has remained healthy and continues to improve, and we will continue taking measures to enhance operational efficiency. The diversification of the customer portfolio, together with the progress of projects and the increase in their number, supported our development, although they also resulted in additional costs. Our EBITDA margin increased to 2.3% during the second quarter, with EBITDA improving by 185% to EUR 0.4 (-0.4) thousand. Particular credit for this goes to our technical team, which has spent the past few years developing our laser platform solutions so that it can be adapted to an increasing number of applications with only minor configuration.

Our product platform is suitable for a wider range of customers and, as mentioned above, we have focused particularly on initiating productization projects with leading companies in their respective industries. The amount of configuration required continues to decrease, while we have also continued our long-term development activities. The development of our financial performance and customer relationships clearly demonstrates the versatility of our product platform and the effectiveness of our investments, while also reinforcing our view on the scalability of the business. Customer audits have consistently progressed smoothly, and their number continues to grow. Several customers have emphasized the importance of these audits in the transition toward the production phase. The audits have generally resulted in positive customer feedback and, most importantly, the initiation of new projects and the identification of new potential opportunities.

Pay-Per-Treatment (PPT) business continued its triple-digit growth in Q2/2026, and in H1/2026 it was +137% compared with the corresponding period. We also successfully revised the pricing structure and introduced greater long-term predictability into the contractual structure, which is expected to support profitability going forward. The sales team did an excellent job in this respect, creating additional value for both us and our customers through the development of the contractual structure. This is important as the business matures and as the treatments transition into approved treatment modalities. As previously stated, for certain products, PPT already generates more revenue than the previous business model would produce.

Our R&D pipeline grew to 36 projects compared with 32 a year earlier. The increase came entirely from projects initiated with large corporations, which rank among the world’s largest companies in their respective industries. The increased interest that began last year, particularly regarding our in-house semiconductor manufacturing capabilities, continued. The global increase in AI investments is being reflected frequently in discussions with customers. In particular, indium phosphide technology and the related manufacturing processes are mastered by relatively few companies worldwide and require significant specialized expertise. Modulight has extensive experience with this technology, dating back to company’s establishment, which has resulted in inquiries from both existing and new customers, especially in North America but also in Europe. Based on information received from our customers and from our own raw material suppliers, end customers have committed to very substantial increases in production volumes this year and next year. This creates two types of business opportunities for us, particularly due to our manufacturing facility and process expertise, which are unique in a European context.

The role of Modulight's own vertically integrated manufacturing facility continues to grow in importance, and the competitiveness of our technology platform remains strong in the industries mentioned above. Geopolitics have clearly shifted in favor of our business compared with the negative impact they had four years ago. The majority of our projects are structured so that the customer makes a long-term commitment to Modulight as its sole technology partner. The United States remains the company's primary focus and our operations there continue to develop, while business is also increasingly coming from other regions, particularly Europe. We have continued to advance local production in the USA. We see attractive opportunities in flow cytometry, microscopy, the semiconductor industry, quantum technology, and the defense industry. Across all these areas, our customers include globally significant companies and in some cases even some of the largest companies in the world. During the quarter, we also initiated several interesting new projects, including in the semiconductor industry, where our lasers appear to be particularly well suited.

The objective for our 2026–2027 strategy period is strong annual revenue growth and a return to strong profitability. In addition, we aim to achieve positive cash flow by the end of the strategy period. We expect quarterly fluctuations to continue, but the diversification of the customer base and the increasing maturity of projects give us confidence in long-term growth this year and during the strategy period. Our growth strategy is progressing in the right direction, but we still need slightly more time. We have improved our operational efficiency and have also paid particular attention to ensuring the adequacy of our cash resources.

Financial reporting in 2026

In 2026, Modulight will publish the following financial reports:

• Interim report: January–September 2026: October 23, 2026

Webcast
Modulight's CEO Seppo Orsila will present the result in an English-language webcast, which will be held on August 21, 2026, at 12:00 p.m. EEST. Registration and access to the webcast are available through the following link:
https://modulight.zoom.us/webinar/register/WN_qPozoMDRQGWmbtUnDbWagQ. Questions are to be submitted in writing in the webcast portal. CFO Anca Guina will also be present to answer questions. Presentation materials will be available before the start of the event on the company’s website at www.modulight.com/reports-presentations/.

For further information, please contact:

CEO Seppo Orsila, m. +358 40 830 4671
IR Ulla Haapanen, m. +358 40 830 4676
Email: ir@modulight.com

Certified adviser: Sisu Partners Oy, m. +358 40 555 4727
 
modulight.com
@modulight

Modulight in brief

Modulight Corporation is a life science company that designs and manufactures laser devices for the treatment of cancer and eye diseases. The company also manufactures products for other high value-add applications including flow cytometry, microscopy, semiconductor, quantum, and defense. The company’s products include medical devices, subsystems, software, cloud services, and specialized semiconductors. Modulight’s products are used worldwide by many Fortune 500 companies, pharmaceutical companies, and well-known cancer centers and universities. Modulight was founded in 2000 and is headquartered in Tampere, Finland.

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