GN Store Nord Aktie

Hello, everyone, and welcome to GN's conference call in relation to our Q1 report announced yesterday evening. Participating in today's call is Group CEO, Peter Karlstromer; Group CFO, Soren Jelert; and myself, Rune Sandager, Head of Investor Relations.

The presentation is expected to last about 20 minutes, after which we'll turn to the Q&A session. The presentation should already be uploaded on gn.com.

And with that, I'm happy to hand over to Peter for some opening remarks.

Thank you, Rune, and thanks to all of you for joining us today. Let's start with some highlights on the quarter. Our Enterprise business experienced strong growth in the U.S. and the APAC market, while EMEA continues to experience weak demand and some level of channel inventory reductions. We started shipment of our Evolve3 range at the beginning of March, and we have been very encouraged by where we've seen so far. During the quarter, we experienced significant growth in the premium segments of headsets. This is exciting as we will be launching further additions to the Evolve3 family later this year that will gradually support our growth in Enterprise.

On the margin side, we have had a soft quarter as expected due to the annualization of tariffs and inventory provisions related to warehouse movement in the U.S. and certain channel investment to support the launch and rollout of the Evolve3 headset platform.

In Gaming, we continue to gain market share in the gaming equipment market influenced by continued weak consumer sentiment. While Gaming also faced some of the same margin headwinds as Enterprise due to tariffs, we have managed to control it through positive ASP development coming from the price increases implemented last year as well as a continued good cost control.

We have just launched an exciting addition to our gaming headset portfolio, the Nova Pro Omni category, which is expected to contribute with growth for '26. In addition, we still have a strong product pipeline in the coming quarters, and we look forward to even more exciting launches in '26.

Moving to our Hearing division, that now is treated as discontinued operations due to the announced divestment to Amplifon March 16. While we prepare for the closing of the transaction, the Hearing division continues to perform well and in the quarter across regions and channels grew with the help of ReSound Vivia, driving continued market share gains, which led to an organic revenue growth of 9%.

With this summary, let me provide you with some more details on the performance across our divisions. In Enterprise, the business continues to do well in the U.S. and APAC, but due to the continued weak demand and some channel inventory reductions in EMEA, we delivered a negative 5% growth in the quarter. The gross margin ended at 53.7% in the quarter, which was around 2 percentage points lower than last year due to the annualization of tariff costs as well as some temporary effects due to an inventory provision related to the U.S. warehouse movement. We expect the gross margin to stabilize in the coming quarters.

The divisional profit margin reflects the development in gross margin as well as some higher channel investment into the Evolve3 launch and rollout. The launch of Evolve3 has been very well received and is progressing better than expected, driving significant growth in the premium segment of headset. This is encouraging and supports our growth ambitions for the year as we extend the Evolve3 family.

Let's move to the next slide for a bit more detail on this. Within our premium headset category, where we have started the shipment of Evolve3 75 and 85 in March, we have experienced more than 50% growth year-over-year in Q1. This is, to some extent, driven by channel stocking of the new products, but the sell-through to resellers also showed strength in the segment, which is an encouraging sign of momentum. The premium category accounts for around 15% of the Enterprise revenue. Evolve3 did contribute to growth in Q1, and we expect the effect from the launch to grow stronger over the year as we launch more products. In Q3 and in particular, in Q4, we do expect to see a significant Evolve3 contributions to absolute revenue and thereby also growth.

As for the channel reductions we experienced in EMEA in Q1, we expect them to continue in the next few quarters given the current geopolitical uncertainty and the desire for several distributors to reduce the inventories. To help you understand how we plan our year, we would like to tie all this together. As several of you know, we normally see a revenue seasonality between H1 and H2 of around 47% sales in H1 and 53% in H2. Due to the short-term channel reductions and the H2 benefit of the Evolve3 rollout, the revenue seasonality will likely be more pronounced this year, which we have factored into our guidance.

Let's move to the next slide and take some further look into the dynamics we observe in the markets we operate in. On this slide, we're illustrating the different dynamics that have contributed to the top line development in Q1. Our sellout in North America and APAC continued to be very strong. This has also been supported by some market share gains, in particular in the U.S. The channel inventories are stable, both in North America and APAC. And for both regions, we delivered double-digit organic revenue growth in the quarter for our core Enterprise business.

Our main challenge for Enterprise is EMEA that is also the largest region. In EMEA, we are experiencing a weak market demand due to the geopolitical uncertainty. We also lost some market shares in the region, which can be expected from time to time given our more than 60% market share position. The decline is mainly related to the entry-level price points of headsets where we have seen increased competition. We do expect to regain this share with the launch of Evolve3 when we're launching these products relatively soon.

Lastly, we've also seen some channel inventory reductions as our distributors navigate the global uncertainty. These effects together have resulted in a double-digit organic revenue decline in the quarter for EMEA. We do expect the challenged market conditions in EMEA to continue for the next few quarters. We focus on successfully upgrading our portfolio by rolling out the Evolve3, and we do expect this will stabilize our growth as the year progresses.

Let's move to the next slide for some highlights and performance in the Gaming division. In Gaming, we delivered a negative 1% organic revenue growth in the quarter on top of a very demanding comparison base of 11% growth last year. This was driven by strong execution in a relatively soft market suppressed by continued muted consumer sentiment. The growth was supported by a good momentum in the headset segment, while low-end keyboards and mice provided some growth headwinds.

Region-wise, North America contributed positively, while the business was somewhat weaker in EMEA and APAC. The gross margin of 34% was negatively influenced by the annualization of tariff costs as well as the wind-down effects in Q1 of the consumer business. This was partly offset by a positive ASP development coming from the price increases introduced last year. The divisional profit margin developed positively to 11% compared to 10.4% in '25, despite the negative development in gross margin, reflecting a continued good cost control.

Let's move to the next slide for some more information on the gaming launch. SteelSeries expands our premium category of gaming audio with the introduction of the Arctis Nova Pro Omni. This headset enhances overall experience for the modern gaming, providing the best circumstances for ultimate immersion with the best ANC in gaming and an AI noise rejection baked into the microphone for impressive background noise reduction. The ability to connect to 5 devices at once with real-time audio control and infinite battery life enables complete omnipresence while the sound experience is enhanced further with a Hi-Res Wireless Certification and custom Hi-Res magnetic drivers.

Coming in a new refined compelling design, this is a truly step-up in the Nova Pro headset category. We're excited about this launch and do expect the Nova Pro Omni to meaningfully contribute to SteelSeries growth from Q2 and onwards.

With these updates on the Enterprise and Gaming divisions, let's move to the next item on the agenda, where Soren will provide some more details on the Hearing transaction.

Thank you, Peter. On March 16, we announced the divestment of our Hearing division to Amplifon. Let me give you an update across key aspects of the transaction and its value creation. The carve-out process is well underway, and we continue to expect the transaction to close towards the end of the year as previously communicated. The transaction proceeds comprise a cash payment and the shares in Amplifon. The shares are subject to the customary lock-up period. We are excited to create an industry-leading player with Amplifon by combining our strength. We are convinced that this transaction will contribute with significant value creation for GN and Amplifon shareholders.

While we do not see ourselves as a very long-term shareholder in Amplifon, we give our new strategic -- given our new strategic direction, we will be patient and wait for the value to be realized before we responsibly and in a controlled way sell our shares. The carve-out will be taxable, and we expect an upfront tax payment of DKK 1.5 billion to DKK 2 billion. However, we will also get an equal sized tax asset that can be used for tax reductions over the coming years.

To unlock shareholder value, we are committed to return excess cash to our shareholders. We are currently, in the short term, targeting a leverage of 1 to 1.5x EBITDA. Shortly after closing, we plan to initiate a share buyback program. To avoid any doubt, we also like to be clear that we are not planning to do any large-scale acquisitions. So the excess cash at closing and additional cash when we exit our Amplifon shareholding is expected to be returned to our shareholders.

Moreover, to address stranded costs and to set up GN for financial success, we are initiating cost initiatives to be executed during '26 that would deliver around DKK 200 million in structural cost savings.

To separate Hearing and to adjust our cost base, we estimate total one-off cash costs of DKK 750 million across '26 and '27, of which around 75% is expected this year. Related to the separation and to the setup of GN for the future, we have also, in Q1, executed a number of noncash impairments.

On the next couple of slides, I'll provide you with some additional details around some of these initiatives driven by the transaction. Let me first start by framing the size of the initial cash we will have available for distribution. With the cash proceeds from the transaction, net of tax, we will have an excess cash position. On top of this, we will drive a healthy operating cash flow in '27, which will further add to the positive cash position. In order to reach a leverage target of 1 to 1.5x by the end of '27, this would imply a quite meaningful excess cash holding somewhere between DKK 3.5 billion and DKK 4.5 billion, depending on the EBITDA of the business and the leverage target.

As an overall planning assumption, you should expect the significant majority of this excess cash to be distributed back to our shareholders. As we mentioned, we are currently planning to initiate a share buyback program after closing of the transaction. Until the AGM in '27, we are authorized by our shareholders to hold up to a 10% treasury shares. We are currently holding 3.5% shares, so we can buy back around 6.5% shares, which equals to roughly 10 million shares. At the AGM in '27, we will then propose a cancellation of any excess shares and ask for a new authorization, which would allow us to continue to significant shareholder distribution.

In addition, we also expect to reinstate yearly dividends. In the years to come, we will also have a few attractive financial assets that can be sold over time, which could drive even more shareholder distribution. We hope that this framework will help you to understand our priorities. We will come back with more details about our capital allocation priorities at our upcoming Capital Markets Day, which will also allow us to discuss the framework with our investors.

Slide 14. We are focused on driving GN towards sustainable profitable growth. Let's talk about where we are and the steps we are taking in the near term. All margin numbers on this slide refer to the new GN without our hearing business. If we start with where we are coming from, in '25, our restated EBITA margin is 7.6%, which includes DKK 200 million in stranded costs as part of the transaction.

While we in '26, will have limited operating leverage due to the low growth from our challenged markets, we still expect to drive a margin expansion from cost focus and also from lower average tariff exposure than we had in 2025. We'll also benefit from some of the balance sheet adjustments, which we announced today. This will, in total, lead us to an EBITA margin of 8% to 9% for the year.

The effect from the cost initiatives of around DKK 200 million will further support our underlying margins with around 2% in '27. With the help of these steps, you will derive at an underlying EBITA margin of 10% to 11%. This margin level then serves as the structural margin level, which we will further improve in the years to come.

We will share more of our plans around this at our upcoming Capital Market Day, which we plan for towards the end of the year. At this event, we will explain our plans for how to accelerate growth and drive margin expansion beyond where we are now, thanks to attractive markets, customer-centric innovation, selective investments and strong execution.

Next slide, please. As a natural consequence of the transaction, we will be having some one-off costs related to the transaction. We estimate a total of one-off cost of DKK 750 million, of which 75% is expected to be incurred in '26. The one-off costs comprise of costs directly related to the transactions such as adviser and consultant fees, legal costs and the likes. To complete the carve-out, we will have costs for advisers, legal support, IT consultants and costs related to contract separations.

As we communicated today, we will also have costs for rightsizing of the business, which mainly will serve the severance costs. As for 2026, one-off cash costs, you should assume that most of these will be in the discontinued operations as these are costs necessary to drive the carve-out, while the rightsizing costs will be sitting in the continued operations. In total, this means that roughly 70% of the one-off cash costs in '26 will be related to the discontinued operations.

Finally, we have done some asset impairments across IT, R&D and facilities. The majority of these is related to a large ERP project within our Hearing division that is not part of the transaction perimeter, and we are therefore subject to an impairment to the asset. The impairments are noncash by nature and is incurred in the first half of 2026.

With that overview of the status and impact of the transaction, let's move to the group numbers and the related guidance. As a consequence of the transaction, our Hearing division is now treated as discontinued operations. So from now on, we will focus on the performance of the continuing operations in GN, which comprise of our Enterprise division, Gaming division and group functions that are not part of the transaction perimeter.

In Q1 of '26, the continuing business delivered organic revenue growth of minus 4% due to the challenges in the EMEA part of our Enterprise division. The gross margin ended at 48.2%, reflecting gross margin development in Enterprise, as Peter mentioned earlier. However, we do expect our more normal gross margin in Enterprise already from Q2, and we will likely also see further improvements in gaming.

The adjusted EBITA ended at DKK 6 million, equal to a margin of 0% compared to 6% in Q1 of 2025, driven by the development in the gross margin as well as negative operating leverage. The cash flow development in the quarter is including the discontinued operations. In Q1 of '26, GN delivered a free cash flow, excluding M&A of negative DKK 45 million, driven by seasonality, but offset by well-managed working capital. The net interest-bearing debt ended at DKK 8.9 billion, corresponding to an adjusted leverage of 3.8x EBITDA.

Let's move to the next slide for our group financial guidance for the year. First, I would like to say that we are now reintroducing our guidance on EBITA margin, which was suspended when we announced the divestment of the Hearing division to Amplifon. As mentioned earlier, we are now guiding for a full year '26 adjusted EBITA margin for continuing operations of 8% to 9%. The benefits of the DKK 200 million cost savings would then come on top of this number and will be visible from 2027. Our guidance on organic revenue growth is a result of assumptions from our 2 divisions.

The performance of our Gaming business in Q1 has been fully in line with our plans for the year, while we are confirming our early applied assumptions, which were an organic revenue growth contribution of 7% to 13% for the Gaming division. As Peter mentioned earlier, the demand in EMEA and Enterprise has been weak in the first quarter, and we are now taking a more cautious perspective to the underlying market development in EMEA. Consequently, we are now assuming a modest declining global Enterprise market for the year.

However, due to the early feedback around Evolve3, we remain confident in our ability to drive market share gains for the year, while we are assuming Enterprise to contribute with organic revenue growth of minus 3% to plus 3%. As a function of the divisional assumptions across Gaming and Enterprise, we, therefore, are updating our organic revenue growth guidance to 0% to 6%.

And with that, I'm happy to hand you back to Rune.

Thank you, Peter and Soren for the updates. That was the end of the presentation. I will hand over to the operator for the Q&A. Please limit yourself to 2 questions at a time, please.

Your first question comes from Veronika Dubajova with Citi.

I have 2, please. One, I just would love to understand what gives you the confidence in that improving growth outlook in Enterprise. And I guess maybe you can kind of touch upon, one, what gives you confidence in the growth improving, but two, also what gives you confidence in the improving margins? I know you've not given an Enterprise guidance, excuse me, but obviously, that, I think, was the piece that the market was most disappointed this morning. And then I have a quick follow-up after that, but maybe we can start there.

Thank you so much. I think it's fair to say that we are a bit behind what we expected here in Q1, and that's also why we're making some adjustment, of course, to the outlook. But I think what remains the same is that we always believed in a much stronger second half of the year than early half of the year. And this is solely due to the Evolve3 product launches. We have now launched the first products in late Q1, and we shared some of the initial encouraging effect of this where we see a very healthy growth. And when we say growth, we're then looking on the segment as total, so the old product and the new products together, how do we perform now vis-a-vis a year ago.

We do expect to see similar effects as we're launching products in the medium and the entry-level segments of the market. And this is also where the majority of our Enterprise business is sitting. So this is essentially why we are believing in a much stronger second half of the year. So this will help us then to improve the momentum, in particular, in Q3 and Q4 compared to what you see here in the beginning of the year.

Then when it comes to the margins, we had some one-off effects in this quarter, and we highlighted them here in the intro. And there is something related to the tariffs first where, of course, we didn't have tariffs in the beginning of last year. And then the other one is this movement of the warehouse, which is also a one-time effect where we're taking some kind of provisions related to that. So we do expect the gross margins to bounce back already in Q2, and you should see them on more, what you say, levels that you have got used to throughout the rest of the year. And then I would say, of course, also if you look more on the divisional margins and on the group margins, they will, of course, be supported by the growth as well. So this is our thinking around it.

And that was actually going to be my follow-up. Can you quantify the warehouse provision for us or the impact that it had on the gross margin this quarter?

Veronika, the warehousing is around 1% in terms of the implications in this first quarter. And then, of course, you have the tariff also that is also -- bear in mind that the tariff is sitting on the balance sheet. So whatever was the improvement in the tariff in the quarter 1, you won't see that until a little further down the line once we start to pick the product from the balance sheet. So that's also why we are confident in that it will actually improve our underlying margins because Q1 is mostly, of course, linked to the old tariff that we saw during last year.

Your next question comes from Carsten Madsen with Danske Bank.

A question to Enterprise and the comments you have about North America, where you say strong growth, but your segment breakdown points to a decline in Danish kroner of 8.5%, the dollar is down 10%. So I guess you have something like a 1.5% growth in North America for Enterprise. I don't think that is strong or am I missing something here? And secondly, the EBITA margin of 10% to 11% for 2027, what level of amortizations are you expecting that year? Because I have a little bit difficult stripping out all the balance sheet impairments today and estimating the impact on future amortizations from these. Yes.

So thanks a lot for the question. Let me start. I think the comment I made in the intro was mostly the Enterprise core. It's essentially the core Enterprise headsets. As you probably recall, we also in Enterprise, the way we report, have BlueParrott as well as FalCom. If you look in North America, there was not any real impact of FalCom in any way. But BlueParrott had a very good quarter last year and a weaker quarter this year. So that is essentially putting some negative effect. So if you filter that out, actually, the growth we saw in the core enterprise was a very solid growth in North America.

So hopefully, that helps understand. Just one more comment related to this to help you all. I mean, I think that some of you probably will also reflect and we did have some FalCom business in the quarter. So to some extent that, that positively contributed to the overall Enterprise numbers. But as I mentioned, we also had a bit of a negative contribution from the BlueParrott. So they more or less netting each other out, so to say, if you look on the global Enterprise numbers. But in North America, it's a BlueParrott negative effect.

Okay.

Then to the impact of the amortizations, I mean, the majority of it, given that we already do it now, you see the positive effect of that this year, and that's baked in. Of course, as it's also a full year and part of the portfolio also is depending on it, there is a little step up next year, but the majority is this year.

But can you help us understand what the EBITDA margin guide would have been for '27 without these impairments?

Yes, fair. I think approximately, it's 1% that it's -- that's the tailwind we can have from these amortizations this year. And we'll have the same next year, essentially because it will continue over multiple years.

Your next question comes from Andjela Bozinovic with BNPP.

This is Andjela. The first one is just on Enterprise. I'm interested to hear your thoughts on the phasing of the growth for the rest of the year, especially because on Slide 7, you signaled that Evolve3 portfolio should contribute less to group growth than in Q1. And as far as I remember, you only launched Evolve in March. So just curious why should we assume less of contribution in Q2?

And the second question is more like a follow-up to Veronika's question on profitability. So with the adjusted EBITDA margin of 0.3% in the quarter, just -- can you help us break down the improvement assumed for 2026 and 2027? I understand that the provision is 1 percentage point, but what else should drive the improvement from here?

Okay. Thank you so much. Let me start with the phasing. I think that these are the base assumption. It might vary a bit. So I don't think we can read into the very details of this. But we -- I think it's back to how we launched the product. So in Q1, we launched the Evolve3 85 and 75, the premium products. Then when you launch, you're getting the initial channel stocking, which is essentially all channels are filling up the products. And then if you look on Q2, you will not have that initial stocking effect. So it's more like a replenishment of what being sold out. So it's still a very healthy contribution, but we do expect it to be slightly less than in Q1. And then why it's picking up again in Q3 and Q4 is because then we are launching more d Evolve3 products into the mid- and lower-tier segments of Enterprise.

And when it comes to the buildup on the margins that, of course, was muted here in quarter 1, I think a couple of things. Of course, we do have the impairments, and that's probably an easier one, right? That's a 1%. But in general terms, the business we have left in GN has a higher share of the profitability and a higher share of also the sales in a normal year in the subsequent 3 quarters and especially in the second half of the year. So you should always expect us to earn a larger part of our earnings and also through that, have a better leverage in the second half of the year that should drive up towards the 8% to 9% in margin. So it is top line driven, but it's also a fact that we generally earn more the way our company is the seasonality in the company.

And then in addition to what we then land this year, you should think of it as the 2 percentage points, they come on top of the landing of this year in terms of us addressing the stranded costs this year, but the benefit of addressing it will deploy next year and give the 2% margin uplift.

Just a follow-up on the first one. So basically, you assume that Enterprise will decelerate into Q2. Is that a fair assumption?

If we look on the Enterprise core, we do think it will be relatively similar. So don't expect a significant effect in any way. If you look at Enterprise in totality, what we need to factor in then is also the FalCom business where we had a very large order last year. So if you include FalCom, we probably could see some pressure on the number from that year-over-year comparison. We do expect we will have a good year on FalCom, but it will come more towards the end of the year. So we have talked about that before. It's a little bit, of course, lumpy in the way this business is delivered. So hopefully, that helps you to think about Q2 in the right way.

Your next question comes from Niels Granholm-Leth with DNB Carnegie.

My first question is on your expected tax going forward. So you're talking about this tax reduction for the coming years. So would that be fully lifted in your tax in '27 and onwards? Or should we still assume 23% tax rate in your P&L? And secondly, could you just update us on the situation about nation's benefits and to what extent there is a sale process ongoing for this asset?

Niels, on the tax, our base assumption is that the tax we are paying will approximately stay at the same level, but we'll, of course, get back to you if we get different clarity on that. So that would be our working assumption based on how we calculate today in the P&L, of course. And then in terms of paid cash tax is, of course, reduced as we will be able to take advantage of the tax assets we are having.

On nations, I think no real update on any imminent sales process. The underlying business continues to develop well, and we will act together in coordination with other major shareholder when the time is right, but no real further info at this time.

Your next question comes from Martin Parkhoi with SEB.

Martin Parkhoi, SEB. Just also two questions. First on the guidance, 2 questions. Firstly, maybe just around for both. If we look at the guided interval in the old year, you had an interval range of 2 percentage points. Now you put a very narrow guidance range on the EBITDA margin of 8% to 9% in a business where your ability to forecast the development in the last couple of years has been difficult. So can you be so confident in such a strong guidance range on the EBITDA margin and also on the guidance side, maybe that's for Peter. On Enterprise, it is a little bit confusion on the commentary as also Carsten alluded to that you make the commentary on the headset business and then afterwards, we talk about, yes, BlueParrott was a little bit high last year. So can you maybe say that on the minus 3% to plus 3% Enterprise growth, what's the assumption for the core Enterprise headset business on that side? And then just as now you have revealed some details on hearing still with a very good quarter of 9% organic growth. What drove that acceleration? And have you seen your share to Amplifon increase in the quarter?

Martin, basically, on the guidance for the year of us being more precise, I think we are having the insights now. We are now further into the year. And we also believe that now our outlook is more firmed up of how we see the cost patterns also pan out and also how we see the overall landscape of the top line. So it is a function of that we are closer through the year essentially, and that makes us more confident in the 8% to 9%.

Okay. And when it comes to the BlueParrott and FalCom, for the year, we do expect similar sales this year for both as we had last year. So there is not a real effect from them on the Enterprise growth, so to say. So for the core Enterprise is the same as the guidance we have given. The comments are more because in individual quarter, there could be effects. So we're more making these comments to try to help you understand the business in that way.

And then if you look on the Hearing business, I mean, yes, thank you. We had another very good quarter in Hearing. It was a broad-based growth across the 3 regions. I mean I don't want to go and comment specifically on the Amplifon business as we would not I can confirm that we still have no customers that are, I mean, 10% or higher, and that's also true in this quarter. So I would say it's been a broad-based growth across regions and channel types.

Your next question comes from Susannah Ludwig with Bernstein.

Mine is a more long-term question on the Enterprise market. So we're heading into what looks like the potential fourth year of negative growth in that business, which will now be the majority of the group's revenue following the hearing sale. Could you update us on your thoughts on midterm growth in this market? And I guess in conjunction with that, previously, you've talked about a 3-year replacement cycle. Is this still the replacement cycle that you're seeing? Or is this lengthening?

Thank you. And we appreciate it's been a long adjustment period here after the strong COVID growth. I mean taking a step back, I mean, we very much still believe in the attractiveness of the Enterprise market. And then when we're saying that we are taking, of course, a longer-term horizon on this.

If we look on the strength of the market, I think it's encouraging to see what we see in North America and APAC. The market here has actually been in growth for the, I mean, 6 quarters now in a row. What has, to some extent, surprised us is the continued weakness in the EMEA market. And it has had a period of encouraging signs of improvements and coming back to growth and then setbacks. And we have some level of setback now also, likely driven by the more macroeconomic uncertainty driven about the unrest in Middle East and so on. The indirect effects of that seems to be that there are many companies across Europe, which have tightened spending and it's affecting us also.

So in terms of the long-term belief in the market, I don't think anything has changed. We are working now to develop a new kind of mid-range plan and with detailed targets and so, which we intend to share with you at our Capital Markets Day here towards the end of the year. But the attractiveness in the market, we still think it's very much there.

And then in terms of your question on replacement cycles, I mean, on average, we still assess them to be around 3 years, and then the periods can be slightly longer or slightly shorter. But if you look like over some period of time, that is still our best assessment of it.

I will say though also that this year is likely one of the years in a long time where we will launch most products, and we started now in the beginning of the year, and we will launch many more products throughout the year. So I do think that our guidance, you should factor in that there is, of course, a market element of it, but also what's in our control in terms of launching strong products and having good launch processes is quite a lot of what's in the guidance as well. So we're coming back to this that as we're launching more products this year, we do also believe that will support the Enterprise business very well.

Okay. Great. And just quickly on the replacement cycle, is that the same across sort of different categories, call center, sort of office workers and frontline workers?

It actually varies a bit across them, as you say. call center tend to be slightly less and office workers slightly longer. But given that we have the majority of the business with office worker, we're trying to weigh it, see it as a blended average. So that is around these 3 years.

Your next question comes from Andjela Bozinovic with BNPP.

I just wanted to ask on the conflict in the Middle East and if you're seeing anything in terms of inflation, increased transport costs or raw material and especially considering you're in the launch phase in Gaming and Enterprise and you need to ship these products from Asia to North America and EMEA market. Is any of this impact reflected in the new guidance?

Thank you so much. I would say that both direct and indirect effects from the Middle East and rest. The direct effects on us includes things you mentioned, like logistic costs are slightly elevated. You need to find new shipment routes and also, in particular, around launches, we have been using a bit more flights for transportation of the products -- so that has some impact. That is factored into the guidance.

The indirect effect, we actually think is the larger ones, which we think is one of the key contributors to we see -- the weakness we see now in EMEA, which is also factored into the guidance as we have shared with you today. So everything is in the guidance, but we do expect this actually holding back the business quite a bit, mostly on the EMEA side. The direct margin impacts, I think, are quite manageable for us. So that is not anything significant.

Your next question comes from Julien Ouaddour with Bank of America.

I hope that you can hear me okay. I have one which is just like a clarification on Enterprise. So if I'm correct, you said the core Enterprise roughly down 5% again in Q2. Then we take the 5% comes from FalCom, so roughly Enterprise down 10%. So first of all, is it correct? And can you just help me to bridge the H1 performance in Enterprise to the full year guidance, especially to the upper end of this guidance? And maybe just a quick follow-up on margin. I expect that this could have a pretty negative impact on margin next quarter. So could you also help us to understand the magnitude of it and the kind of margin we should expect from this business?

It was a little difficult to hear you in the end. Could you please repeat the margin question, please?

Yes. No, on the margin side, just when the top line declined potentially by 10%, I assume some like operating leverage. So any comments about the margin at the divisional level or just like the EBITDA margin impact that we could expect from this like low growth will be -- would be helpful. Any comments?

I think when it comes to the margin, we are anticipating, as we also said, that the gross profit will improve already from quarter 2, actually. And as such, it's more down to the absolute value. When you look into the growth rates, bear in mind the comparators of last year, that's, of course, important. And coming into quarter 2, as also Peter spoke to, we had a FalCom order, large order that was in quarter 2. So essentially, that will give some pressure on the growth rates for quarter 2. But from a margin -- gross margin standpoint, there, we expect the uplift to be seen already from quarter 2 and onwards.

I can also clarify, I think you -- if I understood the first question right here, also the growth in the quarter. I mean, we had a bit of a positive effect from FalCom and a bit of a negative effect from BlueParrott. So the core Enterprise growth, I think, is very close to the reported growth for Enterprise.

Your next question comes from Veronika Dubajova with Citi.

I just want to ask a couple of technical questions around the new structure and just how we should be thinking about the next steps. Just the timing of buybacks, are you willing to do buybacks before the deal closes? Or are we waiting for the deal to close? And I guess, would you want to wait for authorization to do a bigger buyback? Or would you be happy to use the 6.5% before we get there? If you can talk to that, that would be helpful.

And then just a very technical one, apologies. But from a covenant perspective, anything that we need to be aware of until the deal closes or effectively, the debt is fine even as the leverage is kind of changing optically at least in the deconsolidation process?

In terms of the buybacks, what we have said today, and also stands, is that we will wait until we have closed essentially and then go for the buybacks. As I also said in my intro that we have the 6.5% left in our -- the permit we have basically to the 10%, and that's where we will go first. So that's at least on the buyback side. And then the other question was on -- on the covenants, yes, we -- of course, yes, covenants, we are in a good balance there and also have commitments from our banks in terms of this process. So that is in good control.

That does conclude our question-and-answer session. I will now hand back to the company for closing remarks.

Thank you very much, operator, and thank you, everybody, for joining on the call.

Good. Thank you. Good morning again. And my name is Jukka Pertola, and I'm Chair of GN Store Nord's Board. Welcome to all of our shareholders here at GN's head office and also welcome to everyone who joins online. Welcome also to the Board of Directors, my fellows in the Board and to GN's executive management and leadership. And very much welcome to our auditors as well. Welcome. A few practicalities. I will speak English as you hear, and so will our CEO, Peter Karlstromer. Our Chair of the meeting, [ Mikael Philip Schmidt, ] will speak Danish and the slides behind me will also be in Danish. If shareholders have any questions or comments, it's perfectly fine to speak Danish. If you need translation to either Danish or English, you can borrow a headset where you can hear instant translation. The headsets are down there.

The meeting will be streamed online in Danish and English. As stipulated in our Articles of Association, the Board appoints the Chair to conduct the meeting, and we have asked partner with [indiscernible], Mikael Philip Schmidt to preside over the meeting.

And with that, I would like to give the floor to Mikael.

Thank you. Thank you for appointing me Chairman of the meeting. My first job as Chairman of the meeting is to confirm that the meeting has been legally and lawfully convened and that it is quorate. First of all, I'd like to say that I've gone over the convening notice and other documents, and I confirm that the meeting has been legally and lawfully convened. The convening notice was sent out the 16th of February 2026 via a corporate release to NASDAQ Copenhagen and on the company's website, and it was sent by mail to shareholders having so requested. With regard to the information of the convening notice and the information that must be made available to shareholders, I also confirm that the company has complied with all the requirements stated in the articles of the company and Danish company law.

The agenda contains the usual topics that you find on AGMs. You see them on the screen behind me. And I also confirm that in this connection, the company is in compliance with the requirements set out in Danish company law. So you see here the items. And then we have under 9, a proposal from the Board of Directors concerning the acquisition of treasury shares. We'll come back to that later. All proposals can be made by means of simple majority, and the vote concerning the remuneration report is merely advisory. So on this background, I find that the AGM is also quorate.

Before we go over to transacting the business on the agenda, I can inform you that we have just found that a nominal amount of DKK 263,276,000 is available. On the basis of the postal votes received and proxies, it's also possible to find that their support to the company's Board's proposals. So there will be no votes in the course of today. But that should not prevent us from having a good and proper discussion. Let's go back to the business on the agenda. I intend to do it in the following manner. After we have dealt with each item on the agenda, I will ask if anyone has comments or questions. If you wish to take the floor, just raise your hand, and I will find you. And don't forget to state your name if you want to put a question or make a comment. If there's nothing by way of request for the floor after an item, I take it as a sign that it has been adopted.

Items 1 to 4, which is the report, approval of the annual report, discharge and distribution of profit will, as usual, be dealt with in one go, which means that our Board Chairman, Jukka Pertola, will go over the report, whereafter CEO, Peter Karlstromer, will present the annual report and the proposal for distribution of profit. After that, it will be possible to put questions, and I will then go over to the formal adoption of the proposals contained under items 1 to 4.

So let me hand over to Chair of the Board, Jukka Pertola, who will later hand over to Peter Karlstromer. You have the floor, sir.

Thank you, Mikael. During 2025, uncertain trade policies and macroeconomic weaknesses presented significant challenges to consumers and companies around the world, including to GN. But throughout the year, management and employees worked hard with what is within the company's control to mitigate the negative impact from tariffs and other headwinds in our markets. Needless to say, it was quite a challenging year. I will now take you through the highlights of the year. And after that, our CEO, Peter Karlstromer, will later on give you more insight into the business and how we view our opportunities in '26. But let us first take a look at the high-level financial results. In '25, we saw a decline in organic revenue of 1%, leading to a total revenue of DKK 16.8 billion. Our bottom line result, EBITDA came in at DKK 1.9 billion, which was equal to an EBITDA margin of 11.4%.

Needless to say, we would have liked to see further growth in revenues and thereby also profitability. But that said, the Board is pleased with GN's ability to manage the results well in the difficult business environment that we faced in '25. Prudent cost control, operational agility and good execution in our markets resulted in solid profitability and good cash generation even if we faced a small decline in revenues. This led to free cash flow of DKK 1.1 billion, which enabled us to reduce our debt with DKK 800 million. At the same time, we have strengthened our business fundamentals. Our strategic and execution capabilities across GN have greatly improved. We have placed solid investments in innovation, technology and operations, and we are confident that all this will support profitable growth in 2026 and beyond.

Our CEO, Peter Karlstromer will, in a few minutes, provide more details of our divisional performance and how we view the business opportunities ahead of us. Let me instead turn to another set of important performance metrics, our ESG performance. We continue to be committed to run GN in a sustainable and responsible way. Our progress in '25 means that we are on track to meeting our sustainability targets. This is described in detail in our sustainability statement, which is part of our annual report. We have reduced carbon emissions in Scope 1 and 2 by 53% compared to '21, which is the baseline year for our climate targets. Scope 1 and 2 are the part of our supply chain that is fully in our own control, and we are on track to reach our 2030 targets. For Scope 3, which is partner emissions that we are only indirectly in control, we have reduced emissions by 33% and have, as such, already reached our 2030 targets.

And when we, as a company, track and report our impact on the world, we must also report on positive impacts. For GN, there is a clear positive impact on society in terms of our capacity to offer millions of people help to hear better. And we are proud that currently more than 12 million people carry our hearing aids, which helps them to hear better and live better lives. GN pursues to have a diverse workforce as we believe this supports continued innovation, customer satisfaction and performance. This also applies to the Board and to all leadership levels. At senior leadership levels, GN currently has 31% female leaders, which is close to our target of 33% to be reached by the end of June. So the target is still reachable. We continue to take various initiatives to further increase diversity in leadership.

At the Board level, we currently have 43% female members elected by general meeting, and this is in accordance with the targets we have set, and the Board will continue to evaluate the composition, diversity and competencies of the members to ensure that we have all what we need to fulfill our obligations. That we are on track is also recognized by various ESG rating institutions, which have given GN high marks, as you can see at the bottom of this slide.

Now let me turn to dividends and share buyback. While our goal continues to be to deliver good shareholder return through a combination of dividend payments and share price appreciation, we must recognize that this has not been the case for the financial year '25 with the tariff and macroeconomic headwinds I mentioned earlier. Due to our strong cash flow, GN's net interest-bearing debt decreased by DKK 800 million to DKK 8.9 billion, which gives us a leverage of 3.8x. As our long-term target is leverage rate of 2x, we need to continue to pause dividends and share buybacks until the leverage is closer to the target.

Now let's turn to remuneration of management and the Board. The various components of remuneration offered at GN are set to balance the sustainable management of GN's strategy and long-term ambitions with the achievement of short-term results. GN's remuneration policy is governed by the Board's Remuneration Committee and is approved by the Board and by the Annual General Meeting. In line with the principles in the remuneration policy and based on the company performance, executive management received the remuneration that you can see on the slide. For a full and detailed account, I refer to our remuneration report, which is available at the company's website. Board remuneration in 2025 totaled DKK 9.6 million based on the principles in the remuneration policy and the fee amounts that were approved by the Annual General Meeting last year. This is shown on the slide and also detailed in the remuneration report, which has been public on GN's website since February 5.

This fee structure was approved by last year's Annual General Meeting, where we also mentioned that the Board's intention to improve its governance structure by combining the functions of the Remuneration Committee and the Nomination Committee. This combination into one Remuneration and Nomination Committee has carried out -- was carried out immediately after the Annual General Meeting last year and has worked very well throughout the year. The Board proposes that the base remuneration of the financial year '26 remains at the same level as the year before. We do, however, propose a slightly adjust -- to slightly adjust the fees of the Board committees. This is to ensure that the committee fees more accurately reflect the workloads of each committee. This will strengthen internal consistency and will still keep the total level of remuneration for the Board unchanged. You can see the new proposed fee structure on the slide, and this was also described in the notice to convene.

Each year, the Board evaluates the composition, diversity and competencies of the Board as a whole as well as each individual Board member special competencies. This is to ensure that GN has a well-functioning Board with adequate global experience, functional competencies and industry background, which ensures that we can fulfill our obligations. Again, in '25, the Board conducted its evaluation by involving external assistance so the Board could get an objective outside in view. The evaluation process was based on input from all Board members and 7 executives. The results of the evaluation, including practical recommendations were discussed at the Board meeting in December '25, and the report on the process, evaluation and conclusions is available on our website.

The general conclusions were that the Board has a good working relationship and a constructive dialogue with the CEO and the rest of the management and that the members are empowered to express their thoughts and opinions. Board meetings are conducted in a manner that ensures open relevant discussions and meaningful participation. We have a style and tone in the Board that promotes open, honest and constructive debate. And the Board has good composition in terms of professional competencies, diversity and backgrounds. Based on the evaluation, the external adviser provided some recommendations, which include establishing a clearer succession processes with more depth and visibility to talent pipelines. The Board will also focus further on strategy processes in the rapidly changing global landscape with geopolitical challenges.

Now let's look at the proposals for the composition of the future Board. Our current Board consists of 7 members elected by the Annual General Meeting and 3 members elected by the employees in accordance with the Danish Companies Act. GN's Articles of Association require 5 to 9 Board members to be elected by a general meeting. Our longest serving member elected by the Annual General Meeting, Helene Barnekow, has decided not to stand for reelection. Helene, could I ask you to stand up so the shareholders can see you. Helene joined the Board in 2013 and has added great value and insight to the Board based on her vast professional experience and strong leadership competencies. On behalf of the Board and the whole GN, I would like to sincerely thank you, Helene, for all you have done for GN during the many years. Please give Helene a hand.

With Helene stepping down, the Board proposes that 6 members are elected by this Annual General Meeting, which is within the stipulated 5 to 9 Board members we need the General Meeting to elect. Thus, the Board proposes -- and now when I mention your names, please stand up dear colleagues. We propose the reelection of Klaus Holse, Kim Vejlby Hansen. Kim is not able to be present today. Jorgen Bundgaard, Charlotte Johs, Lise Skaarup Mortensen; and then finally, myself, Jukka Pertola. All the candidates are considered independent as defined in the Danish recommendations on corporate governance. As I mentioned, GN's employees elect 3 members of the Board in accordance with the Danish Companies Act. The term of these members is 4 years, and the employees have just elected new members for the term of the next 4 years.

First, I would like to thank the 3 employees that have been members of the Board for the past term. And again, if you can stand up and I mentioned your name, Leo Larsen. Leo has been member of several terms since 2007. So as such, he is the longest serving member of the Board. Cathrin Inge Hansen has served since 2022 and as has Klaus Holmbeck Madsen. So thank you very much for all of you on behalf of the Board. Warm thanks for everybody for your service to the Board and to GN. For the next term of 4 years, GN employees have elected and again, please stand up, Jens Kirkelund, who is Senior Manager in Audio Engineering. Lasse Emil Holmegaard Korff, who is Lead Hardware Engineer; and Anders Roikjær, who is Head of Regional Operations. So a warm welcome to all of you to the Board. We are looking forward to our collaboration in the coming years.

With this, I would like to ask our CEO, Peter Karlstromer, to provide the shareholders with some more detail on the performance of the company and our business divisions and give some more color on how we are viewing our opportunities in the years in front of us. Peter, over to you.

Thank you, Jukka. And also a very warm welcome from myself to all of you being here as well as attending online. Thank you so much for coming. So as Jukka said, I will talk about mostly the future where we're going. But before doing that, I wanted to make a few remarks on the year we just had. I think it's fair to say it was a testing year for us as a company, and I would say also for you as shareholders. There were many macroeconomic headwinds for us, both in terms of demands in our markets and as well as the whole volatility around trade and tariffs that is impacting a lot of companies like us that producing the majority product in Asia and selling them around the world. These tariffs had also indirect effects because it was not only us that were affected. It was companies that were our customers and many customers tightening the belt to essentially save some money and buying less. So it's also weakened global demand in many areas.

At GN, we took the stance early. We are here to control what's in our control. We really need to focus on what we can influence, and we put in motion a significant program to handle the situation. When we started this, the majority of our products were produced in China, and they were sold around the world. And with the tensions building up, we realized we rapidly need to further diversify where we produce our products. The good news is that we had a lot of advanced plans for how to do that already developed, and we had started to implement them. But I will say in a relatively short time, we were moving a significant part of our production to different countries and different setups. And I will say that myself, I would like to say thank you to all employees involved in this because this was essentially work around the clock to help us with this new setup.

I am happy to say that at this point in time, we have actually completed that transition. Today, we can manufacture all major products in at the minimum 2 locations. In most cases, that is China and one more Asian countries. So this helped us to navigate the geopolitical tariff situation very well, but I would say it's also a very sound setup to handle other kind of shocks and uncertainties. So I think this has created a stronger setup for us. I should also say that the year was not only about manufacturing, it was also a lot about what we did commercially. We, of course, increased prices in several areas to also mitigate the impact of all these extra costs, in particular, in the U.S. markets. Our customers do not like when we increase prices, but I must say they accepted it. I think everyone understood the situation. And also, of course, many of our larger competitors did similar actions.

In parallel with handling all this, I must say there's been a very healthy development of the product development and the portfolio development. We really advanced several development projects in our R&D to really advance our product portfolio across the divisions of Hearing, Enterprise as well as Gaming. So the way I would summarize '25 is that it was a very difficult year in many ways. We managed to navigate this as well as we ever could and mitigate a lot of the possible impact on us. We also used the time, I would say, to really further advance the product development. So while the results were not at all where we wanted them to be in absolute terms, I do think we need to feel satisfied in relative terms. And I also think in many ways, the company is stronger now than what we started the year.

Let me -- I mean highlight some of the numbers, and Jukka mentioned them before, but let me just give a little bit of color on the '25 numbers before moving into the '26. So as Jukka mentioned before, the overall company declined with 1% in revenue organically. There were a bit of a different development if you look on the different parts of the company. Our Hearing business grew 5%, which was faster than the market. And I do like to highlight our Hearing business have actually been growing faster than the market for 4 years in a row. Our Hearing business have been the fastest-growing Hearing business in our industry. So I think that in spite of this difficult year, this happened and our Hearing business was less affected by it. The enterprise business, though is where most of the challenges, as I mentioned before, really took a hold on us. And here, we had a decline of 6%, explained by a lot of the factors I went through here a little while ago.

And then gaming, similar to enterprise, also had a lot of headwinds, ended up at 2% negative growth. I think it's fair to say that the tariff situation in particular, provided a lot of these headwinds making it difficult to grow. And just to clarify for our shareholders, we have tariff exposure on our enterprise and gaming businesses, but we actually exempt from the tariffs on the hearing aid side. That's why we see a little bit of less impact there. And then if we look on the essentially profitability of the company, we had a profitability of 11.5% margin, and that resulted in a cash flow of a bit more than DKK 1 billion. So if we look on all this, all these moving pieces, those of you that looked on the results over time, you will notice that these results are relatively similar to the results we have in '24.

So the way I think you can say that this was a year with a lot of things happening, a really difficult year, and we're fighting back with everything we had and in some way, managed to stand still. We didn't advance. We had aspiration to do more. We wanted to grow more as a company. We wanted to further improve our margins. It was difficult last year, but we defended well and we're standing still. So now I think '26 is all about resuming that momentum of growth and profitability improvement. So let me lay out a bit how we think about that for the 3 different divisions we have. So if I can start with the Hearing division, those of you that have followed the Hearing market or us as a company, you know that this is a relatively stable market. There are aging populations around the world. And what's very positive, people are healthy or longer in life and like to live a full life longer. And as such, we would like to help to hear well even when they're getting a little bit older and the Hearing normally is taking a step back.

So the structural demand for hearing aids is very strong. And you can see here, it's a very nice growth that has been intact many years. And last year, the market actually grew also, but a little bit less than normally because even if the market is resilient, there is still some impact on the consumer confidence, how much money people have to spend around the world. So it was a slightly less growth. But even in this environment last year, we grew 5%. If we look on this year, we do expect a similar market growth around 3%. We believe though we can outgrow that another year. So that will be 5 years in a row. And we have said that we will be able to grow between 3% and 7%. The reason we think we can continue to outpace the market is that we have very strong products already in the market, and we also plan for further launches later in the year.

So I do think we have a very healthy development process and progress that help us to continuously innovate and bring new products to the market underpinning this growth in a relatively stable market environment. So we do expect another good year in Hearing for '26. So then if I can move on to the Enterprise business. And let me first recognize that this business was very healthy, growing for a long time, and then it completely exploded during COVID time. It grew with several hundred percent. But now it's been in several years of decline, which has been very testing and difficult for us as a company. And I would say for you as investors also because a lot of the reasons for some of the pressure on our share price is because of this market has been in decline, making the enterprise business having a difficulty to grow in a healthy way.

We think though that we are standing in for some changes in the market that can be very attractive for the underlying market growth. And the way we would like to describe it, and we're trying to illustrate it here on this page is that if we take a step back and see what is this market about? It's essentially communication. We communicate at work, and we do that in online meeting on hybrid meetings. This trend started to really take off around 2014, '15 with the introduction of the Teams platforms and Zoom platforms, and we were there with the great products where you really could have very good quality headsets to have good meeting experiences.

I think we were really part of creating the standard for what we call professional headsets. And then we benefited as a pioneer from very healthy growth for many years. And then as I mentioned, then during the COVID years, but it was not only COVID, it was more like the adoption become widespread. But during COVID, I think this is about hybrid work and working remotely, I mean, it definitely become a standard for everyone. It became a necessity, of course. And then that really had the market to explode in growth, and we benefited significantly from that.

As I explained, there have been difficult years essentially adjusting from that base. What we think we are now facing is actually third horizon. There is a lot of talk about AI, of course. You cannot have escaped that any of you. Some of you are probably more in the details of it and some of you are more reading the headlines about it. But it is essentially changing the way we work. It will automate a lot of more things in the workplace. It will make employees much more productive, but it will likely also change how we work together with our computers. And if you ask the big PC manufacturers or Microsoft or the big companies, they really believe we will have a different way of interacting. Today, it's a lot about typing and combined with a mouse in many cases. And in the future, we will believe we will speak much more to the machines. And that might sound a little bit strange, Will we sit and talk to the PCs, but that is actually what they believe we will do.

And the reason is quite simple. it is that we speak on average around 3x faster than what we type even if you are a very good typer. And also, we understand things better than listening than reading. So we believe this is around the corner. And it will not only require a new type of headsets that are better, it will likely also, I mean, increase the need for headsets overall because in an open workspace where everyone will sit and talk more, you need good communication solutions. So we think this is a very good time to actually launch a new set of products. What we did was in the first era, we launched what we call was Evolve series. And then the second era here on the page, we launched the Evolve2 series for professional headsets. And actually, this month, we are launching the Evolve3 headset line. And some of you might have seen them out in the entrance. If you didn't, hopefully, they're still there when you walk out and you can take a look. It's really what we believe taking the headset experience to next levels.

These are the headsets in the picture. These are the premium headsets. We call them the Evolve 385 and 75. And we really believe they will take the communication experience to completely new levels. The first thing I should say, I think that looks great. And that you can say why I'm talking about that. We think that's actually very, very important because today, a lot of people at works are selecting what to wear on the head based on how they look and several today actually still using consumer products because they think they look better. So we have designed these products to have a better look. And you can see they don't look like a traditional office headset with a boom arm. These are without boom arms and in very sleek design, and we also have it in black and the warm gray. But do not mistake yourself for this being just good-looking products. They are also much better performing products.

The noise cancellation in these products and how they treat your voice pickup is unparallel to what we've been having before. You can actually have a meeting with this product in a very noisy open landscape without any noise entering your meeting. You can be in a cafe or in a busy airport, taking a walk outside in the wind. And there are even some examples on YouTubes where people have a meeting and a conversation next to fully running a chain saw. And it works. The technology is just amazing. And this is what we call the AI sound processing. So essentially, we have trained the headset to recognize spoken words. And that has not been possible in the past. It's a complete new way we're processing the sounds. And therefore, you're getting this noise cancellation to completely new levels. So it is a bit of a technological breakthrough. So the product looks great, but I will say that perhaps even more important, it's really a step change in what to expect from a headset.

And then I will say also in addition to this, they continue to be what we call enterprise grade. And what we mean with that is, of course, at the highest security standard, but also, I mean, helping an IT department to manage them so they know exactly where the headset are. These are requirements from the largest customer. Without that, they're not comfortable having them connected to the workplaces. So we are very proud of this. We have launched them now, and this will support our business. And then also towards mid or second half this year, we will launch more products into this Evolve3 line. And these products business-wise are perhaps even more important because these are the mid- and low-level entry-level products where we do the majority of our business. This high-end products is approximately 15% of our enterprise business. The bulk of the business is sitting in the mid-tier, which will come later this year.

And these products come later this year, we are equally proud of them and believe they also will provide a very good differentiation. So all in all, what I'm saying is that the market -- there are forces at work in the enterprise market, we think will help the market to get back to growth. We already see some stabilization. We are seeing the business is growing in U.S. and APAC. We're seeing still declines in EMEA, but some level of improvements. But with the help of an improving market and with the help of the headsets we're launching, we do have a high aspiration for the year to turn the business back to growth and have shared a planning assumption here between flat and 6% growth for enterprise.

Let me go to gaming to just round off this update. Some of you might be gamers in the room. And if you're not, it's not too late. There are more and more gamers around the world. There is a steady increase of gamers. And actually, the average age of gamers is steadily going up in ages. And what we think is very encouraging also is that today, half of every new gamer is a woman. This is not teenage boys any longer. This is really something that's broad. And we're very proud to have SteelSeries as, I would say, an innovation leader in this segment for gaming equipment. SteelSeries have, for a longer period of time, benefited from this market growth, but also have been growing faster than the market due to great product introduction and a very strong brand. And you can see the market share evolution here on the left. SteelSeries is primarily operating in headsets keyboard and mice, and that's the market share as you see there.

If we look into another future, also here, there's been a bit of a slowdown in the market growth due to the consumer sentiments. These are consumers that are gamers, of course. And with the pressures we have on the global economy, there is a bit of less buying even of gaming equipment. But still, the market is fairly stable, and we believe that with the healthy products we have to introduce, we should be able to grow the coming year. Actually, we have said between 17% and 13%, which is really to put out a fairly high ambition, and we feel confident around that, thanks to the good set of product introductions we have in the pipeline. So we look forward to a good year here in the gaming side.

So if I tie all this together, if we can get the next slide here. If I tie all this together for our group for '26, this is our guidance. We have said we are having a guidance towards the market to grow our business between 3% and 7%, which is, of course, a very healthy step-up from the difficult '25, thanks to the good things I just shared with you. In terms of the margin, we have an ambition to increase the margin between 0% and 2% this year, which will mean a margin between 11.5% and 13.5%. So this year is really to -- for us to get back on track, thanks to all the great initiatives I described to get the company back into growth and into profit expansion.

I hope you found that helpful and look forward to taking the questions here a little bit later. Thank you so much.

Thank you, Jukka Pertola and Peter Karlstromer for these presentations. It's now possible to comment or ask questions to the Chairman's report or the presentation of the company's annual report, the proposal concerning discharge of Board management and the proposal concerning the application of profits. Prior to the AGM, Claus Berner Møller from ATP has asked for the floor. So I now give the floor to Claus Berner Møller. Afterwards, other people who may so wish can get the floor. And please state your name if you ask for the floor. But first, Claus Berner Møller from ATP.

Thank you. As you heard, I'm Claus Berner Møller, I represent ATP. I'd like to thank you for the report and the review of the annual financial statements. '25 was the third year running with a decline in revenue, 7%. EBITDA fell by 11%. The free cash flow was in line with last year. So debt was reduced by 8.5%. Many of the difficulties in '25 were caused by tariffs that affected GN hard. Some of the production had to be moved to other countries in Asia. This relocation has now been completed, but tariffs will also have a negative impact on earnings in '26. So that's why I have the following question.

What is the negative impact from tariffs that you have as part of your guidance for '26? Another important reason for the problems is Enterprise had negative organic growth of 6% last year. There's a reason to -- for renewed optimism. You have a new series of headsets. 6 years ago, you introduced the Evolve2 series is now finally being replaced by Evolve3. The launch started around the 1st of March this year. So this is early days. But I'd like to ask you how these products have been received. Have you done any test marketing? What has been your experience? I have been shown the new product that is really fancy as new functionality can be used in very noisy surroundings. This was a convincing presentation that I saw. One of the reasons why investors have been a bit reluctant concerning Evolve3, the impact of AI because many analysts believe that the market will be reduced because of AI.

GN believes that AI will be a positive, will influence our Evolve3 series positively, sales positively. Could you give us more reasons for your optimism there? And there might be sort of a timing issue here. The market will first be negative perhaps and then subsequently, positive because of the development of AI. There are also parts of GN that have shown a good growth. Hearing has given 13%, 10% and 5% growth in '23, '24 and '25. You've succeeded with that in a difficult market, GN has won market shares. The tough conclusion of the share market for '25 well caused by a disappointing top line was 18%, 19% down on the price of the share. So that was followed a downturn also in '24. So shareholders have had a tough year, but hope that '26 will be the turning point. Let's hope so.

Thank you to everyone in GN who have stood firm. And I wish to wish the leaders and the employees all the best for the coming years, the challenges that you will see.

Thank you. I'd like to hear if there are any comments from Board and management.

Thank you, Claus, for a good summary of both '25 and the last few years, and I think you do that in a very balanced and accurate way. Let me come to the questions you're posing to us. As I shared here in my brief speech here before, the tariffs is a headache for us and it was a significant headache for us in '25. The way we have planned for the tariffs is that we have taken a very pragmatic approach to it saying that we don't think they will go away. We have just planned them to stay. There are scenarios where they can get better. There are scenarios where they probably can get even tougher. And for everyone's understanding, we now have around 20% tariff on the business we're doing in the U.S. for enterprise and gaming.

I do think that -- so we don't think it will become better. But the changes we put in place last year have found some kind of new balance. We did take a lot of the transition cost of moving the production, as I mentioned, last year. We also increased prices last year. So we're entering this year in much better balance than what we entered '25. And as such, we actually don't think it will have a negative impact on us. You could even argue that margin-wise, it will have a slight positive impact on us because we actually took quite a lot more cost last year than the cost we need to take this year.

The remaining part, which is a concern of ours is more what do all these tariffs and price increases that we and others have done due to the demand in the U.S. And that I think we need to somehow monitoring and find out all kind of market assumptions, both for enterprise as well as gaming, are markets growing a bit less than normal. If we would enter some fully fledged recession or something bigger, that would be worse scenarios than what we planned for. So hopefully, that provides a bit of a nuances to it.

Then if I can talk about Evolve3. Yes, I realize I sounded probably a little like a marketer when I presented the products here before because it's us being very proud of the products. But I think everything I said is also factually true. These products are outstanding. I think they really are a step change for what the headset is. The feedback we're getting from our customers is very positive. We have had them in early customer trials since the beginning of this year. So some of our largest and most demanding customers have tested them with very good feedback. Also, the feedback from the largest channel partners are equally good. So if anything, I would say that the products have probably been better received than even we hoped for. So we feel very good about that. We have more work to do with Evolve3 line, as I highlighted, because we have launched the premium products now, which is about 15% of the total business. We need to make sure that the mid-tier and entry-level products are equally well received. So we're working, of course, very hard on that.

Then to round it off with your questions on AI. First, I should say that I personally, and I believe that's the stance we have taken as a management team, we very much believe that AI will drive a lot of change. Will -- and also provide some challenges, but also a lot of opportunities. If I try to speak about this in parts, I would say that some business will likely become less like we're doing some business with call centers, for instance. I do think that will become less. That is though a very small part today. It's only around 5% of our enterprise business that our business we're doing towards call centers. So the absolutely majority of our enterprise business is sitting in the professionals as we call it, it's office workers of different kinds.

And here, we really believe in the scenario I shared before that you need better headsets. Every new office tend to be smaller, a little bit denser. The sound volume in most offices go up, you need good headsets. And AI will likely further amplify that. There are some investors I meet that are asking questions like, yes, but what happens if you will have 20%, 30% unemployment? I can say we probably would have very big problems as a society if we will end up there. And in a very transparent way that we have not factored into the guidance for '26. And I also believe that if something that would happen, it will take some time for that to develop. So we do assume like a macro environment that is relatively stable and similar as we're now entering the year. So hopefully, that provides a bit of color on what are very good and important questions. And I should say that in addition, AI, it will help us with creating new opportunities. But like any company, we're also working a lot to see how it can help as a company to become more productive, of course. So thank you so much.

Thank you for the answers to the questions raised. I would like to hear if there are other requests for the floor. This is in relation to the report from the Board. That doesn't seem to be the case. As I said in my introduction, I will proceed now to the formal adoption of everything under Item 1 to 4 on the agenda. The first item is the report from the Board. And under one, the proposal is that the AGM takes note of the report. And for the sake of good order, I'd like to ask if there are -- any comments in this respect? That doesn't seem to be the case. So I find that the AGM has taken note of the report. We'll go to the next item, which is 2, submission of the audited annual report for approval. And the Board recommends that this is what happens. The audit report will appear from Page 188 to 191 in the annual report, and it is a blank endorsement.

We have approved the annual report. There have been no questions or comments. Three, the proposal is for the AGM to give discharge to the Board and executive management members. Any questions or comments? That is not the case. So I find that we have adopted the proposal from the Board. And then the last of the first 4 items, decision on the application of profit or covering of losses. The proposal is, as appears on Page 31 in the annual report that the entire amount be carried forward to next year and that no dividend be paid out for 2025. I find that this has been approved. We have now dealt with the business in items 1 to 4 on the agenda, the approval of the report, the approval of the annual report, resolution of discharge and decision on the application of profit.

Then we have Item 5, presentation of an advisory vote regarding the remuneration report. The remuneration report includes remuneration and payment to the Board and management for 2025. It's been available on the company's website, and I'd like to hear if there are any questions or comments. That is not the case. I find that the remuneration report has been approved. We will now proceed to Item 6, which is approval of remuneration to the Board for 2026. Jukka Pertola has also gone over this in his presentation. The proposal is that the AGM approves maintaining the -- maintenance of the level of remuneration for 2025. There will be an adjustment that redistributes the remuneration paid to members of the committees, but will not change the overall amount. The basic remuneration will be DKK 545,000 to all members, double the fee for the Vice Chair and 3x the fee to the Chair.

There will be additional amounts for additional work and the proposal is that DKK 200,000 will be paid out to members of the Audit Committee, DKK 150,000 for members of the Remuneration and Nomination Committee and DKK 150,000 for the Technology and Innovation Committee. And the Chair of each committee will get double that. Again, the total amount is unchanged from last year, but the internal distribution of the amount has been changed slightly. I find that the proposal has been adopted.

That brings us to Item 7 on the agenda. It is divided into 2 parts. First, the decision concerning the number of members up for election and then of the Board. According to the 14.1 of the articles, GN Store Nord shall have a Board of Directors of at least 5 and maximum 9 members elected by the AGM elected by -- for 1 year at the time. The Board has proposed that the AGM elect 6 members for the Board. I'd like to hear if there are any comments. That is not the case. So this proposal has been duly adopted. It brings us to 7B, election of members for the Board of Directors. As it was said in the Board is proposing reelection of Jukka Pertola, Klaus Holse, Charlotte Johs, Kim Vejlby Hansen, Lise Skaarup Mortensen and Jørgen Bundgaard Hansen.

As the Chairman said in his report, Helene Barnekow has said that she's now running for reelection. The competencies of other managerial positions of the individual candidates have been available to the shareholders prior to the AGM. All candidates are independent in accordance with the Danish corporate governance rules. Are there any comments? Not the case. So I conclude that Jukka Pertola, Klaus Holse, Charlotte Johs, Kim Vejlby Hansen, Lise Skaarup Mortensen and Jørgen Bundgaard Hansen have been reelected to the Board of Directors. Congratulations.

Let us move on to Item 8. That's the election of the state authorized public accountant until the next AGM. The Board, following a recommendation from the Audit Committee, has proposed to elect PricewaterhouseCoopers had authorized audit partnerships as the auditor in connection with the annual report, consolidated financial statements and also to give the statutory declaration concerning the company's consolidated sustainability reporting. As mentioned in the convening notice, the Audit Committee has not been influenced by any third parties and has not had any agreement with third parties that would limit the choice. Are there any comments concerning the election of PwC as auditor, not the case. So I find that PwC has been elected as the company's auditor.

That brings us to Item 9. The next item on the agenda. This is proposals from the Board of Directors concerning the acquisition of treasury shares, owned shares. As was the case last year, the Board is proposing that the AGM authorizes the Board until the next AGM to acquire treasury shares. This is a standard wording at AGMs. It says that the company's holding of own shares at no time may exceed more than 10% of the share capital and the remuneration may not deviate by more than 10% from the price listed at NASDAQ Copenhagen at the time of acquisition. Are there any comments? It's not the case. So the proposal has been duly adopted.

Item 10, that is proposals from shareholders. No proposals have been received by shareholders. I move on to Item 11, and that is any other business. Under any other business, you can have the floor, but no decisions can be made. Does anyone wish to have the floor before I declare the agenda for exhausted? Not the case. So I'd like to thank you for being very good here at the AGM and the agenda has now been exhausted. I give the floor back to Jukka Pertola for a final comment.

Thank you, Mikael, for guiding us through the meeting efficiently. And thank you also, Peter, for sharing their insight into our business. And first of all, thank you for all of our shareholders for your support. It has been a challenging couple of years as we have heard, but thank you for your support anyhow. And finally, thank you for all GN employees who have worked hard and achieved good results under challenging circumstances. I hope to see you next year again when we can share more progress and value creation for GN, hopefully. So I wish you a very good day today, and thank you for coming. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Hello, everyone, and welcome to GN's conference call in relation to our annual report announced this morning.

Participating in today's call is Group CEO, Peter Karlstromer; Group CFO, Soren Jelert; and myself, Rune Sandager, Head of Investor Relations. The presentation is expected to last about 25 minutes, after which we'll turn to the Q&A session. The presentation is already uploaded on gn.com.

And with that, I'm happy to hand over to Peter for some opening remarks.

Thank you, Rune, and thank you all for joining us today. '25 were a year where we continue to execute on our strategic and operational agenda in a difficult market environment influenced by uncertain trade and macroeconomic weakness.

In Hearing, we continue to deliver very strong performance, and we are now at record high market shares driven by ReSound Vivia that was launched in the beginning of the year. Our premium products sell very well, and our margin is under control in spite of an adverse country and business growth mix in '25. Our product and software platforms are in strong shape, and we plan to launch further innovation in '26 that will support our growth.

In Enterprise, the U.S. and APAC market continued to grow modestly throughout the year, while the European market still experiences some weakness. We are pleased with our own execution in this environment and well prepared to benefit from a continued gradual strengthening of the market.

In '25, we successfully accelerated several supply chain and pricing initiatives to manage the uncertain trade environment. We have managed this well and have mitigated most of this change. We have a strong pipeline of products in video and headsets that we will launch in '26, the most important one for our financial results is the Evolve3 headset platform, which we announced a few weeks ago and will start to ship later in this quarter. Additional launches under this new platform will follow later in the year.

In gaming, we continue to gain market shares in a challenging gaming equipment market. While gaming also faced some of the same margin headwinds as enterprise, we have executed sustainable margin initiatives and operational resilience initiatives supporting our long-term margin aspirations for the division.

In addition, we have also launched exciting products in gaming, including our new gaming headset, the Nova Elite, which is very much a premium offering. Also here, our product pipeline is strong, and we look forward to exciting launches in '26.

The markets that our 3 divisions operate in have been challenged in '25. While we aspire to deliver stronger absolute numbers in the year, we feel very good about our relative performance across our divisions and focus on the things that are within our own control. We have taken several supply chain and operational improvement initiatives that we will benefit from in the years to come.

In addition, our product pipeline across our 3 divisions is stronger than it's been for a very long time. We remain firm in our belief that our markets remain attractive and look forward to further developing our business in '26 and the years to come.

With this introduction, I'm happy to hand it to Soren for further details on our performance in the group.

Thank you, Peter, and thank you all for joining us today. Essentially, as Peter mentioned, we are satisfied with what we achieved during '25 under these challenging circumstances. The group delivered a negative 1% organic growth for the year, supported by a 5% organic growth from our Hearing divisions, a negative 6% organic growth from our Enterprise division, and a negative 2% organic growth from our Gaming division.

Our profitability, we are pleased with where we landed for the year with an EBITA margin of 11.4% as this essentially demonstrates strong mitigation of what is within our own control. We have successfully increased prices and kept a strong focus on costs while harvesting group-wide benefits from the scale of GN. The profitability also positively influenced the free cash flow generation where we ended the year with DKK 1.1 billion in free cash flow.

Moving to the financial details on Slide 6. Starting with the results of the fourth quarter of '25, the group delivered organic revenue growth of a negative 2%, reflecting solid execution across our divisions in some difficult market conditions.

The EBITA margin ended at 13.4%, reflecting a group-wide cost focus offset by an extraordinary R&D write-down due to the new partnership with Huddly in our video collaboration business. Lastly, the group generated free cash flow, excluding M&A of DKK 744 million, reflecting the strong profitability and positive development from our working capital.

For the full year, the group landed at an organic revenue growth of negative 1%, in line with our financial guidance. The group delivered an EBITA margin of 11.4%, which reflects prudent cost management while strengthening business fundamentals and preparing for future growth.

The free cash flow, excluding M&A generated for the year was DKK 1.1 billion, driven by solid earnings and positive impact from working capital. In 2025, we have decreased our net interest-bearing debt by more than DKK 800 million, which also allow us to refinance our main loan facilities during the year with attractive terms.

In summary, at a group level, we delivered solid profitability and good cash generation while continuing to improve the balance sheet. We also accelerated our efforts to ensure a flexible and diversified operational setup while making important progress on our product road maps, paving the way for growth opportunities in '26 and beyond.

And with those group highlights, I'm happy to hand you over to Peter for some additional color on the 3 divisions.

Thank you, Soren. Let me start with our Hearing division. In Q4, we finished the year well with 7% organic revenue growth, reflecting a market that continued to grow slightly below its normal trends. Divisional profit margin for the quarter was 35.2%, reflecting a focused cost control.

When looking back at '25 as a whole, we can conclude that Hearing grew faster than the market and continue to gain market share. The full year organic growth was 5% in the market growing slightly slower than normal.

The gross margin ended at 61.1%, which was below 24% due to an adverse development in the country and business mix as well as the divestment of Dansk HoreCenter. Divisional profit margin ended at 33.6% due to prudent management on sales and distribution costs, offset by the gross margin development and ongoing investments to support the strong momentum of our ReSound Vivia platform.

The divisional profit margin was slightly below 24%, which is explained by margin underperformance in the difficult and unusual Q1 that we and the market experienced. In the last 3 quarters of '25, we delivered a slightly better divisional profit margin compared to the same period in '24. We are confident in the underlying margin structure and plan for margin improvement in '26 and beyond.

Let's move to the next slide for some highlights on the performance on Enterprise. The Enterprise division ended the year with a fourth quarter organic growth of negative 3%. This includes a larger FalCom order that continued its good progress.

Our Enterprise business grew in North America and APAC, while the weakness in EMEA continued. Sell-out in the quarter was a few percentage points stronger than the sell-in, reflecting some channel inventory reductions in EMEA. Channel inventories were stable in North America and APAC.

The divisional profit ended at 33.3% for the quarter, reflecting positive contribution from price increases and cost control and offset by direct tariff costs. For the year of '25, Enterprise managed to maintain its market-leading position in a challenged European market while executing positive sell-out growth in North America and APAC, resulting in organic revenue growth of negative 6%. As part of these numbers, it's worth highlighting that our sell-out growth numbers were around 3% better than this. So global channel inventories have decreased compared to last year.

The gross margin increased 0.3 percentage points compared to '24 in spite of the extra tariff cost. We are pleased about how we mitigated uncertain trade environment through accelerated diversification of our supply chain and targeted price increases. The development in divisional profit margin reflects focused cost control, negative operating leverage and costs related to the upcoming launch of the Evolve3 platform.

Moving to the next slide and Gaming. In our Gaming division, we delivered organic revenue growth of negative 12% in the fourth quarter, reflecting a difficult gaming equipment market influenced by low consumer sentiment as well as a very demanding comparison base as we delivered 16% organic growth in the same quarter '24. In the quarter, we demonstrated good cost control, delivering a divisional profit margin of 16.4% despite the direct tariff cost.

For the year, we have increased our market share in a difficult market, resulting in organic revenue growth of negative 2%. We increased the gross margin for the division due to strong pricing discipline and benefits from the supply chain integration with Enterprise, partly offset by direct tariff cost. The divisional profit margin for the year reflects investments in product launches and extra costs related to managing the difficult trade environment.

Let me move to the next item on the agenda, where we'll provide some more flavor on the divisional growth ambitions for '26 and beyond. Starting with Hearing. In '25 the market grew slightly less than normal. We still very much believe in the underlying growth drivers of the market with increased adoption and a growing elderly middle class around the world. This will continue to support healthy market growth over time. We are pleased that we have managed to outgrow these attractive markets for the last years, driven by strong commercial execution and product innovation.

With the help of our latest platform, ReSound Vivia, we have further strengthened our position and our momentum remains strong around the world. As announced earlier this week, we will now also expand the Savi portfolio, which will support growth, especially in countries and channels looking for more affordable product solution.

On top of these exciting portfolio additions, we have even more innovative product launches planned for the second half of '26. Altogether, this gives us high confidence that we can continue to grow above the market and strengthen our competitive position in the coming years and further.

Let's turn to the development of the Enterprise business. I think it's worthwhile taking a step back and looking on our headset business has been shaped over the last decade. We have been one of the frontrunners establishing the market and driving the professional headset penetration. And the enabler for this has been technology shifts, where we have been successful in developing products that caters for customers' needs over time.

Back in 2014, we launched our award-winning Evolve portfolio that supported the rapid adoption of different UC platforms driven by large technology infrastructure companies. What was unique and industry-leading at that time was the easy integration of our headset portfolio in the different user platforms, where we also launched ANC and a strong microphone pickup. The result was clear, professional headset quickly became popular and a standard for the knowledge workers wanting a high-quality experience.

Moving into 2020 and the hybrid work age, as we would call it, this was accelerated by COVID-19. This period in time required new technology for headset performance and integration. In early 2020, we launched the Evolve2 portfolio that significantly increased headset performance across multiple dimensions. As a result, global headset penetration increased further to around 20% where it is today.

And now with a fast-developing AI solution, we're entering what we believe is the next era. We call this the modern work shift. And with the increased adoption of AI solution, we believe that the next headset penetration will be driven by new technology demands. For it to succeed, you need to have a headset that fits the evolving trends of tomorrow.

Let me give you a few examples. Ninety-nine percent of knowledge workers acknowledge that poor sound is impacting online meetings. Seventy-eight percent of knowledge workers from multiple locations, which means that the design of headsets is important and that headset needs to handle ever-changing noise situation in different environments.

Currently, we're also seeing a return to office trend among many companies as well as a trend that the majority of new offices being built are having more open landscapes and less square meter per worker. This means that all of us need great solutions for working in these open spaces that are comfortable and where we can have online meetings where all background noise is filtering out. And that would help you to come across very clearly even in these challenging environments.

AI workflows will also be a driving force. Voice is 3x faster than typing, making AI voice interaction much more efficient than if we type. Simply, we will likely speak more to our computers and devices and type less. This puts new requirements on the headsets in terms of how they can handle this with great accuracy. It would also like to increase the sound level in open spaces further and further increasing the need for great headsets that can handle that.

Lastly, cybersecurity is important today and will likely increase even more into the future and grow in importance while an enterprise-grade framework for security is becoming an essential to be in this market.

We have talked to numerous customers, partners, and analysts over the years to form a strong view on what's needed. And we believe that we have announced the -- what we have announced last week is really the headset that can take us into the new modern work area.

Our latest enterprise-grade headset launch, the Evolve3 is designed to take the user experience to a new level while playing up against future technology trends. And it's not just another hardware update that is slightly better all around. The Evolve3 is also based to close to 10 years of research and development in its underlying technology.

First and foremost, the AI-driven deep learning technology had been trained on more than 60 million real-world synthesis, taking microphone technology to a completely new level with outstanding ability to separate speech from noise, and this is quite impressive considering that it's also been possible even without the traditional boom arm. These headsets captures 99% of words accurately in an open office environment, making it built for voice-led AI and screen productivity in any environment.

In addition, it is the first of its kind to feature adaptive noise cancellation while we're on a call and it comes with improved connectivity and a significant step-up in battery life with the possibility of a full day use from only 10 minutes of charging.

In addition to impressive technical development, Evolve3 is also designed to be compelling. It is released in black and warm gray with a modern design. It's also designed for comfort. It is light and comfortable to wear all day. From March, the Evolve3 will be globally available in our high-end form factors, the 85, which has an over-the-ear fit and is designed for immersed focus and the 75, which has an over-the-ear fit if you prefer a lighter wear and greater environmental awareness. We call this the best headset for modern work and it's really built to match the pace and flexibility of what we all require.

So let me move to the next page. As the working habits change, we need technology that adapts well. Whether you are in an airport, working at home, in the office or somewhere else, Evolve3 is a perfect companion. Even in very noisy environments, voice clarity is state-of-the-art due to our DNN-based voice processing, taking the benefits from the wider GN Group.

As an example, you can literally stand in the room with loud music playing in the background and a person that you're speaking to will only be able to hear you and what you are saying and not the music at all. The same applies when you're taking a call outside a windy day, in a noisy coffee shop, or basically anywhere in any situation you can imagine. It's only you that is being heard.

And perhaps most important, the strong sound process to make the headset the perfect companion for working also in the normal open landscape where you likely will be shielded from the noise around you. And when you make a call, you need to be heard without any background noise and the shatter to enter your meeting.

The sound performance is so strong that you do not even need to mute when you're not talking any longer. The participants in the meeting will essentially only hear your voice and nothing more. We cannot be more excited about this launch and have more confidence in that this is really taking the headset to the next level and help us with the growth for the Enterprise division in '26 and beyond. It is developed to be the next penetration wave, while it also will assist the ongoing replacement of existing legacy products. And stay tuned because more will also come. We will, as normal, launch across mid and entry-level price points later and a more affordable price point will come over time in the next 15 months.

Let's move to the next slide, where we'll also talk more about our aspirations for the gaming business. SteelSeries have been on a journey with increasing market shares for quite some time now. Since 2019, we have increased our market shares significantly in our core categories of headset and keyboards due to our best-in-class innovation.

In [ mikes ], we have been defending our position during the last 5 years. This will be one of the focus areas for the coming periods as we obviously want to improve our position in this market as well. The core gaming equipment market remains structurally attractive, supported by continued growth in the number of gamers, time spent on gaming, and a growing appetite for premium features. These dynamics underpin a healthy long-term growth profile for the market, even though the near-term environment is held back by a muted consumer sentiment, in particular in the U.S.

Against that backdrop, SteelSeries continues to win, and we expect our current momentum to continue in '26 and beyond, and we continue to deliver new product innovation in the market that will support this growth. SteelSeries is not just another gaming equipment option. In SteelSeries, we continue to challenge status quo and expand our categories into new and better options.

For '26 and beyond, we expect to harvest broad-based market share gains by strong brand momentum and significant launches across categories and into new form factors on top of the growing core portfolio.

While it is, of course, important that Gaming returns to deliver strong growth, the division has also been a journey to increase margins to becoming part of GN. We have come a long way by fully integrating Gaming into the same systems and product flows as Enterprise business and there are even more margin benefits to come over time by fully utilizing the GN at scale. In addition, we will continue our strong pricing discipline to mitigate impact from direct tariff cost and other unforeseen future external headwinds that could be a threat to our margins.

Moving to next slide. Let me go through the assumptions for '26. In '26, we are planning for growth across our 3 divisions. We are convinced about our strong product portfolio that will help us to further gain market share in a flat to slightly growing markets.

For the hearing aid market, we expect the market growth for '26 to be at the low end of the structural value growth of 3% to 5% due to the current low level of consumer sentiment around the world. In this market, we assume that we can continue to gain market share driven by our current momentum and further product innovation. And this is why assuming an organic revenue growth for the years between 3% and 7%.

For the Enterprise market, we believe that the growth patterns that we have observed outside EMEA in '25 will continue. We also believe in some level of stabilization of the macroeconomic environment in the EMEA region to materialize during the year. All in all, we believe the global enterprise market will likely grow between flat and 2% in '26.

In this market, we assume we can gain market shares driven by the launch of our Evolve3 headset platform and a gradual strengthening of our video portfolio. As a result, we're assuming an organic revenue growth for Enterprise between 0% and 6%.

For Gaming, we expect the market growth for '26 to be modest, influenced by the current low consumer sentiment in the near term. In this market, we're assuming continued market share gains, driven by current momentum and the strong product innovation. And we believe that for Gaming, we can grow between 7% and 13% in the year.

And with that, I'm happy to hand it back to Soren to speak more about our guidance for '26.

Thank you, Peter. All in all, when we apply these divisional assumptions, it leads to our guidance for the group where we guide for an organic revenue growth of 3% to 7%, driven by continued strong execution and market share gains across our 3 divisions, as mentioned by Peter. Moreover, we are guiding for a reported EBITA margin of between 11.5% to 13.5%, driven by continued cost focus and operational leverage, offset by some short-term headwinds. All in all, the financial guidance supports our ambition to grow in a sustainable and profitable way that eventually will lead to realization of our long-term targets.

On the next slide, I'll provide you with some more details on the elements that drives our '26 EBITA margin guidance. First and foremost, we are pleased with our ability to mitigate the impact on tariff in '25 by effective price increases and a successful acceleration of our diversification of our supply chain.

Specifically, in '26, we will experience a margin tailwind from the temporary cost taken in '25 to relocate our production lines. That tailwind is then more or less offset by the full year effect of tariffs as these were only really impacting our COGS from the third quarter of '25. Then we will have a net negative effect from a step-up in absolute amortizations following the product finalizations of a number of projects, including the recent Evolve3 portfolio. This is, by definition, a noncash effect, but is following our accounting principles.

Taking these factors into account, we do believe that we can drive a very healthy underlying growth in '26, which will materialize across gross margins and operating leverage. Depending on the growth development in the year, we will be able to expand our underlying EBITA margin by 1 to 3 percentage points. This once again underpins our strong group-wide margin platform potential.

We remain firm on our long-term structural margin target of 16% to 17%. With the underlying margin target we are guiding for this year, we are convinced that we can continue to drive yearly margin expansions beyond '26 as a result of healthy top line growth and prudent OpEx management. On top of this, we will naturally look for gross margin opportunities as well.

So to conclude, following a difficult '25 due to a wide range of external headwinds, we are excited about the prospects of the coming year. With growth coming back to our 3 divisions, we will be able to deliver a strong profitable growth while continuing our focus on strong cash flow generation and thereby continuing deleveraging.

And with that, happy to hand you back to Rune.

Thank you, Peter and Soren, for the updates. This was the end of the presentation. I will hand you over to the operator for the Q&A. Please limit your questions to 2 at a time, please.

[Operator instructions] The first question comes from the line of Andjela Bozinovic with BNP.

Maybe one on Enterprise and one on Hearing. So on Enterprise, having in mind the Q4 performance, can you give us more details on underlying assumptions supporting the guidance and phasing of the growth throughout 2026? And just more broadly, what is your take on the expected decline in the PC volumes following the memory price hikes? How do you see this affecting IT budgets and the end markets in particular?

And on Hearing, can you maybe discuss the moving parts going into 2026 and the phasing of growth? And any indication of what is baked in your guidance in terms of market share gains, competitor launches and market growth assumptions for both at the top end and bottom end?

Great questions and quite a lot of unpack there. Let me start with Enterprise. We recognize that '25 was, of course, not the year where we delivered the growth, which we aspired for. But with that, there were still some positive things happening in the year. We saw the U.S. market and the APAC market actually growing throughout the whole year. So the difficulties were in EMEA, and we did see some underlying improvements throughout the year. Q4 ended a bit weaker than what we anticipated. Still, if we look back over the years, it has improved. And then, of course, also with our launches here, I talked a lot in the opening about Evolve3. We also have video products, which we are launching this year. We do believe that will support and growth also on top of the market improvement.

In terms of the sequencing, I think it's fair to expect that it will be a gradual return to growth. So we will build up the growth over the year. So in some ways, the second half will be stronger than the first half. We also expect more product launches throughout the years and the launches we have made now, while the products, I think, are truly fantastic, it is a premium product that's still a smaller part of the total Enterprise volume. So all in all, I think we will build up the growth in Enterprise throughout the year.

Then you asked about the relationship to PC shipments. I think we need to admit that we have seen a correlation before over time. We saw a little bit less of that last year, and it's probably also linked to quite an accelerated forced upgrades of a lot of PCs. So with a significant amount of budget for many companies spent on this. So it's probably crowded out spending in other categories. So while perhaps PCs decline a bit, we do not necessarily see this as something negative for us. And so we believe in the underlying growth here and the gradual improvement of our market.

Then if I move to Hearing, I think it's fair to say that there is, of course, a lot of many moving pieces when we're building up our growth aspiration here for the year. I mean as we talked to, we believe that the market underlyingly is growing slightly below its normal trends. And we're talking about the lower end of the 3% to 5% value growth, which we consider to be normal.

And you asked about what we have factored in. We have tried to factor in everything that we know, of course. We do assume some competitive launches. We do assume, of course, some larger customers making different type of decisions with opening up for more entrants. So we have tried to factor in everything we can. But we're, of course, also factoring in our own new innovation and our own launches. And we are entering the year with a good momentum. We had a 7% growth in Q4. We're entering with that momentum into this year and feel good about the momentum of Vivia. And with more innovation throughout the year, we think we can support a healthy growth over the year.

So in Hearing, in terms of sequencing, I think you should probably expect a fairly even momentum throughout the year. Every quarter, we see a good opportunity to grow in essentially.

Next question comes from the line of Martin Brenoe with Nordea.

I have a quite long question here. So I think I'll just limit myself to this one question, and then I'll jump back in the queue. In your Q3 report, you wrote that GN has minority investments in noncore assets that may contain significant value and could be divested. I've done some channel checks, which are indicating that NationsBenefits is a $1 billion valuation company, which is looking for external funding here in 2026. And this should translate into a potential divestment opportunities with potentially billions in DKK, based on my analysis at least. I know it's a bit out of your hands, whether this happens or not.

But could you maybe just confirm whether you expect a funding round in 2026 and whether you expect to monetize that opportunity when it arises. And then just as part of that, I guess it would also explain why you're not having a cash flow guidance for this year, which indicating that you are a bit more comfortable with your leverage ratio. And if possible, I know I'm asking for a lot here, but could you maybe just provide some details on what you think such an opportunity would affect your deleveraging path from here and how you -- if you monetize it? Otherwise, potentially just give some basic information about the revenue and the growth of these minority investments?

So Martin, thanks a lot, and thanks for laying this out and your work around this. We started to talk about Nations because we realized it started to build up to a valuable asset that we wanted to be very open about. And -- but we've also been clear on that there are some unknowns also for us. This is a company that is privately held. It is, of course, we have an ownership share of about 19%. We have a founder in that, that's been there since the beginning and another large investor also. So we're one of the larger investors. I think we are very happy, of course, with the underlying performance of the company. We do not want to comment on the details here since it's not a public company. I think that all of you can approach Nations for request directly from them. But I can just confirm that our view is that the underlying performance of Nations is strong and is strengthening over time, and it's been a very successful business buildup. So that's probably all we can say.

And then in terms of how we think about our ownership, this is not strategic to us in terms of that is interlinked a lot with our existing business. At the beginning, Nations were very hearing aid focused, but they've grown to be much more than that today. And as such, there is not a very strong link to our existing business. So at the right point in time to the right valuation, we would be open to consider if we're the right owner. But it's not anything we are unilaterally seeking. We probably will do that in great harmony with other key owners and the founder, which we respect a lot. And we will update you over time as opportunities will present themselves. There is nothing very imminent around this, but could very well be over time.

I hand it back to Soren for more commenting on the cash flow guidance and how to think about it.

Yes. I think in many ways, you're absolutely correct that we do not guide for cash flow this year. And just to echo what Peter said, in the event something would happen, it would be M&A. And as such, we would always guide excluding M&A. So in that sense alone, it is not interlinked. But that's fundamentally not why we are not guiding for free cash flow this year. It's more the fact that we now, the last 3 years have generated more than plus DKK 1 billion in free cash flow. We have demonstrated that when we have the margins that we've had that we can generate the cash flow. In addition to that, we have also now made a new loan agreement that in many ways, is also a testimony to that our endeavor to go towards 2.0 leverage by '28 is definitely on the right track. And it was our opinion that where we need to focus now is to generate growth and the earnings. And when we do that, it will yield cash flow. And rest assured, we'll stay focused on getting to the deleveraging of 2.0 as fast as we can.

Next question comes from the line of Hassan Al-Wakeel with Barclays.

Firstly, can you talk us through the drivers of hearing aid market outperformance and any regional performance that you can highlight? Your market outlook is for another softer year in 2026. It'd be great if you can walk us through how you see Europe within this and whether you're seeing any signs of improvement?

And then secondly, on margins, given this should be a strong year of launches across your businesses. Can you talk us through some of the building blocks for expansion in the margin over the course of 2026? And I appreciate this is a wide range for the year, but the gap to the midterm ambition remains pretty large. So any updated thoughts on the bridge to 2028 would be very helpful?

And let me start in the order you're asking this essentially. So if you take Hearing, if we look on '25, as you have heard us talk about before, in the first 3 quarters, this was very much Europe and international markets providing the growth for our business. We have been doing very well there. I think what's positive is that in Q4, we saw a bit of a stronger performance and growth contribution also from the U.S. side of our business. And if we look into the next year, I would say market-wise, we do expect the U.S. to be a little bit stronger than it was in '25. As we remember, Q1, in particular, was a very difficult quarter in the U.S. But generally, still the global market outlook, as we're saying, we do believe it's adding up to slightly below the structural growth of the market. That's our planning assumptions.

Then in terms of our own plan for how to outgrow that market, I would say it's broad-based. We like to see outperformance versus the market growth in each of the region and also very focused to drive success in each of the channel types, everything from larger key accounts to more smaller independents. So this has been the approach we have taken in the last few years. It's very important for us to have that kind of balanced exposure and balanced ambition for our growth across. And the same is how we think about '26.

And then you asked about Europe specifically. I think it's clear that Europe has been, I think, lately a little bit better. I would say that the markets where we have been doing very well has been, in particular, in Germany, that has been a growth driver for us, and we continue to have a very good momentum there. I think it's probably what I would highlight. But generally, I mean, the European markets for us has provided quite healthy support for our growth. I think it's also fair to say that in some European markets, we have a bit of a lower market share, also presenting an opportunity for us to catch up a little bit to what we think are natural market shares for us.

And then when it comes to the margins, I think a couple of questions here, one linked to this year's margin. And for us, I think it's important to also recognize that we all the time have said that Gaming is an area where we will, through the good synergies with Enterprise, improve, amongst others, our gross margin. And as such, we also do believe that the group as a whole will be able to improve its gross margin in '26. Then in addition to that, actually, we also do see an opportunity on leverage of the OpEx base essentially. But to your point, we have factored in that we are launching. And then bear also in mind that within Hearing, we did launch Vivia in '25. So those costs were actually sitting in '25 as well. So in many ways, we are at a level of the cost base, which we believe is adequate to actually support the growth that we are striving for within the 3 divisions.

Then when you look at the long-term margin aspiration of 16% to 17%, I think fundamentally, it's also important the decomposition we did of the aspirations for '26, where we have some cost items, amortizations as one, we do believe when you come out to the outer years we will be able to leverage the top line growth and as such be able to generate these margin increments as you see. So fundamentally, the underlying performance of our business should be able to get us to the 16% to 17%, which we believe is right for GN as a group.

Next question comes from the line of Carsten Lonborg Madsen, Danske Bank.

Yes, a quick follow-up on Nations and the value here. Could maybe -- I know you cannot really talk about the value of it, but what will happen tax-wise if you realize a gain on this? Should we extract some tax from that, at least then we know that?

And then I have a question on Huddly. You talked a lot about Huddly and you also mentioned video as a growth driver for you in 2026, something we have on the outside been waiting for a very long time. How meaningful is this collaboration? And do you expect -- and have you factored in sort of the meaningful growth of the video segment into your Enterprise outlook for this year. That's it?

Let me start with the video and then hand it back to Soren for Nations and tax. I think that the Huddly partnership is meaningful in the way that it's addressing a gap which we've been having for a while, which is to work with companies in large video rooms. And Huddly is a company -- it's a smaller company, but with great technology for how you can add cameras into video rooms. So we essentially have integrated this into our existing video platforms together with their R&D. So it helps us a lot to now be able to address the full needs of companies, and it's been very well received when we're talking to customers and have presented this. We are launching this now in Barcelona this week at the big conference here, ISC. And we also have own other video launches, some which we have made and some that's coming.

I think it's meaningful for the video business, what we're launching. It should definitely support the growth of the video business. If you look on the total growth support for both Enterprise and for the group, we need to remember that video is still a relatively small part in absolute numbers, so to say. But it certainly are important steps to see some acceleration of growth on the video side. But if you look into the growth ambition of our -- of Enterprise of 0% to 6%, we are counting on some contribution from video, but the majority will come from the core of the business, which still is headset.

And then, Carsten, when it comes to your further deep dive on Nations question, I mean, I'll refer back to the question or the answer that Peter gave before. And as such, neither are we speculating in a potential tax implication of this and as such, are planning on group level still with around this 22% as we have also reported out on this year.

I was more thinking about whether we should -- when we calculate the value, whether we should just assume that the value is the value or whether we should subtract 20% tax?

Again, I wouldn't speculate in the value is the value. I mean, honestly, we do not have a comment on the value as such and when it will materialize on Nations. So that's the way we look at it.

Next question comes from the line of Veronika Dubajova with Citi.

I will keep it on to 2, please. One, I just was hoping you could quantify the contribution from FalCom to the fourth quarter revenues and then what your expectations are for 2026 and whether those have changed in any way? And kind of maybe just gate some sort of risks to the upside and the downside around that just so that we can think about that since it was a driver.

And then I apologize, but I have to go back to sort of the expectations around the Enterprise business growth. I guess there is a lot of concern and uncertainty in the sort of broader IT spending market. I guess it'd be helpful to understand the conversations that you're having with your distributors with some of the larger customers. What are you picking up in terms of corporate willingness to spend, especially as they face a lot of other competing priorities for investments, whether that's PC units or it's things like AI. I'd be kind of good to understand what you're hearing there. Just to give us a bit more confidence in your kind of -- what seems to be a very clear message that Enterprise should grow this year after many years of decline.

Starting with FalCom, as you remember, we had a very good quarter in Q2 where we talked about more than DKK 100 million of business. In Q4, we had a similar quarter. So also a very good quarter. And we did preannounce that already earlier in the year because we had more or less agreements for that order in a firm way already then. But it was delivered and revenue in Q4.

So if you look on the year in total, we made a bit more than DKK 200 million on FalCom for the full year of '25. And if we look into '26 that at the minimum, we see that we should be able to do the same level of revenue, but our base case scenario is probably to grow that a bit further. So I would say it could have some small growth contribution to the overall group growth. But I think we also need to remember FalCom still is relatively small in absolute terms. So it's not a real needle mover. But we continue to see a very positive development of FalCom, and we are pleased about that and very focused on continuing to growing it, of course.

And then if I move to Enterprise, I appreciate a lot your questions around this and also how to think about this? I do think that we can approach this both top down, what we hear from leading analysts in terms of IT budgets and how much they spend on software versus hardware and so on. And if you do that, I think you're coming to a conclusion that IT hardware is probably modestly growing in most of the forecast, but relatively low growth numbers.

And then if we observe it more from our own trends and the markets where we operate, which is predominantly headsets and video, as I talked about before, the market has been growing in the U.S. and APAC, which is great to see actually a stability of that growth. It's been going on every quarter for more than a year. And then EMEA has been the traveling area for us and the whole industry. And it's still not in growth in EMEA. So I would say that, that's perhaps a major uncertainty here and what the market growth will end up with. But our best assumption, if we take the growing North America and APAC and an improving Europe is market growth then for around 0% to 2%. And that is also consistent with what we are picking up with our largest distributors and resellers and when we speak to large customers and I mean trying to both plan our own business, but also talk about how they see and observe the future.

So that's a market. And then we are guiding slightly above that because we feel very good about the products we are launching. I hope you all have a chance to test them at some point in time soon because we really think that this is not just like another product, so to say, another headset, but it really is taking the performance to next levels. And the initial reception has been very positive. It will take some time to build up the volume on this new line of products in Evolve3. We will see some limited contribution already in Q1, but more throughout the year essentially. So that's the combined thinking in resulting into the guidance of 0% to 6% growth for Enterprise.

Got it. And can I just maybe ask a very quick kind of financial modeling question. Would you expect Enterprise to grow already in the first quarter? And I guess maybe, I don't know, Soren, if you want to comment on the phasing of growth for you specifically given some of the destocking dynamics you saw in the fourth quarter?

No, we don't know and we're not guiding per quarter per se, but we do believe you will see gradual strengthening of it. And at this point in time we have some level of negative growth momentum, and we need to turn that into a flat to growing momentum. If that is happening in Q1 specifically or a little bit later in the year, we are not really guiding [indiscernible] it will be gradual. I do think though, and I could have talked about that also in the overall dynamics, it's worthwhile to highlight that we did see some channel destocking for the full year of '25. So that affected our growth in Enterprise with a few percentage points. And what we have assumed for next year are fairly stable channel inventories, and that is also what is a little bit helping to create the range of the guidance, what is happening to the channel inventories.

Next question comes from the line of Jack Reynolds-Clark, RBC Capital Markets.

I had a couple also on Enterprise, please, and then across the U.S. and Europe. So within the U.S., can you kind of quantify the positive growth coming out of the quarter? And has that sell-out growth translated into a recovery in sell-in so far in Q1? And how much -- and if not, kind of how much destocking is there left in the U.S.? Then within Europe, again, in Enterprise, you mentioned some sell-out growth recovering there. Could you point to which markets are seeing sell-out growth and kind of quantify that recovery? And again, are you seeing any kind of translation into sell-in growth recovery and/or kind of how much destocking or how much inventory are your distributors holding there?

So on the U.S. market, in the quarter, we did see sell-out growth, and we also had the sell-in growth, and they were actually fairly aligned those 2 numbers. So the channel inventories in the quarter in the U.S. were stable. We saw some more significant channel reductions in the beginning of the year '25 in the U.S. But towards the end of the year, they have actually stabilized. So the delta of sell-out and sell-in in the last quarter were predominantly in EMEA, and there, we saw it with several percentage point differences.

And then to the markets have been going best. I mean, the last few quarters, a highlight of EMEA has been Germany, which is very encouraging for us because it is the largest market in EMEA. It is also a market where we have a very strong position. So that market has been both in sell-out and sell-in growth in the last few periods. U.K. has also improved a lot lately. And then I would say the Nordics and a few others of the more Central European countries have been -- I mean, also improving. And then we've been having a bit of a further challenges in Southern Europe. But I think that overall, if you look in EMEA, it is ending stronger than it started '25, so to say, and that's why we're talking about some level of improvement in trends. But the channel destocking have impacted also the numbers in EMEA.

Next question comes from the line of Martin Parkhoi with SEB.

First, a question again to Soren on the margin. I'm still a little bit curious to understand the bridge towards '28, in the short-term, which is '26, you have a range of 2 percentage points on the margin. And you believe 3 years later, you have a better transparency, only have 1% range in your margins? So how can that be? How can you -- if you land in the low end like 11.5%, how can you reach up in the 16%? What tools do we have to make such cost control?

Then second question on the hearing aid market. We saw your gross margin going down this year, as you also rightfully say that you use some channel and country mix. And how should we see that mix in '26? Also if we get a soft hearing aid market, slightly soft hearing market again in '26 as we saw in '25, then there's a tendency to manufacturers starting to compete a little bit more on prices to reach their budget. So what kind of pricing environment have you baked in and margin have you baked in on hearing?

Soren speaking, and that's on the longer-term aspiration. I think it's the way we have also decomposed the '26 guidance. We are of the opinion that in the event that we come in lower, it will, in our minds, also be a question of timing as we will strive for the growth as the key vehicle for us to get to the long-term 16% to 17%. Fundamentally, some of the investments we are taking in 2026 in, for instance, operations will yield gross margin improvements when we come out in the outer years closer to the '28. So in reality, we believe we will be able to catch up in the event that we land in the lower end. And we believe that if it's timing, it will definitely be possible. So we are investing in an underlying improvement structure that will yield results towards the '28 target.

Martin, for more the hearing aid margins in '26, as we commented and you also highlighted in '25, the gross margins reduced due to the growth mix essentially we had in areas where we have low gross margins, channel types and geographies basically. As we're looking into the '26, we do expect a little bit of reversion of that into the more higher margin areas growing more normally and as such, supporting the gross margins.

What I'd also like to highlight here and had that in the opening readout the divisional margins because they were actually -- if we look on -- after the difficult Q1, which was challenging in many ways, we were actually stable vis-a-vis the year before. And the explanation of that is that some channels where we have low gross margins also have a very, what should we say, compelling cost to serve. And as such, you might get a lower gross margin, but you still can protect a very good divisional margins. And we remain very focused on both type of margins. They're helping us to manage the business in a good way. But the planning assumption is some type of improvement on the gross margins for the year.

Next question comes from the line of Richard Felton with Goldman Sachs.

Two, please. The first one is on Gaming. I'd like to understand the confidence in the 2026 guide. I suppose that that business was down slightly in 2025, momentum sort of decelerated into the end of the year. So just trying to understand sort of the gap from 2025 to the 7% to 13% guide for '26 between how much of that is the market getting better? How much is market share gains and product launches? That's the first one, please.

And then the second one, thanks very much for sharing the detail on the Evolve3 launch. My question is, how impactful the launch has been historically on the Enterprise business? I know for hearing aids you get quite excited about new platform launches. But thinking about the business model and the type of customer base in Enterprise, how important is that launch cycle to drive growth?

If we take the Gaming first, I think it's a combination of an improving market and then market share gains. If we look on the '25, the market was, I mean, relatively weak, around the world and in particular in the U.S. and Europe, where we have the majority of our business. So we do expect a bit of a stronger market environment. And then also have several great launches in the pipeline for the year across key core categories where we have meaningful business.

Then I appreciate also when you're looking at, we all get a bit scared, of course, about Q4, which looks like a loss of momentum. I think it's important to bear in mind the outstandingly strong quarter Q4 the year before. So the comp was also part of seeing that decline in growth. So if you look more on sequential growth, quarter-on-quarter growth, it looks a little bit less daunting, so to say, to go from where we ended the year to growing into '26. So it is what we believe in as the base assumptions.

And then the Evolve3 launch for Enterprise, we think it's a very meaningful launch and that this really will support our business. And given that we are the market leader in headsets also, hopefully, it can help the whole market to grow. So maybe get a double help here in some way. We have had this headset in early trial programs with both channels and lead customers for a while, and the feedback is overwhelmingly very positive. At the same time, we need to recognize it several years since we launched a line like this. So it's hard for us to analytically come back and say exactly what it would mean. But definitely, we are of the firm belief it will be a strong contributor to finding our way back in growth for Enterprise essentially.

Next question comes from the line of Niels Granholm-Leth with DNB Carnegie.

You are calling out a headwind in your margin for this year because of less positive effect from R&D capitalization. I mean, the effect for '25 was actually a little bit more than 2 percentage points. So would you expect to neutralize the effect completely this year? Or is it just going to be a less positive effect in '26? So that's my first question.

And then getting back to the phasing in the Enterprise division. So how should we think about the growth trend throughout the year? I mean, are you continuing to expect kind of flattish to negative growth in quarter 1 to improve in the second half? How should we think about that?

The way we have planned it out and can see it, of course, operating in the asset bases we have under R&D, we believe that the headwind or the less headwind is -- of the headwind in this case is to the tune of 1%. So it's not a full erosion of the 2% that you rightfully quote, but think of it at least as 1%. That's for the planning purposes.

And then when it comes to Enterprise facing, I think the best way to do it is to expect a gradual buildup of the growth. So second half stronger than the first half. And I think it's both about generally getting the growth momentum going and also linked to the Evolve3 launch. We will see some impact in Q1, but we will see more impact of the Evolve3 launch later in the year. We will also launch more headsets later in the year, also further contributing to that growth.

Then, of course, if we look on the Enterprise overall number, I think it's helpful, of course, to keeping a track on the large 2 FalCom orders in the comparison base from last year. And if we look on FalCom for '26, I said we aspire to have at least the same level of revenue, but also FalCom will likely be bigger in the second half than in the first half for '26. So that's probably as much as we can help you here, but do expect a gradual buildup of the growth momentum. I think that's the conclusion here.

But shouldn't we expect any channel filling from the Evolve3 launch already here in quarter 1.

Some level, definitely. But again, as I said, the Evolve3 85 and 75, these are the premium products, which is meaningful, but a smaller part of the total Enterprise sales. The mid-tier is where we have most of our Evolve3 sales and these type of products will launch at a later point in time. So that's what I meant with the sell-in will contribute in Q1 to some extent, but I think you will have even stronger Evolve3 contributions later in the year.

Next question comes from the line of Julien Ouaddour with Bank of America.

And sorry, guys, I come last, it won't be too different from my peers. I want to focus on the Enterprise guide again. I just think you need to give us a little bit more confidence for that. Just if I summarize, you're talking about gradual market improvement, 1Q and likely to grow back-end loaded year for Enterprise and Gaming. I think 4Q was softer than expected and not yet significant improvement in EMEA with declining PC shipments for next year. That's basically what I take from the call.

I'm just wondering why putting such guide with ambitious market and share gain expectations instead of trying maybe to rebate expectations for beat and raise if the market recovers and the share gains materialize later. So that's just a question about just your thoughts behind how the guide was set and the visibility you -- I mean, you have today given, let's say, it was a little bit challenged to call the market in recent years? That's the first question.

The second one, so switching to Hearing, you're the largest OTC player out there probably. Could you maybe address on what you're seeing on this channel in the U.S. and globally? And I'm asking the question because we're seeing some slowdown in the hearing aids market. AI seems to have unlocked possibility for smaller OTC players to get out with pretty good products from a performance standpoint. So my question is just, do you see some traction from small competitors? And could it be one of the reasons the U.S. market was soft for prescription hearing aids recently?

Now back to Enterprise, and I run the risk of repeating some of the things I said before, but we have really tried to take all facts into accounts. I mean, both what we are picking up top down from all the sources we have available to us and then discussions with partners, distributors, and customers. And finally, what we observe ourselves in the underlying momentum of the business.

And as I highlighted before, we do see the U.S. and APAC market in growth. It's been a lot about EMEA. And I mean, what we do believe and have into the guidance is some gradual improvement in EMEA. It doesn't say that the market will enter a high growth. We are saying a global growth of flat to 0%. It can even cater for some level of decline in EMEA for the year for the flat scenario there.

And then we very much believe in the launches we are doing across the portfolio. And we do believe that the guidance we are giving with the midpoint as the most likely is our best effort here to give a meaningful guidance. We could, of course, have given an even broader range, but we do think the best way we can help you and the market is to guide like this in what we believe will be the most likely outcome.

Then if I move to the OTC side. We -- I can speak about our own business first. I mean we have shared with you that we saw a little bit of a disappointing growth momentum in the first 3 quarters of '25. We actually had a fairly good quarter in Q4, so reentered double-digit growth in our Jabra Enhance our OTC offering. But I think I will say that still, if we look on the whole for both the market and our business, I think we've seen actually relatively similar dynamics to what we've seen in the overall hearing aid market.

In the beginning of the year, and particularly in Q1, also the OTC business was really negatively impacted then the Q2 and Q3, I mean, our business, but I would also believe that's true for the overall business didn't really perform in the normal ways. And now we're seeing a little bit of stronger momentum in OTC. But to be fair, we actually see that in the U.S. business overall for ourselves.

I personally do not believe it is, what should we say, cannibalizing significantly the traditional market. I think it continues to be a complement. It's interesting for us when we analyze our customer data. And so we do see that the customers buying from OTC are a bit different from the traditional hearing aids. In particular, it seems to be people that are younger. On average, it's about 10-year younger profile.

And so there probably are some differences in the user base also. I appreciate there might be some limited overlap, but this is our best read on the market. So we don't think it will be the key explanation of the performance of the traditional hearing aid market, so to say.

Perfect. I mean if I may just squeeze a very last one. Do you have any view on the Section 232, maybe any potential impact like on the protocol for the hearing aids? I mean, could it change your -- the original tariff for '26?

No, we don't have any privileged insights in this. We're, of course, observing this also. So I have no further insights or comments.

Next question comes from the line of Martinien Rula with Jefferies.

I think you can hear me okay. Most of my questions have already been addressed. So I'll probably keep it to 2 quick ones and just to be as well conscious of time. So the first one is on your formerly called Lively business, which, if I remember correctly, was supposed to be breakeven by late '25, early '26. Could you elaborate a bit on how much of a drag it was for 2025? And if you have considered any potential scenarios for divestment or something like that into 2026 and beyond for this business?

And the second question would be on the Gaming. I appreciate that you've been gaining consistently some share in the headset and keyboard categories. But I was a bit surprised to see that your share in the mike category, sorry, have remained stable. As such, I would appreciate if you could remind us of the revenue contribution of each of these categories and elaborate on why you haven't been able to grow your share in mike.

Now, starting on the Lively business, which is what we call Jabra Enhance today. And as I mentioned, this year, we have not been able to have the same growth profile as in the previous years. The positive, I mean, fact is that Q4, we are back to the double digit growth, which we like to see. But given that the slow growth profile this year, our breakeven has been a bit delayed. We talked about that it will happen late '25, early '26. I will say with the growth momentum we have now, it's probably a bit later in '26 or early '27. But what is positive is that, I mean, the P&L works, so to say. I mean it will help the breakeven with the growth of volume. So we've been very focused on getting the business back to growth, and it's encouraging to see that now in Q4.

Then on the Gaming side, I mean, you're absolutely correct. I mean the key category for us in Gaming are headsets. And here, we're really the leader for premium headsets in Gaming. And we are also large in headsets overall. So that is the largest category for Gaming. And then keyboards has been another category where we've really been building up a good business over time and very meaningful.

You highlight mike as an area where there should be a growth opportunity, and I would say I agree with that. I don't want to forgo future launches, but it was a while ago since we launched new products into the mikes area. So I think you should expect us to have something going there that can help us to capture that opportunity essentially. I very much agree with your observation that that is a growth opportunity for us.

This concludes our question-and-answer session. I would now like to turn the conference back over to the management for closing comments.

Thank you very much, operator, and thanks, everybody, on the call.

Hello, everyone, and welcome to GN's conference call in relation to our Q3 report announced this morning. Participating in today's call is Group CEO, Peter Karlstromer; Group CFO, Soren Jelert; and myself, Rune Sandager, Head of Investor Relations.

The presentation is expected to last about 20 minutes, after which we'll turn to the Q&A session. The presentation is already uploaded on gn.com. And with that, I'm happy to hand over to Peter for some opening remarks.

Thank you, Rune, and thanks to all of you for joining us today. Let me start with the group highlights on Slide 4. In Q3, we delivered a solid quarter with 1% organic revenue growth, driven by market share gains and strong performance across our divisions.

Our execution led to a healthy margin and cash flow development, allowing us to reconfirm our guidance for the year. In Hearing, the rollout of ReSound Vivia is continuing progressing very well. Vivia's strong differentiation and our solid commercial execution led to broad-based market share gains and 7% organic growth.

Overall, we are very pleased with the positive feedback received in our 2 recent launches of Vivia and Enzo, and we are confident that they will successfully support our future growth ambitions. In Enterprise, Q3 marked the fourth consecutive quarter of positive sell-out growth across North America and APAC, driven by market-leading innovation and strong channel execution.

In Europe, we are successfully defending our market-leading position, while our top line is impacted by the ongoing market uncertainty. In total, enterprise organic revenue growth in the quarter was negative 4%, while the sell-out growth was somewhat stronger. We delivered healthy gross margins despite headwinds from the current tariff environment, thanks to successful supply chain and pricing action we have taken.

In the quarter, we also announced a partnership with Hadly concerning large meeting room experiences and introduced a range of new products in FalCom.

In gaming, we continue to gain market share and deliver 3% organic growth in the gaming equipment market challenged by tariffs and lower consumer sentiment. In the quarter, we executed well on our tariff mitigation plan, further diversifying our manufacturing footprint and rolling out price increases to limit the net impact from tariffs.

We're also excited and proud to have launched Arctis Nova Elite, the world's first premium wireless gaming headset with a high-resolution sound. In summary, we are pleased with our execution and results in a relatively challenging market environment and are ready to benefit from markets as they grow stronger. And with that, I'm happy to hand over to Soren for group numbers in the quarter.

Thank you, Peter. As Peter mentioned, our third quarter was a solid quarter and an important step towards our strategic ambitions. In summary, our group organic revenue growth ended at 1%, excluding the wind down, driven by a continued strong performance in Hearing with a 7% growth, offset by a negative 4% growth in Enterprise due to the global market uncertainty in EMEA.

Gaming continued to perform well in a challenged market, achieving a 3% organic growth and taking share. Reflecting the development in the revenue, the EBITDA margin came in at 11%, mainly due to negative operating leverage. Our cash flow was solid in the quarter, coming in at DKK 410 million, excluding M&A, reflecting our earnings profile as well as a positive impact from working capital.

Now let's move to the financial details on Slide 6. Despite direct impact from tariff in 2 out of 3 divisions, our gross margin remained strong at 54.4%, being only 0.4 percentage points below last year. As mentioned by Peter, this can be attributed to our effective price mitigating initiatives, strong pricing discipline, positive business mix and group-wide synergies.

Reported EBITDA margin ended at 11%, which was 2 percentage points below last year, reflecting the development in the revenue as well as provision release in gaming in Q3 of last year.

Moving to the cash flow. Our strong earnings profile, combined with our favorable development in our working capital resulted in a positive cash flow of DKK 410 million in the quarter. Driven by the solid cash flow, our net bearing interest debt decreased to DKK 9.4 billion, which equals a leverage of 4.0x.

As we communicated already as part of Q2, we have now formally signed our new loan facilities, which means that we have extended our debt maturities while at the same time, negotiated lower interest rates, which should start to kick in from Q4. With that, I'll hand you back the word to Peter for some financial highlights on Hearing.

Thank you, Soren. Let me start with our Hearing division. In Q3, our strong momentum of ReSound Vivia continued to drive growth through broad-based market share gains. As a result, we grew organically by 7% in the quarter, which was on top of a high comparison base of 10% in Q3 last year.

Our gross margin came in somewhat lower than last year, primarily reflecting negative country and business mix as well as our disposal of [ Dans Cur Center ]. Sales and marketing costs decreased by 6% compared to last year, driven by prudent cost management, while we continue to invest in key initiatives supporting the strong momentum of Vivia. Due to the gross margin development, offset by positive operating leverage, our divisional profit margin ended at 34.2%, which is similar to Q3 of last year.

Let's move to next slide for some more details on the geographical performance. As mentioned, ReSound Vivia was the primary driver of our ability to gain market share across markets again in the quarter. In North America, we delivered solid organic growth in the independent segment and VA, thanks to the strong reception of ReSound Vivia VIA. We experienced some challenges though with Jabra Enhance that is negatively affected by the low consumer sentiment.

We also had a headwind at a major U.S. retailer due to changes in the competitive environment. In summary, our organic revenue growth was flat in North America in the quarter. In Europe, we continue to take shares in key countries like Germany, France and U.K. that led to a very strong double-digit growth in Europe. In the rest of the world, strong momentum in ANZ and our distributor channel led to strong organic revenue growth for the region as a whole. Overall, we are pleased with the hearing performance in the quarter and continue to make progress towards another strong year.

With this, let's move to the Enterprise division. In Enterprise, the positive sellout trend in North America and APAC continued in Q3, while EMEA remains challenged by the uncertain macro environment. In addition, we continue to experience inventory reductions in North America. In total, the enterprise organic revenue growth was negative 4% in the quarter.

In Q3, the impact from FalCOm was limited, but we are happy to share that FalCOm has signed significant orders we plan delivery in Q4. The enterprise gross margin remained strong and increased by 0.6 percentage points compared to last year despite challenged market and U.S. tariffs. Overall, the actions we have taken in our supply chain and with pricing work well and as intended.

Sales and distribution costs decreased slightly in the quarter, reflecting good cost control, but also targeted market investments in preparation for the important Q4. In total, the divisional profit margin ended at 34% for the quarter.

Let's go to the next slide. It is encouraging that now experienced positive sell-out growth for 4 consecutive quarters across North America and APAC. This has been driven by strong commercial execution and our market-leading product portfolio. Whereas the sell-in and sell-out was fairly balanced in APAC, we did experience quite a difference between sell-in and sellout in North America due to continued channel inventory reductions.

In Europe, both sell-in and sell-out continues to be challenged due to the weak macro environment and uncertainty of the trade environment, making several companies hold back investments. However, we do observe some improving trends in key markets like Germany and U.K., while we also see that the political instability in France has made this market to turn down. While there are some opposing forces at play, we believe the market continues a gradual recovery and return to growth.

With the current dynamics and with the revenue contribution from FalCom, our base case assessment is that the total enterprise business will continue to improve its growth pattern into the fourth quarter. Let's move to the next slide. We continue to believe in the long-term attractiveness of the enterprise market, driven by hybrid work and the ongoing upgrade of collaboration tools to create a seamless and high-quality experience allowing hundreds of millions of people to communicate in a natural, undisrupted and clear way.

In this slide, we are very excited about our coming headset platform launch, which has been in the development for several years. We intend to significantly improve the headset experience for our millions of daily users across multiple dimensions. We aspire to take the appreciated Jabra experience to new levels in terms of performance, looks and comfort. The early customer feedback on the NDA is very positive.

We will launch a complete range of new headsets over the next 12 to 18 months. The first 2 products will be available to selected customers during Q4 and the general availability will be at the beginning of next year. We will share more details on these upcoming products and launch when we're coming closer to the launch event. And with that, let's turn to the next slide for some comments on gaming.

In Q3, the gaming market continued to be challenged by the tariff environment and weak consumer sentiment. Despite these challenges, SteelSeries delivered an organic growth of 3%, thanks to continued appreciation of its product and good execution. With a successful wind down of our Elite and Torque product lines, overall revenue growth for the division was negative 16%.

Our gross margin ended at 31% in the quarter. We had a negative effect of tariffs, partly offset by pricing increases. Q3 last year, we had a provision release that impacted our numbers by around 6 percentage points. If you exclude this, the gross margins was essentially flat in the quarter.

Sales and distribution costs decreased 33% in the quarter, driven by the structural savings from the wind down and the general and prudent cost management and our group-wide cost program. All in all, the division profit came out at 9%, excluding the consumer wind down, reflecting the gross margin development, but partly offset by positive operating leverage.

Let's go to the next slide. In September, SteelSeries reinforced its position as an innovation leader with the launch of Arctic Nova Elite, the world's first high-resolution wireless gaming headset, delivering stellar sound that many testers describe as an order file gaming experience. The headset is by far SteelSeries most advanced headset to date, offering a wide range of new features, including omni play for improved connectivity across platforms, AI noise reduction and improved integration with the SteelSeries app for real-time audio control.

As evidenced by the highlights to the right, feedback has so far been exceptionally positive, which is great to see. I think these reviews certainly speaks for themselves. And with that, I would like to hand it back to Soren for some comments on our guidance.

Thank you, Peter. We are today reconfirming our guidance for the year, so we'll keep this short. We continue to expect an organic revenue growth, excluding the wind-down effect between minus 2% and plus 2% for '25.

In addition, we are reconfirming our EBITDA margin guidance of 11% to 13% as well as our cash flow, excluding M&A of around DKK 800 million. With the execution we've seen in the first 9 months of the year, we continue to believe that the midpoint of the guidance being the most realistic scenario. That concludes our update on the business, and I'm happy to hand you back to Rune.

And with that, I'd like to hand over to the operator for the Q&A. [Operator Instructions]

[Operator Instructions] First question is from Andjela Bozinovic of BNP.

I'll have one on Hearing and one on Enterprise. First on Hearing, you delivered another quarter of very strong growth despite the market weakness. Can you talk about your market share in the quarter and especially with U.S. independents and any other regions that you would want to highlight? And specifically, could you comment on the share in Costco? And how do you think about this channel going into year-end? And how did Hearing perform excluding Costco?

And finally, on Enterprise, can you maybe break down performance by region, the same way you did for U.S. -- sorry, for EMEA? And specifically, what are you seeing there? It's been 4 quarters of positive sellout in other regions, but EMEA is still lagging. Do you expect this to change in Q4? And what are you seeing on the ground in the region?

Let me take them in the order you asked them here. So if we take first hearing and market shares, we did well, as I mentioned in the opening here in the U.S. independents. I don't like to comment on exact market share numbers and so.

But this was certainly a growth contributor for us. If we look on other markets and so, we had a very good European performance, and we saw some outperformance in Germany, France and U.K. And there, we also -- I think it's fair to assume we, in a healthy way, gained market shares. So these were really the larger key markets supporting there. And then if we look more on the APAC market, I would say several markets did well, but in particular, ANZ.

And then we have a lot of distributor-led markets there, a bit smaller markets, but this channel and our execution there generate a very healthy growth. So those are probably the highlights I'm able to share. You did ask about Costco. I think the situation is, of course, similar as we talked about before. We are doing very well in our relationship with Costco.

We feel that the partnership is in a good level. But of course, then taking the decision to go from 3 to 4 manufacturing partners is certainly having a bit of a headwind on our business. We estimate that headwind to be around 2% of growth for our Hearing division, just to help you to understand the magnitude there. Then if I move to Enterprise performance per region, I mean, the way we see it first is that the sell-out growth in the U.S. and APAC continue now is 4 quarters. We see that as very positive.

I think it essentially means that these 2 regions have turned into growth and our business there is also performing well in terms of market share levels. If we look on APAC a bit more in detail, I think where we are doing in particular well has actually been in India recently, our own business. But I would say, generally, the APAC business have developed in a healthy way.

And then in Europe, it's been difficult here in Europe because some markets actually have started to turn more constructive and some markets have almost been a little bit of a setback. The positive development in the last quarter has been Germany performing a bit better. We were quite worried about Germany in the beginning of the year. I think that certainly has improved quite a lot. And that's very important because it's, of course, a large market, and we also have very healthy market shares there.

The market that turned a bit opposite, as I mentioned, is France, where probably related to the overall uncertainty around the political environment has made this market turn a bit more to the negative side. So all in all, I do still think if you add this up together, we do see a gradual improvement of the market.

And we do believe that will continue into Q4. We -- I cannot guide more on Q4 than what's implicit in what Soren said. But when we look into next year, it's certainly our ambition to be able to drive growth in our Enterprise division.

The next question we have is from Carsten Lonborg Madsen of Danske Bank.

First, a question to Sorenøren on your free cash flow. So year-to-date, we had DKK 368 million despite generating DKK 410 million this quarter. So a very solid quarter, of course, but also with a relatively high impact from a release of working capital.

So into Q4, could you provide a little bit of building blocks where you can one more time release working capital or whether it's simply just the margins coming up in that quarter that should support the last DKK 400 million in free cash flow we need in order to get going.

And then, I guess, in terms of Jabrahanc.com now again looking at a quarter where it seems like Jabra Enhance doesn't really matter a lot. So what's the patience with this? And/or could you -- are there any other options you could exploit in order to get some growth or some value contribution out of Jabraenhance.com?

Carsten, thank you for the questions. I think on the cash flow, you are absolutely correct in catching it up, so to speak, year-to-date. And I think in many ways, this is the profile we have also seen and expected in GN.

Normally, we have the second half of the year as the positive cash contributor for us. And actually, with now for this quarter in isolation, quarter 3 of DKK 410 million, of course, that was important, and it was nice to see that was also driven by working capital improvements.

Coming into the fourth quarter, it is also a fact that we have a higher earnings quarter. We have also a higher top line, but also a higher earnings profile. And that's normally also what supports our endeavor to deliver the free cash flow of DKK 800 million for the full year.

So in many ways, I think what we have now laid out increases the likelihood of the DKK 800 million and is by no means different in nature of prioritization compared to historic numbers.

And if I comment on Jabra Enhance, just taking a step back to build on what we said before, we've always seen this as a long-term business build. And for many, many quarters, we consistently executed towards a breakeven late this year or early next year. I think we just need to recognize this has been actually a difficult year for Jabra Enhance where the business instead of growing has been having a decline, and it was a decline here in the quarter also.

And we recognize that this is, of course, both a headwind for the growth, but as well as for the profitability. So to your question, we are certainly working on all levers here. We do like to see the businesses to perform stronger. We're taking a lot of initiatives to do that. What is driving though the softness is likely more the macro environment and the weak consumer sentiment, but we're certainly taking all initiatives to return it back to growth.

I think we have indicated in the past also that this is a business we could see ourselves passing on to another owner over time. But we do like to do that, of course, at the right point in time when we think we can do this to a fair value. But we're essentially assessing all alternatives here to both improve the business and make sure we from a value creation point of view is making the right decisions.

The next question we have is from Veronika Dubajova of Citigroup.

I will keep it to 2, please. My first one is just on hearing and how you're thinking about the competitive environment and the sustainability of your growth rate as we kind of move into next year, if you can sort of maybe talk about the pulls and pushes that you see there.

Obviously, Vivia has been a tremendous success, but we do start to annualize that out early in 2026. So if you can maybe talk through some of the opportunities that you see above and beyond that. And then my second question is on enterprise, and thank you for all the color.

I guess, Peter, do you think first quarter is when the sell-in and the sellout in North America can start to converge? Or is there much more inventory left in the channel, if you can talk to that?

Thanks, Veronika. And thanks for the positives on Vivia. And we are, of course, very proud of Vivia and the underlying capabilities here. We do think it's a very complete hearing aid performing very well in the market.

And as we can see in the quarter, there's certainly still a lot of positive momentum around Vivia, and we do believe that will continue for several more quarters. We are already now, of course, working on the next launch after Vivia. We will make a launch also next year. We have not communicated the exact timing of that. And then, of course, as we always try to do, have an incremental innovation along the way.

So I do believe we should be able to have a good year in hearing also 2026. We will, of course, come back and communicate around that with our '26 guidance. But certainly recognizing to keep up the great momentum, we need to continue to launch appreciated products and need to continue with a good execution in the market.

So that's what -- where we have all our focus. Then if I comment on the enterprise and the U.S. sell-out and sell-in, it's, of course, nothing we can fully predict or certainly not control. But given the inventory levels we have now in the North America channel, we do believe that we're coming to some level of end of this channel inventory reductions in North America.

So I think that is a fair assumption. If we look more globally, we have similar and stable inventory levels in Europe as we've been having over the past few quarters as well as in APAC. There can be periods that we have been through now where there are some changes. So this has been a bit more than normal. But I do think that what we see now in the U.S. is most likely coming to some type of end here soon.

The next question we have is from Martin Parkhoi of SEB.

Martin Parkway of SEB. Just also going back to hearing because I just want to discuss the gross margin. And you, of course, say that the strong growth driven by Visa and Vivia, but you also under the explanation for the declining gross margin, talk about changed business mix.

So can you elaborate a little bit of what kind of changed business mix you've seen? It is -- it looks like low-price sales to some channels in Europe given the growth you also have that market. That was one question.

And then the second question, just on Telkom visibility. Peter, you basically say you also say at Q2 that you have orders in the book to deliver nice sales in Q4. [indiscernible] Was '25 just as one-off year?

Thanks, Martin. Starting with the gross margin on Hearing, yes, it's a combination essentially of the revenue mix and the revenue mix having a different gross margin for us. And normally, that balances out.

We've now been in a period where we certainly have been growing more in countries and channel types that have a bit of a lower gross margin. I think this is more an effect of market dynamics rather than any changes in priorities for us. We still strive to have a very kind of well-balanced and broad growth composition. So we certainly believe this will balance over time.

The other thing I would highlight also is that the softness we've seen in Jabra Enhance is also having a negative impact on the gross margin. So I think it's really the totality of this. What we have not done is to take in, what should we say, a different stance on pricing and certainly neither to, what should we say, in a deliberate way taking very large orders to very low margins. It is really more an evolution and the consequence of the market growth we are operating in essentially.

Then on FalCom, you were a little bit breaking up when you asked the question, but let me try to answer it. And if I don't get it right, please follow up on it. And for Q4, as we mentioned in the report today, we have already secured orders for -- that will help us to have a very healthy Q4, I would say, in the magnitude of the same level as we had in Q2.

And it's actually several orders, but it's a larger order. It's actually not the same customer that ordered from us creating the large order in Q2, which I think is also positive. So we continue to make, I would say, very healthy progress here of FalCom.

I think you asked about '26. We will, of course, come back and give a bit of a more precise commentary on that when we give our guidance for '26. But I can say, generally, the pipeline build in FalCom is healthy, and it's a portfolio of opportunity we're working. And in totality, I believe the pipeline should be able to be there to continue a good kind of revenue base for FalCOm into '26 as well.

The next question we have is from Niels Granholm-Leth of DNB Carnegie.

On tariffs, you talked about a 1% effect for the full year, half of it being temporary. So what are the prospects of GN neutralizing the effect of tariffs through pricing initiatives in '26?

My second question would be on warranty provisions. So -- and that's related, obviously, to the wind down of consumer. So that's DKK 50 million this year. Should we assume any warranty provisions for next year? Or will it be completed as we turn the year?

Thanks, Niels. Let me start with the tariff one and then pass it on to Soren for the provisions. Yes, we can confirm that this year, we have an impact of tariffs on the group margin around 1%. And we communicated before that we have cost of more temporary nature like movement of supply chain and similar of around 0.5%. So the residual is at 0.5 percentage point.

Most of that residual is sitting in the Gaming division, where it's been difficult for us to fully compensate with price increases, the tariff impact. And there also are essentially, the price increases we are making are having an elasticity, which makes it a little bit more challenging to fully use that lever to get into balance. So I don't have a precise answer, if I'm being honest. We are still evaluating exactly what we can do with pricing to mitigate the tariff and how we can do that best.

But what I would add, in addition to this, we have several other levers for gaming we're working on to improve the profitability, more related to supply chain, inventory management and other aspects in how we're operating. And then I would also say that over time, as we're launching new products into the gaming segment, the life cycle of the products here is more like 12 to 18 months or similar.

We will, of course, try to launch new products to price levels so we can get into balance with the margin. So if we use on the total set of levers, we remain very committed here to restore a healthy margin for the Gaming division.

And Niels, well remembered on the impacts of the wind down on the consumer, where we also back then said that we would have some run-off costs this year as part of the warranty. And we are expecting that, that goes towards 0 next year as we are at the end of the warranty period. So that should confirm that.

The next question we have is from Martinien Rula from Jefferies.

It's Martin from Jefferies. I would ask 2, if that's okay for you, and I'll start with the first one and give you some time to answer it. If I remember correctly, one of your main competitor in enterprise and gaming said during their last set of results that they were -- they saw actually some slowdown in volumes in gaming at the beginning of the calendar Q3 due to the pricing initiatives they also took to offset tariffs.

And I was wondering, given you passed, if I remember correctly, 10% price hikes in both divisions earlier this year, I was wondering if you could also elaborate a bit on whether you've seen or not actually volume softening in both enterprise and gaming.

Yes. I think you described it very well. And I know that several of our competitors have, of course, also made price increases and some of them have made comments like this. Our experience, and I alluded a little bit to the answer of the previous question here is that on the enterprise side, we have actually managed to do this well.

We have made price increases. We have seen some kind of volume impact of it, but way less than the price increases. So overall, as a lever, this has been working well and I think been working well also for our peers in the industry. I think for the gaming products, which are more consumer products, it has been a little bit more difficult for 2 reasons.

I mean, one is that the consumers are, of course, a bit challenged in the U.S. The consumer sentiment is not in the strongest levels. So when things getting more expensive, I think it's a high risk that they buy less. And the other thing that's been a bit difficult is that several of the retailers have been very reluctant also to support price increases essentially because they're worried about the same thing.

So net-net, the price increases have been a bit more challenging in the gaming side than on the enterprise side. With that said, we have successfully increased prices. We have increased prices with a bit more than 10%. So I do think it has worked okay for us, but it has not worked in a way that it's fully mitigating the impact of tariffs, as I mentioned here on the previous question.

So we are trying to find our ways. And we also have taken a stance that we did some changes, and we're evaluating that. And then when we have the full result of that, we will, of course, determine our pricing strategy going forward.

But as I also mentioned here on the previous question, what we believe might be the best way to handle this is to make sure that for future products we introduce, we introduce them to both a price and margin that support the kind of margin profile that we like to see.

That's perfect. And one quick question just from a pure modeling perspective, it has been 2 quarters that we've had massive differences between the DKK 150 million you expected per quarter in terms of net financials. If I remember correctly, in Q3, we were talking about a bit more than DKK 200 million in terms of net financials.

So I was wondering if you could just give us a hint at how should we think about financials going into Q4, whether we should expect any kind of the one-offs that we've seen in Q3 and Q2 or not?

Yes. I think thank you for the question. And you are right that the financial items, of course, have been reported out here. And overall, our estimate for the year is around DKK 650 million for this year. And you're also right that in this quarter alone, there were some one-offs as a consequence of us signing the loans.

We stand firm on that already from quarter 4, we'll see an improvement in the financial items, and we're also standing firm on that the impacts of financial items for next year in totality is around the DKK 450 million with what we see now and with the currency developments we know today.

So I think in totality, I think we are at the same opinion as we were last quarter. Now we've signed the loans, and that was a consequence of this year reversal on some of these costs associated with the own loans.

The next question we have is from Susannah Ludwig of Bernstein.

I have 2, please, both on hearing. I guess, first, I just wanted to follow up on the question related to the very strong growth in Europe versus the market. Just wondering if you've had any recent large contract wins among maybe some larger retailers that are leading to the outperformance versus the market.

It was sort of very steady, I guess, between Q3 and Q2. And then second, one of your peers has recently talked about adopting more of a multi-price, multi-brand approach to gain sort of share in the market, particularly at lower price points. And I was wondering if you could talk about how you see this potentially changing the competitive landscape for GN, particularly given your channel mix.

No. As we said before, we can confirm that the growth was indeed very healthy in Europe. I mean, I don't like to comment on individual customers. We are normally not doing that. But I can say it was a combination of larger and what should we say, a broad base of smaller customers across these markets.

I think the way you should think about this more is that in some of the European markets, I think we've been going from relatively low market shares. And I think we now with a strong platform and a series of strong platforms have been able to significantly grow our market shares in some of these markets.

So we think that is very encouraging for us and something we're very pleased to see. So I think it's really the combination of channel types, and it's not like one big deal explained in the totality or anything like that. It is more broad-based. Then to the second question, just to make sure I understand it right, I think it's correct, of course, that there are different kind of price points in the market.

And we, and I'm sure also our peers are really trying to see how we can operate there both with different brands and different offerings. That's certainly how we think about it as well. What I would add to this also is that it's very important for us also to -- depending on channel type, ask ourselves how can we how should I say, cost efficiently cover this opportunity in terms of sales model. We work in a direct sales.

We have like a distributor-led markets and also for some of the larger key accounts, it's, of course, also different models to work where we can operate with a somewhat different cost to serve. So it's really the combination of offerings and how we go to market that I think is the key to success to do this in a good way basically.

The next question we have is from Julian Ouaddour of Bank of America.

I have a couple in Enterprise. And the first one is a follow-up to Veronika's question on the inventory. I mean when we look at North America, there's been 4 consecutive quarters with positive sellouts. And I think you said in your answer that you're getting close to the end of the inventory reduction.

As per your slide, you're more exposed to Europe, where sell-out is still negative. So do we need to see several quarters of positive sell-outs before Europe can also potentially return to growth? That's the first question. The second one is so still on Enterprise, more on the replacement cycle.

Based on your internal data, I mean, could you tell us how the replacement cycle has evolved in recent years? And given your -- I mean, you expect to launch a pretty good platform in the coming months, do you think you can shorten this replacement cycle?

So any thought about how it can evolve in the -- like in the coming years, where it is today and where it can evolve, that would be super helpful.

Now first on the inventories, just to reiterate what I said before, we do believe that the North American inventory reduction will come to some level of stabilization and then given the inventory levels we have at this point in time. Will we see the same thing in Europe?

I think the honest question is that we don't fully know. And also, as I said before, I think it's a very important principle when you work like in a 2-tier system is that you either cannot or allowed to control the inventory levels. That is, of course, decisions of the distributors.

What I can say, though, is that the inventory levels have been stable for a longer period of time. So that's good. It's not like they've been working up to a very excessive level or so. And I also believe that to manage inventories is, of course, a little bit more difficult in Europe, given that there are so many countries. So you need likely to have a bit of a higher inventory level on Europe if you're looking across than what's possible in North America.

So inventory levels today are higher in Europe than they are in North America, but that's probably quite normal and probably something you see across categories. So I wish we could be more precise. But again, over time, this will always balance out. What we're really focused on is, of course, to work well with the channels and then essentially also help them and support them.

So there's a healthy sell-out growth, which will always be the lead indicator from what we can sell in. Then to the replacement cycles, they've been relatively stable over the last few years, around 3 years for headsets. And what essentially is driving someone to replace a headset is either it breaks down, which they rarely do.

They're built with very good quality or it is because people are changing jobs. Often people get a new headset at the new workplace. And the last one is that people change because there is something better in the market they like to have. So you upgrade more from a functionality point of view. The latter one is, of course, what we hope to influence with the evolve launch we have here in front of us. So that's really what we like to see.

And that's also why we believe it will support growth essentially. We do think there will be a healthy reason to upgrade with these type of new products basically.

The last question we have is from Martin Brenoe with Nordea.

I have 2 questions left from this. First of all, with the upcoming product launch in Enterprise, you say that you already have some early customer feedback. Can you maybe elaborate a little bit on the size of the population, so to speak, in this test and whether you believe that the encouraging feedback on the product is actually something that will be able to translate into sales? That's the first question.

And then secondly, will we get an update on targets at the annual report given that a lot of things have moved. And at that point in time, you have had time to mitigate more on the tariffs, different FX situation also since you hosted your Capital Markets Day.

Thanks a lot, Martin. Let me start and then hand it over to Soren. The feedback, it's been a relatively extensive group of customers having a chance to look on the and also some of our channel partners. And as I said, the feedback is very positive.

What we're trying to do here with the product range is very much to improve the performance, also comfort and as I mentioned, even looks of the products. And I do think the positive feedback is in that direction that, yes, that is really what we're able to do, and that is encouraging.

Does this translate into a good kind of commercial performance yes, we like very much to believe that. I think that's, of course, what we believe in to put investments to develop this range. So that is certainly our belief.

I think it's important though to say that this is a new range that we've launched over 12 to 18 months or so. And it will take some time before the big selling products of the range are into the market and fully ramped up. So I think the effect of this will build up over time. So it will not come immediately like in 1 quarter or something like that. But I do think it's fair to assume that it should in a healthy way support '26.

And then I think to your question on the long-term targets, that's still our ambition, and that's what we are working towards. So in that sense, the annual report doesn't mark a new report out on that. I think we, as a company, are faring in the right direction to deliver on those, and that's the way we at least assess it in the company.

We have some more questions on the line. The next question we have is from Richard Felton of Goldman Sachs.

Just 2 for me, please. First of all, I was wondering if you could put some sort of high-level thoughts around headwinds and tailwinds for margins into 2026. You already touched on the tariff dynamics, but any other key drivers that we should be aware of thinking about margin progression next year?

And the second one, I'm sorry, just to clarify, what do you expect for underlying finance costs in Q4? I just want to check I heard correctly, but I think you referenced some benefit already in Q4 from the refinancing that you announced in Q3.

I can start with the latter question. I hope at least I almost hinted at it when I replied earlier in the call. we will see good improvement in the fourth quarter. And that's also why we believe that for the full year of next year, the DKK 450 million is a good guesstimate.

And then of course, as you have an ambition at least to reduce debt, of course, you will be a little bit more having lower interest towards the end of next year and a little higher.

So I mean, in many ways, a good one is, of course, to take this DKK 450 million and divide it by DKK 4 and then you see that's impact, of course, already in the fourth quarter. So I think that's pretty close to the wind sailing here.

And then on margin for next year, of course, we are not reporting out on our expectations for next year. I think Peter also spoke to it in terms of our growth ambitions. We have actually all along had growth ambitions across our 3 business units, and that's also where we do expect still some operating leverage going into '26.

The last question we have is from Oliver Metzger of ODDO BHF.

I joined call a little bit later. One question I had is one of my Juha takeaways because we saw plenty of Chinese players. And what I've also heard that the OTC category in the U.S. is evolving, particularly at lower price points, more dynamic than potentially thought.

So we haven't talked for a while about your OTC offering and how it has performed. But it would be great to have your thoughts whether you see some of these developments at lower price points also evolving. And given also your experience you have from enterprise or also the gaming side for devices at lower price points, what would be your thoughts on this?

Thanks a lot. So I think that if we look on the OTC, as I spoke about here a bit earlier and answered also some related questions, I think we recognize that this year for us has been a more difficult year in OTC and certainly a year where we even see some level of headwind to growth. We had that in the quarter also.

I think you're right in the way that OTC, it's a broad umbrella of different type of products. We are very much taking a stance that we like to offer still a very good quality experience, both in terms of the hearing aids, but also the interaction and support we are giving to the customers even in the OTC channel.

There certainly are alternatives in there, which are much more entry-level offerings that we do think is inferior. But it's for sure, true also that they are on cheaper price points. We think it's a little bit too early to evaluate. And like in many markets, we also believe that they can coexist in a healthy way, but it's certainly something we have a looked on.

And we could, of course, also develop lower-end offerings if we believe that is commercially the most attractive opportunity. But we're not at the point where that is our conviction at this point in time. But certainly share your observations. So I think that's very much the situation.

At this time, we have no further questions on the lines.

Thank you very much, operator, and thank you, everybody, on the call.

Hello, everyone, and welcome to GN's conference call in relation to our Q2 report announced this morning. Participating in today's call is Group CEO, Peter Karlstromer; Group CFO, Soren Jelert; and myself, Rune Sandager, Head of Investor Relations.

The presentation is expected to last about 20 minutes, after which we will turn to the Q&A session. The presentation is already uploaded on gn.com. And with that, I'm happy to hand over to Peter for some opening remarks.

Thank you, Rune, and thank you all for joining us today. In Q2, we executed well and successfully navigated a challenged market environment with uncertain trade policies. We controlled our revenue and margin and have set us up for successfully for delivering on our year in line with our guidance. Importantly, we also executed significant changes in our supply chain that will support the margin expansion towards our strategic ambitions.

In Hearing, the launch of ReSound Vivia is progressing well. With the help of Vivia's strong value proposition and our strong market execution, we gained market share and grew 8% organically. We are very pleased with this performance in markets that are growing below the structural trends. We're also excited by our recently announced new superpower hearing aid, ReSound Enzo IA, which will help us to build on the strong launch momentum from Vivia.

In Enterprise, we continue to see positive sell-out growth across North America and the rest of the world, in line with what we also saw in Q4 '24 and Q1. In Europe, the market continues to be challenged by a weak macro environment and the indirect effects of the global trade uncertainty. Despite the challenges, Enterprise has successfully maintained a strong market-leading position, making us prepared to benefit when the market turns. Furthermore, FalCom is continuing to build its pipeline, setting them up for a good year. And in Q2 alone, they contributed positively to the Enterprise division with almost DKK 100 million.

In Gaming, we continue to take market share and deliver 0% organic growth in a gaming gear market challenged by tariffs and lower consumer sentiments. In summary, this was a quarter with strong execution, navigating an uncertain environment and a quarter where we will further have increased flexibility and agility in our supply chain, enabling us to respond more quickly to future uncertainties. While we are not fully there, we are gradually leaving the difficulties behind us and look forward to working with our customers, partners and employees to build a strong future together.

And with that, I'm handing it over to Soren for group numbers in the quarter.

Thank you, Peter, and thank you all for being here with us today. As Peter mentioned, Q2 was challenged by the direct and indirect effects of the global trade situation. However, by concentrating on the business factors within our control, GN executed well under these circumstances. Our tariff mitigation plan is well underway, and we are confident that it will enable us to ensure a continued strong performance while protecting our margins.

In summary, our organic revenue growth ended at 0%, excluding the wind down, driven by the very strong performance in Hearing leading to 8% growth, offset by a negative 7% in Enterprise due to the global trade uncertainty.

Gaming performed well in a challenged market, achieving a 0% organic growth and taking share. Including the wind down, our organic growth rate was negative 5%. Driven by a combination of broad-based growth, margin improvements and prudent cost management, the EBITA margin came in strongly at 13%. Our cash flow was solid, coming in at DKK 353 million, excluding M&A, reflecting our earnings profile as well as our favorable development in inventories.

Now let's move to the P&L and cash flow details on Slide 6. Despite a flat top line, our gross margin continues to improve, which in second quarter amounted to an improvement of 3.7 percentage points compared to quarter 2 of last year. The positive result was achieved despite direct tariff costs in 2 out of our 3 divisions and can be attributed to our strong pricing discipline, favorable business mix and group-wide synergies from the one GN integration. Reported EBITA reached DKK 546 million, equivalent to a 46% increase over Q2 of last year, reflecting our strong gross margins, prudent cost management and no extraordinary costs.

Moving to the cash flow. Our strong earnings profile, combined with our favorable development in working capital resulted in a positive cash flow of DKK 353 million in the quarter. Driven by positive cash flow and our solid earnings level, our leverage decreased from 4.0 compared to 4.9 in Q2 of '24.

Moving to the next slide and our refinancing process. Driven by our strong fundamental operational improvements in recent years, we started to discuss the next refinancing opportunity with our core banking group earlier this year. Following these discussions, we are happy to announce that we have agreed on key terms for a new facility agreement. The agreement is still subject to customary long-form documentation, which is expected to be concluded during Q3 of '25. This new agreement effectively allows us to refinance up to EUR 1 billion and push relevant maturities to '28 with optionality for further 2 years.

On top of this, we've also been able to push maturity of our current undrawn revolving credit facility. The new agreement will provide GN with improved terms and conditions as well as lower interest rates compared to existing loans. As a consequence of the refinancing and the lower general Euribor level, this would lead to a significant reduction in net financial items already by '26. Assuming constant FX and interest rates, we are currently assuming net financials for 2026 in the region of DKK 450 million.

With that recap of our group performance, I'm pleased to hand you back to Peter for additional insights across the 3 divisions.

Thank you, Soren. Let me start with our Hearing division. In Q2, we executed strongly in a market which grew below structural trends, where we gained market shares across geographies and channels, driven by ReSound Vivia. In total, we grew organically 8% in the quarter. This was on top of the 10% growth we had a year ago in the same quarter. Our gross margin came in slightly lower than last year, primarily reflecting our disposal of Dansk HøreCenter and the regional sales mix.

Sales and marketing costs decreased by 9% compared to last year, driven by prudent cost management and our general group-wide cost program. As a result of the strong top line development and solid operating leverage, our divisional profit margin ended at 36%.

Let's move to the next slide. As mentioned, Vivia is the main reason behind our ability to drive market share gains in the quarter. Around 4 months into the launch, we are pleased to share that ReSound Vivia continues to outperform previous major product launches such as Nexia and Omnia in terms of its launch metrics. Our launch schedule is progressing as planned. And by the end of Q2, Vivia was available in most leading hearing aid markets.

From a regional perspective, we did see solid organic growth in North America, especially driven by very strong growth in the independent market and VA, while our comparison base at a large U.S. retailer was challenged in the quarter.

In Europe, the launch of Vivia had a significant impact on our performance. In total, we delivered double-digit organic revenue growth in Europe, with particularly strong growth and market share gains in Germany and U.K.

In the Rest of the World, we continue to do well despite several markets that were performing quite weakly, including China, Japan and Australia, and they all grew below the structural trends.

In addition to Vivia, we are pleased to announce the launch of ReSound Enzo IA, our newest superpower hearing aid. ReSound Enzo is our most powerful and most compact superpower hearing aid, which delivers clear sound even in the most noised environments. This is the industry's smallest rechargeable superpower product, and Enzo is our first product introduction in this segment for more than 5 years. This will help us to strengthen our value proposition to hearing care professionals and further support our growth ambitions going forward.

With this, let's move to the Enterprise division. In the quarter, the Enterprise division was, as we anticipated, challenged by the direct and indirect effects of the global trade environment. As a result, Enterprise delivered 7% negatively organic revenue growth. As I mentioned in the introduction, FalCom continues to build momentum and contributed with almost DKK 100 million in the quarter. Despite the challenged top line development, the gross margins in Enterprise improved by almost 2 percentage points to 56%, reflecting pricing discipline as well as impact from group-wide synergies.

Sales and distribution costs in the division grew by 4% in the quarter, reflecting good cost control and targeted product launch and market investments. Divisional profit margin ended at 34%, positively impacted by gross margin improvement, but offset by the development in the top line and sales and distribution cost.

Moving to the next slide. To provide some additional insights into the Enterprise revenue development in Q2, let's look on the regional performance. Our sell-out growth continues to be better than our sell-in growth across the 3 regions. In the quarter, sell-out was positive across North America and the rest of the world for the third consecutive quarter, supporting a gradual return to growth for the enterprise market.

In Europe, sell-out continues to be challenged due to the weak macro environment and uncertainty of the trade environment, making several companies hold back investments. In North America, sell-in was impacted by a deliberate decision to limit certain product variants in the U.S. in the first part of Q2.

In the rest of the world, we saw a healthy sell-out growth as well as sell-in growth. Despite the market being under pressure for a longer time, we continue to believe in the long-term attractiveness of the Enterprise market, driven by hybrid working and the ongoing upgrade of collaboration tools to create a seamless and high-quality experience, allowing hundreds of millions of people to communicate in a natural, undisrupted and clear way.

Let's move to the next slide and our Gaming division. In Q2, the Gaming division was challenged by low consumer sentiment and an uncertain trade environment, we led to a declining gaming equipment market. Despite these headwinds, SteelSeries performed well and continued to gain market share, leading to organic growth rate of 0% on top of last year when SteelSeries grew with 12%.

When including the successful wind down of our Elite and Talk product lines, overall revenue growth for the division was negative 29%. In the U.S. market, Gaming was negatively affected by a deliberate decision to limit certain product brands due to elevated tariffs in the quarter. This was, however, to some extent, offset by our implementation of targeted price increases, which supported the revenue of SteelSeries.

In Europe, revenue was challenged by low consumer sentiments and a high comparison base, while we grew strongly in the rest of the world. Our gross margins ended at 32% in the quarter, supported by pricing discipline and the effects of the group-wide synergies, but offset by some incurred tariff costs.

Sales and distribution costs decreased 36% in the quarter, driven by consumer wind-down and prudent cost management under our group-wide cost program. All in all, divisional profit came out at 12%, excluding the consumer wind-down, reflecting the positive development in our gross margin and our operating leverage. It should be noted that the direct impact from tariffs was limited in Q2 for Gaming as we took advantage of the existing already declared inventory. In the quarters to come, we will start to see a more negative impact from the direct tariff cost. We will mitigate this with price increases and operations improvements related to our one GN strategy.

With that overview of Q2 performance, let's move to the next slide, where we'll give an update on our tariff mitigation plan. In Q1, we presented a comprehensive tariff mitigation plan to protect our margins in response to fast-evolving and highly uncertain trade environment. The plan involved a combination of acceleration of our existing supply chain diversification, commercial initiatives and a group-wide cost program to control the cost base and protect the GN business. A few months into this work, we can confirm that we're executing these initiatives well and that the plan is working as intended.

In Enterprise, we have already diversified production significantly and are on our way to a setup where close to 90% of our volume shipped to the U.S. can be produced in more than one location and outside of China by the end of '25.

In Gaming, we're also making good progress and we'll reach a position where close to 90% of the U.S. volumes can be produced in countries outside of China by the end of the year. Related to this, we are pleased to share that these production moves have worked very well without any meaningful production disruption or quality issues. On our commercial actions, our price increases for Gaming and Enterprise in the U.S. market are well underway and have generally been well understood and accepted by our retailers and partners.

As for the impact of the tariffs and our mitigating actions, we estimate that we're having a 1% negative EBITA margin impact this year, while around 0.5% of these are more of one-off nature. We will continue to work across our full set of levers to mitigate this in the coming years.

And with that, I will hand the word back to Soren to conclude our presentation with an update on our guidance.

It seems like -- sorry, if anybody can hear us, it seems like somebody can hear us, at least that's what I'm told right now, but there seems to be some issues with at least the telephone line where we are sitting. And maybe we need to just continue because I guess the message now that actually people can hear us speak right now. So I guess, let's just continue for now, please. Text me if that's not right. But with that, let's continue with Soren and then let's see whether we can get our sound working in the studio as we speak. But Soren, please continue with the financial guidance.

Thank you so much, Rune, and thank you, Peter. We are today reconfirming our guidance for the year. With the divisional performance we have seen in the first half of the year and with our expectations for the second half of the year, we are narrowing the group organic revenue growth guidance from minus 3% to plus 3% to now minus 2% to plus 2%. The underlying assumptions include a Hearing business, which is likely to end in the lower half of the original assumptions due to the lower-than-expected market growth. In Enterprise, we are currently trending in the middle of the growth assumptions provided back in April.

For Gaming, we are currently trending in the upper half of the range we provided in April. For our EBITA margin and cash flow guidance, we are confirming these. To provide with some direction in the second half of the year, we do expect the group EBITA margin to be a bit soft going into quarter 3 as we expect to see the full amount of tariff costs impacting margins in Gaming, while we also do certain commercial investments across our divisions in third quarter that will support our businesses in the important fourth quarter. This should also then lead to a strong EBITA margin in quarter 4, reflecting higher volumes in fourth quarter as we have normally seen it.

That concludes our update on the business, and I'm happy to hand you back to Rune.

Thank you, Soren, and thank you, Peter, for the updates. A quick practical remarks before hopefully, we get the Q&A up and running. We will invite you for the EUHA presentation again this year. This will take place in Nuremberg on October 23 at 9:00 a.m. Official invites will be sent out in due course.

So with that, I'm hoping at least that we will be able to hear the operator and the Q&A. So fingers crossed from my part.

[Technical Difficulty]

All right, operator, I think we can hear you now. Operator, are you online?

Ladies and gentlemen, we've established the connection back with the speakers. You may proceed with the presentation. Thank you.

We have concluded the presentation. Let's just move to Q&A, please.

[Technical Difficulty]

Ladies and gentlemen, we established the connection. Try again, please. From the speakers' line, can you hear us?

Q&A, please.

Our first question comes from Carsten Lønborg Madsen with Danske Bank.

All right. I don't think we got the entire presentation, but let's start with Q&A. I was wondering about the FalCom and the pretty large impact you have here in Q2 from FalCom of DKK 100 million. So if we look to our sources and our intel vendor, there hasn't really been any tenders of this size in '25 or Q2, et cetera. So I guess my question is, what is this? What will be the run rate for FalCom going forward? And will you say that FalCom now finally has sort of made the breakthrough we have been waiting for many, many years?

Thank you, Carsten. Let me soon come to your question. Can I just ask kindly, explain to us how much of the presentation did come through? Can you just clarify that, Carsten?

I think it ended something like, page 16, maybe.

Okay. So just before the guidance section, I assume then, so we take this question...

Yes, I didn't hear anything about guidance.

Yes. So maybe what we will do is if we can come back to your question, Carsten, maybe we'll let Soren just to conclude briefly on the guidance and then come back to your question.

Okay. We will go back to Slide 16, where we -- on the financial guidance. We are here today confirming our guidance for the year. With the divisional performance we have seen in the first half of the year and with our expectations for the second half of the year, we are now narrowing the group organic revenue growth guidance from minus 3% to plus 3%, now changed to -- from minus 2% to plus 2%. The underlying assumptions include a Hearing business, which is likely to end in the lower half of the original assumptions due to the lower-than-expected market growth.

In Enterprise, we are currently trending in the middle of the growth assumption provided back in April. For Gaming, we are currently trending in the upper half of the range we provided in April.

For our EBITA margin and cash flow guidance, we are confirming these. To provide with you with some direction in the second half of the year, we do expect the group EBITA margin to be a bit more soft going into third quarter as we expect to see the full amount of tariff costs impacting margins in Gaming, while we will also do certain commercial investments across our divisions in third quarter that will support our business in the -- for the important fourth quarter. This should also then lead to a strong EBITA margin in fourth quarter, reflecting higher volumes in Q4 as we have normally seen historically.

That concludes our update on the business, and now we can move back to the Q&A.

So Carsten, thank you for helping us here. And sorry, everyone here for a bit of disruption on the technical side. Hopefully, we have come across clear and can move now to the questions.

So as for your questions on FalCom, as you know, we have been building this business for a longer period of time, everything from a product portfolio to -- I mean, the way we approach the market to engaging in many, many conversations on franchises and tenders. I mean it started already last year. We started to make good progress on securing more franchises, participating in tenders. Last year, though, that the orders were relatively small. This year, the order volume has been building up a bit. And in this quarter, we are communicating now it's a little bit less than DKK 100 million, just to help you also to get the right understanding of the business.

It's not only one customer. I think we have a couple of larger things happening here in the quarter. And we are not normally disclosing customers for any of our divisions, and we'll not do it here either on FalCom. But I can just say that we continue to build the pipeline, continue to build progress. And hopefully, we can continue to have a second half of this year also with some good momentum on FalCom. And when this business has become stable enough and large enough, we can, of course, more share the numbers on a regular update. They still do fluctuate quite a bit, but we're trying to call it out here to both talk about the good progress, but also help you all to understand our business in the right way.

Excellent. And just to confirm, you are expecting sort of -- of course, this will be lumpy, but you're not expecting, for example, 0 in revenue for Q3 and Q4, you are expecting sort of a meaningful sustainable contribution from FalCom for the rest of the year.

Yes, we are. I think that as we see into the pipeline and orders, Q3 probably going to be a little bit smaller. And if things go well, Q4, a very nice quarter again for FalCom.

Our next question comes from Hassan Al-Wakeel with Barclays.

I have 2, please. Firstly, on Hearing, it is clear from the results that there are some strong share gains, which at least to us are not obviously explained by the VA data that we track. So can you talk about the split of Hearing organic growth price versus volume, please? And how the other channels and regions are performing and where you see the most share gains from?

And then secondly, on margin guidance, a much stronger result in the bag for the first half than expected. And I appreciate there is still a second half ramp, but you typically have a stronger second half versus the first. So what are the drivers for not raising guidance? And what are the key risks to your mind? And if you can quantify the uptick in commercial investments year-over-year?

Thank you so much. Let me start and then I hand it to Soren for your second question here. So if we look on -- first on the broader kind of both growth momentum and likely share gains, I would say, in the U.S., we did perform well, particularly strong in the independent market, which we saw very healthy growth in and thanks to the strong appreciation of Vivia. We also did fairly well in some other channels, but this was probably the channel that stood out.

And also then geographically wise, it was really Europe and rest of the world supporting the growth in the quarter where we launched Vivia. And I called it out here in my opening. In particular, we grew very strongly in Germany as well as in the U.K., but actually several other international markets where we also did very well.

I think that if we look back also last year is a good example where we grew very strong in the U.S. in the first half and then very strong in the rest of the world in the second half. So I think we have seen this over periods. One region is being a little bit more the growth driver and another quarter, it can be handed over to another region. But overall, we do expect this year to be a year of healthy growth and good market share gains essentially across geographies.

Then the question you have on price and volume. More general terms, I can say that in the quarter, the volume growth was slightly higher than the value growth, I mean, indicating some level of ASP pressure. I think that's predominantly driven by channel mix and geographic mix.

Thank you for the question on the margins. It's clear that we're also pleased with the second quarter here. And -- but also if you look at it in sort of in half term years, right, we are sort of just about 10% after the first half of the year. And we've set out and reconfirmed the guidance here for 11% to 13% on the full year. And of course, the midpoint would lead you to the conclusion that in the second half of the year, we need to be stronger than evidently we've been in the first half and even on average stronger than what we've been in the second quarter.

What we just paying your attention to is that what we do expect is a third quarter that will, a, have some headwinds on the tariff, especially in Gaming, but actually also that we do invest in our business and part of that investment actually comes in the third quarter in due course for the fourth quarter where we are also expecting to launch new products.

So in many ways, this is how we see the world. And we do expect also, as we normally see, as I said, that the fourth quarter on top line is higher in the fourth quarter. And as such, you will have some leverage due to that. So think of it as there is a clear bias towards the fourth quarter when it comes to the earnings profile.

Then you asked on more the commercial investments. I think here, and of course, it is a little difficult for you guys, right, because we have actually also been winding down the consumer last year, which actually also had a meaningful commercial full year impact. Of course, you need to deduct that. So trust me that in our minds, we are still investing in sales and marketing to support our business. So you cannot just take it 1 year over the other, at least without adjusting for the consumer in terms of sales and marketing costs. I hope that answered your question.

Our next question comes from Martin Brenoe with Nordea.

I have 2, if I may. First of all, on Enterprise. If we take out the FalCom impact, I guess that you saw a double-digit decline in Enterprise underlying. So I would just like to hear whether this is also including -- you also think that you have taken market shares in here. And maybe a little bit why that is happening when you have easier comps with the speaker phones not being such a big headwind as it has been in the past?

And then the second question on that would be heading into H2, how confident are you speaking strictly about Enterprise demand, not about the FalCom part. How confident are you that demand is going to hold up given that a lot of companies are speaking about delayed impacts from tariffs, holding them back a little bit on investments, et cetera. So it would be super helpful to hear your -- where you get your confidence from.

Thanks a lot for your questions here. So maybe I repeat a bit on what I said in the introduction and provide some further context on it. I mean what is encouraging with the Enterprise business is that we are seeing sell-out growth in North America as well as APAC, Rest of the World in the quarter, but it's actually for both regions, the third quarter in a row where we see this. Then when it comes to Europe, here, we have not seen the market turn into growth from a sell-out perspective.

And the reason we're talking a lot about sell-out, it's really the leading indicator. It's essentially end customers buying. And in between there, of course, we have the channel. I think that the explanation for Europe, EMEA, I think it's largely what you said in your question. The macro environment is uncertain. There are many companies that are having quite strict cost control and investing a bit less, which is impacting how much they spend on enterprise equipment. We do believe that over time, this will, of course, stabilize. And so over time, we will, of course, see Europe in growth as well also.

When it comes to our own numbers, I also indicated that our sell-in has been weaker than the sell-out, and it's a difference with around 5% in the quarter. So that means actually that the underlying demand for our products is a bit higher than the revenue, which we have here around the negative DKK 10 million, as you highlight. And then for the second half, I think that the way we see Enterprise is that normally Q3 is about the same absolute size as Q2. And we believe it will be this year also. You don't need to factor in the FalCom order I mentioned here in the opening, which then, of course, need to be compensated for. But that is how we're seeing the business building.

Towards the end of the year, Q4 is always a bit of a stronger quarter in Enterprise. Also, our comps are becoming a little bit easier towards the end of the year. And here also, we are now gradually launching products into the Enterprise segment. We are shipping now a video product, P40. And as we have talked about before, we are planning to gradually launch new headsets also towards the end of the year. So we are planning the year for a bit of a stronger finish and a Q3 that is a bit more in absolute terms, the same as Q2 with adjustment for FalCom essentially.

Hopefully, that's helpful, and then giving you a little bit further insight into it. I will just round off with recognizing is that it's, of course, been a longer period of time where we've been seeing pressure in Enterprise. But again, I think it is encouraging that the 2 regions with a bit of stronger macro data, I mean both the U.S. and APAC, here, we're starting to see the growth come. And hopefully, we can soon see that on a global basis. So thanks a lot.

Our next question comes from Martin Parkhoi with SEB.

Martin Parkhoi from SEB. A couple of questions. Just back to hearing, Peter, maybe you can elaborate a little bit more on Germany because as I recall it, it has not been a very strong -- historically has not been a strong GN market. So what kind of position do you have there in the market? I don't expect it to be market shares at least at a digit, but in round numbers, how big are you in Germany now? And what kind of opportunity do you see? Do you also see any positive spillover from you that the other larger manufacturers, of course, latest but [ the payment ] are quite active in forward integration in the German market?

And then maybe for Soren, just -- if we look at the -- to give some building blocks for the margins in going into '26, not that I expect to get real margins, but of course, we are seeing movements in the U.S. dollar, given at a certain level -- current level, what kind of positive margin impact will that be in '26, given your exposure to components in U.S. dollar? And then, of course, also with respect to tariffs. And then lastly, just, Peter, on Enterprise side, you mentioned the product launch, new headset platform. Do you think that it will be a meaningful contribution in the fourth quarter, in Enterprise?

Martin, thanks a lot for your questions. And maybe I do 1 and 3 first and then hand over the second question to Soren here. Yes, I mean we have seen a very healthy growth in Germany that, as you know, is a large and meaningful hearing aid market. Our market share, as you indicated in your question is a starting point relatively low. So we do believe we have some room to grow there and see this as very positively. We're holding ourselves a little bit back to give exact volume data per market. But I can say we're encouraged by this.

We have taken quite a lot of initiatives on how we work in the German market. And I think now also with the help of Vivia, I think it's really helped us to have new conversations, more conversations and essentially opening up possibilities for us. It's not happening overnight. So I see it's a team making gradual good progress and hopefully can continue in the year with a good Q3 and Q4 also.

And then if I comment on the Enterprise side and the launches, I think that the products which we will launch, hopefully, will be very meaningful. We are very excited about the products, and it will be some launches this year, and you should see us making more Enterprise headset launches next year. It's essentially a range we're building up where launches will come over time. In Q4 alone, it will positively contribute, it will not be very significant. It takes some time before you're building up the full volumes around the launch. So I think you will see more of the impact coming into next year, but some impact in Q4.

Yes, Martin, then I think you're asking me for a little bit of a crystal ball on the U.S. dollar, maybe not directly. But I think it's important to sort of it's correct that, of course, the dollar has come down. And normally, that, of course, also assists us. That's actually true. But there are also other currencies where we actually do sell meaningfully, whether it's in U.K., in Japan or in Australia, that probably has a headwind to us also. So I think it's a little early to speculate in whether or not the U.S. dollar will help us in a meaningful way.

Let's see where we end the year. I think most of us will remember when we reported out in February for last year, for '24, right, suddenly, the dollar was really high and now it's really low. So I would suggest at least that we currently do not speculate much. But of course, normally, it is a little tailwind for us with the dollar, but you need to bear in mind that there are other currencies actually going in the opposite direction. So I'll not lock it in yet. That's probably also what you will hear me say.

Our next question comes from Veronika Dubajova with Citi.

I have 3, please, if that's okay. Hopefully, they're pretty short. The first one is just would love to get your thoughts, Peter, on the current market conditions in the hearing aid market, especially what you're seeing when you look at July and August? And I guess, in particular, sort of your assumption that the market improves in the back half of the year a little bit. Is that driven by what you're seeing on the ground? Is that driven by kind of just speculation? And maybe as you talk about that, you can also comment on some of the comments we've heard around Southern Europe and whether that's a region that matters for you and if it's getting any better. So that's my first question.

My second question I was hoping you could quantify the hearing aid growth in the U.S., excluding the large customer, where you've lost some market share or at least give us a flavor for the sort of impact for that? And then the final one, probably better for Soren, is just can you break out the contribution from price to the growth in Enterprise and Gaming and whether that improves further as you move into the back half of the year?

Thanks a lot. Thank you for your questions here. I believe that we have talked about the market being below its structural growth and several of our peers, I think, are indicating the same things. To our understanding, we probably observe the same markets and talk about them in similar ways. Our assessment is that with the current momentum we have, I mean, we are, I mean 1%, 2% below what we normally see in market growth. If we look for the second half, we have taken planning assumptions to see similar kind of patterns in the second half.

And as we indicated here in our guidance section in the written part, I mean, we're saying we're trending towards the lower half of the planning assumptions for hearing. And that is, I mean, only due to the market assumptions have slightly changed. If there would be a more normal market, we would likely been able to grow slightly stronger this year, thanks to the good launch we have with Vivia.

And then if I comment a bit on the U.S. retailer, and I should first say the launch we have with Vivia or [ SOLA ], the Jabra brand there, of course, is going very well. So we're very pleased with the continued collaboration. We feel very good about the partnership. I think that it is, of course, now a situation with the 4 players instead of 3 players, and that is naturally putting some level of pressure on our business. So we did see some level of pressure in the quarter. For Hearing business in total, that probably is around 1% organic growth, what should we say, headwind in the quarter. But I will say that the other channels have performed very well, and we also feel good about the way we're working in this retailer.

And then on your third question...

I'm sorry, Peter, that's...

Please. Yes, sure.

Can I just clarify that. That's 1 point for the U.S. growth or 1 point for the group growth?

No, for the Hearing division growth.

Hearing in total. Perfect.

And then with the final question on pricing, we also spoke to it a little bit in the opening, right, that we have actually taken price improvements in both Enterprise and Gaming. And they were also positively contributing in the second quarter. But bear in mind that when you look into the rest of the year, then in Gaming, we took advantage, as we said, on the inventory we did have that was declared already. So there, you don't see the same impact in quarter 2 of the negative side of the tariffs. And that's one thing.

The other part is that it was not during the full quarter necessarily, we took price improvements in the second quarter. So I think you should think of it as in Gaming, it's probably a little better coming out of quarter 2 because of the inventory. And it's -- and when it comes to Enterprise, it's probably more balanced in terms of the price improvements. But of course, we still remain open to continuously seeing this as a lever, as a mitigating plan to the tariffs, as we also said, coming out of first quarter. So that will be my guiding points for the second half.

The next question comes from Niels Granholm-Leth with DNB Carnegie.

All right. So we continue for -- with our next question from Maja Stephanie Pataki with Kepler Cheuvreux.

Three, if I may, from my side. First of all, you've talked about the challenging macro conditions in Europe that were a challenge for the Enterprise growth. I was wondering what is it from your perspective that needs to happen? Is it calming waters when it comes to tariff talks? Or is it really GDP growth that needs to pick up for you to see enterprise growth returning in that segment?

The second question, when we talk -- when we look at Gaming, have you seen any change in order behavior from an inventory perspective in Q2 from your customers? And then lastly, maybe that's a very general question, I'm not sure you can answer. The hearing aid market has been very volatile over the last few years. 2025 seems to be another challenging year. What do you see as the main reasons for the subdued growth or for the volatility because it has been seen as a very defensive market. And I see that there is still growth, still the kind of volatility is unprecedented.

Thanks a lot for your questions. For the European enterprise business and the comments on what do we believe need to happen for the market to return to growth. I think it's a combination of the 2 factors you laid out in your question. A bit stronger general macro environment, getting some macro growth in Europe. What we also hear is that several larger companies are, of course, also trying to adjust to the environment of tariffs and the uncertainty of that. And several larger companies have been having a different type of cost programs in place, restricting investments and CapEx spend basically. So we believe it's a combination of those 2. And hopefully, here in the coming periods, we will see some level of turning here driven by these 2.

Then the second question on Gaming. No, I don't think we have seen a real difference in order behavior or inventory management practices. I think it's actually been a period of, I mean very close collaboration in the U.S. between our teams and the larger retailers. There was a period where we're a little bit unsure on how much, I mean, supply we could support given the whole difficult and uncertain trade environment. I think there's been a strong collaboration, prioritize what products to promote, what products to sell and how to do this. I think that's probably has been what's been a bit unusual in the period in terms of inventory management, ordering behavior. It's been fairly normal, I would say.

Then the last question on the Hearing market volatility. I think we recognize this also. I don't think we can pretend we have the answer to it. But I mean our humble observations is that we saw that particularly early this year is that the consumer sentiment, in particular the U.S., really affected the way that hearing aids were purchased. It's essentially, in many cases, elderly consumers hesitating a bit on what is a fairly big purchase.

At the same time, we still believe that it's very resilient over time, the hearing aid industry. It's, of course, supported still by an aging population and a population that like to live a full life until later in their lives. So we do not downgrade in any way the kind of belief on the growth on the hearing aid industry over time. But we recognize it's been a little bit more volatile than normal. But still, we believe the structural growth over time is certainly there.

And finally, I should say, and that was probably implied also in your question, there's also been periods of growth above normal growth trends the last few years. So it's been slightly on and off. But if you take the average of this, it's actually looked fairly stable and in line with historical kind of trends.

And may I just add a follow-up here. Since you're calling out consumer sentiment, can you give us a bit of a qualitative feedback on how your OTC division has been doing Q1 when it was really, really bad, the consumer sentiment versus Q2 have been a change? And how is that business performing for GN?

Yes. Thank you. No, I -- we can confirm that this part of our business has also been affected in the U.S., largely due to the consumer sentiment here also in the quarter. We saw some level of growth in Q2, but on a relatively low level. Q1 was a little bit more difficult. So this is a segment that is fairly sensitive to the consumer sentiment. So we can confirm that. But at the same time, in other periods, we've seen very high growth. So it probably follows quite a lot the pattern we just spoke to here.

Our next question comes from Niels Granholm-Leth with DNB.

Now it works. Firstly, could you talk about your distribution cost in the quarter that dropped about DKK 100 million. To what extent is this driven by cost curtailment? Or is it something that we would only see for this quarter? Secondly, could you talk a little bit more about the expected market response to the price increases that you have implemented on the U.S. market? What are you hearing? Are you expecting end user demand to be affected by these price increases?

Niels, good that you came through here in the end. In terms of the distribution, I think we have actually seen some cost savings during the quarter. And of course, we are still focused on ensuring that, that is a pattern we also can see going forward. It, of course, also follows the -- how our goods are shipped around. And in many ways, here, the second quarter was, of course, a little bit out of the normal with the tariffs we've seen. But of course, we are satisfied to see that we are having improvements in distribution costs and then, of course, are aiming to a future good level also for that.

So you expect a level of below DKK 1 billion per quarter is recurring?

I would say that -- in terms of setting a level of -- when you say sales and distribution, I mean, of course, it sales and marketing within which we have distribution. So in that sense, it's a lower quarter. Bear in mind also that we actually deliberately said coming into -- coming out of first quarter that we would put in place cost containment as part of the mitigating plan. And that's also what we have seen work. And of course, now we also are of the opinion that we have it in good control, know where things are going.

And here, we also reserve the right, of course, to invest in the places where we would like to invest and that's also what I said before coming into the third quarter. And actually, of course, fourth quarter is also our high-end sales. So it's really a combination of the sales and marketing and distribution costs, right? So we are following the plan. We were cautious in quarter 2. We now think we have a good plan and also good idea of when we are moving the operations around in Asia.

So in that sense, we are still expecting a higher sales and marketing cost to actually support the growth of the company. So I think that was probably more your underlying question that you can, of course, confirm.

And Niels, if I take the second question here on price increases. We have increased prices in the U.S. with around 10% for Enterprise and around 10% for Gaming. The Enterprise price increases have taken effect a little bit earlier than the Gaming ones, mostly due to the way it works in our contracts and mechanisms to increase the prices.

So on Enterprise, where we have a bit more, what should we say, weeks of observing how it's been working, I can say that it's been working well. It's likely driven to some kind of reduction in volume. But in total, these price increases should give some level of support to revenue growth and of course, perhaps even more important to protect our margins. I would expect it to play out similarly for Gaming, but we don't have a full set of data to observe it yet.

So you would expect volume decline due to these price increases in quarter 3. Is that a fair assumption?

I mean there are many factors. So I mean to the price increase alone, yes, but then there are other things that are driving volume increase. There is an underlying volume growth in the market. So how the total play out, I'm not sure the total will be a volume decline, so to say. The Gaming market here, as I said in the opening of our call, has been in decline and quite a significant decline in the last quarter, where we certainly have seen some kind of volume decrease. I'm not sure that is related to the price changes or it's probably related more to the general consumer sentiment.

Our next question comes from Andjela Bozinovic with BNP Exane.

Just 2 questions. First one on Hearing. So on Vivia, again, a successful quarter with market share gains. Can you share with us any feedback from the audiologists on Vivia versus the competition, like specifically Infinio Sphere and the AI feature? And any drawbacks of the product that you're hearing, if any exist?

And the second one is on Enterprise. So now that you're seeing 3 quarters of positive sell-out in the Rest of the World and America, do you feel more confident that you will be able to successfully guide on Enterprise going forward because it has been very volatile amid the macro concerns and tariff concerns. Do you feel like now the situation is calmer and you will be able to guide more specifically?

Thanks a lot. I mean starting with Vivia, and I prefer to talk more about what we hear about our hearing aid and a little bit careful on how to talk about our peers products. But I will say that generally, what the hearing care professionals about Vivia, which they really appreciate is that it's building on the very strong performance of Nexia in terms of hearing and noise environments and then adding the AI capability to this, which is essentially helping them even further when you turn on this program to reduce the noise level in the noise environments.

So it is essentially taking a very well-performing hearing aid Nexia to the next level. And still, we are doing that with almost no compromises. It's still the same small form factor, the good battery lives and it's easy to work with. And while the price -- there is a price increase, it's still seen by many hearing care professionals as a reasonable price increase for the strong value they're getting basically.

And then continue to get good feedback on how the quality works and the whole experience of working with Vivia. So I think it's really the totality of factors making it a very complete and appreciated hearing aid. Then, of course, the alternative from our competitors that have slightly different characteristics. But I think it's quite clear from us that what we're offering here with Vivia is appreciated and supporting our growth here.

Then for your second question on Enterprise, I think it's a great question, and you're highlighting it's been a market with more volatility and uncertainty. And we've seen that this year, of course, we've got an added kind of element of this with the new trade policies coming in, in the U.S. I'm hopeful we can get less uncertainty over time. And if we get that, I think what you imply in your question is very fair. Then I do believe it will be easier for us to guide in a somewhat more narrow way and help you all understand how this evolves.

But what we've seen in Q2 and the actions we have taken, I think we have left quite a lot of the uncertainty gradually behind us. What remains now is one of the earlier questions we just answered is Europe and the macro uncertainty in Europe. And hopefully, that can also soon stabilize, and we're getting all to all in a more stable environment. So we, of course, look forward to that also.

In the meantime, I do like to highlight that our teams, I think they're doing a very good job on controlling everything they can control. We're working on the new products we mentioned before. I also think the execution in the market is good. So maintaining healthy market shares and margins, making us ready to benefit at the time of the market turns.

Perfect. And if I can squeeze in just 1 short follow-up. If you can give us any indication of the FalCom profitability?

Yes. No, sure. We are not giving exact numbers, but I think you should think about a similar gross margin profile as we're having in the Enterprise division. And that is also the ambition we have as we move forward.

Our next question comes from Martinien Rula with Jefferies.

Yes. I hope you can hear me okay. I have 2. So the first one on Hearing. So obviously, you now expect the Hearing division to lead to the lower half of the 5% to 9% range. I know you've commented on softer-than-expected market. But I was wondering if that was also triggered to some extent by the current dynamics you're seeing at Costco and/or also from the fact that one of your competitor is on the verge of introducing a new product. And I'll let you some time to answer the question before I ask you the second point, if that suits you.

Yes. No, thank you. No, as we mentioned here in the guidance section and the planning assumption, it is due to the market growth. When we set our guidance here, I mean, we did factor in that we believe there will be some kind of changes from 3 to 4 suppliers in the large U.S. retailer as well as we did factor in that we did expect some of our competitors to launch products in the year. So I think it's solely due to the market dynamics and growth we are indicating the lower end of that planning assumption.

Okay. Perfect. And for the second question, I appreciate the comments that you've made on the tariff impact being roughly 1 percentage point and half of that being kind of a temporary nature in the sense it's related to the relocation of production and so on. But I guess my question is, should we expect you to continue diversifying your manufacturing footprint in the future? And if so, would the cost related to that could be a meaningful drag to your midterm margin guidance?

We laid out the strategy around 2 years ago to diversify our manufacturing footprint and essentially did it to have more resilience and flexibility for possible shocks coming. And the way we're set up now is essentially, in most cases, for most product lines to have production in China and one more Asian countries. We feel good about the setup we have today. At the same time, we should not rule out that we might make further changes over time if we find locations and partners where we see that's beneficial for our business. It's nothing we have planned today. The setup we have now, we think it's a very good setup, providing a lot of flexibility for us.

Flexibility of course, for tariffs, but the flexibility for other type of scenarios as well. So the 1% impact this year on margin and where 0.5% are more temporary in nature. I think it's essentially what we see now. We will, for sure, continue to work on the full set of levers to continue to improve our margins. That is still a very important kind of priority for us as we're developing into the future.

Our last question for today's call comes from Susannah Ludwig with Bernstein.

I have 2, please. First, could you just provide your current expectations for the tariff impact on margins in 2026? And I guess what are sort of the assumptions behind that expectation? Do we stay at sort of current levels? And then second, could you explain what's driving the sharp jump this quarter in receivables from associates, which looks like they were up around DKK 300 million. Are we correct to assume that those are largely receivables from your Beltone network?

Okay. Thank you so much. First, for the margins for next year, we are not yet guiding next year in terms of margins. So a little bit refraining from how to precise to be here. If we look on the tariffs alone, as I just talked to, it is having an impact around 1% this year, where half are more one-off natures. But there are also quite a large set of other levers we are working on to improve our margins. So essentially, how our margin -- how we will guide for next year, we will come back to that a bit later, but we certainly have the ambition to increase the margins coming into '26.

I guess should we think about the tariff headwind goes down between '25 and 2026? Or is the tariff headwind sort of similar? I guess that sort of if you could directionally give us a sense because obviously, you'll have sort of a full year of tariff impact in 2026 and different rates. So just trying -- and you won't have these temporary costs. So just trying to think about directionally what we should be thinking of as the tariff impact sort of incrementally from '25 to 2026. Is it positive? Is it negative or roughly the same?

I will probably more think about it because there are timing effects here. The tariffs were announced, of course, in April. They have been implemented and changed many times this year. So I do think it's -- it has been a quite evolving situation this year as we know. I think you should more think about it the way we are leaving this year is probably with a kind of a residual tariff effect of around 0.5%. That doesn't mean that we are not thinking through additional ways to manage that, but it's probably what we see today. But again, we will work on everything we can to see how we both can improve margins and lessen that impact.

And then when it comes to your second question, let's get back to that offline. It could be the way it's reflected in the report. So let's clarify that offline to make sure that you're looking at the right numbers.

So ladies and gentlemen, this was our last questions. I hand back over to the management for any closing remarks.

Thank you very much, operator, and thank you for the call. And I'm sorry for all the mess with the line today. Hope everything went clear in the end. See you all on the road.