C-Rad AB Aktie

Welcome to the C-RAD Q4 2025 Report Presentation.

[Operator Instructions]

Now I will hand the conference over to CEO, Tomas Blomquist, and CFO, Linda Frolen. Please go ahead.

Thank you, and good morning, everyone. Welcome to C-RAD's presentation of our results for the fourth quarter and full year 2025. I'm Tomas Blomquist, CEO of C-RAD, and joining me today is our CFO, Linda Frolen.

I will begin with a brief introduction and perspective. After that, Linda will walk through the financial and regional performance, and we will then open up the call for a Q&A session. This is my ninth day and first quarterly webcast as CEO of C-RAD, and I would like to begin by saying that I'm very happy and humbled to take on this role. I also would like to thank the Board for its confidence and I want to express my sincere appreciation to our interim leadership team, Linda Frolen, Johan Danielsson and Board member, Peter Simonsbacka for their disciplined and professional leadership during the transition. Their work ensures stability and continuity and provides a strong foundation as we move into the next phase of C-RAD development.

For those of you who do not know me, I have spent more than 30 years in Life Science, Diagnostics and Medtech, including over 2 decades in global leadership grows and 5 years as the CEO of a NASDAQ-listed large cap company. Throughout my career, my focus has been on building profitable growth companies with exceptional people through clear priorities strong execution and high-performance cultures. What attracted me to C-RAD was the combination of clinically relevant technology, a growing end market and solid fundamentals including a strong balance sheet, stable gross margins and a committed organization and Board. My leadership philosophy is pragmatic and execution driven. I believe in clarity, accountability and teamwork built on trust. High-performing organizations are created when expectations are clear, responsibilities are owned and teams are empowered to challenge constructively, always with a shared focus on delivery and outcomes and on our customers.

As I step into this role, my initial priority is to listen and learn, to deeply understand our organization customers, products and markets. At the same time, it is clear to me that the next phase of C-RAD will be defined less by ambition statements and more by consistent execution converting our strength into measurable and repeatable results. C-RAD is well positioned in an attractive niche, but we are not yet realizing our full potential. Going forward, our focus will be on strengthening commercial execution, simplifying and strengthening our organization where needed and ensuring that our organization processes and decision-making structures support scalable and sustainable growth. With that, I will now hand over to our CFO, Linda Frolen, who will review the financial performance for the quarter.

Thank you, Tomas. The performance in the quarter varied across regions. In constant currencies, order intake for the group declined in Q4 by 4% year-on-year. The Americas showed growth and was a positive contributor. The decrease was mainly driven by fewer product orders in APAC, reflecting a more difficult market environment in the region. In EMEA, we saw growth in product orders, which could not fully compensate for the decline in services. Revenue for the group was down 6% year-on-year in constant currencies. Americas showed strong growth versus last year with increased revenues in both products and services. The decline was primarily related to slower product deliveries in APAC. As the service business is a smaller part in APAC, delays in project deliveries have a more pronounced impact on total revenue in the region with a lower share of recurring revenues.

In summary, regional development in Q4 was uneven, with strength in the Americas, stability in EMEA and continued headwinds in APAC. While we continue to see some uncertainty in America still with some slow decision-making, the quarter marked an important milestone with the first deliveries of our entry-level system, Catalyst+LITE. In addition, reimbursement codes supporting active motion management are helping to underpin demand. As a result, order intake for the region increased by 7% year-on-year, and revenue grew strongly compared to last year. EMEA delivered a solid performance despite tough year-on-year comparisons. Momentum remained good, supported by continued end user engagement, including customer meetings and ongoing reference building. Order intake declined slightly versus last year, while revenue was broadly stable and slightly up. Finally, APAC, a region with strong comparison figures for '24. The region was weak in Q3 and continued to face challenging conditions with longer sales cycles and increased competition. This is reflected in a sharp decline in order intake for the quarter and a significant decline in revenue in the region.

Gross profit for the quarter was SEK 75 million compared to SEK 80 million a year ago. Gross margin development continued to be positive with an increase from 66% in Q4 last year to 71% in this quarter. The increase year-on-year is explained by the higher share of service revenue in this quarter, and a favorable market mix as we have a higher share of our total revenue in Americas this quarter and a lower share from APAC. We also had some proton revenues in this quarter, which we did not have in the fourth quarter of last year. But the main driver behind the increased margin is the increase in services and the geographical mix. Looking at our operating expenses after capitalized expenses and adjusted for one-off items. You see to the left of this chart that they increased 8% year-on-year from SEK 56 million last year to SEK 60 million in this quarter. The increase year-on-year is mainly due to increased number of employees. These are mainly within sales, product development and services where we have gradually exchanged consultants with own employees.

The additions are deliberate and support our strategic priorities and growth ambitions. We also have somewhat increased other OpEx, which relate to increased travels and higher costs for freight and customs. To the right of the slide, you see that quarter-on-quarter OpEx is up from SEK 58 million in Q3 to SEK 60 million in this quarter. The increase is related to lower personnel expenses in Q3 due to summer holidays. We have reduced our annualized cost base by SEK 23 million from the peak level of SEK 253 million in Q3 of '24. Importantly, despite the recent increases, we will remain a sharp focus on running the organization as efficiently as possible. At the same time, as we increase our focus on innovation and product development, underlying OpEx may increase slightly. These increases are targeted and strategic. And as initiatives approach the commercialization phase, the capitalization rate is expected to increase, partly offsetting the OpEx impact.

EBIT for the fourth quarter adjusted for unrealized FX and one-off items was SEK 11 million compared to SEK 21 million a year ago, and the margin reached 11% versus 17% a year ago. The decrease for this quarter is mainly explained by fewer product deliveries that put pressure on margins, coupled by somewhat higher expenses. As already said, we remain focused on running our operations as efficiently as possible. At the same time, we need to balance this with initiatives that support future growth. Our cash balances increased by SEK 20 million during 25 million and stood at SEK 171 million at year-end, compared to SEK 151 million at the beginning of the year. Repurchase of shares were made during Q4 of SEK 12 million. Cash flow from working capital was SEK 16 million in the quarter, which is a great improvement from last year when it was SEK 3 million. Altogether, our operating cash flow remained solid and positive, amounting to SEK 21 million in Q4 SEK 71 million for the full year, reflecting continued focus on cash discipline.

And as you know, we have had orders on our balance sheet that have been awaiting final acceptance test and that have, therefore, been waiting to be invoiced. These are down 19% since last year and will continue to be in focus going forward, as well as our overall focus on our balance sheet and our cash flow. I would also like to remind you that C-RAD is a company with a strong balance sheet with no long-term debt. And with that, we will hand over back to the moderator for Q&A.

[Operator Instructions]

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you. To conclude, I would like to briefly outline how I view the coming months and my approach. My first 100 days as CEO are centered around 3 priorities. First, building a deep fact-based understanding of the business and strengthening relationships across the organization and with key external stakeholders. Second, working closely with the management team and the Board to sharpen priorities and ensure alignment. Third, establishing the structure, pace and accountability required to support disciplined organic growth and efficient organization and over time, selective inorganic opportunities.

C-RAD has a clear strategic direction, a relevant product offering and a strong position in a growing market. Our task now is execution, reducing complexity where appropriate, strengthening ownership and ensuring that we consistently deliver on our commitments. I approach this role with humility, energy and ambition. Humility in respect of the complexity of the business and the work already done. Energy to engage fully with the organization, our customers and our partners. And ambition to help C-RAD realize its full potential. As an ending note, I really would like to thank our global team, customers, partners and shareholders for your continued support. I look forward to working together as we take the next steps in C-RAD's development. Thank you for joining us today. We look forward to sharing our initial 100-day observations and reporting our Q1 2026 results on May 6. Take care.

Welcome to the C-RAD Q3 2025 Report Presentation. [Operator Instructions]

Now I will hand the conference over to CFO and Acting CEO, Linda Frölén; and Deputy CEO, Johan Danielsson. Please go ahead.

Thank you, and welcome to our Q3 presentation. This time, the presentation will be somewhat different compared to what you have seen before. The agenda will be key takeaways from the quarter, followed by some comments on the regional performance. After that, Johan will present the service business, and then we will conclude with the financials.

And with that short introduction, let's look into the takeaway Q3. The performance in the quarter varied across regions. Order intake grew 11% and revenue grew 16% in constant currencies. The increase in both order intake and revenue were driven by the performance in EMEA together with our services business. We saw a positive EBIT development and the operating margin increased to 19% in the quarter. Important drivers behind the increase are favorable market mix, coupled with a strong contribution from services, which Johan will talk more about in just a minute. And we also have some onetime adjustments affecting our cost of goods, which will be explained in the financial section. As you know, cash has been a focus area, and we had a strong operating cash flow in the quarter, which amounted to SEK 24 million.

And with that, let's look into the regional performance. Starting off with the Americas. Both order intake and revenue declined. Order intake was down 40% and revenue followed with a 15% drop. This reflects market uncertainty and slower decision-making, and we are not satisfied with the performance in the quarter.

Moving over to EMEA, which clearly stands out, showing continued good momentum. Order intake increased by 112% and revenue grew 52%. Our position in Central Eastern Europe was further strengthened by the SEK 10 million Czech Republic multisite product and services contract. Finally, in APAC, a region with strong comparison figures for '24, order intake declined 16% and revenue had a 3% decline. The lower order intake was mainly related to Japan and Hong Kong, while other markets in the region were more stable.

And with that, I will hand over to Johan for a closer look at services.

Thank you, Linda. So we want to take this opportunity to speak more in detail about services compared to what we have done before as it is a key offering, and we are very focused on growing this part of the business.

So as you can see here on the figures and on this slide, our results demonstrate a continuously growing service business with increasing revenues from service contracts over the last 2.5-year period. The figure on the left shows the quarterly service percentage of C-RAD total revenues, again, increasing trend over the years. And on the right-hand side, you have a rolling 12-month service revenue contribution, which in this quarter generates about SEK 90 million plus. And as mentioned before, our contracts are typically in the range of 3 to 5 years and renewed on expiration unless systems are upgraded into latest generation of technology.

With that said, we can move to the next slide, where to give you a better view of what we deem as services. So the mission of scope for global services is that once a commercial agreement is made with the customer and we have confirmed the order, the service organization takes on the project management and supervise order fulfillment process, including technical installation of the products in the customer clinics, but we also perform application training for the end users so that they are able to actively use and apply the system to their patients.

So we have taken over the last 2 years to optimize both phases, both the technical installation part, but also the application training part to reduce the time we need in the field to complete an installation and finally perform an acceptance test, which is the final system handover to the customer and also the start of the warranty period. The application training in itself, we have revamped over the last year to provide much level access of -- and to our technical trainers and our clinical specialists so that the customers really become very enabled and long-term successful in their use of our systems.

So that said, one key driver for the business and for the customer success is to have long-term service contracts. So if we go forward, this gives you an overview of the services life cycle. So as mentioned before, once the acceptance test is and system is hand over, the warranty period starts and then it is followed typically by a 3- to 5-year contract. And we have multiple options here for the different customer demands and needs, what is included in each contract. But typically, we supply a premium contract, which has a very extensive coverage in both technical and clinical support.

Once these contracts expire, then the contracts are normally renewed unless the systems are upgraded to the latest generation technology. And if that happens, obviously, the warranty period starts all over with the service contract and renewal phase following. So this is the general life cycle, and this is how the business is running over a typical contract period. And in the end, we want our customers to be very enabled and also very successful able to share their knowledge with their peers in the industry.

Thank you, Johan. So I will now take you through some of the main financials for our third quarter with focus on gross margin, cost levels, earnings and cash flow. Gross profit for the quarter was SEK 83 million compared to SEK 73 million a year ago. The gross margin for the quarter was 74% versus 73% last year. The margin in this quarter is considered to be temporarily high. The increase year-on-year is explained by the higher share of service revenue in the quarter and a favorable market mix. The gross margin was also affected by positive onetime adjustments primarily related to repayments of license fees in the cost of goods. Our assessment is that the underlying gross margin for the quarter is in the high 60s compared to 67% in the previous quarter, meaning Q2 of this year. We had no proton revenues in the quarter, which we did have in the third quarter of last year.

Looking at our main operating expenses, you see to the left of the chart that they increased 12% year-on-year from SEK 54 million last year to SEK 60 million in this quarter. The increase in year-on-year OpEx is mainly due to 2 factors. The first one is the ASTRO Congress, which took place in Q3 this year, but Q4 last year. And we also lowered our full year bonus provision in Q3 last year. To the right of the slide, you see that quarter-on-quarter OpEx is down from SEK 61 million in Q2 to SEK 60 million in this quarter. The decrease is related to lower personnel expenses in the quarter due to summer holidays, which were partly offset by higher costs for marketing, meaning ASTRO.

We are monitoring our cost levels closely, and we are happy to see that our efficiency measures are showing results. Our yearly OpEx levels are down by SEK 25 million from the peak in Q3 last year, and we have now reached a more stable level. Worth noting regarding the higher figure in this quarter is, as I already mentioned regarding ASTRO, that it includes costs from 2 conferences, both Q4 of last year and Q3 of this year. EBIT for the third quarter was SEK 21 million compared to SEK 17 million a year ago. The increase in EBIT for this quarter is explained by several factors pointing in the right direction. We have higher revenue, higher gross margin and stable operating expenses. I can also mention that unrealized currency effects in this quarter were only minor. And as I said last quarter, our increased focus on smart spending is moving us in the right direction.

Looking back a few quarters, C-RAD shows continuous improved earnings and an increased profitability over time. With this development as a foundation, we are well equipped to continue to grow as we believe we can increase the EBIT margin even more over time according to our medium-term financial targets, even if we may have short-term deviations. Our cash balances increased by SEK 15 million during the quarter and stood at SEK 173 million at quarter end compared to SEK 158 million at the beginning of the quarter. Cash flow from working capital was flat in the quarter, which is a great improvement from last year when it was SEK 37 million negative. Total operating cash flow was with this improvement, SEK 24 million positive compared to negative SEK 17 million last year.

A few orders on our balance sheet that have been awaiting final acceptance tests have been paid during the quarter and many have also been invoiced after completed acceptance tests. Some of these are expected to be paid during Q4. I would also like to remind you that C-RAD is a company with a strong balance sheet with no long-term debt. And as you know, we communicated yesterday that the Board have decided on a share repurchase program in order to optimize C-RAD's capital structure.

So the next steps. As you also know, we have communicated management changes, and we now have a smaller executive management team to complement C-RAD's current leadership team. This smaller group consists of Johan and myself, but also Peter Simonsbacka, who is a Board member and previously had the position as Chief Commercial Officer at AddLife. I would like also to remind you of our strategy. This newly formed executive management team will, as stated in the press release, focus on accelerating the level of activity supporting our strategy and our financial targets. Meaning, increased sales growth, focus on product innovation and growing the service offering.

And with that, over to the moderator for the Q&A session.

[Operator Instructions] The next question comes from Christian Lee from Pareto Securities.

Linda, you mentioned that the gross margin adjusted for the one-off items would have been high 60s. And you also mentioned that you had 67% in Q2. So does this imply that the adjusted gross margin in the third quarter was higher than what you had in Q2?

Yes.

Okay. And your overall ambition is to grow faster than the market. And could you please clarify which specific market you are referring to? And given that the product order intake has declined year-over-year for 6 consecutive quarters, do you still believe that the 10% growth in 2026 is achievable?

We are working towards the external targets that we have communicated. The details in your questions, it's still early days for Johan and me in this new team formation. So we would like to come back to that one.

Okay. Fair enough. The U.S. market appears to be constrained due to limited budgets for capital equipment. Could you please provide an update on your retrofit strategy and traction to date in this environment?

Can you repeat? I didn't hear the first part of the question.

Yes. I mean the constrained budgets is limiting the investments in capital equipment in the U.S., obviously. So could you please provide an update on your retrofit strategy? Given that your solutions is accounting for around 5% of total registered therapy equipment investments. So my question is basically, why do the budget constraints create meaningful headwinds in your offering?

But I would say this is also something that might be a bit early for me and Johan to answer. But I would say that mainly it's creating uncertainties on how much money the clinics have to have in their pockets, so to say. And that creates -- that uncertainty means that the decision takes more time.

But does this also affect the retrofit strategy?

I wouldn't say so.

[Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you all for listening to our Q3 presentation. And Johan and I both wish you all a very nice day.

Welcome to the C-RAD Q2 2025 report presentation. [Operator Instructions]

Now I will hand the conference over to CEO, Cecilia de Leeuw and CFO, Linda Frölén. Please go ahead.

Welcome to our Q2 presentation, and thank you for joining us today in the middle of the Swedish summer. We have concluded a busy quarter with high activity in all markets with an increased order intake and winning deals despite market uncertainty. And as many of you know, the foundation for our offering is the demand and need for safer cancer treatments with a focus on the patient's quality of life. And it's also about increasing efficiency in the customers' clinics.

And we are on a journey. We are building an even stronger C-RAD, working hard on our financial strengths so that we can access both established and untapped markets globally with our world-leading products and services.

So now let's take a look at the Q2 performance and the key takeaways. Q2 was indeed a busy quarter, and we are taking steps towards our financial targets. And I am pleased that the hard work done by the team, driving marketing activities, participating in trade shows, organizing reference site visits, which is common in the final phase of the customer buying process, and all this hard work is paying off.

We took a number of larger deals in both the U.S. and EMEA in the second quarter. Our order intake grew 11% in constant currencies. The main contribution came from EMEA and Americas. And we ended the quarter with a strong order backlog of SEK 735 million.

And when looking at the backlog, approximately half of the order backlog consists of products and the other half of service contracts, and service contracts are typically 3 to 5 years, and this does, of course, provide good recurring revenue invoiced at the start of each quarter.

Revenue year-on-year declined with 13% in constant currencies. And the main reason is a softer order intake during 2024, and it's also worth noting that Q2 last year was boosted by approximately SEK 20 million of China deliveries due to the product registration approval. And the weaker top line had a direct impact on EBIT, and we came in on a moderate SEK 8 million. However, we have a stable gross margin and Linda will share more soon and a solid growth in service revenue.

Our EBIT margin in the quarter was 8%. We are step-by-step improving the operational efficiency and have reduced OpEx by 10% compared to Q2 last year. And the focus on cost efficiency is now part of our DNA, which means that we are continuously driving both cost control and implementing measures to streamline operations. And that said, we have more work to do.

So let's look into the regional performance in the quarter, and I'll start off with the Americas. And our long-term focus is to strengthen our position in the U.S. market, and we had good progress also for this quarter despite U.S. market uncertainty, and this is mainly due to tariffs.

The 2 large orders in the quarter that we are showing here on the slide are representing different aspects of our untapped opportunity. The product order to a prominent Texas Cancer Center is for bankers in their newly built satellite facility. And I am delighted that this existing customer decided to expand their footprint with us.

The other large order is a pure service contract with a renowned cancer center on the East Coast. And this is a renewal, which is important to us, and it's a clear indication of the strength of our offering and our focus on customer retention. Order intake for Americas increased 11% to SEK 31 million in Q2, and revenue grew 26% in the quarter.

Moving over to EMEA. And the hard work by the team is paying off in the quarter. We have good momentum, and we were rewarded an SEK 8.5 million strategic multi-site product and services contract in France with a leading private care provider, Ramsay Santé Group. And we are motivated by this as France is a market where we are coming from a challenger position.

We can also see signs of recovery in the important German market, and I am pleased that we received a SEK 9 million product and service contract from one of the most important health care providers in the dynamic Stuttgart region in Southern Germany. Order intake increased 47% to SEK 46 million. And revenue in EMEA was down 11% to SEK 43 million, still impacted by a lower order intake during last year.

And finally, then APAC. And APAC had a softer second quarter. Q2 last year was fueled by VitalHold order intake from the earlier Japanese market launch in the end of 2023. However, APAC is still our largest market, and there is untapped demand in advanced markets as well as the large developing markets in the region. We have a healthy market mix and see an increasing uptake of SGRT and is starting to become a given in the clinical workflow.

Order intake declined 15% to SEK 58 million, and revenue in APAC declined 34% to SEK 44 million in Q2, and as I mentioned earlier, it's impacted by strong China deliveries last year. And if we adjust for these deliveries, APAC had a 1% growth in constant currencies.

And with that, over to you, Linda, for a closer look at the financials.

Thank you, Cecilia. So I will take you through some of the main financials for our second quarter. As Cecilia has already explained, order intake in revenue, I will not go into that again, but rather focus on gross margin, cost levels, earnings and cash flow.

Gross profit for the quarter was SEK 70 million compared to SEK 88 million a year ago. The decrease in gross profit is following the decrease in revenue year-on-year as we had the SEK 20 million in high-margin proton revenues from the long-awaited product registration approval in China last year.

The gross margin for the quarter was 67% versus 68% last year, and the current levels are in line with what we have had in previous quarters and within the range of what we would have expected. The decrease in the gross margin year-on-year is explained by the high amount of proton revenue last year which was partly compensated by a higher share of service revenue in this quarter. We had no proton revenues in this quarter.

Looking at our main operating expenses. You see to the left of this slide that they decreased 10% year-on-year from SEK 68 million last year to SEK 61 million in this quarter. The decrease is mainly related to lower external expenses as we have gradually replaced external consultants with own employees.

To the right of this slide, you see that quarter-on-quarter OpEx is up 9% from SEK 56 million in Q1 to SEK 61 million in this quarter. The increase is mainly related to payout of sales commissions related to earlier quarters that were not fully provided for. The increase is also related to lower personnel expenses in Q1 due to holidays.

We are monitoring our cost levels closely, and we are happy to see that our efficiency measures are showing results. Our yearly OpEx levels are now down by SEK 31 million from the peak in Q3 last year as we have now reached a more stable level.

EBIT for the second quarter was SEK 8 million compared to SEK 18 million a year ago. The decrease in EBIT for this quarter is fully explained by the lower revenue, as both gross margin and OpEx are in line with our expectations. I can also mention that unrealized currency effects in this quarter were only minor.

Our increased focus on smart spending is moving us in the right direction. And looking back a few quarters, C-RAD shows continuous improved earnings and an increased profitability over time. With this development as a foundation, we are well equipped to continue to grow as we believe we can increase the EBIT margin even more over time, according to our medium-term financial targets even if we may have short-term deviations.

Our cash balances decreased by SEK 3 million during the quarter and stood at SEK 158 million at quarter end, compared to SEK 161 million at the beginning of the quarter. Cash flow from working capital was minus SEK 8 million, which is a great improvement from last year, but still on the negative side. The increase in working capital is related to accounts receivables as a large number of old orders were invoiced late in the second quarter.

A few orders on our balance sheet that have been awaiting final acceptance tests have been paid during the quarter, and many have also been invoiced after completed final acceptance tests. Some of these are expected to be paid during Q3. Last but not least, I would like to remind you that C-RAD is a company with a strong balance sheet and with no long-term debt.

And with that, I will hand over back to Cecilia for some closing comments.

Thank you, Linda. And I'd like to summarize the quarter by the increased order intake generated by high market activity. And in addition, I also want to remind you of our financial targets for the medium term that were announced last quarter. And therefore, I'd like to conclude by taking you through our Q2 progress on our journey towards our financial targets, strategy and priorities.

So let me take you through this slide left to right. First, our strategic goal to grow sales and market reach globally. C-RAD already today has a global reach, and we are expanding step-by-step to grow our sales. And our growth target means that we will further penetrate markets, capturing unmet demand. And for Q2, order intake grew 11% in constant currencies. And as I already mentioned, this is mainly driven by Americas and EMEA, and this is in line with our strategic ambition to grow in the U.S. and our focus on EMEA's advanced markets, where we had major wins this quarter.

Secondly, our strategic ambition to ensure that we have world-leading products. We have a highly competitive portfolio, and we'll continue to invest and innovate in the offering and in new complementing solutions. And in this quarter, we introduced a new and improved gating solution, and this integrated gating interface is developed together with one of our leading industry partners and integrated with a linear accelerator.

And thirdly, there is truly untapped market potential, and SGRT is standard of care in many markets. And still, it's early days and there are many systems without. And hence, we see a potential to retrofit existing linear accelerators and proton machines. And we also see a great opportunity to grow services as our installed base of systems is growing, and this is another priority for us. And services is not only important for sales and happy customers, but it's also generating recurring revenue and supporting our profitability. And for Q2, order intake for service grew 86% in constant currencies compared to Q2 last year.

And finally, we are steering towards our financial targets and C-RAD has a good financial stability and are building a resilient company supporting scalability and it's resilient from a market perspective and from building a more mature company supporting growth. And for Q2, we have further trimmed down our OpEx by 10%, and this is mainly by replacing consultants as you heard from Linda, within administration and also within service. And we are taking steps towards our financial targets.

And with that, over to you, moderator, for Q&A.

[Operator Instructions] The next question comes from Oscar Bergman from Redeye.

I have a few questions that's not really related to the quarter, but more so on C-RAD on a general level. And the first one is about competition for surface scanning, could you just briefly elaborate on the main value propositions? And also, are your selling activities dependent on any cyclical buying patterns amongst your customers?

Yes. So the -- if I start this off. So when it comes to the value proposition, it's both in terms of only targeting the healthy tissue on the patient, which is -- has societal value, and also, of course, patient value. The other one is, of course, the efficiencies in the clinic. And this is a very minor investment for the clinic. So we say it's only typically some 5% of the investment.

So for a lot of return, it's a minor investment. And in terms of this -- how -- the cycles, this is not typically a cycle as such, but it's something that we see happening through the years. We sometimes see a higher purchase in the end of the year depending on the budgets for the hospital, but that depends. And it's also worth saying that this is a highly regulated market. So when it comes to competition, it's not such an easy market to enter because you have to have registration in each and every market.

Sure. And how do you typically compete? Do you do it on pricing or more so on functionality?

I would say that we always try to compete on functionality and I can probably say that we have a lot of uniqueness here. However, it is also so that sometimes there is a market price that we have to manage. So I would say it's a combination.

Okay. And if you look at the market, can you see any estimate on what percentages of the machines are equipped with this type of technology? And how you expect this to change in the coming 5 years if there are any big trends moving this in the right direction?

Yes. So I mentioned that earlier in the presentation that we see that it's more and more becoming standard of care. And in the advanced markets, let's say, Germany, for example, there is a slightly higher percentage in developing markets, you have markets that so far yet don't have any SGRT.

So it's a big difference, but the standards that came out end of 2022 is, of course, supporting. So -- but if we look at the attachment rate in different markets, it's -- in the U.S., for example, it's slightly higher. It's more north of 40%. And in developing markets, it's -- it could be from 0 and up.

Okay. And I guess, it's fair to assume that for the proton centers, you have an even higher attachment rate than for photon?

Also there, it varies. It's a lot of opportunities, and we are -- if you look at the opportunity there, sometimes it's part of a newly built bunker, sometimes we retrofit existing proton machines. But also there, it's -- as an example, we have a clinic, a customer in Miami Cancer Center in the U.S., Florida. And there, they have C-RAD on all machines, both proton and photon. So that's, of course, a very strong reference for us.

Okay. Great. And just one final question for me. Maybe this somewhere in the report on your web page. But -- can you see how many RT centers worldwide you are actually installed at today?

We don't typically disclose that today, but we are in more than 50 countries worldwide.

Okay. But are you looking into providing such details going forward?

We'll look into that.

The next question comes from Christian Lee from Pareto Securities.

I have 3, please. The first is regarding the strong order intake in the quarter. Do you expect the good momentum in EMEA to continue in the second half of the year? And how do you view on your chances of winning more significant product orders in the U.S. in the near term?

So when it comes to EMEA, as I mentioned earlier, it's nice to see that EMEA is starting to pick up again. Of course, it's too early to say. We have a good pipeline, but we have to work hard every day. And I think -- can you repeat the U.S. question?

Yes, your chances of winning more significant product orders in the U.S.

Yes, you have to take it one more time, Christian, sorry.

Yes. Sorry about the bad line here. I was wondering if how you view on your chances of winning more significant product orders in the U.S. in the near term since the majority was service contracts?

Right. No, that's -- it's -- to start off. We are also very happy with the order, the Texas order, of course, which is a pure product order. But we see a strong opportunity in the U.S. to -- as I've talked about before, retrofit also existing linacs, but it's also so that we do see indications that customers are able to make faster decisions on the OpEx investments than CapEx, new products. And it has been favorable for our service business. But on the short term, it might be impacting our product business. And our assessment is that this is connected to the uncertainty around trade and tariffs.

Okay. Great. And my second question. Did you have any negative impact on the results from the tariff situation?

Not in this quarter, no.

Do you expect any negative impact in the third quarter?

Depending on, as you all know, these decisions are put on hold for now. Our initial -- our current assessment is that it's only the hardware that will be affected. And our general terms and conditions allows us to pass on the cost of tariffs to the customer. And in the near term, we don't see any major effects of the tariffs.

Okay. That's clear. And my last question. Given that organic sales decreased by 13% in the second quarter, do you feel confident about reaching your target of 10% growth for the full year?

So just to remind you on our financial targets, it's actually over time. So it's in the midterm. So we will continue working and looking at the order intake, which is the first important step to get revenue. And just as a reminder, it's typically 6 to 8 months from order to delivery. That's a good step in the right direction.

[Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you all for attending our Q2 presentation. And I mentioned earlier that we are on a journey. And this is vital because we are here to increase safety and efficiency in cancer care. And this is important not only for patients in clinics but also for shareholders.

And with that, I want to thank you and wish you a nice summer.