Tecnotree Corporation Half-Year Report 1 January to 30 June 2026 (unaudited)

Tecnotree Corporation Stock Exchange Release 4 August 2026 at 9.00 EEST

This release is a summary of Tecnotree Corporation’s H1 2026 Results. The complete report is attached to this release as a PDF and is also available on the Tecnotree website at www.investors.tecnotree.com.
 

Strong organic revenue growth backed by profitable operations

H1 Results

• Revenue of EUR 36.8 million (34.2) +7.5% YoY, in constant currency, EUR 37.6 million, +10.0% YoY.
• EBIT of EUR 13.2 million (9.6) +38.1% YoY.
• EBIT margin of 36.0% (28.0%).
• Foreign exchange gains of EUR 1.5 million (-4.0).
• Net income of EUR 4.5 million (2.6) +73.5% YoY.
• Free cash flow (FCF) EUR 2.1 million (2.1), +2.1% YoY.
• Earnings per share EUR 0.2 (0.2).
• Order book at the end of the period EUR 106.3 million (105.7), +0.6% YoY.

Q2 Results

• Revenue of EUR 19.9 million (17.3) +14.9% YoY, in constant currency, EUR 20.5 million, +18.5% YoY.
• EBIT of EUR 8.6 million (5.1) +70.7% YoY.
• EBIT margin of 43.3% (29.2%).
• Foreign exchange (FX) gains of EUR 0.5 million (-2.7).
• Net income EUR 2.4 million (1.0), +127.6% YoY.
• Free cash flow (FCF) EUR 1.9 million (1.1), +79.5% YoY.
• Earnings per share EUR 0.1 (0.1).

One-time expenses included trade receivables impairment charges of EUR 5.2 million.

Unless otherwise stated, all figures presented below are for the financial period 1-6/2026 and the figures for comparison are for the corresponding period in 1-6/2025.

Guidance for 2026

• Revenue is expected to grow by low to mid single-digit percentage in constant currency terms.
• Free cash flow > EUR 5.0 million for the full year.

Assumptions for 2026

• The Free Cash Flow guidance for 2026 is based on the company’s current market outlook and exchange rate assumptions, especially devaluation of US dollar against the EUR.

From CEO’s Desk:

We grew revenue, held the line on costs and let AI do the heavy lifting on delivery

In the first half of 2026, the company continued to execute its major customer programmes and maintained a stable order book. Revenue increased year on year and profitability improved, while collections continued to be affected by the geopolitical situation in the Middle East.

Revenue for the first half was EUR 36.8 million. The revenue mix reflected the execution phase of the large-scale deliveries announced in spring 2025, particularly in MEA & APAC, where delivery accounted for a higher share. License revenue is recognised at a point in time and is dependent on contractual milestones; in the first half, license timing was weighted toward the second half of the year, in line with customer decision cycles in the MEA region. The order book at the end of the period was EUR 106.3 million, reflecting continued delivery of existing programmes and the renewal and expansion of recurring contracts.

Operating performance in the first half produced EBIT of EUR 13.2 million and an EBIT margin of 36.0% (43.3% in the second quarter). This reflected operational discipline, platform scalability and the full-period effect of the rightsizing and cost-efficiency programme carried out during 2024–2025, together with increased automation of internal functions and maintenance through the company's AI-Operations (AI-Ops) capabilities. Personnel costs declined year on year while headcount increased, as hiring was directed toward lower-cost delivery and AI-augmented roles. Profitability was also favorably influenced by foreign exchange movements.

Free cash flow for the first half was EUR 2.1 million. Collections in the Middle East continued to be affected by the geopolitical situation. The company is managing the cash focus through its "Think Cash, Do Cash" programme and milestone-based invoicing. The DSO days improved to 143 (175). The remaining receivables position primarily reflects the timing of billing on large programmes.

In the second quarter, the company recognised an impairment loss of EUR 5.2 million on two trade receivables – one in Australasia and the other in the Middle East. On account of the forex crisis in the Australasian country, the older contract is being restructured into a more resilient new contract along with the Australian government. A second impairment loss to a lesser extent, relates to a receivable in the Middle East. The impairment reflects the assessed recoverability of these specific balances as at the reporting date and does not affect the company's other customer relationships or ongoing programmes.

During the first half, the company continued to develop its platform, including AI capabilities across its digital BSS stack. We continued to see growth across the regions. In North America, TELUS selected Tecnotree, together with Albion, to deliver a Value-Added Services platform. In Costa Rica, the telecommunications regulator SUTEL deployed a platform for mobile prepaid registration, incorporating identity verification and fraud-prevention capabilities.

Tecnotree expanded Gartner® recognitions across AI, monetization, B2B2X, Enterprise Pricing, across four Gartner® Communications Hype Cycles, complemented by Asian Telecom Awards, Fast Mode CX Awards wins and inclusion in the Fast Mode 100—strengthening Tecnotree's positioning in high-growth digital transformation markets.

The company continues to monitor the situation in the Middle East and to focus on maintaining stable operations and customer delivery. The company's guidance for 2026, as previously issued, remains unchanged.

I would like to thank our shareholders, customers, and my Tecnotree colleagues for their continued support and trust as we build a stronger, more resilient Tecnotree.

Webcast for investors and media

Tecnotree will webcast H1 results on Wednesday, 5 August 2026 at 10.00 a.m. EEST (Helsinki). Shareholders and potential investors are invited to pre-register for a zoom account and join the online presentation using this link: https://zoom.us/j/96196439713.
The event will be recorded, and the presentation materials will be made available on the company’s website investors.tecnotree.com.

Annual General Meeting

The Annual General Meeting 2026 of Tecnotree Corporation was held on 29 May 2026 as a virtual meeting. The Annual General Meeting confirmed the 2025 financial statements. The Annual General Meeting discharged the Board of Directors and the CEO from liability for the financial year 2025. The Annual General Meeting also approved the remuneration report of the governing bodies of the company through an advisory resolution.

The AGM also confirmed continuity in governance, with all five incumbent Board members re-elected. Tietotili Audit Oy was re-appointed as statutory auditor and sustainability assurance provider with APA Ms. Kati Lagerlind becoming principal auditor. All resolutions passed. You can read more about the AGM and decisions taken:

https://investors.tecnotree.com/en/investors/corporate_governance/annual_general_meeting_2026

Public Tender Offer for the Shares and Equity Securities of Tecnotree Corporation

On 27 January 2026, Tecnotree Corporation announced that Resilience Investment Holdings Ltd, acting on behalf of a consortium comprising Helios Investment Partners, Fitzroy Investments Limited and Padma Ravichander (the “Consortium”), has made a voluntary recommended public all-cash tender offer for all issued and outstanding shares and certain other equity securities of Tecnotree Corporation.

On 20 July 2026, Tecnotree Corporation announced the final results of the Public Tender Offer for the Shares and Equity Securities of Tecnotree Corporation:

Based on the final result of the Tender Offer, 4,961,978 Shares and 5 CCDs were tendered in the Tender Offer representing approximately 22.1 percent of all the Shares and voting rights carried by the Shares and, together with the 9,263,490 Shares held by the Offeror (including the Shares held by the consortium members), representing approximately 62.5 percent of all the Shares and voting rights carried by the Shares (excluding shares held by Tecnotree or any of its subsidiaries), calculated on a diluted basis to include the CCDs on an as-converted basis. In addition, 23,100,000 Warrants were tendered in the Tender Offer (representing 100 percent of the Warrants (including the Warrants held by the consortium members)), and 1,538,850 Options were tendered in the Tender Offer (representing 8.5 percent of the Options (including the Options held by the consortium members)). As the Minimum Acceptance Condition has not been fulfilled, the Offeror will not complete the Tender Offer.

More information on the public tender can be found at https://investors.tecnotree.com/en/tender_offer

Events after the end of the period

On 13 July 2026, Tecnotree Corporation announced that its independent Board of Directors had received a preliminary, non-binding indication of interest regarding a potential all-cash acquisition of the Company, subject to due diligence. The indication is non-binding and there is no certainty that any transaction will materialise. Details are set out in the Company's stock exchange release of 13 July 2026.
 

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Further information:
Indiresh Vivekananda, CFO, indiresh.vivekananda@tecnotree.com
Thomas Koponen, Director Investor Relations, investor.relations@tecnotree.com

About Tecnotree

Tecnotree is a global provider of IT solutions for the management of services, products, customers and revenue for Communications Service Providers. Tecnotree helps customers to monetise and transform their business towards a marketplace of digital services. Together with its customers, Tecnotree empowers people to self-serve, engage and take control of their own digital life.

Tecnotree is listed on Nasdaq Helsinki (TEM1V). For more information, please visit

www.tecnotree.com.