RaySearch Laboratories Aktie

Welcome to RaySearch presentation of the First Quarter 2026. My name is Carolina Stromlid, and I'm Head of Investor Relations. As usual, our CEO and Founder, Johan Lof; and our CFO, Nina Gronberg, will walk you through the key highlights and financial results of the quarter.

After the presentation, we will open the floor for questions. Simply raise your hand in Teams to ask a question live.

And with that short introduction, I will now hand over to you, Johan.

Thank you, Carolina, and welcome again, everyone. I apologize for my voice. I have a cold, as you can tell. Before we dive into the results and highlights, let me start with a quick overview of RaySearch business.

So RaySearch is a pure software company, and we focus on software for cancer treatment. And we have 4 different platforms, RayStation, RayCare, RayIntelligence and RayCommand. What we see here is a schematic view of a comprehensive cancer center. Although RaySearch has been focused on radiation therapy for the first 25 years, we are now about to expand into the other areas of cancer therapy into chemotherapy, surgery and liver ablation, for example. So everything that goes on in a comprehensive cancer center will be supported by RaySearch software in the future.

I think it's important to look at the long-term performance of RaySearch. This diagram shows the revenue all the way back from 2008. And you can see here that it's been a steady growth every year, except for the 2 pandemic year 2020 and 2021. In this graph, we also see the support revenues and how they are steadily growing year-over-year.

I would also like to show another view of the same thing basically, where we also look for every year at the revenues for the individual quarters. And as you can see for many of these years, there are fluctuations between quarters. We can look at 2017, for example, it fluctuates. But nevertheless, there is a growth for the full 12 months. Another example can be 2022. You see fluctuations, somewhat weaker Q2. But when you take all the quarters together, again, growth. 2024, the same thing. And 2025 has a similar situation. So this is nothing unusual for RaySearch.

There are, of course, underlying revenues from the support about 40-plus percent and many smaller orders are the foundation for the revenue for every quarter. But whether the quarter is really good or bad, depends on a few bigger deals. It can be 2, 3, 4 different deals that determine whether the quarter is great or not, and they can fall either within the quarter or they slip to the next quarter or the quarter after that. But this shows a very long track record for many, many years that even though there are fluctuations between quarters, the growth over the 12 month period happens anyway. So I just want to highlight that given that we had a softer quarter this quarter.

All right. So Q2 in brief. Profitability remained robust despite the softer net sales in the first quarter. Net sales declined by 12% to SEK 290 million. It was mainly due to stronger Swedish crown and a tough comparison with last year, which included a large order for carbon ions from China. So the organic growth was a negative 5%. But as I mentioned, there were a number of deals that we thought would come into this quarter, but they didn't simply. It's a timing effect and it will come in, in Q2 or Q3 at the latest.

And one example of an order around SEK 15 million that was stuck, it was ordered and then the purchase order was signed, but it was stuck in the Chinese customs. And that's something that was very unfortunate and not something we can control. So that order is already in now as an example. The recurring support revenue continued to provide stability, amounting to SEK 123 million or 42% of total revenue. Operating profit reached SEK 68 million, corresponding to an operating margin of 23%, in line with last year.

Some business highlights. The demand remained steady during the first quarter with high customer activity across our markets. We secured several strategically important deals, including 3 new RayCare orders in key markets. We received our first RayCare order in China, together with an order for RayStation for proton therapy at the -- facility at the Shanghai Proton and Heavy Ion Center. The solution will support an upright proton therapy system, which is a cost-effective pathway for clinics to introduce proton therapy. The order is an important milestone for us in this large and growing market.

In France, Institut Hartmann chose to replace its existing treatment planning and oncology information systems, Eclipse and ARIA, which are both from Varian with RayStation and RayCare, enabling a unified workflow across a mixed treatment machine environment. And this was our first RayCare order in France.

In Germany, several clinics selected RayStation to replace Pinnacle for treatment planning, and we continue to see business opportunities ahead of that system's planned end of life in 2027. We're also proud that the first patients were treated with RayStation in Ukraine during the quarter, as an important step in modernizing radiotherapy under very challenging circumstances in this country.

I will now hand over to Nina to go through the financial development in more detail.

Thank you, Johan. The quarter 1 sales numbers may give the picture that business is slowing down. But as you've heard from Johan, that's not the case. Order intake dropped 13% compared to last year. It was affected by currency and in relation to a very strong comparison quarter with above 70% growth. The activity from our customers and in our sales team remains on a high level. The book-to-bill ratio was 1.2 and order backlog end of March amounted to SEK 1.615 billion, and SEK 624 million of those is expected to turn into net sales in the next 12 months.

Moving forward to net sales and EBIT. Net sales was down 12% in the first quarter. More than half of the downturn is related to a weaker Swedish krona in 2026, although quarter 1 last year was a quarter when the value of U.S. dollar, euro and several currencies started to fall. The organic growth was minus 5%, again, in relation to a strong first quarter 2025 and to raise such normal fluctuation. And as Johan mentioned, we had revenue that got stuck in customs in China and for other reasons, delayed into later quarters.

License sales decreased with 24% and support sales with 1% year-on-year. Taking away currency effects from support numbers, the growth would have been 8%. Despite the lower sales, EBIT was solid at SEK 68 million, and the margin amounted to 23%, which is the same level as last year. We have approximately 20% of our costs in U.S. dollar. And together with good cost control and slightly higher R&D capitalization rate, operating costs were stable. In the 2026 quarter 1, currency gains from revaluation of working capital gave us a positive SEK 10 million effect.

The rolling 12 development graph over net sales and EBIT, as you see in this picture, is tipping down a bit in the 2026 first quarter. As you can see, it also did in quarter 2 last year, just to turn upwards again in the next quarter and then continue its pathway upwards. The rolling 12 EBIT margin amounts to 22%.

Moving on to the next slide and the revenue split. As Johan said, the support revenue was 42% of total revenue. That is a slightly bigger part than we usually have, and that is related to the lower license sales in the quarter. The lack of growth in support revenue was, as mentioned, mainly due to currency. And we also had some periodization effects from a couple of contracts that gave us a lower number in the first quarter. And I want to highlight here that those periodization effects -- it doesn't mean that we lose any revenue. It just means that revenue is sometimes moved between the quarters.

The next slide and the cash flow. The underlying performance in cash flow was good in the first quarter, and we had about SEK 30 million inflow from contract assets. However, this positive effect was offset by an active choice to pre-purchased inventory, something we did in order to mitigate effects from price increases in hardware. It is servers and computer that we normally buy upon order and transfer almost instantly to the customer. Cash balance end of the quarter amounted to SEK 439 million, and cash flow remains an important focus area also going forward.

And with this, I'll hand over to Johan [Technical Difficulty] adaptive.

Yes. So online adaptive is a very hot topic in radiotherapy right now. Online adaptive in general allows you to modify the treatment when the patient is on the treatment couch and you take an image of the patient in treatment position, check the changes in anatomy and then you change the plan to adapt for those changes. So a very strong feature here is that we have with the combination of RayCare, [Technical Difficulty] deliver online adaptive on this machine.

So I'm going to show you in a very simplified manner here, the workflow surrounding such an online adaptive treatment. So we have a patient here, as you see to the right on the treatment couch and there is a TrueBeam. We also see the control room where an operator has screens, for example, RayCare and RayStation. And if you zoom in on the RayCare screen here, we look at the treatment course for this particular patient whose name is Thomas Fisher.

We switch to the treatment calendar. And this particular clinic has 3 different machines, a proton machine, Proteus ONE, a Radixact from Accuray and 2 different TrueBeams from Varian. And you see the various time slots here for the different machines. We zoom in on Thomas Fisher is on an online adaptive protocol. So the first thing we do is to ask the TrueBeam to acquire cone beam CT image, which is a 3-dimensional image of the patient in the treatment position. And via the existing interface between RayCare and TrueBeam called VTI, we can transfer that image and administration back to RayCare.

Then the operator opens the adaptive pre-planning module in RayStation and start that adaptive workflow. The first step is to correct that image that we receive from the machine because it's not of the same quality as a diagnostic CT image. You see to the right is the image that is transferred from the machine, generated by the machine. To the left, you see a corrected cone beam CT image. We have used the diagnostic CT to extend the image outside of the field of view of the cone beam CT imaging system. And we have also refined it using information from that diagnostic CT image. You see that the left image is sharper than the right image.

So that's the first step. Second step is to use AI or in this case deep learning algorithm for segmentation of the structures. So that's done very rapidly in a few seconds, is that completed. After that, the dose is calculated on today's image or today's patient anatomy. And that's what you see to the left. So to the right, you see the dose distribution that was -- the planned dose distribution, let's say, the dose distribution that the doctor signed on. And the tumor here is the white contour that you see, that's the clinical target volume that we want to irradiate. And there's a perfect match here between the high-dose region, which is red and the shape of the tumor. And then it drops off -- the dose distribution drops off very quickly towards the healthy tissue surrounding.

But if you look at the right or -- the left image, there has been some shifts in the geometry. So if you apply the same beams for -- on today's patient geometry, you see it doesn't really hit the tumor. There is an underdosage in some part of the tumor up here at the top left part of the tumor. And there is an overdosage outside of the tumor in the lower right parts. That is also illustrated by the dose volume histograms. It should look like the dash curve here for the tumor, but it is actually like the solid line, which signifies an underdosage of the tumor. And the other dose volume histograms illustrate overdosage of rectal and bladder.

We can also look at the clinical goals here for the plan that the radiation oncologists have approved and all green lights with all the clinical goals. But now this treatment would have some red lights here. So we're not happy with that. So the next step is then to recompute [Technical Difficulty] the geometry of today. And you can see on the left how the dose distribution is now shaped according to this new geometry.

And I will now, in a few seconds here, wrap around the -- and then conform very well to that new geometry. Yes, now it's done. So what we can see here are a couple of things. Now the dose distribution, the high-dose region is perfectly matching the tumor shape again, and we get good protection of the rectal down here and also the bladder on top. The dose volume histograms for the tumor are overlapping. So we have the same tumor coverage again as we had for the originally approved plan and it's all green lights.

Okay. So now we're done with the adaptation. I talked a lot now here in reality from -- when we get the first images that you showed -- that you saw in the beginning that were imported into RayCare. The procedure that I talked about after that, creating a synthetic CT, applying deep learning segmentation to get the structures and then compute an adaptive plan, that whole procedure takes about 4 to 5 seconds. So it's much more rapid. I had to stop and explain what was going on. But in a realistic setting, this can be done in under a minute because the patient is on the couch, we want this to be quick so that we can treat the patient as soon as possible.

So the next step here is that we assign, we say we're going to assign this adaptive plan. And RayCare will transfer that adaptive plan via the VTI interface to the machine. And the machine will deliver this adapted plan to the patient. It's a dual arc VMAT plan, so it makes 2 rotations around the patient, one like that and then the second arc is coming here. So that is how effective online adaptive can be on a TrueBeam. We expect the first retreatment to be done in this exact way in a couple of weeks in Belgium. So that will be a very important milestone for RayCare.

All right. So to summarize, the first quarter was softer in terms of net sales, as we have seen, while profitability remained robust. Demand for integrated and automated workflows in cancer care remains strong and are supported by a solid sales pipeline. There is a growing interest in online adaptive solutions. And as I said, we expect the first online adaptive treatments with a combination of RayStation, RayCare and TrueBeam to happen within the next couple of weeks.

I'm also confident that we reach our operating margin target of at least 25% for the full year 2026. And to underline our long-term financial commitment, the Board has decided on a new operating margin target, which is at least 30% for full year 2028. With innovative software, strong customer relationships, a global footprint and a growing base of recurring revenues, RaySearch is well positioned for continued profitable growth.

And we will now open for questions, and I will hand the word over to Carolina.

Yes. We will start the Q&A with live questions. [Operator Instructions] The first question comes from Kristofer Liljeberg at DNB Carnegie.

A follow-up on what you said here about online adaptive. So when do you expect to have the FDA approval for RayCare online adaptive with TrueBeam available?

We expect to have that in the fall, around October time frame this year.

Okay. And is that delayed from before or?

Yes, perhaps. We -- it's a complex FDA situation with several different versions of both RayStation and RayCare that are sort of in the pipeline at the same time. So there are dependencies between these versions, and that is -- that's where we are now. But it will still be clear to U.S. customers when the first treatment with online adaptive RayCare, RayStation, TrueBeam happens in Europe, they will be well aware of that. And these are improvements within existing modules. There are 3 modules in RayStation that support -- that you need to do this adaptive, the thing that I showed in the presentation.

And you can purchase those already now. And then when the version is FDA approved, people -- everyone who has those modules and they're all on support contracts, they will be upgraded to that version and that they will have that capability right away.

And do you see that U.S. customers are happy to start acquiring RayCare before the approval for this purpose?

Yes, I think they can. And some customers already have this capability with RayCare or RayStation. So they will have access to it when it's -- they can start to use it clinically once approved.

Okay. So how do you view RayCare orders picking up here throughout the year? Would you expect some improved momentum outside the U.S. once you have done the first treatments and then U.S. lately?

We already see a better momentum than last year. So we had -- I think we had 4 RayCare orders full year 2025, and we have 3 orders already in Q1 2026. And so we will start to ramp up now during 2026 and more in 2027, but you see already finally that starting to show some good momentum.

And I agree with you. I think the concept of online adaptive and what you could do here with RayCare, of course, lowers the entry barriers. Do you see a potential for this online adaptive concept to accelerate the RaySearch growth in the coming years?

I really think it has that potential because it is a very obvious thing that you want to do, everyone -- I mean, it was very clear when I showed to you here what the benefit is. And we are extremely well positioned in this field. Historically, we've been very strong in online adaptive and sort of the whole company started around adaptive to begin with 25 years ago. So yes, I think this can have overall a very positive impact on RaySearch.

And in combination also with all the new vendors that are coming into play with Hitachi's OXRAY and Leo Cancer Care's Grace and all these new machines. And they all want to do -- enable online adaptive together with us.

Good. And then one question on the R&D capitalization that's higher this quarter versus previously, both in absolute terms, but also as a percentage of sales, I think it was like 6% of sales Q1, and it has been more like 1% to 3% in recent quarters. So how should we think about this coming quarters for the full year? And what type of impact will capitalization have on the 25% margin target for this year?

Yes. To answer your first question, when you put it in relation to sales, you must also take into consideration that sales was a bit lower this month that, of course, higher the rate. But besides that, I mean, we had more hours that was spent on the projects that we capitalized in quarter 1. I don't see any special pattern in that. It can vary between the quarters. But of course, I mean, we have increased the number of employees that work within R&D. So that means that we have higher expenses and with that, a higher amount of capitalizations. But I think that in general, I would say that we will keep the same. Approximately, we capitalized 70% of the expenses. And I think that we will keep that rate also going forward with some fluctuations between the quarters.

So for the full year, do you think it's fair to assume a similar around 1% of sales as we have seen in both, I think, [ 20% ] yes, in the last 3 years actually.

Do you mean expenses or capitalization? I think it's hard to...

What I mean -- yes, but the net effect of capitalization, that has been around 1% of sales recent years. Now it was 6% this quarter. I know there's a seasonal effect was higher in Q1 also last year. But I'm just wondering because if you look at the full year targets, if you start capitalizing more, it's, of course, super easy for you to reach the 25% margin, just to make sure that's not what's happening here.

No. We will not reach the margin due to capitalization. And as I said, I think we will continue to capitalize about 70% of the expenses and the expenses will increase as we add employees into the R&D function and as we had. Is that...

[indiscernible] also increase.

Yes. I mean, yes, since we do capitalize more because we have increased the R&D function, that will, of course, mean that the depreciations in the next coming year will increase as well.

Our next question comes from Oscar Bergman at Redeye.

Okay. The question I have first off is a bit speculative. So I suspect maybe you won't be able to answer, but I have to ask. The updated financial target of at least 30% EBIT margin by 2028. That's, I think, in line with analyst consensus and at least confirming my own. But I'm wondering what would be needed for you to go beyond 30%?

Well, it's just more sales.

And would that be RayCare sales specifically? Or could it be done with just RayStation?

It would be RayStation, RayCare and RayCommand.

Okay. And then you mentioned some other order delays in Q1. Just wondering if you can give some background to the reason for this or if we should just consider it business as usual.

Yes, it's business as usual in the sense that the customs situation in China was one very specific thing. But in the other cases, it's just that the -- maybe the signing procedure wasn't completed on the right, on the correct day, that is within a quarter, but it was postponed into the next quarter and things like that. So this is -- I think we had an unusual number of -- something happened here with the presentation. So sometimes we're unlikely on several of these orders sort of we missed the end of the quarter.

So it's not the first time this happens. But we are very vulnerable. It looks like -- it looks much worse than it actually is. If you look historically, it has happened many, many times, but then you zoom out 12 months, and then it's extremely robust in terms of growth.

Yes, I agree. And I'm not sure if you mentioned any Pinnacle conversion in the report or the conference call. Maybe you did, maybe I zoomed out. But just wondering if you can define maybe the percentage of sales that came from converting clinics and if we should expect that the conversion window could be closed sometime during Q3 or very early in Q4 at the latest?

The Pinnacle was 22%, right, in Q1.

Yes, of license sales.

Of license sales. On the software license sales, it was 22%. And I think it will continue throughout the whole year, the Pinnacle replacements because there are many deals still ongoing. We've been very successful in Germany converting Pinnacle, but there are still deals left out there still in the U.S. So I think it will continue all the way into the end of the year, actually.

Interesting. I just have 2 more quick questions, if that's okay. I think in the Q3 report, you initiated the 6 months prior period campaign with certain customers and you opened up the additional modalities. So just any sort of status update on this would be appreciated.

Yes, it's -- we only have the 2 pilot regions still, which is Benelux and U.K. It has been very well received in both regions. I think in Benelux, they are more active on this and they -- I mean, they spend the time to -- because it takes time for them to evaluate as well. In the U.K., they're happy about the offer, but they have less time whenever they work to spend time on this. Of course, they should because it's a good investment on their side.

We have learned also that it takes some effort from our side to train on these new functionalities that we open up so that they can get a good experience when they try it, we have to train them in using these functionalities. So I think it was a good approach actually to do it in a limited fashion to start with so that we learn. It was more complex than we had anticipated. But so far, so good, I would say.

Okay. So we'll now go back to sort of the sketching table and do some tweaks or will you expand the campaign to do...

What happened there? Yes, basically so. Yes, I would say, yes.

Okay. I think someone else is on the line. Okay. Just the final question, Johan. You have a very strong market share in photon therapy. I'm just curious about what the other players are doing here to increase in their market share? Or are they maybe not focusing on this area for some reason?

Yes. I think the others are simply not very focused on this. We don't see much competition in this area. I know it's only Elekta, Varian that are involved here. Varian left proton therapy in a sense when they -- well, when they canceled their machine production, the ProBeam. I think they may -- and then sort of the Eclipse support of protons also faded away. I think they are maybe returning. I'm not sure. I think Elekta won a proton order somewhere for treatment planning recently. But we still have almost 100%, I would say, of the new sales for the treatment planning is from RaySearch.

Yes, it's still a great area for us, a great segment for us to be active in, and we focus really hard on that, and we work with all the different proton vendors, and there are many that we support. There's a lot of activity in this field all over the world, but mainly in Asia. China, they have a plan to build 100 particle centers, a combination of, well, I think 70% protons only and 30%, including carbon ions. So they have a very high ambition. And Korea, Japan, these countries -- Taiwan, they are building particle centers, a lot of particle centers, which is very good for us.

Next, we have Mattias Vadsten from SEB.

Can you hear me?

Yes.

Great. So I have a question on France order that you talked about. So if you could elaborate a little bit on the key reason for them to replace the Varian software suite. And also, I wonder if their Hartmann's Halcyon system will be affected by this change of software? And also, when do you expect integration with Halcyon with RayCare to be possible, sort of seamless integration?

Yes. Okay. So this is, let's say, medium-sized center. They have, I believe, 2 different -- 2 CyberKnifes from Accuray. They have 1 TrueBeam from Varian and 3 Halcyons from Varian. So 6 machines in total. The total order was, I believe, SEK 35 million. There will be a phased approach with -- and we only recognized, I think, SEK 11 million of that in Q1. And then we recognize as -- yes, the rest is coming later. So they will go live with CyberKnife -- RayCare combined with CyberKnife and TrueBeam beginning of next year and then the 3 Halcyon beginning of 2028.

The interoperability work or the interoperability project between RayCare and Halcyon is ongoing with Varian as we're working together on that. There is no definite time line yet. So I would prefer not to communicate that now. But for sure, before they need to start beginning of 2028. And yes, so why did they choose? Why did they switch? I think there were several reasons. They're very happy with the level of automation in both RayCare, RayStation with scripting and other means and streamlined workflows and especially since they have non-Varian machines as well, the 2 CyberKnifes I think that helps.

So yes, I think they believe in the power of this bundle of RayStation, RayCare and also the vision going forward for this software. And it's a very important order for us. We're very happy that we got it.

Okay. But it's fair to say they would never switch if it wasn't for the latest news flow around RayCare, TrueBeam.

No, I think that was -- this is a direct consequence of the interoperability between -- and that's an important factor, of course, that's an enabler. And that's a requirement, but that will not in itself be enough for them to switch, but it really opens up the door when we have the interoperability in place for TrueBeam. And then we also have a plan for Halcyon.

Good. And then my next question is regarding growth. So it's been a lot of discussion around Q1, but just sort of what makes you confident to go back to solid growth rates already in Q2 here?

I think I've tried to answer that over and over again that you cannot -- I mean, if you fool yourself, if you look at a single quarter for RaySearch. There are a few deals that determine the sort of the quality of the quarter, and they can end up on either side of the quarter. And -- so that's what it is. And we have such a good track record, if you believe history at all, look at what has happened during -- since all the way -- even further back. The reason why we picked 2008 was that we got the first revenues from RayStation in 2009. We could go even further back, and we still have this very steady growth and fluctuations in quarters.

So that's -- with the current license model, that's what we have to live with. And either people understand that or they don't understand that. I don't think it's so difficult to understand, but it seems to be very difficult. And yes, if we had a subscription model, then this would be much smoother, but we don't because our customers don't want that right now. And most of them don't want that. So we adapt. And either you look at RaySearch on a 12 month or a 24 month window, then everything is fine or you focus on the quarter and then you have to be nervous on the time.

Last one from me would be, do you have any worry that growth will fade off in 2027, specifically due to the vacuum created from Pinnacle contribution fading off for you?

Absolutely not.

We will now take a question from Magnus Burnett.

Yes. My question was partly answered, but I would like to know about the EBIT margin expected to reach 30% by 2028. If you could give me the detail for how such a margin improvement will be achieved? And could I assume that the margin improvement will be gradual? Or will it mirror the ramp-up of RayCare?

No, I cannot say anything else than that we will have at least 30% EBIT margin in 2028, full year 2028. It will not -- and it will be gradual increase of margin. But I don't see I can give you more details on exactly how that will be achieved.

Okay. Secondly, I would also like to ask because you have this change in the Board since Günther Mårder, like -- are going to a trial. And I just wonder if it will not be convicted, will he be welcome back to the Board?

That's a good question. I haven't thought about that at this stage. But I think it's -- as I said before, it's very unfortunate what has happened. I really like Günther Mårder as a person. So of course, this is awful. He is not convicted yet. We have to keep that in mind. So -- but I think that's all I have to say regarding that at the moment.

We have 2 written questions also. The first one is, what is the status of the Ortega order? When will the RayCare delivery take place? And in which quarter will it be invoiced?

Yes. So in quarter 1, we delivered RayStation to 2 Ortega sites. And RayCare delivers to those 2 sites is planned for quarter 3 and quarter 4.

And the next question is...

We can add to that. So those are the first 2 Ortega sites. And then the remaining 7 will be delivered during 2027 and 2028 is the current plan.

During which quarter will the order from the Shanghai Proton and Heavy Ion Center, SPHIC in Shanghai be invoiced?

I don't have that information. Do you, Johan?

The revenue?

Yes.

I think we -- the revenue for RayStation happened in Q1 and the revenue for RayCare hasn't happened yet. But that will happen later this year.

And that concludes the Q&A session. Thank you for joining us today. Should you have any follow-up questions, please don't hesitate to reach out to us. We look forward to connecting with you again on August the 13 for our Q2 results. Have a great day. Thank you.

Thank you.

Thank you.

A warm welcome to RaySearch 2025 Year-end Results Presentation. My name is Carolina Stromlid, and I'm Head of Investor Relations. With me today are our CEO and Founder, Johan Lof; and our CFO, Nina Gronberg, who will take you through the key highlights and financial results. After the presentation, we will open up for questions. Feel free to submit them in the Q&A chat or ask them live.

With that said, Johan, over to you.

Thank you, Carolina, and welcome again, everyone. So this is the agenda for this webcast. I will start with an introduction about RaySearch, then I will summarize Q4 and the full year. After that, Nina Gronberg will talk about the financial development. Then I'll take over again and mention the dividend proposal that we have. Since there is a strong focus on AI these days, I will make a deep dive into what that means for RaySearch. And then I will just summarize the presentation and make an outlook. After that, we take Q&A.

So a few words about RaySearch. RaySearch is a pure software company, and we are dedicated to cancer treatment software. And we have 4 platforms, RayStation, RayCare, RayIntelligence and RayCommand. What we see in this image is a comprehensive cancer center. And our long-term goal is to support such a center with all the software that they need. So not only radiotherapy, but also support for chemotherapy, surgery, tumor board meetings and other things. So that's a long-term vision for RaySearch.

So far, we have focused mainly on radiation therapy of cancer. What we see in this image is the user interface of RayStation, our treatment planning system. And it summarizes quite well what's going on in treatment planning, radiotherapy. In the upper left upper -- let's see, upper right image here, you see a machine. This particular machine happens to be an X-ray by Hitachi. And we can see in this image how the machine moves around the patient. So it rotates and it also swivels this ring around the patient.

So one thing that we have to do in our treatment planning system is to model this machine, so we understand how we can move and also the physics of the beam, so we can calculate dose in the patient, et cetera. The next thing we need is a model of the patient. So we see the patient in the middle upper image here and also in the other images, you see different cross-section of the patient. And we also see the dose distribution, which is the color wash overlaid on the CT images. And the idea here is that we get a high dose to the tumor, which is the red color in this image and low dose to the organs at risk outside of the tumor. For example, you see the spinal cord in this surgical view that it has a very low dose.

The lower right image shows the patient from the source. If you look at the patient from the source, this is how the patient would move. It looks like the patient rotates, but it's actually the source that rotates around the patient. So this is, in summary, what we are doing in treatment planning for radiotherapy.

We also want our systems to absorb data as we treat the patients so that all of our products will automatically capture the data that is being generated before the treatment starts, during the treatment and during follow-up what happens to the patient after the treatment. And by absorbing all of this data in the system RayIntelligence, we can achieve clinical insights and feed information back to our systems to improve the systems. And some of those icons are -- represent machine learning models, but it can also be other aspects and other types of clinical insights.

And we use this feedback data to improve our algorithms. We have some examples of that already out in the field. We can improve the efficiency of the operation. Ultimately, we want to provide decision support so that the members of the Tumor Board, for example, can make the best possible choice of strategy for the patient and ultimately improve outcomes.

I show this diagram just to illustrate the long-term journey in terms of revenues. The reason is I want to highlight that we shouldn't look at RaySearch revenues on a quarterly basis. If you zoom out a little bit, this one goes all the way back to 2008. We can see that there has been a steady growth of revenues year after year. The 2 pandemic years are an exception, and we understand why those were -- those 2 years were weaker. But besides those, there has been a steady growth of the company, even though you may see fluctuations between quarters.

Okay. And now I will make a few comments about the last quarter and also the full year. So Q4 was a strong finish of the year. Net sales grew by 16% to SEK 375 million, which is all-time high. Adjusted for the strong currency headwinds, the growth would have been 28%. Recurring support revenue was SEK 139 million, which corresponds to 37% of the total revenues. The strong sales translated directly into improved profitability. Operating profit increased by 25% to SEK 92 million, resulting in a 24% EBIT margin. Adjusted for currency losses, the margin would have been 27%.

So for the full year 2025, net sales increased by 13% to SEK 1.34 billion, marking the highest annual revenue in the company's history. Organically, net sales grew by 19%. Recurring support revenue was SEK 524 million, which corresponds to 39% of the total revenues. Operating profit was SEK 292 million for the full year and the margin 22%. If we adjust for currency effects and extraordinary items, the operating profit would have been SEK 353 million and the margin of 26%.

Let me briefly highlight a few of the new orders and expanded installations we secured during the quarter. We continue to see solid momentum with strong license sales to both new and existing customers across all regions. Greater Poland Cancer Center expanded its RayStation installation to include Proton Therapy, bringing photon and proton planning together on a single platform.

The University of Pennsylvania, one of the premier proton therapy institutions in the U.S., selected RayStation as a unified treatment planning system for proton therapy across its 3 clinics. And Universitätsklinikum Gießen und Marburg in Germany chose to replace Philips Pinnacle, which reaches end of life in 2027 with RayStation. We have also seen strong clinical progress during the quarter. The Royal Marsden NHS Foundation Trust achieved a major milestone by performing its first online adaptive treatment on the standard Elekta linac using RayStation's adaptive planning module.

Until now, most online adaptive treatments have been limited to specialized machines that a few centers have. This achievement makes online adaptive radiotherapy accessible to far more clinics and patients. At the Southwest Florida Proton Center, the first patient treatments were delivered using RayStation and RayCare together with IBA's Proton Therapy System, enabling highly precise treatments, including proton arc therapy.

Together with the trend to Proton Therapy Center, we performed the world's first clinical proton arc treatments in 2025, a technique that improves dose distribution by using many beam angles and optimized energy levels. This achievement was actually named one of the top 10 scientific breakthroughs of the year across the entire field of physics by Physics World, and that's something that we are very proud of.

And now I will hand over to Nina, who will go through in more detail the financial development.

Thank you, Johan. Taking off from your presentation and the numbers in brief, we can conclude that it has been high interest in RaySearch solutions throughout the year, and that goes both from new and existing customers and in all of our regions. And that is also something that is very much reflected in the numbers for the last quarter.

Order intake increased by 8% in the fourth quarter and 17% for the full year. And I want to highlight that these numbers include the effects from the stronger Swedish krona, which, as you know, has affected us a lot during the year. And that goes both in terms of growth and on the bottom line. Order backlog end of December amounted to SEK 1.528 billion, and the book-to-bill ratio was 0.9, both in the quarter and for the full year.

Moving on to net sales. We finished the year beating the last sales record by far. Net sales of SEK 375 million means a growth of 16%. The organic growth was 28%, showing that the underlying business really performs well. License sales growth was 15% in quarter 4 and support sales grew with 6% year-on-year. When we take out the currency effects from the support sales numbers, the growth was 16%.

The high net sales drove EBIT to SEK 92 million in the quarter and strengthened the margin to 24% compared to 23% for the same period last year. Currency losses from the revaluation of working capital affected EBIT with just above SEK 10 million. And adjusted for that, the EBIT margin would have been 27%.

Next slide is the rolling 12 development of net sales and EBIT and the perspective that we believe gives a better description of RaySearch's business performance. For the full year 2025, net sales increased 13% to SEK 1.344 billion. The organic growth was 19%. And with an EBIT of SEK 292 million, we ended the full year 2025 with a margin of 22%. That is equal to last year, but also burdened by SEK 37 million in currency losses. Adjusted for those and an additional SEK 23 million that we treat as nonrecurring costs, the margin would have been 26%.

Moving to the next slide, showing the revenue split and where I focus on the revenue from support, we saw a growth of 11% in our support revenue for the full year 2025. With the steady growth we have in our support revenue over time, we increased the robustness in the business from recurring revenue. And for the total year 2025, the portion of recurring revenue in relation to total net sales was 39%.

Cash flow in quarter 4, as you can see here on the next slide, improved significantly and amounted to SEK 91 million, and that includes positive effects from a lower working capital. We will continue to put focus on having a good cash flow in 2026. However, I want to point out that I also -- or what I also said in quarter 3 that the cash flow can fluctuate also going forward. We always seek to work with standard payments or standard payment terms in our customer agreements, but we also have situations where the gap between sales and payment is longer. It can be tenders or framework agreements or related to certain markets, sales that comes with a good profit, but where we have to accept later invoicing.

We want to have a position where we sometimes for strategic reasons and in relation to important customers can choose to accept profitable sales over short payment terms. And with the cash balance end of 2025 amounting to SEK 407 million and no loans, we have a solid financial position.

The next slide shows the contract assets, that is our customer receivables and also our contract liabilities, and that is the balance sheet items that shows how much payments we have received from our customers in advance. We have, during 2025, moved away from a position where our contract assets were lower than the contract liabilities. And that is, to a large extent, dependent on that we have delivered on prepaid sales in our backlog. But I want to point out that a net position of SEK 118 million is still a good position. But of course, this doesn't take away our intention to lower this number and to improve the working capital where we can during 2026.

And with this, I hand over back to you, Johan.

Thank you very much, Nina. So I will just briefly mention the dividend proposal. So we are pleased to announce that the Board proposes a dividend of SEK 4 per share for 2025, which is up from SEK 3 per share. The dividend will be decided at the Annual General Meeting on May 7. The Board has also revised RaySearch dividend policy effective from 2026. The goal is to distribute 50% of profit after tax annually, taking into account the company's capital needs, investment opportunities and overall financial position.

And now I would like to devote some time to AI and how it affects RaySearch. It's very important to note that AI is something very positive for RaySearch, and it's definitely not a threat against our products. There has been some belief in the community in general for software companies that AI can create and replace ordinary system development. That's probably true for simpler applications and with thin functionality and not so much data. With our large and complex systems, it's not doable for AI today. AI can only produce smaller snippets of code with high quality.

Also, in our field, we need very deep domain knowledge. We also need to consider patient safety as well as cybersecurity and we are liable for that, and we have to take responsibility for the code. AI could never make sure or promise that there is no ML treatment of patients, for example. So we -- as a company, we need to understand the code and make sure that it doesn't harm any patients as we treat millions of cancer patients, and we cannot make a mistake one single time.

There are also huge data requirements in our field. We need clinical data, images, plans, contours, et cetera. We need to perform measurements for machine modeling and quality assurance. Then we have the medical device regulations such as FDA where we, as a company, have to promise and document that our system performs according to the requirements and that it is a safe application. And AI doesn't take any responsibility in that regard.

And it's also -- we are existing in an ecosystem with many, many partnerships with machine vendors and our installed base of about 1,200 clinics. And in order to develop these platforms that we develop, we need to do that in partnership with all of these stakeholders. So AI for RaySearch is a very useful thing. We have a large machine learning department at RaySearch, where we leverage AI for our products. For example, we have a functionality in RayStation called deep learning segmentation, where we based on images such as CT images and MR images can automatically segment the organs in the patient, as you see in that image to the right.

So those are about 200 structures in the patient that has been automatically segmented with deep learning segmentation, and it takes about 1 minute to do that, which would take many hours to do in a manual setting or in a manual manner. And this is used clinically throughout the world and only 2025, 270,000 patients were segmented using this particular module. This leads to significant time savings, and it also increased the segmentation quality, and you can achieve better consistency over different users and over different institutions.

The second product that we have in RayStation is deep learning planning. So here, we automate the very time-consuming task of treatment plan generation. 7,000 clinical treatment plans have been generated by our customers so far, but this is increasing rapidly now as more and more customers get their hands on this technology. This increased plan quality and again, consistency and saves a lot of time. It also opens up for multiple treatment plan generation for patients so that we can explore a larger solution space.

One good example is a customer in Belgium, Iridium that have now automated almost all of their prostate patient planning using the AI capability in RayStation. So what they have seen is that the deep learning planning models outperform manual planning by a human being, achieving superior quality and consistency. And you can see some of the time savings that they achieve. So on the patient modeling side, they save 44% time and on the plan generation side, they save 47%.

We also use AI to help develop our developers write code faster. So AI can then, for example, Microsoft Copilot can help our developers to find bugs, can explain complex code and patterns write tests and also help with documentation. But it's important that developers stay in control. They always review and modify the AI output. The code that's generated by AI is not always -- is not very tidy or beautiful. So we have to -- the developers have to stay on top of that.

Okay. And now the final section of the presentation is a quick summary and outlook. So we saw that we had record high net sales despite macro uncertainty and a very heavy currency headwind. In spite of that, we could show solid profitability and also improved cash flow, which is that we are very happy about. There is still a strong demand for RaySearch Solution and increasing demand, I would say, for RaySearch Solutions across all the regions. And we are confident about our EBIT margin target of at least 25% in 2026.

So with that, I will open up the Q&A session. And I believe Carolina will manage the questions.

Thank you, Johan. Yes, we will start the Q&A session with live questions. But before we do that, I would like to remind you that you can post written questions in the Q&A chat. So let's start with the first question that comes from Kristofer Liljeberg at DNB Carnegie.

Yes, sorry. I have quite a number of questions. Maybe I'll start with 3 and then come back. So first...

Kristofer, can I ask you to ask one question at a time?

Okay. Maybe then I would like to ask about the support revenues, if there are any one-offs here helping that in Q4 or if that's a good starting point for 2026?

Yes, that's a question for me then. Yes, we have some one-offs. It is not very much. But I mean, it is a little bit tricky, I think, to talk about one-offs in our support revenue because we always have a little portion of that. We have situations where our customer contracts are -- I mean, there is a delay in timing when they are renewed. And it might be that we -- because of that, have revenue for, I mean, more than 3 months in 1 quarter.

So it's a little bit too hard to say, Kristofer, give a straight answer to that. But I would say that you can use this as the base going forward.

Please go ahead, Kristofer. No, no, take one question at a time. That's all.

Okay. That's helpful. Yes. My second question, the news that you set out a couple of weeks ago about Royal Marsden doing online adaptive on Elekta machine. was this without RayCare? And if so, how are they able to do that? I don't know if that's -- if it's possible to just give a quick answer on that.

Yes. There was on the Versa HD Elekta machine. So far, only RayStation without RayCare, but that means the workflow is somewhat clunky, it takes more time. And -- but it is doable to do it, and that's the important message here. They will implement RayCare going forward and then the workflow will be smoother and quicker. Of course, it's more -- they have also a Radixact machine, so we'll be quicker on that machine given that we have interoperability between RayCare and the Radixact. And it will be also smoother on a TrueBeam, Varian TrueBeam since RayCare is fully integrated. But the point here is that even without this strong integration, you can do it, but it's not as quick.

Okay. That's helpful. And my third question, if you could comment on the Pinnacle conversion in Q4 and the outlook for that here in 2026.

Yes, we will of course, focus -- this is the last year that Pinnacle is around. So there will be a strong focus during 2026. In -- Q4 was actually surprisingly low. It has been a quite high percentage of license sales in previous quarters. In Q4, it was actually the license revenues from Pinnacle conversion was only 11%. So that shows that we can -- because I think that has been discussed and there's been a lot of questions about whether we are able to convert other clinics than Pinnacle clinics, but that shows you that, that's very possible.

The next question comes from Mattias Vadsten at SEB.

Can you hear me?

Yes, we hear you loud and clear.

Good. I will always take them one by one. So you shared the license share of Pinnacle here in Q4, which was a low number. Could you share that for the full year? And also, that leads me to believe then that the conversion -- the Varian conversion and Elekta conversion must have been very strong to end the year. So just yes, if the momentum has switched gears there and what's driving that? That's the first one.

Yes. Okay. So first, you asked for the full year number, I think it was 23% license revenues from Pinnacle conversion. Yes. It's just that we have been able to convert other types of clinics. For example, this large University of Pennsylvania order in Q4, which was, I believe, SEK 57 million, around that number.

Revenues in order.

What was it in SEK 53 million in revenue.

A bit above SEK 40 million.

And that was an Eclipse conversion. So that, of course, affected that mix for the Q4. So -- but this will vary from quarter-to-quarter. It's very hard to predict. We will have -- since we have a time-limited opportunity now for Pinnacle conversion, there will be a strong focus for that in 2026.

Good. And then I have a follow-up on Kristofer's question on the online adaptive radiotherapy that you can perform on Elekta, Linacs and TrueBeam with RayStation. But do I still read you correctly that in order for a clinic to seamlessly sort of perform online adaptive, you would still need RayCare in the future? Or how should I interpret that?

That's correct. And to have like a broad clinical use for this RayCare is needed. So you have understood that correctly.

Okay. Good. And do you expect it to be frequently used among those clinics that have RayCare for maybe 2026 and the years to come?

The main drivers for RayCare going forward now that we have a very good combination of equipment with RayStation, RayCare and Varian TrueBeam where you can make extremely effective online adaptive treatments. So we see a lot of -- well, all over the world for this combination.

I will limit myself to one more question. So in terms of the new orders, the University of Pennsylvania, if that was recorded as sales in Q4? And then maybe the same question for Greater Poland Cancer Center as well. That's my last one.

Yes, it was a big portion of the order was recorded as sale as Johan also just said.

We have a question from Oscar Bergman at Redeye.

Yes. Just wondering if you can give an update on roughly how many Pinnacle centers are left to convert? And also then were there fewer conversions in absolute terms from the clinics in Q4? Or have you sort of lost any market share on conversion?

Okay. We don't know the number of Pinnacle clinics. It's in flux right now. So it's very hard to know the number of remaining Pinnacle clinics. In some countries, there are almost none like in the U.K. and Japan, they have been basically all converted. In Germany, there are quite a few remaining in the United States and China. But it's a couple of hundred. I can't give you more detail, but there's still a big opportunity out there.

And no, we have not lost market share in terms of Pinnacle conversion. It's rather that other conversions have been -- because we look at percentages here. So in absolute numbers, we haven't -- we are still very successful in converting Pinnacle clinics to RayStation.

Okay. I always asked about RayCare, and I have to ask about it also this time. I just wondering how many new RayCare centers were signed in Q4? And perhaps also if you can elaborate on what remains the largest obstacle for increasing RayCare clinics.

No. There are no real obstacles. We had, I believe, 4 RayCare orders in 2025 in total. Of course, that's not where we want to be. But we see -- we believe that this will ramp up during 2026. And okay, one obstacle is the online adaptive capability, which needs 2 new versions of RayStation and RayCare requires FDA approval, and that takes the time it takes. It's not something we can -- it will be affected to some extent, but it will also in the hands of FDA. But -- so that's needed. But in Europe, the online adaptive treatments on this platform will start during spring.

So we see the first. And that's also a good message for the U.S. market because then it's just a matter of time before they can get their hands on this functionality as well. So regarding ramp-up of RayCare, it only takes time, but there is a lot of interest for RayCare now. There are no particular obstacles in place. So we are quite confident that we will see, let's say, over the next 2, 3 years, a good ramp-up of RayCare sales.

And I think in the Q3 report, you mentioned that you opened up some modalities for a customer base for a 6-month trial period. Just wondering if we can get an update on how that has progressed so far.

It's still limited to a couple of countries, and it's progressing well. So they are very happy that they can try out new functionality. I think the limiting factor there is the time they have at their disposal. They're running very busy clinics, and it's hard to spend time on just exploring new functionality. But otherwise, it has been very well received in the countries where we have opened up so far.

Okay. And just a final question. I know you're not supposed to give your view on the share price, of course. But at these share price levels, why are you focusing on dividends rather than stock repurchases?

Yes, that's a good question. I think buying back shares is an interesting option that we will look into deeper. So we are looking into that for sure.

We will now take a question from [ Ariane Nothermeer ].

Can you hear me?

Yes.

I have a question about the order backlog. So we have seen it steadily decrease over the past few years and right now is on the 1.1x for the sales for this year. Why is it decreasing so much? And is this like a problem for revenue growth going forward? Or is there something else going on here?

The main reason why it has shrunk lately is the dollar effect or the currency effect. So no, we don't really see it as a problem.

Okay. So you don't think that is limiting growth like over the past few years?

No.

We will now move back to Kristofer Liljeberg at DNB Carnegie. I guess you have a follow-up question.

Yes, a few more. First, just a clarification. The 11% and 23% you mentioned for Pinnacle conversion part of total license sales or is that for total license sales or license sales to new customers?

Out of total license sales.

Yes. Great. Then a question on the cost and particularly administration costs seem to have remained high here in Q4. Sequentially given that, I guess, third quarter, you should have had the extraordinary cost, much of that in that line or...

Sorry, Kristofer, can you please...

If I look at the administration costs, they remain at a quite high level. They're actually higher in Q4 than in third quarter and second quarter when I guess you had cost for the employee conference? Or was that another cost line?

No, it's included in the administration costs.

Okay. But did you have such costs this quarter as well? Or why does administration costs remain so high?

No, we didn't have those costs in this quarter. And yes, it's a good question. I must come back to that one. I haven't looked at it from that perspective.

Okay. And then maybe, Johan, I don't know if you want to say, you sound pretty positive in the CEO word in the report. So when it comes to the sales outlook for 2026, do you expect this a similar positive trend here or anything that could change that?

No, to achieve the 25% EBIT margin and -- with at least 25% EBIT margin that relies heavily on sales growth. So we are positive in that regard.

Now we have a question from [ Mats Andersson ].

I have a question about Ortega order. In Q3, you said that the first will have income in Q4. So my first question is how much is the income in Q4? And when will the next delivery to next center, don't know?

I didn't hear which -- was it Ortega you were talking about...

Yes, Ortega.

No, that will come -- there hasn't been any revenue from that during 2025. But our estimate is that there will be revenues from at least 2 centers during 2026 from the Ortega order that will be delivered and booked as revenue.

Moving on to the next question that comes from Carlos Moreno.

In the -- you're obviously very near your kind of previously set medium-term margin targets. And you mentioned in Q3 that you might revise those targets, give new long-term guidance. Do you still expect to do that at some point during 2026?

Yes. During 2026, we will communicate a new, let's say, 3-year margin target and possibly some other financial target. But you can expect that will be communicated.

And is that with like the half year or the first quarter or sometime during the year?

I don't know for sure. It involves the Board has to make a decision. So I can say by myself. But that's not a problem. We want to communicate a new, let's say, medium-term target.

Sorry, I interrupted you. I apologize. Sorry.

No problem. Go ahead.

No, no, that was it. That's good. So we're going to get some new targets sometime during the year. And by the sound of it, we're going to get margin and maybe sales. There's going to be some sort of more than margin medium-term target. Okay. And I just want to add what the -- another person said. I mean, if your shares are just being pushed down because they're in some basket, I appreciate the dividend is fantastic, but it just seems to me you have to be on the other side of AI selling, and it just seems to me a buyback is -- there'll come a point where spending your cash on buying your shares is a very sensible investment, right? And to me, it just seems like an extremely good idea. But anyway, I just wanted to look at that.

I note your comment, and I think you're probably right.

And we have a follow-up question from Ariane Nothermeer.

It was answered, sorry.

We have a follow-up question from Mattias Vadsten.

I just thought if you could help disclose some outlook on timing of approvals, release of modes to expand the use of the software products you have to further cancer therapy areas.

Time line for that is -- so if you take liver ablation, for example, that can be used in Europe as of now. There, we are waiting for 510(k) clearance in the U.S. Chemotherapy will be clear sometime during 2027. And surgery will be -- yes, that's even further into the future. So I can't say that. But liver ablation will be first, chemotherapy after that and then surgery is coming after that.

Thank you all for your questions. With that, we will conclude today's presentation. A recording will be available shortly on our investor website. And if you have any additional questions, you are very welcome to reach out to us. We appreciate your participation today, and we look forward to connecting with you again on April 29 when we present our Q1 results. We wish you a pleasant rest of your day. Thank you.

Thank you.

Thank you.

Good morning and a warm welcome to the presentation of RaySearch Q3 2025 Results. My name is Carolina Stromlid and I'm new Head of Investor Relations at RaySearch. With me today are our Founder and CEO, Johan Lof; and our CFO, Nina Gronberg, who will take you through the highlights and financials of the quarter. After the presentation, we will open up for questions. So feel free to submit them in the chat or ask them live. With that, let's kick off today's presentation.

Thank you, Carolina, and welcome again, everyone. Before we go through the Q3 results and highlights, I'd like to give a brief overview of RaySearch and our business. So as you know, RaySearch is a pure software company and we develop software for cancer treatments. We have 4 platforms: RayStation, which is our treatment planning system; RayCare, which is the oncology information system; RayIntelligence is our analytics tool for exploring population data; and RayCommand is the treatment control system.

So if you look at the comprehensive cancer center. We have usually the radiotherapy treatment in the basement, you see the treatment machines down there. In the comprehensive cancer center, we also perform surgery for cancer and we deliver chemotherapy and other systemic therapies. So comprehensive cancer center can deliver all the types of treatments that are available for cancer. And RaySearch has so far during our first 25 years been mainly focused on radiotherapy or I would say only focused on radiotherapy. So we do the treatment planning for radiotherapy and also with RayCare, we manage the workflows, et cetera, for delivering radiotherapy.

We have recently added a new function in RayStation for liver ablation planning and delivery. So there is a room in this clinic picture where you see liver ablation to the far right. And this is the first time we actually go outside of radiotherapy because liver ablation is interventional radiology. And going forward, we will take care also of the other aspects of cancer treatment. Next year we are entering into chemotherapy where we add chemotherapy planning into RayStation and chemotherapy management into RayCare and further down the line, we will also support surgery in the same way.

So our long-term goal and vision is to provide the comprehensive cancer center with all the tools necessary to do whatever goes on in a center like that. So we will support comprehensive cancer care. Many patients receive a combination of treatments. Breast for example, you usually first perform surgery to remove the tumor or the breast and then you irradiate lymph nodes and after that you deliver chemotherapy. So many patients have had a combined treatment like that and I would say there's hardly any software support for that situation. So we want to be able to cooptimize and coordinate such treatments in the future.

This slide shows the long-term development for RaySearch in terms of revenues. We go all the way back to 2008. I show this slide because I want to emphasize the importance of looking at RaySearch long term because as I have repeatedly stated over several years is that our quarters fluctuate in terms of revenues. That has been quite common for a long time even though maybe we see a little bit less of that than in the past, but it's still a characteristic of RaySearch because there are some big deals that have fallen on either side into one quarter or another quarter. So it is important to look at RaySearch over a longer period.

And if you look at this slide, you see that it's a pretty stable growth over the years. The magenta colored bars are the support revenues so they are steadily increasing and they are now about 39%, 40% of the total revenues. There is a dip that you see in 2020 and 2021 that were of course during the COVID years where we were quite badly affected. But overall, over a longer period, we can see that there is a steady growth. So even if we had a somewhat weaker Q2 this year, Q1 and Q3 are record quarters in terms of revenues. We have all-time high this quarter, but Q1 was very close as well. So basically we have 2 all-time high quarters this year so far and 1 a little bit weaker.

So I just want to remind everyone that one has to have a longer-term perspective on RaySearch development. Okay. So now over to the latest developments. So I'm happy to report that Q3 was a strong quarter for RaySearch with record high net sales and improved profitability. I think Q3 demonstrates the strength of our business model and the importance of maintaining this long-term perspective. While revenues can fluctuate between quarters, this quarter confirms the company's continued solid performance. We saw continued strong interest for our solutions in the quarter supported by the deliveries to 6 major particle centers in Asia.

Net sales grew by 13% to SEK 332 million reaching the highest revenue we have ever recorded. The increase in net sales lifted operating profit by 44% to SEK 89 million with an EBIT margin of 27%. Adjusting for costs from our global employee conference, EBIT was SEK 103 million corresponding to a margin of 31%. Recurring support revenue continued to grow reaching SEK 130 million in Q3 and which represents 39% of total revenues. So let's move on to the operational highlights of the quarter. Overall, customer activity remained strong with order intake increasing by 70%.

Many of our existing customers expanded their installations during the quarter to add more systems and functionality. Roughly half of our license sales continued to come from the installed customer base demonstrating steady demand from the existing customers. Interest in RaySearch solutions remain high across all regions with an increasing number of clinics choosing RayStation and RayCare over other systems. I can mention a few notable examples in Q3. Stanford Healthcare in the U.S. placed a new order for advanced proton therapy. [ AKMS ] Oncology selected RayCare and RayStation for its new cancer center in California.

Keimyung  University Dongsan Medical Center in South Korea will install RayStation and RayCare at its new proton center. RayStation has been installed at 3 new proton centers and 2 carbon ion therapy centers in China. Auckland City Hospital in New Zealand is expanding its radiotherapy capacity with additional RayStation licenses. The replacement of Philips treatment planning system Pinnacle, which will be discontinued by 2027, continued in the quarter. The German health provider Med360 will deploy RayStation across 10 clinics for Elekta and Accuray treatment machines. And in France, several clinics will replace both Pinnacle and Eclipse with RayStation.

Another example of customer activity was the annual ASTRO conference that took place in San Francisco at the end of September. This is a very important event for us and we had a great interest in our offering. Finally, in September, we celebrated an important milestone. RaySearch marked 25 years as a company. For the first time since the pandemic, we gathered all our employees from around the world with an internal conference. This created valuable opportunities for knowledge sharing while also strengthening our company culture and engagement. Together, we will continue to build on this, improving cancer treatments for patients worldwide.

In September, we launched a new version of RayIntelligence, which is our oncology analytics platform. It's cloud-based and we have built it with modern technology for scalability and accessibility. It comes with interactive dashboards that you can use to visualize data and understand correlations, et cetera. It's seamlessly integrated with RayStation and RayCare meaning that it listens to everything that goes on in these systems. So without the user having to do anything, RayIntelligence will capture the information that's being generated in RayStation and RayCare.

There is also a very powerful SQL scripting interface for customer queries and in-depth data exploration. Some examples of use cases for RayIntelligence is that you can get an overview of the clinical operation. You can get an overview of everything that goes on in your department. You can monitor machines, treatments, toxicities. You can also track treatment quality and look at your population of patients over time, what are the side effects and what are the tumor control probabilities, et cetera.

In our systems, we have several machine learning or AI models in certain algorithms and RayIntelligence can also be used to monitor the performance of these machine learning models. RayIntelligence is also a very powerful tool to generate reports that takes data from RayStation, RayCare, but also external sources. This is an example of a dashboard where you follow the treatment planning in a specific clinic. So you can track it over time. You see the time axis in 1 diagram there. You can track it on tumor type so how many plans did we create for breast, how many for prostate, for lung, et cetera.

There is also statistics here for the different treatment planners. So how many -- I mean which person did the most plans and who did the least, et cetera. So this is just an example of things that you can see and visualize with RayIntelligence. It's also important to note that although RayIntelligence comes with a large number of predefined dashboards that we have made, the user can have tools in RayIntelligence to create their own dashboards. So it's a very powerful addition and complement to RayStation and RayCare.

So in the next slide, we try to visualize how RayIntelligence can be used to gather data. RayWorld, the combination of all our systems are called RayWorld, and we want RayWorld to be a learning system. So what this slide illustrates is that those little squares or rectangles are data points that are being automatically at the back end captured by RayIntelligence from RayCare and RayStation and that data is put in the cloud, in the data warehouse in the cloud. It can be a cloud on-premises, but it can also be a cloud in the cloud, so to speak. Based on this data, we achieve clinical insights. We feed back information.

Those networks, neural network symbol there, represents machine learning models going back to our systems, but there are also other data points represented by those dots that are insights that we feed back to improve our algorithms. So we have several algorithms as we rely on historical data like deep learning segmentation and deep learning planning. So that is to improve the performance of, for example, RayStation. We can also improve the operational efficiency of the clinic. So RayIntelligence will help determine bottlenecks in the workflow and then you can take action to remove those bottlenecks.

We also want to provide clinical decision support by following the patients over time and knowing exactly what we did to these patients and what the preconditions were. We can improve and we can give recommendations to the clinical teams on how to treat the next patient. And combined, all of this will then improve outcomes and treatment outcomes for our patients.

So with that, I would like to hand over to Nina to tell us about the financial development.

Thank you, Johan. In quarter 3, we saw continued high activity in the market both from new and existing customers and across the regions. Order intake increased by 17%, which brought the rolling 12 curve upward again, up from the smaller drop that we had in the last quarter. And we had high order intake from support contracts in the period. The order backlog ending at SEK 1.617 billion was also affected by that we had 6 Asian particle sales turning into net sales in the third quarter. High net sales gave us a book-to-bill ratio in the quarter of 0.9 and for the last 12 months it was 1.

Despite headwind from the strengthening of the Swedish krona, net sales grew with 13% in the quarter and since the SEK 332 million outcome beat the previous record that we had from quarter 1 this year if only with SEK 0.5 million, we did mark out a new record level. License sales growth was 40% and support sales grew with 8%. The organic growth was 19% mainly coming from new orders, but also from the already mentioned particle sales in Asia, sales that was previously recognized in our order backlog. The high net sales drove EBIT up with 44% to SEK 89 million in the quarter and strengthened the margin to 27%.

If we adjust for the costs that we had from our internal conference and a very small currency effect in the quarter, EBIT was SEK 103 million and the EBIT margin 31%. Year-to-date net sales was up 11% and 15% organic-wise. And the year-to-date EBIT margin was 21%. Moving on to the rolling 12 development of net sales and EBIT and also the perspective that we believe give a better and more relevant description of RaySearch business performance. We see that net sales for the last 12 months amounted to SEK 1.292 billion and that gave us an annual growth rate of 14% over the last 2 years.

And the rolling 12 EBIT of SEK 274 million means a solid margin of 21% and this, I want to point out, is despite that we've had large effects from nonrecurring costs and currency losses during 2025. Recurring revenue from the support contracts was, as mentioned, up 8% amounting to SEK 130 million in the quarter and corresponding to 39% of total net sales. Year-to-date the support contract growth was 13% and amounting to SEK 385 million and that corresponds to 40% of the total net sales. Rolling 12 development pictured with the blue line in this graph show the steady increase that we have in our support revenue over time.

Moving on to the cash flow development. Cash flow in quarter 3 was minus SEK 82 million and strongly impacted by the higher working capital. Though this is not a satisfying outcome, I want to break it down for you and I want to point out that the picture is brighter than it first looked like. There is mainly 3 things that has impacted working capital in the quarter. One of them being the already mentioned Asian sales, which were to large extent prepaid, and that is a good thing. I mean we get paid before we deliver anything and that is something that is common when it comes to our sales in the APAC region.

But it also means that no cash flow is generated later on when the sales is recognized. Secondly, we have sales with longer payment terms. In some cases, these longer payment terms is related to tenders and framework agreements and that is something that gives us good and profitable sales, but where we have to accept that we get paid a little bit later. For example, in the last 2 quarters, we had strong sales in the French market and there we have these kinds of contracts. And then we get a smaller portion of the payment when we deliver, but we also have to wait with the invoicing until customer has finalized their testing.

In other cases, we have accepted longer payment terms or later invoicing since we can benefit from it in terms of price or in terms of long-term value from the customer relations. And third, a portion of the cash flow outcome is always related to timing of the sales in relation to quarter end, a timing that was not in our favor in the third quarter. Cash flow was also affected by quarter 3 being summer months, which means vacation payouts. Last, but not least, I want to remind you that we have a cash balance of SEK 323 million when we exit the quarter. We have no loans and on top of that, a nonused overdraft facility.

Breaking it down further to you and looking at the 3 items in our balance sheet building up the main part of the working capital; the contract assets and the contract liabilities, which is receivables and liabilities we have towards our customers. Here we have been used to having a net that is negative and that means that we have more prepayments from our customers meaning they pay us before delivery than the customers owe us because we have delivered and not get paid. And that is an extremely good position I must say.

And now in September, it turned the other way around, but as I see it, we're still in a rather good shape. And as with net sales, we will have fluctuations in these items as well going forward depending on the mix of the customer contracts. And we will of course continue optimizing the working capital in relation to the business.

And with that, I hand over to you, Johan, that will give a summary of the quarter.

Thank you, Nina. All right. To summarize the quarter, we achieved record high net sales. Our profitability improved significantly. We continue to see increasing interest in our solutions. There is still a very large potential within our existing customer base giving us the opportunity to sell additional systems as well as additional modules to them. With our leadership in innovation, strong partnership and an expanding and loyal customer base, RaySearch is very well positioned for long-term growth.

So we will now open up for questions and I will hand over the word to Carolina.

We will start with questions from our analysts and the first question comes from Mattias Vadsten at SEB.

I think I will start with 3 questions. I think first one, as has been discussed in this case before and in conference calls, the upselling potential is quite massive as it looks and this effect, if I do my calculations, has been quite sort of substantial both over time, but also in particular I would say in 2024 and into 2025. So if you could just confirm this is the case? And also if it is something special happening driving this recent mix? And yes, how the sort of setup looks there going into the future here and into 2026, '27? That's the first question.

Okay. Let's take them one by one, please. Then you can ask the second if you may. Also this quarter, we had about 50% of the license sales from the installed base and the other half from new customers. So this seems quite constant. It's just a behavior of our customers. We have a campaign that we're starting in just a couple of regions where we allow customers to use the systems. We unlock all of RayStation's functionality for a limited period of time and have the customers try out everything that -- all the modules that you can buy in RayStation. They are also free to use that clinically.

And after this trial period, which we are experimenting with, but it's about 6 months; they have to decide whether they want to buy it or not because the modules are shut down after that trial period. And it has been very well received in the markets that we have initiated it. We want to do it on a small scale to start with in these countries just to gain experience and then based on that experience, we will open it up to other markets. But we believe that that should benefit the sales to our installed base. Did that answer your question?

Yes. When was this initiative started just as a follow-up?

I didn't hear what you said.

Did you have another question?

Yes. First, a follow-up to this question I asked just now. When was this initiative started?

The letter was sent out maybe 2 months ago, something like that. I don't remember exactly, but it's quite recent.

Okay. Good. Next question is I think you point out, also very well in the presentation, a strong delivery quarter in terms of licenses this time, also new customers sales exceeding orders last 12 months in this line and order backlog, therefore, falling vis-a-vis last year and previous quarter for licenses specifically. So just how you view this and sort of how to think about the future with regards to this? That's the second question.

Okay. The reduction of the order backlog was a direct consequence of those deliveries. But as you may have noted, the order backlog and the order intake for 1 quarter is a very bad predictor for the revenues for the next quarter or future quarters because most of the order intake is still -- or most of the revenues are still RayStation revenues. And most of those, except for the special particle centers, et cetera, most of that order intake is directly converted into revenues. So let's say that we have a strong Q4 quarter, then it would be strong both in terms of order intake and revenues. So that's just the nature of the business.

Do you have any other question, Mattias?

Yes. I have 1 final question, then I will allow other analysts.

We will move over to Kristofer Liljeberg at DNB Carnegie.

It's Kristofer, I think you have some problem in tech.

We'll try with Oscar Bergman from Redeye.

We can come back to the phone questions again and move over to questions posted in the chat.

Okay. I can start with those. Lots of different questions here. There's 1 question. Could you give some color on the share of previous Pinnacle clinics accounting for the license sales in the quarter?

Yes. About half of the new license sales to new customers were by converting Pinnacle clinics to RayStation and the other half was converting other systems and that will be then Monaco and Eclipse.

This was posted by [ Daniel ]. And he also asks, could you elaborate on the revenue model of RayCare? Is it similar to RayStation in terms of license fee plus support revenue? That was the first question.

And yes, it is, but it is a bit higher. So you can assume about 30% higher for a certain clinic, but it's of a certain size. And the RayCare installation would be about 25%, 30% more expensive than the RayStation installation.

And then the second question and is how is pricing determined? Is it based on patient throughput and users?

It's mainly based on patient volume or patient throughput as is stated here and connections to machines. So the more machines linacs you have, the more expensive RayCare becomes and also how many patients you want to treat with RayCare, that also affects the price. So that's the difference between RayStation, which is mainly based on the number of users.

A question from another person here [indiscernible]. Could you come back on Philips discontinuation? How well are you positioned to benefit from this? Is it already visible in your order intake or should we wait until 2027?

So I would say that we are very well positioned and we are focusing very hard to convert the remaining connected sites. And it's been visible, I would say, so we don't have to wait till 2027. This has been visible for a few years actually. But it's intensifying now as the clinics cannot wait until 2027. They have to work well before the New Year's Eve of 2026 so they cannot have an interruption.

Oscar Bergman has asked several questions so I will go through those. Can we check that they can ask questions? For example, Kristofer has reached out.

No. We seem to have some kind of technical issue so I think it's better to take them written. Yes, it's posted in the chat.

Great. So the first question from Oscar Bergman. The EBIT margin was at 27% and 31% adjusted is above your target that I had previously argued is quite conservative. Are you looking to increase your EBIT margin target now as you have done before when you have exceeded the target?

Okay. I agree that it looks quite promising that we will achieve at least an EBIT margin of 25% in 2026 given the current performance. We haven't changed that. Clearly we let it stay as it is, but we will communicate new targets later on, but then that will be communicated in conjunction with the press release or report. But for now we will stick to the at least 25% EBIT margin target and we feel quite confident that we will be able to fulfill that target.

Second question is end-of-life Pinnacle. Can you elaborate a bit more on the sales funnel here, specifically your market share of winning these accounts? And also what is a more realistic timeline for these centers to have finalized that transition or should we assume that some centers will still be doing this in December of next year?

As I said earlier, I think they will do this well before December next year because there are few months of preparation, et cetera, when you move from 1 system to another before you can start to treat patients. I think we are well positioned. It's very hard to know exactly our share, but I think we have more than 50% of these accounts I think that we win.

Number three, I understand a lot of resources are going to getting these Pinnacle clinics. Once that window is closed, how quickly can you shift going after non-Pinnacle clinics. Is there any risk of a temporary slowdown after the Pinnacle opportunity?

And as I also stated before, 50% of the new sales are other sites and they are a conversion of Eclipse and Monaco. So that is already running and it varies between different markets. For example in Japan, this Pinnacle conversion has pretty much already happened there. All the new license sales are from converting other systems in Pinnacle. So yes, I don't think there will be a temporary slowdown. We are already converting at a pretty -- converting other systems at a good pace.

Number four, a 96% gross margin, about 4 percentage points above the average that we had for many years. Were there any one-offs or something like that that gave this strong margin?

Yes, there were 2 things that happened. There were less computers being sold through us. We do offer our customers to provide them with servers and hardware necessary to run our products and we have a decent margin on that as well. But since less of those this time in this particular quarter that helped because it's obviously a lower margin on the servers and the software. The other thing was that the deliveries to the particle centers in Asia didn't come with hardware at this point. So that also helped. So I think that's probably an unusually high gross margin. We can't expect that every quarter going forward..

Number five, the final question here. In Q2, you had received 4 new RayCare orders year-to-date and you mentioned that you expect 4 or 5 more during the second half of 2025. Can you give some update on this is the question?

We achieved another 2 orders this quarter for RayCare and we will see what happens during the rest of the year. What we can say about RayCare right now is that the interest has intensified greatly and I think we'll see good orders during 2026 for RayCare.

Let's see here. [ Carlos Murrian ]. When will RayCare really start to be material to license sales? Is 2025 proving demand for the product?

Okay. I guess I just sort of answered that. RayCare when it really start to be material, we have to look 2, 3 years out. But then it will be I think a large revenue contributor.

Okay. There is another comment here is that there is problem with the sound. They can hear analysts, but not us, which is a bit unfortunate. I have a question here from Kristofer Liljeberg. It seems it doesn't work to ask questions on the line so here are the ones from me. Number one, will you be able to track how customers are using RayStation modules during the campaign?

The answer is yes.

Do you expect working capital to come down again or continue to increase?

Yes, that's for me. As I also said during the presentation, it will fluctuate also going forward. But of course I see that the items that we have on the receivable side in the working capital, some of them or a big portion of them will get paid during quarter 4 and quarter 1 next year. But I mean the working capital will also be dependent on the deals or the sales that we do later on here in quarter 4. And right now I don't know how those agreements will look like. So I have no clear answer to that. It will be better I can say.

Kristofer's third question is high gross margin from lower hardware sales. Is it temporary or can it be start of a new trend?

As I explained before, I think it's temporary.

Number four, how do you view deal flow in Q4?

In general, we have good momentum can answer to that.

Number five, Seems on track to reach EBIT margin target for next year. How do you view investment needs after that?

Okay. Number five, I think we will revise our EBIT margin targets up for the future without quantifying that. But we will reach we hope and we are quite confident that we reach the current EBIT margin target. Before that, we're going to define a new EBIT margin target maybe 3 years out. And in general, we believe that this business will be very profitable going forward.

Those were all of Kristofer's questions. I can take 1 more question here. How is RayCare integration progressing with other Varian hardware? When could it be expected an integration of Halcyon? And are you working with other vendors such as Hitachi and United Imaging?

That's a good question. We are having discussions with Varian on integrating RayCare also with Halcyon. It's hard to say exactly when that will be clinically available. It will be a couple of years from now, but we have very constructive and fruitful discussions with Varian on this.

And then the second part of the question was are you working with other vendors such as Hitachi and United Imaging?

We work with many other vendors not United Imaging, but we work with Hitachi on both their OXRAY machine and the proton machine. OXRAY is ordinary linac. They have PROBEAT, which is a proton machine. We work with LEO Cancer Care, we work with IntelliRay, we work with Accuray, we work with [indiscernible], we work with Panacea, we work with [indiscernible]. I don't know if we have mentioned LEO Cancer Care. So we are working. Within the next 12 months, there will be quite a large number of additional interoperability interfaces for new machines for RayCare and within 18 months, there will be even more. So this is progressing very well.

I take 1 more question. Are there any discussions with Elekta regarding integration of RayCare?

We talk to Elekta from time to time about this and we would very much like to integrate RayCare with their machines. But I cannot say anything more on that currently.

And that concludes today's Q&A. A recording of this presentation will be available shortly on our investor website. And if you have any additional questions, you're very welcome to reach out to us. Thank you for joining us today and we look forward to seeing you again on February 12 for our year-end results. Have a great Friday.

Thank you.

Thank you.

Hello, and welcome to the presentation of RaySearch Interim Report for the second quarter of 2025. My name is Henrik Prefors, and I will be the moderator today.

Joining us in today's call is Johan Lof, RaySearch Founder and CEO; and Nina Grönberg, our CFO. Johan and Nina will give you a brief summary of the quarter, including the financials. And after that, we open up for questions.

I also want to remind you that this session is recorded, and you will be able to find our recording on the website on the upcoming days.

With that said, I hand over to you, Johan. Please go ahead.

Thank you, Henrik. I would also like to welcome all of you to today's webcast.

Sales for the second quarter was SEK 305 million. That is a decrease of 4% compared to the same period in 2024. The weaker sales were partly due to the delay of several orders. Therefore, the order intake in July was unusually high, SEK 56 million higher than in July last year and more than SEK 50 million above the average order intake for the last 3 years.

I'd also like to point out that the revenue for the second quarter of 2024 included a onetime item of SEK 37 million from a previously prepaid license sale to MedAustron, which made the year-on-year comparison more difficult.

Operating profit for the quarter came in at SEK 36 million, translating to an operating margin of 12%. Profit in the second quarter was negatively affected by a declining dollar and also some nonrecurring costs. If you exclude those effects, the operating profit would have been SEK 51 million with an operating margin of 17%.

Order intake for the second quarter landed at SEK 241 million. As we noted before, order intake can fluctuate significantly between quarters, and that was especially clear this quarter. Still, we're seeing strong momentum across our markets. Customer interest remains high. Demand is solid, and this supports our confidence in continued growth going forward.

Overall, RaySearch has a strong financial position. As of 30th of June, our cash and cash equivalents was NOK 403 million, and we have stable cash flow and no loans.

We're proud to report that RayStation was used in the first European treatment with Neutron Therapeutics accelerator-based BNCT, Boron Neutron Capture therapy. These groundbreaking treatments were performed at Helsinki University Hospital in Finland and they were part of the clinical trial. RayStation's advanced BNCT capabilities, now clinically validated in both Japan and Finland are critical in supporting high-precision individualized treatment planning, which is vital for successful BNCT. The fact that RayStation was selected for this pioneering work once again reinforces our leading position in the clinical development of the ECT.

At the end of the quarter, we released RayCare version 2025, the latest version of our oncology information system. This version delivers important functionality upgrades to streamline clinical workflows, improve data management and enhance interoperability across the treatment chain. With integrated and intelligent solutions and updated treatment support, this version of RayCare empowers clinical teams to deliver more coordinated and efficient care throughout the entire treatment process.

On July 21, we announced that AKSM Oncology has placed orders for both RayCare and RayStation to be used at Advanced Radiation Therapeutics, which is a new center in California that's expected to open in March next year. The center will use RayStation and RayCare together with their TrueBeam linear accelerators.

Now let's take a look at the financials. So please, Nina, go ahead.

Thank you, Johan. Yes, the second quarter in 2025 indeed emphasized the importance of taking a longer than quarter-to-quarter perspective when looking at RaySearch. The momentum and favorable market condition for RaySearch is still there. But with orders delayed to July and strong comparisons, we get a weaker outcome than we've been used to.

Therefore, I will start with the rolling 12 development of net sales, EBIT and EBIT margin. It is visible that quarter 2 outcome caused a downturn in an otherwise straight upward trend. However, the annual growth rate over the last 2 years is still 15% and the rolling 12 EBIT margin, 20%.

Moving on to the quarter 2 overview. Order intake in the second quarter decreased with 17% from SEK 290 million to SEK 241 million. The order intake for licenses were down 20%, ending at SEK 107 million, while the order intake for support decreased 19% to SEK 96 million. Research order intake fluctuates between the quarters, but also it is important to remember that it does only include contracted amounts. Since our churn is close to 0, there is also an essential amount of captured future support income that's not included in the order intake nor in the order backlog. Order backlog end of June amounted to SEK 1.665 billion, of which SEK 550 million is expected to generate net sales in the next coming 12 months and the rest over the 4 years after that.

Net sales, including currency effects with a weaker U.S. dollar decreased with 4% from SEK 319 million to SEK 305 million. Currency adjusted growth was 0. The sales of licenses amounted to SEK 131 million, corresponding to a decrease of 20%. Last year's license sales amounted to SEK 164 million, powered by the SEK 37 million revenue from the MedAustrom deal that we had last year.

The support revenue amounted to SEK 131 million, which is an increase of 14% compared to last year. The operating profit for the quarter was SEK 36 million, and that is corresponding to an operating margin of 12% and again, negatively affected by foremost a weaker U.S. dollar and also temporarily higher cost, as Johan also mentioned.

Adjusted for the reporting currency losses, the operating profit was SEK 43 million and the operating margin of 14%. Operating profit in the second quarter last year was SEK 79 million, including a full drop-through of the MedAuston deal of SEK 37 million. Cash flow from operations amounted to SEK 71 million in the quarter compared to SEK 155 million last year, and the decrease is mainly related to the lower profit, but also an increase in the operating capital and higher preliminary tax payments. The net cash flow for the period was minus SEK 104 million, affected by the SEK 103 million dividend that we paid out in May. The free cash flow was minus SEK 1 million in the quarter.

Moving forward and summarizing the first 6 months. Order intake has increased with 23% from 529 million to SEK 651 million. Order intake for licenses increased 8% to SEK 266 million and order intake for support increased 50% to SEK 298 million. Net sales for the first 6 months was up 11% from SEK 576 million to SEK 637 million, where license sales stood for an increase of 5% to SEK 297 million and support sales increased 16% to SEK 256 million.

The 6-month operating profit amounts to SEK 111 million and the operating margin to 18%. Last year's operating profit for the first half year was SEK 125 million with a margin of 22% Cash flow from operations amounted to SEK 217 million for the first 6 months compared to SEK 322 million last year and almost SEK 60 million of those is related to higher tax payments in 2025 and where SEK 46 million of those is related to the 2024 year profit. Last year also included positive effects from big improvements in the operating capital. The net cash flow for the period was minus SEK 38 million compared to plus SEK 83 million last year, where we had higher dividend in 2025 that stood for SEK 37 million of that difference.

Moving on to the overview of the quarter-by-quarter development. It is clearly visible that quarter 2 2025 stands out as an exception to a strong previous performance.

And last, moving back to the long-term perspective and the development all the way back from 2008. RaySearch continues the growth journey with the increased robustness from 40% recurring support revenue.

And with this said, I hand over to you again, Johan.

Thank you, Nina. Yes. So to summarize, after 11 consecutive quarters of record sales, we now have a quarter with slightly lower sales compared to last year. However, we don't see this as a trend change, but rather as a consequence of temporary effects that I described earlier. We're maintaining our target of an operating margin of at least 25% by 2026.

In conclusion, the outlook for growth remains strong, and I'm optimistic about the future. Thank you.

Thank you, Johan and Nina. We will now open up for questions.

[Operator Instructions].

And I think we have someone who's been waiting for a little while, Kristofer please go ahead and don't forget to unmute.

Can you hear me?-- it's Kristofer from DNB Carnegie. Two questions. First, just interesting to hear the reason why support revenues were up quite a bit quarter-over-quarter, i.e., versus the first quarter despite I think the U.S. dollar should have dropped 10%, and you also had the euro dropped 5% versus krona. So that was a bit surprising. And then also, is it possible to say anything about how you expect working capital to evolve here in the second half of the year? That's all for me.

Yes, we have -- maybe you need to repeat the question a little bit. You asked about the support revenue that was...

I guess, yes, if you take support revenues, all else equal, I think it should have dropped maybe 7% versus the first quarter just because of currency effects, but it was up quite a bit. So it seems -- I don't know if you have been able to increase prices or if there's something else extraordinary in the numbers.

Yes. No, there are no -- I mean, we have no specific price increases, but we raised prices, I mean, along the way with the customers. But I mean, we have -- we will increase our support revenue going forward since we have more and more support contracts. So if you need a more detailed question or answer to that question, I need to look further into it.

I mean just to confirm, so we could use this as a quarter number as a starting point for the rest of the year.

I would say so. Do you have anything to add, Johan?

No, I agree.

But let me look further into that and see if there are -- we have something special in quarter 2, but that's -- I don't think so. That's not what we have looked at.

Okay. I think we're heading over to the chat...

There was one more question from Kristofer. How are we going to -- how is the working capital going to -- how will we work with the working capital?

Yes. Okay. Yes. Yes, how it will develop going forward or Yes, working capital is something that I look upon -- I mean, all the way through the month. And it is a little bit special with the working capital in Research, I would say, because it depends a lot on the contracts that we have in the balance sheet at the moment. Some of them can be pretty large. And if we have negotiated payment terms with the customers where we get paid upfront, then we have a good process in the working capital and otherwise not. And it fluctuates a lot dependent on the customers. So we are working on that, and I think that we will be able to improve the working capital going forward. But in the end, it depends on the negotiations with each customer.

Okay. So in the chat, we have a question -- or 3 questions actually, but we'll take them one by one from Mats...

I can take those and answer them at the same time.

Okay.

So the first question is, when will Ortega revenues start to appear? And over how many quarters will we see them?

We see some revenues from Ortega in Q4 this year from the first center. And then this will span over a 3- to 4-year period until they have built all the 9 proton centers in Spain. So these revenues will be spread over a quite long time period.

Second question is what percentage of the licensing revenue will come from customers replacing Pinnacle during this quarter? I don't have that number calculated yet. But I -- it's probably north of 60% is my guess. So -- but I don't have it in front of me. But it's a big focus now on replacing as many pinnacles as we can before Pinnacle becomes end of life, which is end of 2026.

The third question is, what does the onetime cost consist of? And what is the amount? So the amount is SEK 7 million, and it's 2 things. One is dispute regarding adaptation of our facilities here in our headquarters. So dispute with our landlord that's settled. And then the second part is an internal global conference that will not recur next year. So those are the 2 items.

So those were the answers to Mats Anderson's 3 questions.

Maybe we should take the chat and maybe we should take every other question from the people raising hands.

Yes. So let's move over to Oscar Bergman, who has been raising his hand for a while.

Can you hear me now?

Yes.

Great. Yes, I have 3 questions before I can head back into the queue. The first one is the delayed orders that were pushed to July, if they would have been recognized in Q2, can you say what sales would have been in this quarter?

Not exactly, but the majority of those orders will be recognized quickly. I don't know exactly the mix, but the vast majority of the order value will be recognized in Q3 and would have been recognized in Q2 had they come in.

And would you categorize them as small or a bit larger works?

So there are a few -- I think the largest is SEK 12 million, then there are a couple of SEK 10 million orders. But then in total, 20 orders are part of this delay. So it's a mixture of small add-ons and a few larger -- or well, medium-sized, like around SEK 10 million.

Okay. And can you elaborate shortly on the reasons for the delays?

Just administrative hiccups and that happen from time to time.

Right. I see. And then -- so I expect we could see a pretty strong Q3 then. I mean we're still in it, of course, but should we assume that maybe we will -- we will be back at record sales in Q3?

We cannot predict that. But I mean, theoretically, the same thing can happen in Q3, right? So the orders can be delayed into Q4. But of course, it's -- we will not predict now Q3, but it's nice to have a strong start of the quarter. I mean it's painful to lose the orders from Q2. But then now when we're in Q3, then it's -- it can be regarded as a positive thing.

Okay. And are there any signs of potential delays from Q3 to Q4 as well?

No. We don't see those delays until they actually happen.

Anything, the final question. sorry Nina...

No, but I just wanted to add there that -- I mean, our customers, I mean, the hospitals and the cancer clinics, they don't work at the same -- with the same clock as we do because, of course, we want to get the orders and the sales into a specific quarter, but I mean, they don't care. So they work according to another schedule. And sometimes we just have to accept the customer schedule here.

Okay. All right. So just a final question before I head back into the queue. Do you focus more on increasing the number of RayStation licenses per existing customer sites going forward? Because I suspect this hasn't really been a huge focus area for your operations historically?

We're preparing that as we speak. So that will be a very important topic for the second half of 2025.

Okay. And if you were to compare this, sort of say, optionality to increasing the modules per license, which would you say is the most -- has the most potential?

Which of the modules?

No. Yes, that was the question, but increasing the number of licenses per center or increasing number of modules.

I see. For me, they're all licenses. It's RayStation licenses and then it's module licenses. Okay. So there is huge potential in both. As we have said before, if we have sold 4,600 RayStation licenses or something like that so far, we could sell to our current installed base at least another 4,000. That's like a theoretical maximum, I would say. So you still have that. But the potential is probably even larger for the modules just in sheer numbers is much less saturated. The module that has sold the most out of the, I would say, 30 modules now that are viable options for -- that are relevant for all the entire customer base. The module that has sold the most has only sold 1,700 -- almost 1,700 copies. So -- so it's -- and then it's a falling scale from there. So the modules are from just sheer number perspective, much less saturated. But then we can't assume that we will have 8,000 modules sold to every module to the entire customer base. So there is -- but it should be higher than it is currently. And that's what we'll be working on more actively now to have our customers realize what they have under the hood, so to say, because they have all these modules physically on their computers in the clinic. So they could -- if they purchase them, they can release a lot more power from RayStation than they currently have.

So that will be -- it's very hard to predict what this would result in, but it's a potential that we will try to extract during -- going forward from now.

Thank you very much. So heading back to the chat, we have Ivan few questions. I'll read them.

In Q1, Johan mentioned the idea of opening up all licenses to the installed base for a limited period of time in the hopes of then making the customers buy the licenses. Has there been any progress to this idea? And could this theoretically add 5 to 10x license revenue?

Yes, I think I partly answered this question. So this is work in progress right now. So this will be activated during the fall. And also, as I answered to Oscar previously, it's very hard to predict. what this will mean in terms of license revenue. But for sure, we will be able to sell more licenses to our installed base if we actively pursue this. But to say 5x or 10x is we can't predict that.

Thank you. How is the competition looking within the area of chemotherapy? Does Elekta ovarian have software for chemo? Or are there other competitors in this field? Also, how large is the potential for chemotherapy in regards to the total clinics globally?

Yes, there is some competition. I would point out that Epic, for example, has the most common hospital information system has a chemotherapy module. And then there are several smaller players require very simple software solutions for chemo. But I don't think there is any -- there is no software that takes chemotherapy as seriously as RayStation RayCare will do. So I think we'll have a very competitive -- on a different level, competitive solution on the market next year.

And there is also a question about the potential for chemotherapy globally. And I cannot answer that today.

And then another question. Can you provide an update on RayCare? How is this developing? Is this a significant driver for order intake in 2025 or 2026? How many customers do you have now?

Yes. We see a lot of activity on the RayCare side. One big enabler was, of course, the TrueBeam interoperability that is now in clinical use and so it's available. So many discussions are going on. And I mentioned in my presentation also one order from the U.S. that was exactly this type of combination with RayStation RayCare and TrueBeam so far this year, we have 4 new RayCare orders, and I think we see a few more -- yes, I hope for a few more during the second half of 2025. And if that happens and it should happen, then we -- it's -- we are selling RayCare at a much higher level than in the past because there's.

Another question here, how many customers do you have now? And it is -- actually, I don't -- it's 29 or 30, somewhere around there. And with these 4 additional orders, now we are maybe at 33 or 34. So -- but those 30 previous orders have been accumulated over several years. So if we can get -- I'm just guessing here, another 5 orders this year and we have maybe 10 orders for the full year. That's a trend shift, and then we can -- that would be sort of the beginning of a ramp-up. But -- so RayCare is a lot of activity on the RayCare side and very positive feedback on the system.

Thank you. And then we have a question from N. Can you please detail nonrecurring costs?

Yes, I did that before. So that's already answered. Then we have... Maybe if you -- we can skip the questions that have already been addressed.

Then I think we might have answered the reason for the delay in orders.

Yes.

And then maybe if we want to answer just to make sure this is not signs of a slower market, I think the conclusion was that it isn't.

Exactly. Absolutely true. It's not signs of a slower market.

And the second question, would you still say that full year 2025 sales is tracking in line with expectations?

The answer is yes, we have not made any changes to our full year sales because of the -- yes, the temporary, let's say, slowdown in Q2. We stick to the same, well, target as we had before.

And then we're moving on to Joakim's question. How many Pinnacle licenses are going end of life in total 2026? How many of these have you captured already? And what is your goal to achieve during 2025 and 2026 of the total?

It's hard to know the exact number. We estimate that there are somewhere between 400 and 500 Pinnacle clinics still unconverted to something else around the world. It's very hard to get the exact number, but somewhere in that ballpark.

How many of those have you captured already? I cannot answer that right now, but we have captured a lot over the years. This has been a constant. So if you say 400, 500 currently, Pinnacle when it was at its peak, it was installed in 2,500 clinics. So quite a lot have been captured. We have not captured 100% of them obviously, but we have captured a significant amount of the previous Pinnacle clinics. And we don't have exactly -- we want to capture as many as we can of the remaining clinics during 2025 and 2026.

On the same topic, we have another question from Maya. If 60% of sales comes from customers that have Pinnacle, does that mean that sales from other customers is structurally lower now? Or is there just a focus at RaySearch on getting these customers now?

That's a good question. So yes, since this is a time window, a very specific amount of time when we can grab these Pinnacle customers, we have to focus on those because otherwise, someone else will take these customers instead.

So there is very strong focus in the sales force on this conversion, pinnacle conversion. With that said, in some regions where the conversion has already happened, let's say, Japan, then there is almost no Pinnacle less to convert. And there, we instead convert Monaco sites and eclipse sites, that is Elekta sites and Varian sites. So that happens in those markets where then when the Pinnacle conversion has already happened, then we have -- we can focus on all the other customers. But in some regions like we say, France, we -- and the U.S., we can focus on both Pinnacle and eclipse at the same time and so on. But -- there is -- if we had unlimited bandwidth, we could -- we would -- in every market focus as much on every conversion. But since we don't have unlimited bandwidth, we need to grab the pinnacle sites as quickly as we can right now. And then maybe we -- yes, some other opportunities have to wait.

Thank you. And here's a question from Sylvain. I saw that headcount is progressing modestly but progressing still. I would like to know to which function they are allocated to. Wondering if this to push the marketing effort? Isn't it a bit contradictory with the optionality of selling more modules to the existing customer base?

Okay. There are 2 questions. So yes, we do recruit, for instance, in -- it's across the board, I would say. We have recruited, for example, quite a lot of the finance department replacing consultants. That's one thing. We increased our service staff to service more customers. There has been some increase in R&D. We have added application specialists that can train people and also are part of the sales effort, and we add salespeople and marketing people. So across the board, I would say, but it's not -- as you can tell, it's not a huge increase. It's quite moderate increase.

And then the last question I need to read again, isn't it a bit contradictory with the optionality of selling more modules to the existing customer base? I don't understand that question really. Can you -- what's the contradiction here? Can you clarify?

So Silvian, you can either raise your hand and unmute you to chat

Sorry, I was looking for the... No, my question is related to the operating lever. Confiction is maybe too strong a word for that, but for me, you're almost fully equipped. And as you've got already that installed customer base, the cost of selling the marginal module shall be close to 0. So do we need, in fact, to increase the payroll again? It's just about that. As we said, it's modest, but I would like to know to which extent we are close, in fact, to the good size.

So it is in this context with adding -- Okay, I see. But you're right that the sales effort is quite limited when we sell more licenses to an existing customer. That's a very high-margin enterprise. But we need these new people to add more RayStation customers because we have 1,100 -- around 1,100 RayStation customers today, but we want that to be a completely different number. Over time, we want that to be at least 3,000 -- so that's where we have to do the very hard work of actively selling RayStation to existing clinics and also to new clinics. And that's where we need to have bandwidth. So -- but if it had been -- if we would have been happy with 1,100 customers, then, of course, the -- it would be a contradiction that we add more 6 people, but that's not the case.

Is that okay?

Then moving over back to Oscar.

It's Oscar from Redeye again. I was just wondering also about the growth base because you increased roughly 90 to 100 customers per year, and you've done it for a pretty long time. So what must be done for you to increase to, let's say, 150 or 200 per year? And can you say how Elekta and Varian is progressing compared to you?

I cannot say how Varian and Elekta are progressing compared to us. But I think the -- our recipe for -- because we really want to bump this number up, the number of new clinics per year. And the way forward is to team up with all the new machine vendors. I think that can be very powerful to sell together with Leo Cancer Care together with BB, we have already sold quite a lot together with Accuray and IBA, for example. But with these new machines coming out, OxRay from Hitachi, et cetera, all of these new machines are -- almost all of them are -- it's only RayStation that can be used together with these machines. So for every machine, for example, every x-ray that Hitachi will sell will come with at least 2, maybe 3 or 4 rayStations. So that will be completely new channels to the market. So we hope that this will be our way to accelerate the growth of the installed base. So we don't keep this 90 to 100 new customers per year, but that we can have a larger number of new clinics per year in our customer base.

But I think the key here is continue what we're already doing and intensify that, but also in addition, work together with these paper machine vendors.

Okay. Interesting. I have a few more questions, if that's okay. The next one is pretty basic level one. But what's the reason for centers to not commit only to TPS across all machines instead of having like they have today, maybe 6 to 9 different TPS at the centers. And do you see any sort of trend that is indicating that they are turning to fewer TPS...

That's news to me that they will have -- I don't think there are 8 to 9 TPSs or different brands even. So that's complete, I would say, nonsense.

So maybe you've misunderstood the question, maybe I did no worries. Previously, you mentioned that at the center, there are maybe 6 to 9 different TPS systems at the center?

No, not different. Usually have -- the most common thing is that you have one treatment planning system. You may have machines from a number of different vendors, but you have -- the ideal solution is to have one treatment planning system. But in many cases -- in some cases -- in many cases, when larger clinics transition from one treatment planning system to another, there will be a period of time, a couple of years when they have 2 treatment planning systems, the old one and the new one running in parallel.

And then there are some other exceptions as well. For example, if you have Pinnacle Eclipse Monaco, together with your Elekta and Varian ordinary linacs. And then you also have the Radixact and the CyberKnife from Accuray, then you need to have 2 different treatment planning systems because the 3 systems I mentioned, they don't work together with Radixact and CyberKnife. So that's another instance when you have to have different -- another reason for having different treatment planning systems. But you would never see -- never. I mean, first of all, there aren't 8 different treatment planning systems around on this planet. It's very sedom that you see a mix of, let's say, 3 different treatment planning systems. And then there is some bad reason for that because it's very inconvenient to have a different treatment planning systems for your machines.

That’s clear...

Yes, clarified. Just a final question again. Are you looking into perhaps tilting your model to a Software as a Service or will you remain with the licensing strategy?

Okay. You mean subscription because...

Yes, exactly.

Software as a Service is the deployment, and they can be mixed. You can have Software as a Service, but still pay a onetime fee or subscription. But I think what you're looking for is subscription models. And we do have some -- we do offer subscription. And it's not that many customers. We -- I got the number.

Yes. I think it was 12.

Okay. So we have 12. But there are some customers coming on board from time to time that want to go with subscription. But in general, they choose -- they prefer to have the old model. But I think it can be interesting with the -- all this -- going back to the previous discussion about selling the optional modules to installed base. There, you could -- maybe subscription fits there. So you buy the treatment planning platform, RayStation in the usual way. But then you can -- the functionality on top of that platform could be suitable for a subscription model. So that's something that we're looking into as well.

Going back to the chat, we have a question from Ian. In first half of 2025, we saw around 9% reported sales growth compared to the same period in 2024, but only a modest increase in EBIT margin adjusted for currency fluctuations. Can we see similar margin expansions we saw in 2024 and 2023? Or will margin expansion be modest going forward?

No. The simple answer to this is that by the end of next year, we will have 25% -- at least 25% EBIT margin. So it has to expand to achieve that.

Thank you. And if we're looking at the other question, I think I'll show you that question as well here. There's a lot of numbers.

Maybe that's a question we take offline.

I think we have to...

Yes, it's a bit complicated, I guess.

So one thing quickly. It's too easy to just say that we can add those SEK 50 million directly into the quarter 2 revenue. As Johan said, a big portion of it will be revenue in quarter 3, but not all of it. And yes.

And orders could slip in Q3.

And orders could slip in Q3 and so on. So yes.

Thank you. Is there any other question? I don't think we have any unanswered questions in the chat, and there are no raised hands.

Anyone?

It doesn't seem like anyone...

Then we want to thank you for your participation. This concludes today's session, and we look forward to continuing the dialogue with you, if not before, then at the presentation of the interim report for the third quarter on the 7th of November.

Lastly, I'd like to remind you that you can find this presentation through the same link as you used for this meeting and on RaySearch website. Thank you very much, and have a wonderful day. Thank you. Good bye.