GN Store Nord Aktie

Hello, everyone, and welcome to GN's conference call in relation to our Q2 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 around 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 thank you all for joining us today. Before going into the business performance during the quarter, I would like to spend a few minutes on the development around the Hearing transaction and the Hearing business. To remind everyone, we took the decision in March to sell our Hearing business to Amplifon to create a global leader in hearing care. The carve-out process is well underway and closing of the sale to Amplifon remains expected towards the end of this year. Let me also remind you about a few items that we shared in connection with our Q1 report in May. The proceeds of the transaction are DKK 12.6 billion in cash and 56 million Amplifon shares.

As part of the process, we will make a carve-out of our continuing activities, which will be taxable. We're estimating this upfront tax payment to be between DKK 1.5 billion to DKK 2 billion. However, we will also get an equal-sized tax asset that we can use for tax reductions in the coming years. The estimated total one-off cash costs related to the transaction is DKK 750 million. This includes transaction costs, carve-out costs and rightsizing costs for the continuing GN.

We announced in Q1 a cost reduction program that will reduce the running cost of the continuing GN of around DKK 200 million compared to the realized level in '26. These cost actions have now been executed during the second quarter and will positively impact our margins in '27 and beyond. As for the proceed and capital allocation going forward, we are targeting a leverage between 1x and 1.5x in the short term. We are not planning to do any major acquisitions. The excess cash will be distributed through share buybacks and dividends in the best ways for our shareholders. These shareholder distributions will begin as fast as practically possible after the closing of the transaction.

Let's now move to next slide and our latest hearing aid we have launched. We have just launched Resound Sensia, which is the world's smallest AI hearing aid powered by a new AI platform that adjusts automatically to the listening environment with unmatched efficiency. The product is built around 3 core technological strengths, the AcoustIQ technology that delivers the most accurate real-time sound sensing, the narrowest 4 microphone beam forming, deliver even better speech clarity and noise and the best automatic DNN denoising that lifts conversation in challenging listening environments with less effort.

Sensia further strengthens GN Hearing's portfolio and will help our patients to hear even better in noisy environments, which we continue to believe is the most important area to innovate around. We have made these great improvements while keeping the small appreciated form factor and a full-day battery life. The new family of product will be launching in the U.S., Germany and Austria as of today, with more markets to follow in the coming months. While it's early days, our initial customer interactions, actual preorders as well as the number of customers signed up for sales events during the coming periods are looking very encouraging.

With that, let us turn to the group and divisional highlights for the continuing business in the second quarter. Let me summarize the key highlights for Enterprise and Gaming in the second quarter. In summary, we are building momentum, setting us up for growth and margin expansion in the second half of the year. In Enterprise, we continue to see healthy growth in North America and APAC. In EMEA, we saw continued decline, but importantly, with signs of improvements compared to the first quarter. Total organic revenue growth came in at negative 7% with the demanding comparison base in FalCom being a significant factor.

Excluding FalCom, the organic growth was negative 3%. The Evolve3 platform continues to resonate strongly with customers. We saw double-digit sell-out growth in the premium headsets and well into double digit, demonstrating that the products are in strong demand among customers. We also saw a healthy improvement of our gross margins in the quarter where we executed channel investments to support the launch of further Evolve3. As already announced in July, more products are coming now in the second half of the year.

In Gaming, we delivered 5% organic revenue growth despite continued muted consumer sentiment, supported by headset market share gains driven by Nova Pro Omni. Margin progression was strong in the quarter, driven by pricing discipline, success of new products, a lower tariff level and a minor provision release. Looking ahead to the second half, we see significant growth opportunities supported by the upcoming mice and Kibo launches and continued headset momentum.

Let's move to the next slide with a bit of further detail on Enterprise. In the second quarter, Enterprise delivered organic revenue growth of negative 7% in total or negative 3% if we exclude FalCom. On a regional basis, we continue to see strong growth in North America and APAC. In EMEA, we saw a decline, but with signs of improvements compared to the first quarter, driven by the positive reception of Evolve3 and a gradually improving EMEA market. Within the product portfolio, the headset business showed improving development and the meeting room and frontline workers segment delivered both healthy growth.

FalCom advanced its project pipeline, but with limited revenue contribution as expected in the quarter. On the financial side, gross profits were DKK 891 million, translating into a gross margin of 57.2% compared to 56.1% in the second quarter of '25. Divisional profit was DKK 483 million, translating into divisional profit margin of 31% compared to 34% in the second quarter of '25. The year-on-year development reflects the channel investments we are making to prepare for further Evolve3 launches in the second half. Overall, Enterprise continues to progress in line with our plans.

Let's move to the Evolve3 portfolio on Slide 9. On the 1st of July, we announced 3 important additions to the Evolve3 portfolio, the Evolve3 65 Flex, 65 and 45. The Evolve3 85 and 75 were launched in March '26 and have already demonstrated strong commercial traction with solid double-digit sell-out growth in the premium Bluetooth category, which I will return to more -- in a bit more detail. The next wave of the portfolio, the Evolve3 65, 65 Flex and 45 is planned to launch in September '26. This launch is significant to us and address 35% of our Enterprise business. That means that we together with Evolve3 85 and 75 will address 50% of the Enterprise business with a fully refreshed portfolio that is set up for growth.

The Evolve3 65 Flex is tailored for users who move between locations. It comes without a boom arm in a small form factor with better outdoor voice pickup and a wind adaptable ANC, designed for professionals who need performance on the go in a very compelling small form factor. The Evolve3 65 brings the core Evolve3 experience into the mid-tier segment with better sound, a 4-microphone adaptive ANC system, a very strong product for everyday modern work. The Evolve3 45 takes the concept into the entry-level segment. It is the lightest model in the portfolio with best-in-class office voice pickup and ANC, making it ideal for large-scale deployments and frontline workers where price is key, but voice performance still cannot be compromised.

With the addition of these 3 products, Evolve3 is no longer a premium-only offering. It is a portfolio spanning from premium to entry level with more products still to come. This portfolio expansion sets the stage for returning to growth in the second half of '26. Let us look at the rest -- sorry, let us look at the recent financial performance driven by our Evolve3 products. As we mentioned in Q1, our premium Bluetooth category is roughly 15% of total Enterprise. In this category, we experienced a very strong selling growth during Q1, driven by the initial stocking effects of Evolve3. Now a quarter later, it is encouraging to see that we're also seeing solid double-digit sell-out growth in the category, which underpins the strong customer reception of the flagship products.

On top of the strong sell-out, we have continued to see a very strong sell-in growth in Q2 as well. Taking it together, on the right side of the slide, showing the conceptual revenue buildup of our headset segment. In the first half of this year, we have seen strong growth in North America and APAC, but continued weakness in channel reductions in EMEA. That has weighed on the top line due to EMEA being the major revenue contributor. While there's still some uncertainties around channel inventories, we expect this effect to be smaller in the second half of the year.

Also, as we move into the second half, we will begin to see the new 3 products starting to ramp up as well. This means that a larger part of our headset segment will be supported by new products. These effects together set us up for a healthy second half with significant revenue generation and profitability improvements. This year, we expect a bit of unusual seasonality, driven by the strong set of launches we have, which is in line with what we also shared in our Q1 results.

Let's move to the next slide and talk about Gaming. In the second quarter, Gaming delivered revenue of DKK 613 million, corresponding to 5% organic revenue growth in a market held back by muted consumer confidence. We saw strong growth and market share gains in headsets and keyboards, while mice had a more difficult quarter, predominantly due to an aging product portfolio. Regionally, North America continued to grow well, whereas EMEA and APAC were more challenged due to the market conditions. Gross margins came in at 39.2% compared to 34% last year, driven by pricing discipline, success of new products and a minor provision release. Divisional profit margin ended at 15% compared to 12.2% last year, driven by continued cost focus, combined with some of the target channel investments we do to support growth opportunities in the second half of this year.

Let's move to the next slide. This highlights a milestone we are very proud of. SteelSeries is now the #1 brand globally in gaming headsets. This is the result of a consistent and relentless innovation over many years. Looking at our market share development from 2017 to today, the trajectory is clear. Each product generation has expanded our position from the original Arctis headset line through the Arctis 9, Arctis 7+, Arctis Nova Pro, the GameBuds, the Nova Elite and now the Arctis Nova Pro Omni. The Arctis Nova Pro Omni has received outstanding reviews from leading gaming media, including IGN, T3, GamesRadar and PC Gamer.

Descriptions like the best headset on the market and the most well-rounded gaming headsets available speak to the quality and product differentiation we have achieved. This market leadership position gives us a strong commercial foundation as we head into the second half of the year, where we expect continued headset momentum combined with the contribution from new launches across mice and keyboards.

That concludes the deep dive into our divisions. Let me now hand over to Soren for the group financials and guidance.

Thank you, Peter. Let's have a look at the group financials for the second quarter. In the quarter, GN's continuing operations delivered organic revenue growth of minus 4%. As expected, the gross margin improved strongly following the temporary weak gross margin in quarter 1. Adjusted EBITA ended at DKK 110 million, corresponding to an adjusted EBITA margin of 5%. The development reflects the targeted investments to support growth in the second half of '26.

Total incurred one-off costs in the quarter were DKK 74 million, all of them cash costs mainly related to the carve-out of the hearing and preparations for the new GN structure. Free cash flow, excluding M&A, ended at minus DKK 616 million, reflecting insourcing of activities in the supply chain, driven a temporary increase in working capital, which is expected to normalize during the rest of the year. This in-sourcing is related to our distribution of products across Enterprise and Gaming. Net interest-bearing debt ended at DKK 9.6 billion, but let me just remind you that the coming proceeds from the transaction will result in a net positive cash position at closing.

With that, let us move to the financial guidance for '26 on Slide 15. Our group-wide financial performance in the second quarter has been in line with the assumptions put out in May. We're seeing the underlying improvements in our growth development and at the same time, a strong development on our EBITA margin, which improved strongly compared to first quarter. As we communicated yesterday evening, we are upgrading our margin outlook for the year and narrowing the revenue assumptions. We have had a healthy development of our gross margins in Q2 and feel good about the trajectory for the year. OpEx-wise, we are making growth-related investments as we planned. This, together with an assumption of DKK 100 million to DKK 150 million of tariff refunds led us to upgrade our adjusted EBITA margin guidance for the year.

Revenue-wise, we will be within our initial guidance, but given the continued muted market development as well as some earlier upside scenarios that is not deemed realistic, we are narrowing the range towards the lower half of our earlier guidance. In summary, we are making healthy progress for the year and encouragingly are set up to finish the year in a good second half momentum, which will carry with us into '27. Let's look at the margin expectations for the second half of the year in a slightly more illustrative form. The traditional seasonality in Gaming as well as successful Evolve3 rollout will be a key turning point for the revenue development and thereby, growth aspects in the second half of the year.

As we have mentioned throughout the year, we have assumed the year to be slightly more back-end loaded than normal. This also impacts our sequential growth outlook, but we remain convinced that quarter 3 will be a turning point with a return to positive group organic revenue growth and then likely improving sequentially into Q4 when we have a full quarter of launched products. As mentioned earlier, gross margin improved strongly in Q2 and was mainly driven by underlying improvements. We are, therefore, assuming that these current levels should continue into the second half on roughly the same strong levels.

On top of this, you will, of course, see the impact from the expected tariff refunds. We have a good control on OpEx. And while there might be quarterly fluctuations, you should expect more operating leverage as we are progressing during the rest of the year. When you combine these elements, revenue seasonality, gross margin improvements, tariff refunds and a fairly stable OpEx, the path to the full year margin guidance of 9% to 10% is clear. In addition, the structural cost initiatives executed in the second quarter will significantly further improve our margin expansion for '27.

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

Thank you, Peter and Soren. That concludes our prepared remarks and the presentation for today. I will now hand over to the operator for the Q&A session. Please limit your questions to 2 at a time, please.

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

Martin Parkhoi, SEB. Firstly, I hope my sound goes through clearly because I'm on the Jabra Evolve3. But my questions are also relating to the Enterprise business, firstly. First, of course, I think that you have made quite clear that there is significant growth opportunities on the Evolve3 launch plan for the rest of the year. But if you consider your guidance, what are the risk to the remaining 20% of Enterprise that lies outside of your core headsets business? Because in the past, that has been a little bit -- destroyed the growth picture sometimes.

And then also on the tariff refunding, now it's completely already open. Could you talk about the risk of this affecting pricing? And then, yes, I know it's a third question, but if at least within Enterprise, at Q1, you mentioned that you had seen some share loss to a Chinese competitor. This specific competitor have seen accelerating growth in the second quarter. How significant effect do you see from this company on a global scale in the coming years?

Thanks a lot, Martin, and happy to confirm that we hear you loud and clear. And let me start here, and Soren will help me out on some of the tariffs here. First, I mean, as I said here in the opening, the Evolve3 products we are launching now are addressing essentially half of the Enterprise business. And we, of course, feel very confident about these new great products will confirm -- yes, I mean, confirm good growth in the market.

If we look on the other part, there are, of course, a few different things in there. If I start with the rest of the headsets, I mean, you have then more corded products and some decked products and so on. I think it's true that these products are then still on the old portfolio. And this is something you should expect us to address over the coming year into next year. So we certainly will refresh this part of the portfolio also. I think they are performing okay. So the growth momentum from the new products should be stronger than any kind of smaller declines from this part of the portfolio.

And then we, of course, also have video. We have launched new products in video also, perhaps talked a little bit less about them, given that revenue is less, but these products are also confirming very well. So we had actually a very good video quarter also the last quarter. And then we have Frontline Worker, where we also had a good quarter. So feel confident that this will continue into the second half also. And then the final piece, which you know we report into Enterprise is FalCom, but that we have called out. So I think that's hopefully clear to everyone. But in totality, when we weigh this together, we believe that we are set up for good growth in Q3 as well as in Q4, so growing in the second half. Then if I perhaps take the third question and then leave the second for Soren. Yes, we did speak before that we have seen some kind of share pressure, in particular, on the low end of the market.

We called out a few different companies. I don't think there was only one company, but a few different companies. If we look now on the market share for us, they are stable here in the last quarter. We are not losing any share in this period. We also believe that with the new products we're launching here that address the broader set of market, we actually have a good opportunity to gain back some market share.

Then your question more about, I think you're talking about Chinese competition, for the long term. I think we need to see how this develop. There's, of course, been changes in the competitive landscape over the last few years also. Some competitors are winning and some losing. So that is not new to us. So I think we will see. We are very focused on having a portfolio that is well differentiated and having a portfolio that spans from the premium where I think we are the strongest, but also strengthening up quite a lot in the mid- and entry-level products to essentially be well set up to satisfy different type of customer requirements.

Yes. And then, Martin, to the tariff question, I mean, first and foremost, of course, we are pleased to see now that we have a very strong belief that we are getting in the repayments from the U.S. government here in the second half of the year. And to your underlying question on price, I think what we also communicated last year was that we would close the gap also when we are launching new products and also in terms of our pricing. So that is still our plan and also what we are doing. And as Peter spoke to, it's a significant part of our portfolio that's actually been refreshed. And as such, is not linked to old tariffs in that matter. So in that sense, we do not expect that what the refunds is impacting current pricing of what we see.

The next question we have is from Andjela Bozinovic of BNPP.

I will have the first one on Enterprise. I just wanted to understand the new guidance, in particular, what has changed from May until now? And what are you seeing in EMEA specifically? What is embedded in the guide for EMEA regions and for FalCom as well? And the second question is just on the profitability in the quarter. So if we adjust for the gaming provision, you reached the adjusted EBITDA margin of 4.6%. Can you help us understand better the performance in the quarter? And what gives you the confidence that profitability can significantly improve from here?

Thank you so much. Let me start and then I hand it to Soren for the margin question. If we look on Enterprise, the new guidance, and I think we wrote that out also in the communication yesterday, it's mostly the significant upside scenarios for part of our portfolio that we now see will not realize this year. Quite a bit of it is related to our defense business, FalCom. This is project-based business with very large orders. We do believe on FalCom that this year will be similar to last year. And I think we have said that before, but we also had some upside scenarios to that, that could have come in and which reflected in the upper end of the guidance. Those scenarios are still there, but will likely be more an opportunity for '27 as it looks like now.

And then on EMEA and maybe I take a step back across all regions. As we have said before, I mean, the U.S. and APAC has been growing in a good way over a longer period of time. We actually expect that to continue into the second half. On EMEA, what we expect there is to grow -- I mean, turn into some level of low growth, is probably the way to see it in the second half. So that's what we have embedded here. And I think it's, of course, about the region, but it is largely driven by the products we are launching. So it's not so much that we're sitting and hoping for the market to recover. It's more like when we're launching all these products, it will support EMEA in a way where EMEA also turn into growth.

I also mentioned the channel reductions here in my introduction, and that has been a headwind on the EMEA business for a while. While we can, of course, not be sure about those exactly over time, they have now come down and also with the new products we're launching, our base assumption is that they will be more imbalance over the second half. So that's the way I think you can build it together in terms of the Enterprise guidance we have given. So if I leave it to you, Soren, for the margin question.

Yes. I think, of course, the way you deduct the group margins is absolutely fair. For us, and we called it out after the first quarter also that especially the gross profit was an area where we had good insight and comfort in that it would actually improve in the second quarter. And I think that is exactly what has happened and especially also on the Enterprise, also with the positive impact of the portfolio refresh we are doing right now that are yielding gross margins at levels that we also historically have seen. So it's more a question of that this quarter is a testimony to that the Q1 was probably more one-off, and this is back to a normal gross profitability of the Enterprise business and also what we can see going forward.

On Gaming, we have also here been on the clear path to deliver between these 35% to 40%. And here also, we can see a positive impact on the mix within the Gaming. We still have the opinion that a good gross margin for Gaming is within this area of 35% to 40%. And in that light, of course, even deducting 1% in the gross margin in Gaming, 38% is definitely approved, and we expect that these levels can continue up in this part of the 35% to 40%. And that is really the core and very fundamental belief of the margin, both in the second quarter, but actually also for the full year. And then in addition to that, you get the top line growth and you get an OpEx stability in the second half of the year. That's what we are planning with.

Our next question is from Veronika Dubajova of Citi. Please go ahead.

I'm going to keep it to 2, please. The first one is just on Gaming and the reduction in the outlook there. Just curious of the rationale around that, especially given the GTA VI launch now being confirmed at the end of the year, and whether there is anything to read into in that reduction of guidance in terms of what are some of the sell-in trends and early signs of demand that you're seeing on that front? That would be my first one.

And then the second one is just, I know, Peter, you addressed this a little bit in your prepared remarks, but give us a little bit more flavor for how much more work there is left to do in terms of the carve-out of the Hearing business and whether you see any risks to the time line there slipping at all?

Thanks a lot, Veronika. Let me take these. And on Gaming, we feel very good about our progress. We feel good about what we've done in first half and feel good about what we have lined up for second half. I mean, if we look on taking down the guidance to the low end, it's more market related. And we actually believe in a fairly constructive market in second half due to the GTA, as you highlight. I mean, it looks like it will launch on time now, and it will support the market. But as you also can see in our numbers, we actually have the implied guidance for the second half Gaming growth is a very constructive growth.

So I think it's a little bit more the ground we lost in the first half due to a quite muted market environment that makes us to make this adjustment. So we do believe in a good second half, a little bit better market-wise, but in particular, also with the great launches, which we have planned. And then on the carve-out, and I think it's more on the closing estimate. You know that there are 2 things that need to happen. One is to carve out the business. That is something we and GN are responsible for and I think very much in control.

I think that is progressing well and very much is in line, we'll be able to complete this towards the end of the year. On the regulatory side, the evidence we have until today is that, that also point to a successful kind of closing of the transaction towards the end of this year. So nothing has really changed. So I think we are progressing with this time line and feel good about it. And we'll, of course, update you all if something would change, but there is nothing we see at this point in time.

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

Two questions here. First, this supply chain internalization that hits working capital quite hard this quarter. Could you try to describe what are you doing and why are you doing it now? And will this lead to cost savings down the road? And then secondly, in terms of your EBITDA guide for the year, obviously, you need quite a strong lift in the second part of the year. But how do you see the trajectory? Are we talking about sort of sequential improvement Q3 versus Q2 and then Q4 versus Q3? Or is it more of a Q4 thing when all sort of revenue lift comes through and margins improve?

Thanks a lot. Let me start and then Soren will continue. Now as some of you know that have looked into our operations more in detail, we've been having an outsourced model for operations in Enterprise and Gaming. We still very much believe in that to have an outsourced manufacturing. But we have, over time, I mean, revisited some of that when it comes to the logistics. So what we're in-sourcing is essentially our logistics and distribution, and we now would like to be in full control of that ourselves.

I think it's for a few reasons. We think we can do it more cost efficient than what we can in an outsourced model. We also think that there are significant automations and even AI opportunities to do this better that we better can control and deliver on if we have it in-house. So that's why we, from a strategic point of view, would like to have this as GN controlled. And then now when we're moving it in, there are some effects on the working capital in this transition. I mean there are essentially 2 things happening. We need to then pay out cash to get it in, but then also we will have good payment terms with our major suppliers where we will get back some of that. We have just not been able to time it in the same quarter. So you essentially see quite a hit on our cash flow in this quarter, but we will catch up that in the second half. And we believe that the change we're doing in the supply chain will be very beneficial over time for us.

And then when it comes to the EBITDA, I think here importantly, of course, to remember is that the way our top line sort of is balanced in Q3 and Q4 will also impact, of course, the profitability of our business. So in that sense, it will be a gradual improvement where you will see an improvement in the third quarter and of course, a significant improvement in the fourth quarter. In addition to that, of course, bear in mind that the tariff that we now called out for now will, of course, also be spiking Q3 and Q4. We think that it's balanced between the 2 quarters, the way we look at it at least. But it will, of course, further improve the Q3 and Q4, but also in totality is supporting why we have a higher expectation for the second half of the year as we are assuming these DKK 100 million to DKK 150 million to come in, in the second half of the year.

Our next question is from Niels Granholm-Leth of DNB Carnegie.

Now that you expect a return to positive growth in both divisions in the second half, could you talk about the performance that you have seen so far in the 2 divisions going into quarter 3? And then I have a second question on the competitive situation in Enterprise. So could you talk about to what extent that you're seeing bundling of electrical office products, headsets, keyboards, mice, screens, monitors, et cetera, from some of your key competitors?

Thanks a lot. Let me take this. I mean, in the Q3, we have not the perfect data yet across the businesses more than for the first month here. So I think it's a little bit -- yes, not enough to share to be able to draw the conclusions you would like to see. I think that what's more encouraging for us are the kind of distribution conversations we're having around the new product portfolio in Enterprise. They, of course, have all now seen the product. We are starting to have discussions on how to pick those up, stock them, roll them out. While that work is not finished, I mean the initial indications are positive and support essentially our growth outlook here. I think also for Enterprise, I think it's very important to take some kind of comfort also in the performance of the products we already launched.

I said some here in the opening, but let me just reiterate that to talk a bit more about it. I mean the Evolve3 85 and 75 that we launched in the premium segment, we did communicate last quarter that the sell-in for premium grew 50%. I mean, now in Q2, it grew well into double digit in Q2 as well. So continue to grow. It's not only an initial stocking. And that is essentially driven because the products are selling out very well. They sold out very strongly in Q1 and have continued to sell out very strongly in Q2. So our distributors and resellers need to replenish the stock.

So I think the combination of these factors is what creates the confidence for us in believing in that the further launches of Enterprise product will further support the business. Then in Gaming, here, we have performed, I think -- I mean, Q1 was a slow start due to very significant comparisons. Q2, I think we did well, in particular, in headset and keyboards. And now if we look on second half, we believe that the headset momentum will continue in Q3 and Q4. We also have further launches coming in both mice and keyboards that we think will support the second half in a really good way. And also for Q4, I mean, many of you know us very well, Q4 a year ago was not a great quarter. It was a weak quarter. So the comparison base in Q4, I think, for us and probably for quite some of our peers also, I think it's very manageable. So I think this together is helpful to have when you think about growth in second half.

And then if I move to the other question about bundling in Enterprise, I mean that is a phenomenon. I think it's been something that's been in Enterprise for a long time. And you can, in particular, see it for the largest customers in the world, think about as the Fortune 500 companies, where they are selling -- being sold to direct from the sales force trying to create these type of bundles. And it can be across different categories, it can be between laptops and headsets or laptop and keyboards and so on. So we've seen that a longer period of time. It's not our observation that this is increasing. It's something that's there and I think it's key that this is, of course, something we compared to others can do less of.

To counter that, though, I think that we are 100% channel-led and having a great support of the channel. So we're really getting the support from the channel to try to do sometimes helping us to do this bundling, but also perhaps growing in other parts of the market where we can see some headwind in these type of deals. So net-net, this is something that's been in the market a longer period of time, and I don't think it's something changes that would create any kind of headwinds for us.

The next question we have is from David Adlington of JPMorgan.

I'm going firstly on Hearing, if that's okay. You had a big slowdown from, I think, 9% in the first quarter to minus 2%. You sort of mentioned a more difficult comp, but I just wondered if there was anything in there due to the transaction on the transition towards Amplifon. Are you seeing customers waiting for new launch? Any sort of further color there? And then also on the new launch, I just wondered how incentivized you are to invest in that launch, given obviously the change in ownership by the end of the year.

We're still caring about hearing. I think it's the main message. I mean, I believe we said it already when we were stepping out the year that we expect a fairly strong Q1 due to a relatively easier comparison base. Then we did say that we thought Q2 would be the weakest quarter and then that we will have a good Q3 and Q4. And I think it's very much how it plays out. We knew that Q2 would be weaker due to comparisons, but predominantly also due to that we have a launch now in Q3 that many of our customers have known about and then slowing down a little bit the purchasing of the generation before. So I think that's what we're experiencing.

We also had a quite significant headwind in the large U.S. retailer that we all know has taken the decision to go from 3 to 4 suppliers and now seem to be on the way to go to 5. So this is creating quite a bit of a headwind for us of actually several percent of growth for the hearing business. So I think it is. We're not overly worried because we're excited about Sensia. It's a very strong hearing aid. And we're certainly very motivated to invest in the launch of this. And so everything is progressing and everything works that has been doing with the Vivia launch before and launches before that. So we do expect a kind of bounce back here already in Q3 and also a very healthy Q4.

Understood. And is there anything contractually between yourself and Amplifon in terms of the amount that you're investing in the launch?

Not more than that we are committing to run the business as we normally would, which is exactly what we're also doing.

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

I have 2, please. One is a follow-up on Hearing and the other on Enterprise. So I guess on Hearing, in terms of the U.S. retail -- retailer where you're facing headwinds, can you talk about why that pressure has stepped up from Q1 to Q2? Is this because you had stocking last Q2 related to Vivia? Or are you seeing sort of more pressure from other players in that channel and that sort of increasing? And then on Enterprise, I guess, can you talk in terms of what the price uplift is for Evolve3 in the lower categories like 65 and 45. And do you think there's sort of a similar price elasticity of demand in that mid-segment as in the premium end?

Taking them in the order you asked them. I think you more or less gave the answer in the question. A year ago, we had the Vivia launched and we had the benefit also some very large order with this large U.S. retailer. I think that's the primary reason behind now the year-over-year kind of headwind there. Then I think that there is, of course, been a longer period where they have introduced more partners, which we respect. I think we have a very good relationship with Costco. And that is still in place, but of course, it naturally puts some pressure over quarters for us, as you still have a little bit of that in there also.

And then if we look on the new portfolio, I mean, I think there are a few effects on the pricing. One is the prices we are launching the products and you cannot compare them completely one-to-one because we're launching a portfolio in a slightly different setup than the existing portfolio. But in general, we believe that the Evolve3 launch should have a positive ASP effect for us. And it goes for the premium products and also for the mid-tier entry-level products. So if you look like on the portfolio effect, that is what we're setting ourselves out to do. I also think that there's an effect that with a completely refreshed portfolio, we have an easier way to compete, and when you have that, it's also usually easier to price well. So I think that the new portfolio will certainly support both growth and support margins over time.

We have a follow-up question from Andjela Bozinovic of BNPP.

Thank you for taking my follow-up. I just wanted to understand the phasing on the Enterprise into H2, namely your comment on what you've seen in Q3. Does it mean that we are still on the table to see some growth in Q3 or that's mostly reserved for Q4?

No, our base assumption is that we will see some level of growth already in Q3.

Ladies and gentlemen, this concludes our question and answer session, and I would like to turn the conference back over to management for any closing remarks.

Thank you very much, operator, and thank you, everybody, on the call for your time and interest in GN. As always, if you have follow-ups, please reach out to the IR team. Have a nice day.

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.