RaySearch Laboratories Aktie

Welcome to RaySearch presentation of the second quarter of 2026. My name is Carolina Stromlid, and I'm Head of Investor Relations. Today, our CEO and Founder, Johan Lof; and our CFO, Nina Gronberg, will take you through the key highlights and financial results for the quarter. After the presentation, we will open up for questions. Simply raise your hand in Teams if you would like to ask a question.

And with that short introduction, I'll hand over to you, Johan.

Thank you, Carolina, and welcome again, everyone. This is a summary of RaySearch as of today. We have 4 different software platforms: RayStation, which is a treatment planning system; RayCare, which is an oncology information system; RayIntelligence, an analytics platform; and RayCommand, which is a treatment control system; and they're all dedicated to improving cancer treatments.

We have 472 employees of 41 different nationalities. We collaborate with 26 industrial partners, and we have over 1,200 customers in 51 countries. But most importantly, our software has been used to treat over 11 million cancer patients.

So this is the revenue development over a very long period of time. And the message here is that RaySearch has grown every year since 2008, except for the 2 pandemic years. Even though, as you can see in this diagram, the fluctuations between quarters can be quite significant.

And if you look at the last 2 quarters, we have had 2 quite weak quarters. But nevertheless, we expect this growth journey to continue.

So a few words about Q2. So the weaker development in net sales and operating profit during the quarter was, of course, disappointing. It was primarily due to poor performance in the U.S., where several deals were postponed compared to our expectations.

Net sales decreased by 11% to SEK 272 million, while organic growth was a negative 8%. Recurring support revenue continued to provide stability, amounting to SEK 133 million or 49% of total revenue.

Operating profit was SEK 28 million, corresponding to an operating margin of 10%. If we look beyond the individual quarter, the last 12 months show a bit more consistent performance.

Net sales amounted to SEK 1.27 billion with organic growth of 9%. Recurring support revenue provided a solid base, accounting for 41% of total revenue. Operating profit was SEK 277 million with an EBIT margin of 22% over the last 12 months. So while the second quarter was disappointing, the last 12 months figures show a more stable view of our underlying performance.

Despite a weaker quarter, demand remained stable across our markets and order intake increased by 23%. Several expected deals in the U.S. were postponed during the quarter, but a number of those were received in early Q3.

In total, we secured 9 RayStation orders worth approximately USD 5 million in July. These came from well-established cancer centers, for example, University of Florida Health Proton Therapy Institute, the University of North Carolina School of Medicine, the Lexington VA Healthcare System, and the Emory Proton Therapy Center.

We made progress in several other important markets. We received our first RayStation order in Vietnam and Yonsei Cancer Center in Seoul, South Korea, expanded its RayStation installation with additional licenses for carbon ion therapy. In Germany, the upcoming end of life of Pinnacle contributed to 5 new RayStation orders. Overall, we continue to see solid demand with several important opportunities across our markets.

Another important customer win during the quarter was Dana-Farber Cancer Institute in Boston, which selected both RayStation and RayCare for its proton therapy program. The order value was SEK 29 million, and we expect approximately 1/3 of that to be recognized as revenue in Q3. And this also means that another leading cancer center, one of the top 15 clinics in the world join our growing customer base.

The solution combines RayStation and RayCare to enable efficient, adaptive, and data-driven workflows together with Mevion's S250-FIT proton therapy system and Leo Cancer Care's Marie chair and CT. And the combined system is supported in RayStation version 2025. The first treatment was done in June this year and that treatment happened at Stanford.

Some other key highlights from the quarter. In mid-May, Iridium Netwerk in Belgium performed the first online adaptive treatments using RayStation and RayCare on the Varian TrueBeam linear accelerator. This opens up for advanced adaptive radiation therapy to many clinics and patients around the world using equipment that they already had.

We also further strengthened our proton expertise through the recruitment of Antony Lomax, who is one of the world's most highly regarded experts in proton therapy.

During the quarter, we participated in the ESTRO Congress here in Stockholm, which was a great opportunity to connect with the global oncology community. On the product side, we launched new versions of RayStation, RayCare, and RayIntelligence during the quarter. Together, these releases expand our capabilities within adaptive treatments, more efficient workflows and more precise personalized cancer treatments.

Finally, we introduced a long-term incentive program to attract and retain talent. To secure shares for the program participants, we acquired treasury shares. We also carried out additional repurchases to reduce the number of outstanding shares. So in total, share repurchases amounted to SEK 200 million.

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

Thank you, Johan. It is obvious that our second quarter didn't turn out the way we expected, and the demand that we see in the market wasn't reflected in order intake nor in our net sales. Order intake was up 23%, and it did include orders of strategic importance, and that is good. But the growth was in relation to a rather low comparison quarter and order intake on licenses was down 14%.

As you know by now, our business model involves fluctuations, and the underlying fundamentals in our market and research position have not changed. We continue our growth. The book-to-bill ratio was 1.1 and order backlog end of June amounted to SEK 1.691 billion, of which SEK 670 million is expected to turn into net sales in the next 12 months.

The overview of net sales and EBIT margin development gives the view of the disappointment in the second quarter with a drop of 11% from SEK 305 million in 2025 to the SEK 272 million in 2026. License sales decreased 18% in the quarter and hardware sales were down 38%. Support sales did increase with 1%. There are still some headwinds from the stronger Swedish krona, and organic growth was minus 8%.

The low net sales led to an EBIT of SEK 28 million and an EBIT margin of 10%, and both of them are lower than last year's SEK 36 million and 12%. And we were not able to keep up the margin in the same way as we were in the first quarter of this year. Currency gain from revaluation of working capital gave us a positive SEK 4 million [indiscernible] effect in the second quarter.

Splitting the revenue into licenses, support, hardware, and training. The support revenue stood for 49% of the total revenue in the quarter, where our normal number is usually around 40%, and that higher 49% was related to the lower license sales in the quarter. Taking away currency effects from support numbers, the growth would have been 4%. We still have some periodization effects in support sales that moves revenue into later periods.

Moving to the next slide with the quarterly and last 12-month development of free cash flow. Free cash flow in the second quarter was SEK 50 million, and that is including positive effects from an increase in advances from customers and temporary increases in accounts payable. And as you can see, it is an improvement compared to last year.

Cash flow is always in focus, and it will be so also going forward. But as I have mentioned before, we have contract situations, for example, larger, very profitable contracts, frame agreements and so on, where we do accept longer payment terms. And we do see it as a strength that we are able to have this flexibility.

We have very, very low bad debt. And for the end of the quarter, we also had SEK 390 million in advances from customers.

Cash balance end of the quarter amounted to SEK 213 million. It was affected by a dividend payment that we did in May of SEK 137 million. And during the second quarter, we also did share buyback of SEK 142 million.

In July, we have acquired own shares for an additional SEK 58 million. And that gives us in total share buybacks of SEK 200 million, and that means that we have acquired 995,558 shares at this point, and that stands for 2.9% of the total registered shares.

As Johan also mentioned, there are 2 purposes with those share buybacks. One is to keep treasury shares in order to secure our long-term incentive program. And the other one is repurchases to reduce the number of outstanding shares and to transfer value to our shareholders.

In order to keep a high level of flexibility and preparedness for possible investment opportunities coming up, we have signed during the second quarter a new credit facility. It is a so-called rolling credit facility that we use when we want to, and it is in the amount of SEK 225 million.

And that was all from me. So I hand over to you again, Johan.

Thank you very much, Nina. Okay. So let me summarize and share our outlook. While we're not satisfied with our performance during the first half of the year, our long-term growth prospects remain unchanged.

Demand for advanced radiotherapy software continues to be strong. We're already seeing robust order momentum in the U.S. in early Q3, which supports a strong second half of the year. We are a leading player in the global proton therapy market, which continues to grow and offers a large number of business opportunities.

The clinical milestone achieved with RayStation and RayCare on TrueBeam is very important. Online adaptive treatments on the most widely installed treatment machine in the market support a broader adoption of both RayCare and RayStation.

Finally, we believe in strong performance during the second half of the year, and our operating margin target of at least 25% for 2026 is unchanged.

So now it's time to open up for questions, and I will hand over to Carolina.

[Operator Instructions] The first question comes from Kristofer Liljeberg at DNB Carnegie.

A few questions from me. Okay. Good. So the first question is you received quite a number of orders here in early third quarter. So is it possible to say how much of the miss in the second quarter has now been recovered in early third quarter? That's my first question. And then -- yes, maybe we could start with that.

We can answer them one by one, I think. Yes, it's -- there's a big part, but it's not -- I wouldn't say it's everything. But yes, that's my answer. It's not 100% slipped orders.

Okay. But do you expect to recover all of it in the third quarter? Or could it be further delayed?

No, those particular -- the expected orders for Q2, I think I'm quite confident that we will recover all of those during Q3.

Okay. And do you see a risk for additional delays instead come in in the third quarter and fourth quarter?

It's a fair question because now we have had 2 quarters with delays, although it was more elaborate or more clear in the second quarter, in particular related to the United States. But we -- there are other ways of looking at this.

And we -- given the pipeline that we have now, we are confident that we will deliver on the promise for the entire year. And that requires a very strong comeback in both Q3 and Q4.

And that's actually my second question. So when you say deliver on what you have promised for the year, then you refer to the margin? Or would you be willing to give any sort of indication what type of sales growth you could expect for the full year?

We didn't set a sales growth target. So I'm referring to the EBIT margin target.

Yes. Okay. But given that sales is down FX-adjusted here first half of the year, do you think it's fair to assume that you could be back at double-digit sales growth for this year?

That's definitely our aim. Given that we can't change the cost base drastically because that's mostly related to our staff, and that we can only change that in a slow fashion, so with that assumption, then to be able to deliver the EBIT margin target, it requires a significant growth.

Okay. Just one more question on R&D amortization, which were down here in the first half of the year. Is this the level we should assume now going forward? Or as you continue to capitalize, will R&D amortization pick up anytime soon?

Yes, I'll take that question. I mean, the main reason for the amortization to be lower this quarter is that we have a later release of RayStation. Previous year, we did that release already in April and this year, it was in June.

So that is the effect that you see in the depreciation. When it comes to the capitalization rate, it was low, I would say, in the comparison quarter. So -- and it was -- it has been on 70% last year, the total of last year. And now in the quarter 2 2026, we are approximately on those 70% again.

With the release amortization, we should expect it to go up again in third quarter?

Yes, I would say so. Yes.

We will now move over to Mattias Vadsten for the next question. Mattias, please. Sorry, Mattias Vadsten at SEB.

Perfect. First one, just a clarification made on the press release on 10th of August and the comments you made today around $5 million in orders from the U.S. So basically, is that all U.S. revenue you have received in July? Or is it referring to those specific orders that slipped from the second quarter?

It's referring to the ones that slipped. But I -- right now, I don't know if there is additional -- I can't answer that question if there is some additional orders on top of that. At any rate, it's no big ones, but it could be a few smaller ones.

Perfect. And then I was keen to hear a little bit about on APAC and Europe. Would you say that those regions are performing more or less in line with your initial expectations so far this year or in general terms?

Yes. Yes, I would. Especially in Europe, they have been performing very well so far. APAC is a little bit behind, but they also have a very strong H2 projected.

And then I have a question. Before you have given the Pinnacle conversion as a percent of license revenues. I don't know if you're willing to give that for either Q2 or first half or anything.

I'm sorry, I don't think we have it at this moment.

Sorry, can you please repeat?

Pinnacle replacements.

No, we haven't.

Okay. That's fine. Last one was on the cost side. Selling expenses in Q2 looked quite high. And at the same time, admin was lower. So I was just keen to hear if there are any reclassifications in cost items or anything like that, that's disturbing the comparison figures.

Sorry, Mattias, I was focused on your previous question, trying to look that up, the Pinnacle replacement. So I'm sorry, but can you repeat it again?

Yes, of course. No worries. It's the selling expenses that looked high at the same time as I think admin looked quite low. So if there are any reclassification or anything going on?

Yes. I mean, admin is related to last year. We had a couple of items that were affecting comparison last year, if you remember. So that's the main reason for the lower admin costs. And when it comes to selling costs, I would say -- I mean, we have increased the staff there. So that increase is mainly related to that.

Okay. Then I will squeeze in one last question. The 1,227 customers you presented in the beginning...

Yes. Sorry, Mattias, ESTRO was also a big thing that added some costs in this quarter 2 related to last year since it was in Stockholm this year.

There was an extra [indiscernible] as well.

So we have some extra activities. And we also have a minor effect that we have moved our patent costs from admin to sales. So that is also part of it. But I would say the main thing is that we have increased the staff.

Okay. I will squeeze in one last question now. So the 1,227 customers you presented, is that as of Q2? I mean, as of June then or is it today?

Yes. End of. No. Okay. That is the number you presented. Customers that is [indiscernible], yes.

Our next question comes from Carlos Moreno.

I've got -- well, I've got 2 questions. They're sort of related. I'll come out with them. If I would have gone back 12, 18 months ago, I would have thought that this year, which, by the way, looks like for the quarterly volatility is going to be a decent year for revenue growth.

But I would have thought it would have been like a banner year because of the Pinnacle roll-off. And it makes me slightly worried about what's going to happen post-Pinnacle because you do have a bit of a tailwind at the moment. It's an okay year with this tailwind. And as you say yourself, RayCare is a very long-cycle sale. And connected to that, I wanted to ask, I'll just lay it out and then we can answer the 2 bits.

I want to know if there's any change in your customers when it comes to thinking about paying for your software monthly rather than upfront with maintenance because if you think about back to Pinnacle, they've got the machines. They know they're doing a software swap out.

Surely, these customers don't think of it as CapEx. They think of it as OpEx, and they would be very happy to do a SaaS sale. So I want to talk about Pinnacle and what happens post-Pinnacle in this tailwind period. And I want to talk about the move to SaaS, which to me seems sooner or later, it's going to happen. And I just want to know what your customers are saying to you.

Okay. Thank you. So first of all, the Pinnacle, as you say, tailwind, and it wears off in certain -- it's already gone in certain regions. For example, Japan and U.K. are good examples. It's been gone for a while. And then we sell -- we replace in other systems like Monaco and Eclipse. So -- and then that will happen in the other markets as well.

So we see a transition from grabbing the, well, low-hanging fruit that still exists. Regarding Pinnacle, as it goes away, then there are other systems to replace, and the RayCare sales are slowly but surely picking up, and there's a lot of interest. There's a big pipeline now.

We have had okay, not so many, but 4 sales so far this year. It was 4 sales in total last year. And now I think we'll add a good number of additional RayCare sales during the second half of this year.

So I see -- I'm not too worried about the -- well, a loss of Pinnacle tailwind, if you will. And then when we come to -- I don't think you mean SaaS, you mean subscription.

Yes.

And so we do offer subscription, and we have some subscription customers, not that many. The overwhelming buying behavior of our customers is still to have -- to not view this as OpEx, but to view this as a CapEx investment.

And it makes some sense because it's a very long-term investment. I will add some details to this, some nuance, but I think it makes sense that if you -- most of our customers, they buy RayStation, and they stick with RayStation forever as far as we are concerned so far. And that doesn't feel like a subscription situation because really buy something for a very long period of time. And then I think the customers view it more as an investment type of purchase.

That being said, we want to -- it's really in our interest to -- at least not to avoid these quarterly fluctuations to have more of a recurring revenue-heavy model. And I believe there are ways where the customers can invest in the RayStation or RayCare framework.

And then functionality on top of that can be subscription-based. For example, treatment techniques in some way, they come and go. To go back 25 years, then all the treatments were called 3DCRT with uniform beams. And then for a long time after 2000, it was another treatment technique, IMRT, and then yet another one came VMAT, and I'm sure we'll have other treatment techniques.

So that type of thing, I think it lends itself nicely to subscription where you can -- things that can change over time that I think is very well suited for subscription. So we're going to investigate and move into that field, because right now, we just offer full RayStation or full RayCare in a subscription fashion, then -- and I think we'll see some sort of hybrid model going forward.

Okay. But by the sound of it, it's going to be slow. Basically, your customers aren't that interested in it, and it's not particularly changing? Yes.

Next, we have Oscar Bergman from Redeye.

It seems that we are experiencing more delays in this industry as of late, specifically in the U.S. So I'm just wondering if you can give some background as to why that might be. And I'm speaking in general terms for the industry.

Of course. Yes, we have some theories and some data points. You know the reimbursement levels have gone down in the U.S. during this year. And what we hear from some customers is that the administration around procurement, and the part of the hospital that handles procurement, has become much more cautious. And so they slowed down the process. And some people say that it's because they really want to make sure that whatever the hospital buys is really, really needed.

So I think that's part of the explanation that -- but of course, in our cases, the hospitals have -- they do need the software, and nothing has been canceled so far. So I guess in the end, it turns out that the hospital or the purchasing departments decide that, okay, this software is needed, but the whole process is slower because they want to sort of minimize unnecessary purchases.

That's the main explanation. And these delays, we don't see them in other regions. It's -- this is U.S.-specific.

Okay. Great. And at ESTRO, Johan, you showed a very interesting slide during your presentation. One slide illustrated the 6 machines that you have RayCare interoperability agreements with today. And then on the second slide, you showed an additional 18 machines that you expect to have interoperability agreements with in the next 12 months. So I just want to make sure that I understood the time line correctly.

Yes, 18 sounds a bit much. I think I know which slide you referred to. It's not -- I'm not sure it's 18. But it's -- it's a significant number. It's around 10 new machines. And you have understood it perfectly right. So we are adding interoperability to RayCare to a large number of machines right now.

Okay. Great. And just a follow-up on that. The customer pipeline in respect to those expected interoperability agreements, I suspect that you have pretty far-going discussions already with those potential customers that this would entail for you?

Yes, in some cases. I think Dana-Farber is a good example because they purchased Mevion FIT. The interoperability is not there technically yet, but it's very close. We have teamed up with both Mevion and Leo Cancer Care, and there will be interoperability between RayCare and that machine.

But Dana-Farber has -- they have already purchased it because they know that the interoperability will come. And that's one example of that.

Okay. And just a final question from me. I recently spoke with someone who's very, very familiar with Pinnacle. And he told me that a part of the Pinnacle users today actually will continue using Pinnacle after end of life because there are some third-party service providers that are still going to service this TPS.

I'm just wondering if you have noticed this any significant degree or if you expect that this is a very small part that over time is likely anyway to convert as well.

Yes, I don't think that's a long-term solution. It's still a very old system. That's why they abandon the system. It has been very robust. It survived many, many more years than anyone expected.

And for a medical device as treatment planning system is, you don't want to have it supported by a third-party organization for any longer period of time. So I think that's going to be a short term -- at least in the Western world. But I think it's probably true in, for example, China, there will be Pinnacles ongoing even beyond end of life. But the majority of the Pinnacles in North America and Europe will be replaced.

We will move over to [ Daniel Kaarsa ] for the next question.

So regarding the North American market, I think a lot of investors have seen sort of a dual trend with large health systems consolidating while care simultaneously somehow shifts towards smaller outpatient clinics and satellite centers. And I was just going to ask how RaySearch positions itself to product offering, I mean, particularly RayStation, and RayCare to capture this shift? And how does it affect your sales strategy in the U.S.?

Currently, we work on both fronts. We work both with small and medium-sized clinics, and we work with the bigger networks. So it's not really -- we don't distinguish. I mean, of course, we distinguish, but we don't prioritize one over the other.

But with the consolidation, wouldn't bigger hospitals, bigger hospital parks, a lot more diversifications in the machines, could that be some kind of tailwind for you guys giving you guys moat with your software?

I mean, if you look historically, the biggest most renowned -- we just announced Dana-Farber, and that means that we have 11 out of the top 15 and largest clinics in the world, and they represent what you are describing.

So yes, on paper, that should be in our favor. But I also think it's important for RaySearch to go after because the bulk of the market in the U.S. is still all these smaller clinics. So we have to -- the bigger clinics, we -- I mean, check, we have -- those are -- they come to us eventually. The smaller clinics, we have to work harder to break into the 1, 2, 3 linac centers.

Okay. And just one more question regarding China. So I mean, looking at China, China has for the years, there has been a sort of strong regulatory push for hospitals to source domestic medical equipment. They came a new law about procurement also.

I was going to ask how is RaySearch navigating these buy local requirements? And do you see these regulatory shifts creating long-term hurdles for your sales in the region? Or is it also some kind of tailwind?

Yes. Regulatory-wise, it's a hell of a headwind, I would say, so far, it's a very heavy regulatory process. But I mean, it's clear that China aims to purchase more and more domestic in the health care sector.

One way that we address this is to work closely with a number of new machine vendors that are Chinese. And we have really good, very strong partnerships with several new machine vendors. We have worked for a long time with Shinva. We work with IntelliRay. We work with OWL and several others. So it's -- that's a good approach for us to bundle with the Chinese machine.

Now we have a follow-up question from Kristofer Liljeberg at DNB Carnegie.

Just wonder if you could disclose the number of proton therapy deals you signed in the second quarter and in the first half in total?

Okay. I don't have that number on top of my head. Do you have that, Nina?

No, not exactly how many. We have to get back on that one.

Okay. That's fine.

We can come back on that. It's easy to find out. We just don't have it right now.

Yes. We have received a few written questions, but most have been covered already. But I have one here regarding the Ortega project.

RayStation for the first 2 clinics was recognized in Q1. When do you expect RayCare for those 2 clinics to be delivered and recognized as revenue? And when do you currently expect RayStation and RayCare to be delivered to the third clinic?

Yes, we have delivered 2 clinics. There will be at least 2 more deliveries this year. And we're up to 4 in total. And then we have another 5 to go.

Yes. That's correct.

And they will probably be delivered within 2027, 2028. And I can't say exactly when the revenue for RayCare will be recognized. But I would guess almost all of it should be recognized before end of 2028.

Yes. So I can add there we have recognized revenue for RayCare for the 2 first sites now in quarter 2. And as Johan said, when we deliver to the 2 additional sites in 2026, that will also be with RayCare.

So 4 RayCare installations this year to Ortega?

Yes, or deliveries, at least.

Deliveries.

Yes.

Good. That concludes our Q&A. Thank you all for joining us today and for your questions. If you have any follow-up questions, please don't hesitate to reach out to us. We look forward to seeing you again on November the 3rd for our Q3 results. Have a great day. Thank you.

Thank you.

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.