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Welcome to Tobii Q1 2026 Report Presentation. [Operator Instructions] Now I will hand the conference over to CEO, Fadi Pharaon; and Interim CFO, Asa Wiren. Please go ahead.

Good morning, everyone. This is Fadi Pharaon speaking to you, CEO of Tobii. I'm joined today by Asa Wiren, our Interim CFO; and Rasmus Lowenmo Buckhoj, who leads our Communications team. And thank you, everybody, for joining our Q1 2026 earnings call. So let's start with the quarter.

Q1 was a quarter with clear areas of progress, but also challenges that we are addressing. As you can see, the reported net sales decline year-on-year was 17%. However, organic sales actually increased by 5%. We additionally had an improved gross margin for the group by 7 percentage points. And furthermore, during and shortly after the quarter, we secured strategically important design wins. All of these developments together show that despite currency and timing-related headwinds, we continue to see underlying momentum in parts of our business.

We've continued our disciplined focus on cost reduction and operational efficiency. So during this quarter, we reached SEK 48 million in cost reductions if you compare to Q2 2025. Since that point, we've actually achieved SEK 120 million in total cost reductions, which actually exceeds our previously communicated target of SEK 100 million. And still, we have one more quarter to go in that program. If we move to free cash flow, that was positive for the second consecutive quarter now at SEK 17 million.

And our cash position stands at SEK 39 million, even after repaying the SEK 39 million of deferred COVID-related taxes and the SEK 47 million of our previously utilized revolving credit facility. We've also agreed on a revolving credit facility with our bank for an amount of SEK 25 million. Let's now review the performance of our three business units. For those who are new to the call, Tobii has 3 business units, each addressing different use cases and customer segments.

If we start with Products & Solutions at the top here, it's a unit that delivers vertical solutions to thousands of customers annually. The portfolio ranges or the segment, I would say, ranges from university research labs to enterprises and PC gamers. So in Q1 of 2026, Productd & Solutions represented 48% of Tobii's net sales. The EBIT for the segment was negative SEK 12 million. And this was partly due to the strengthening of the Swedish krona and partly due to delayed implementation of the 5-year plan policy in China, which has affected our sales in that market. At the same time, though, we saw organic growth in EMEA and the U.S. markets as well.

During the quarter, we also launched a new rental model for our wearables portfolio. And the aim of that is to lower the initial barrier for customers who want to evaluate how eye tracking and attention computing can actually create value in their operations. In addition, we have launched a Remote Live review for Tobii Glasses X, a feature which I will return to a bit later in the presentation and talk more about. If you go to the second row, which is the Integrations business unit, that unit serves customers who embed Tobii's technology into their own offerings.

There you can see segments like Assistive & Augmentative Communication solutions as well as XR technologies. This business, as we know, can be lumpy, and we've seen that bookings and revenue recognition may vary significantly between the quarters. So for Q1 2026, the Integrations represented 25% of Tobii's net sales and the EBIT was positive SEK 5 million. After the end of the quarter, we secured a design win with a global technology provider to integrate Tobii's Webcam eye tracking software into one of their premium tablets.

And on the third row then, the Autosense business unit, which develops and provides Driver and Occupant monitoring solutions to automotive OEMs as well as Tier 1 suppliers. And in Q1 2026, Autosense represented 27% of Tobii's net sales, which actually is a significant increase compared with last year. And this was mainly driven by revenues related to the DMS technology licensing agreement, which was signed in Q4 2025. The Autosense EBIT was negative SEK 21 million, and this was mainly due to project mix and timing effects, and also will come back to that. Autosense won a new design win. And here, we will be providing our Driver monitoring system to a premium sports car European OEM.

Additionally, we'll also be extending an existing DMS design to a new commercial vehicle platform. Now in regards of the Integrations and Autosense design wins I just mentioned, we are very pleased to secure deals with globally recognized brands. However, these wins are not expected to be financially meaningful, but they are very strategically important because they demonstrate the continued relevance of Tobii's technology in demanding customer environments. And this will strengthen our credibility with other global customers, and it reinforces actually our position as a leading innovator in efficient computing.

Now continuing with Autosense, I'd like to share that we are managing a dynamic and developing sales pipeline and supported by continued customer engagement and increasing market relevance for Driver and Occupant monitoring solutions. And considering that, let me shed some light on Autosense staged business model. In the short term, customer programs will or may generate nonrecurring engineering, we call NRE funding, which supports custom development and integration and validation work.

Now the larger long-term opportunity typically comes later. And that's when the awarded vehicle platforms enter the production. And then revenue is then generated through licenses that are tied to vehicles that are using our technology. Also, good to note that the tenders take place usually 2 to 3 years ahead of start of production. With that, I'd like to invite Asa to walk us through the financials, please.

Good morning, everyone. Let's take a look at Tobii's financials for the first quarter of 2026. I'd like to highlight three areas to start with. Net sales amounted to SEK 164 million, which is a decrease compared to the previous year. However, last year included nonrecurring revenue of SEK 27 million and the stronger Swedish krona had a negative impact of SEK 15 million. Adjusted for these factors, we had organic growth of 5% and the gross margin, as Fadi mentioned, increased to 84% compared to 77% last year.

Operating profit EBIT was minus SEK 28 million, a decrease of SEK 40 million compared to the same period last year. This decline is not only due to lower net sales, but was also affected by increased depreciation of SEK 20 million and an impairment of SEK 6 million. Free cash flow for the quarter improved by SEK 31 million despite the lower sales. The main explanations are improved working capital, reduced operating costs and lower investments. Let's also look at developments over the past 2 years with Autosense fully included from the second quarter of 2024.

When reviewing performance, looking at net sales, it's important to note that the Swedish krona has strengthened during the period. The quarters from Q2 2024 to Q2 2025, each included a portion of nonrecurring revenue linked to the image business following the acquisition of FotoNation. And Q2 2025 was affected by the volume transaction by -- with the Dynavox transaction. Turning to EBIT. There was -- we also see an impact from other operating income and expenses that vary between quarters. In Q1 2025, for example, we divested some noncore patents, SEK 15 million, and operating profit in the fourth quarter of 2025 was significantly negatively affected by goodwill impairments.

During 2024, 2025, the savings program was executed which reduced noncash operating costs by SEK 263 million. Furthermore, the savings program launched in the third quarter of 2025 has reduced costs by SEK 120 million over 3 quarters. Altogether, the company's cost structure has improved significantly over the past two years. For example, administrative costs per quarter have been reduced by approximately SEK 20 million. Today, we see a more rightsized and cost-conscious Tobii.

So a few words about the Products & Solutions business area. Fadi previously reported on market development, which are reflected in the figures as lower sales compared to the previous year. The gross margin stands at a strong 71%, thanks in part to a more efficient delivery organization. The savings measures implemented have reduced OpEx by approximately SEK 25 million compared to last year. As a result, EBIT is broadly in line with the previous year, minus SEK 12 million.

As regards to Integrations, we see a decline in net sales as last year's quarter included nonrecurring revenue of SEK 27 million. Gross margin has increased slightly. And here, too, OpEx has fallen by over SEK 10 million. Integrations delivered a positive operating profit of SEK 5 million. The Autosense business unit reports its highest ever sales, SEK 45 million, thanks in part to the DMS license agreement announced in the fourth quarter of 2025. Costs have also been substantially reduced, but are offset by higher depreciation triggered by license sales.

The Autosense business mainly consists of two different revenue cost models linked to what Fadi previously described. One is the NRE project part where revenue and costs are recognized as the project advances, so-called percentage of completion. And another part, the product project development, where relevant time and expenses are recorded as assets on the balance sheet. Once license revenue starts coming in, these costs are gradually written off as depreciation, which shows up in the financial results. This also explains the gross margin of 100%. We see the effects of this in the quarter as depreciation increased by SEK 20 million compared to last year, partly as a result of the DMS deal.

So finally, let's spend a moment on our cash flow and balance sheet. Free cash flow improved, as mentioned earlier, by SEK 31 million compared to 2025. Our cash balance at the quarter end was SEK 39 million. During the quarter, SEK 39 million was repaid to the Swedish tax agency, the COVID-related tax reliefs, and the credit facility was repaid by SEK 47 million. After the end of the quarter, an agreement was reached with the company's bank for a credit facility of SEK 25 million. We assess that this is sized according to our operational needs. Given the debt structure in the coming years, there remains a risk that Tobii may not have sufficient financing for the coming 12 months, addressing this is our top priority. And by that, I'll hand over to Fadi for some final comments.

Thank you, Asa. But before I go to the final comments, I just will talk like a little bit about thought leadership and product innovation. And I'd like to take a moment to highlight one example of how we continue to expand the practical value of Tobii's technology. So we recently launched the Remote Live View for Tobii Glasses X. And in simple terms, this capability means that it allows a remote expert or a researcher or a trainer to actually see what the person wearing their glasses sees and importantly, also understand what that person is actually looking at.

And it's a distinction that matters because if you look at traditional video, we can show the scene. But when you add eye tracking, it gives that element of attention and gives the context to the human behavior in real time. So this feature opens up several important use cases. A remote technical support, a field technician can share both their visual environment and their attention with an expert who is located elsewhere. If you look at the field of auditing and assessment, maybe a facility inspections or insurance claims, you can have a central expert team who can support more accurate documentation and support decision-making remotely.

If you go to research or UX studies, we can have distributed teams who can monitor data collection live and help ensure that the quality of the data is maximized. So the customer value is quite straightforward, less need to travel, reduced downtime and improved operational efficiency. And the reason I'm highlighting this example is because it illustrates the range of our offering from capturing attention data to enabling real-time insight and better decisions in operational workflows. And this is an important part of how we see the long-term value of attention computing.

Okay. So now let me summarize the quarter. Q1 was a quarter with clear areas of progress, but also challenges, which we are addressing. The reported net sales declined, but the organic sales and the gross margins increased, and we continue to see constructive customer dialogues across the business. Our focus now is on converting these dialogues into commercial wins and revenue growth. We also continued to execute on our cost reduction program, and we've exceeded our previously communicated targets.

The free cash flow, very important for us, was positive for the second consecutive quarter in a row. And we've also renewed our revolving credit facility, which gives us continued liquidity flexibility. Now let me address the topic that I know remains important to investors and all stakeholders, which is our debt profile and financing situation. And this is in relation to the obligations that we have beginning in 2027 and continuing through 2029.

During the quarter, the Board and management's strategic review has led to concrete discussions with external parties, including evaluation of various structural or transactional alternatives such as business divestments, partnerships or capital raising. Now these discussions are ongoing, and there's no guarantee that this will result in any transaction decision or other actions. And I fully respect your eagerness to know more, but we will not be commenting anything more about this topic during the Q&A.

Now as I now have had 100 days in the role as CEO of Tobii, I think it would be a good time to share some of my early impressions of the company. My conclusion is that Tobii has valuable strengths. It has differentiated technology, deep competence in eye tracking and visual computing and strong positions in customer categories where these capabilities matter. We also operate in a market environment that continues to broaden as we see more categories and customers who actually understand the value of attention, behavior and human machine interaction through eye tracking and related technologies.

We believe that this relevant can expand further with the increasing adoption of AI and robotics. Because once you have a better understanding of human attention and intent, that actually could help make human machine interaction more natural, efficient and effective. So from a strategic standpoint, I believe Tobii is well positioned in an area that is seeing increasing relevance. At the same time, we have to be clear about where we are today. Our reported sales declined, and that's clearly not where we want to be.

So this means we need to improve how we convert our strengths into commercial results. We need better sales execution, sharper prioritization and a higher pace of product renewal. We need to bring the right products to market faster and execute with greater consistency in how we capture this demand. This is a core priority for me and the leadership team.

Now in the near term, our focus is very straightforward: improve the execution, continue improving on the cash profile of the business, maintain our cost discipline and prioritize the areas where we see the strongest potential to create customer and shareholder value. In the longer term, our ambition is for Tobii to translate its technological leadership and market relevance into a stronger, more scalable and more sustainable business. I believe the opportunity is real, and we have to earn the right to capture that opportunity by delivering better outcomes. Thank you very much. And Rasmus, I hand over to you, so we can open the Q&A, please.

Thank you, Fadi. Thank you, Asa. Now before we open for questions, I would like to briefly set expectations for the Q&A. We, of course, welcome your questions as always, and we will aim to be as transparent and helpful as possible in our answers. At the same time, there are certain areas where we will not be able to provide detailed information such as individual customer relationships, specific project revenues or other commercially sensitive details. This is to respect our confidentiality commitments and to ensure that we communicate in a consistent and fair manner to all stakeholders.

And where we cannot go into that level of detail, we will do our best to provide relevant context at an aggregated level. And with that, we're happy to take your questions.

We will begin going through the written questions that have been submitted. And we will start with a question from [Jeppe]. The Autosense SCDO design win date back to when Xperi still owned Autosense. Given the lack of new OEM design wins for SCDO, should this be interpreted as an indication that competitive intensity is higher than expected with peers offering solutions that match or even exceed yours?

Thank you for the question, [Jeppe]. I think very important to bear in mind that Tobii Autosense is not an SCDO unit. Tobii Autosense is a DMS and OMS provider. Single camera and SCDO is one of the innovations we've had. And as we just released this morning with the quarter, we received actually a new DMS win and extended another one with an existing customer. So it is, for sure, a competitive market, but it's also a market that is quite big to absorb multiple players.

We've been -- if I look at SCDO in particular, which is part of our offering, it's been quite successful in the premium segment. It's been validated in the market. And as I mentioned a bit earlier, we're seeing quite a lot of buzz now in the pipeline post the launch of SCDO in the market from other potential customers that we are working with. And we are working as hard as we can to ensure that we translate that pipeline into further steps into what everybody would like to see, which is, of course, a contracted end or design win.

Thank you. Another question also from [Jeppe]. Tobii often emphasizes that single camera interior sensing delivers very high value. However, since competitors such as Seeing Machines and Smart Eye also have single camera interior sensing in production, I don't see the Autosense has any clear advantage. Could you elaborate on this?

I see the advantage of Tobii Autosense in our capabilities with visual computing. This is where we have the algorithms. This is where we have the capability to create fantastic data collection and ensure that there are as few false alarms as possible. Single camera is an innovation that we are very proud of, and it's one kind of delivery systems. We are also open to work with multiple cameras.

Single camera advantage is that when it fits the OEM's choices for the use cases, it can actually translate in quite significant cost savings because then you don't need other types of sensors, for instance. And of course, you save money on the amount of cameras that needs to be put on. But we are not defined only by the single camera innovation we have put forward in the market. Again, if you look at the majority of our existing contracts, they are actually DMS and these work with multiple cameras.

Thank you. Question from [Per B]. Which are the top 3 risks of not meeting the Tobii objectives you see going forward? And how will you mitigate?

Thank you, [Per]. Well, I mean, the most obvious first risk is, of course, that we wouldn't have a strong enough operational cash flow to sustain our business operations. And that risk has been mitigated for two years now. Clearly, a large part of that comes from our cost and operational efficiencies, which today have yielded an accumulated savings, I would say, about SEK 380 million by now.

And as you can see, I mean, we are very proud of the fact that we have now two consecutive quarters of positive cash flow. So mitigations are in place. But more important for us and the mitigation is also to continue increasing the sales. We don't see that cost efficiencies is what will determine the future of Tobii, but rather our growth in an expanding market. The second risk I would bring up is, of course, the debt obligations that we have starting in 2027 and run to 2029. And I've already commented that in my previous input, and I cannot add anything more to that.

Thank you. Another question from [Jeppe]. While Tobii has surpassed 1 million vehicles on the road, its competitor, Seeing Machines reported today that its Q1 2026 deliveries alone exceeded that number. How can a small player compete in the automotive industry?

Yes, absolutely. I mean we are the challenger in the automotive industry, and we have never claimed otherwise. I think where we are really focusing on is the strength of our innovation that was proven by single camera, for instance. But coming back to what the talent that we have, visual computing and data collection and data management, is where we'd like to continue delivering.

And if you could look at the track record, we've been doing well in the premium segment. So of course, with the previous large win with the premium automotive player in Europe and the one we announced this morning is premium sports car OEM, we are actually living up to very high and technically stringent and quality requirements. And this is where we would like to place our future and work with anybodies who see a way to bring in-cabin sensing to have more value to their own customers.

Thank you. We have a question from Jacob. Has the majority of the DMS licensing deal been recognized during Q1 '26? Or is there an equally big part in Q2 '26? How should we think?

Thanks for the question, Jacob. Since we don't mention the exact numbers, I can say it will be about the same in Q2 as in Q1.

Thank you. We have a question from [Emil]. Why does Autosense have no hardware revenue? And should investors expect that to remain the model going forward?

Thank you, [Emil]. Well, our focus and our strength lies in developing software that accumulates visual computing and that can actually work with different sets of hardware that's out there in the industry. Of course, compatibility with the chipset platform that OEM chooses and the ECUs that are in the car. This is our forte, and this is where we see the largest expansion for us considering what we are doing. So yes, we are continuing to focus on providing software stacks. And we, of course, in that collaborate and partner with relevant hardware providers who can act as well as partners in enlarging our own pipeline.

Thank you. A question from [Per B]. Where do you see Tobii in 5 years still as an independent company or acquired by a larger player?

I would like to see that Tobii succeeds with all of the plans that we have in motion. I think an incredible amount of development -- positive development has been done on the metric of cost efficiency and operational efficiencies. Very important for us and the leadership team is to focus on our sales conversion, ensuring that we bring that sales growth that we all want to see and that we grab a larger share of a growing and expanding market.

Thank you. A question from [Emil]. How much of the Q1 Autosense revenue was recurring or license-based versus one-off engineering or milestone revenue?

Thank you, Emil, for the question. And not going into too much details in this call, I refer to Page 9 in the quarterly report, where you can see the split between hardware, software, services and by time of sales category. So you can find the details not only for Autosense, but for all the segments on Page 10.

Thank you. Looking to see if we have any additional questions. We have a question from [Bo Engvall von Scheele]. How many Autosense design wins totally are from SCDO?

Thank you, Bo Engvall. So SCDO has been our prime initiative and we have one large European -- premium European auto manufacturer who has adopted that. We've done the homologation. It's been installed and the models are actually going out in the market. So it's valid. And if we remember, I would say, by summer last year, there was skepticism in the industry about getting a single camera DMS and OMS to work because nobody has done it before.

But with the support of our premium Automotive, that has actually proven to work. It is launched, and that has garnered us now much more interest. And that's why I was referring to the pipeline that we are working upon and building to a pyramid. So of course, our focus is to conclude more deals, be it DMS on single camera or DMS and OMS on multiple cameras. But for sure, single camera is now of interest in many parts of the pipeline.

Thank you. And we have a question from [Emil]. When will investors get a concrete outcome from the strategic review?

I've already referred to the statement. And as I said before, we will not be adding any more flavor to that.

A question from [Anders]. Could you elaborate on the smart glasses business and if possible, give Tobii's effort in this segment?

So of course, smart glasses is -- multiple parts of the industry are looking on that, a lot of ideas. What's important for us is to understand how eye tracking plays a role. There are multiple use cases one could think of, but we are interested to ensure that we find use cases that can scale. So we are, of course, in -- clearly through the XR business, that's what we do every day in dialogues with different providers of smart glasses. And once something materialize into a commercial deal, of course, we will communicate that at that point.

Thank you. Are there any additional questions? There does not appear to be any additional questions. And we will, therefore, hand over to Fadi for closing.

So I would like to thank the entire team of Tobii and the Board of Tobii for all the incredible support and for the hard work that's been put as a relative newcomer to the company, I'm extremely excited to what's ahead of us and the transformation we're doing. And I'd like to thank all of our shareholders and people who have also called in today for all the support in that journey as well. And with that, we wish you an excellent day.

Welcome to Tobii Q4 2025 Report Presentation. [Operator Instructions]

Now I will hand the conference over to CEO, Fadi Pharaon and Interim CFO, Asa Wiren. Please go ahead.

Good morning, everybody. This is Fadi Pharaon, new CEO of Tobii. And I'm joined here by Asa Wiren, our Interim CFO; and Rasmus Lowenmo Buckhoj, who is heading Communications. It's my absolute pleasure to be addressing you today in my new role at Tobii, and I'm really looking forward for a good collaboration together.

So let's start. We ended the year with solid and significant cost efficiency measures that are here to support our journey towards profitability. However, the fourth quarter of 2025 has been weak in terms of both revenue and results. We've witnessed continued headwinds from the global state of geoeconomics as well as currency-related challenges as the Swedish krona continued to strengthen. All in all, this has led to generally weaker sales. But at the same time, the solid work towards cost efficiencies has continued, and in Q4, SEK 43 million have been achieved in run rate cost reductions. Well, this means that we have already achieved SEK 72 million in total cost reductions since Q2 of last year. And hence, we are moving steadily towards the SEK 100 million.

Now these lower costs have contributed to an underlying EBIT for the company of negative SEK 1 million. Furthermore, we've made substantial noncash fair value adjustments and write-offs to a net value of negative SEK 195 million. So these comprise write-offs of goodwill and projects as well as fair value adjustments of contingent considerations for previous acquisitions, mainly related to Autosense. These adjustments are mainly because new business deals haven't materialized in the anticipated rate. And that has delayed the original plans for Autosense.

In addition, we see that the international automotive market has developed weaker than expected at the time of the acquisition, which has further now affected negatively. So all in all, the reported EBIT for Q4 is negative SEK 196 million.

Now for those wondering why we published the report earlier than planned, is because as soon as the Board decided on these adjustments and write-offs, we released the press release as well as the report. Now we're also encouraged by the fact that our free cash flow has strengthened during this period to positive SEK 57 million. And as we reformed earlier, Tobii continues to evaluate and engage in strategic initiatives that will help us strengthen this cash position. As one outcome of such initiatives, we had a driver monitoring system technology asset licensing deal was actually secured in Q4. And that resulted in onetime revenues that we partially paid in Q4, while the remaining majority will actually be paid in the first half of 2026.

So now let's review the performance of the 3-year business segments. As you know, we have -- Tobii have 3 business units. We address different use cases and different customer segments. I'll start from the top with the Products & Solutions business unit, which delivers vertical solutions to thousands of customers yearly, ranging from university research lab to enterprises as well as PC games.

In Q4 of 2025, the Products & Solutions business represented 57% of Tobii's businesses. The EBIT result in Q4 is negative SEK 1 million has not been impacted by any adjustments or write-offs. The result is partially due to the strengthened Swedish krona but mainly due to trade barriers that continue to affect our product sales in the U.S. as well in China. We are focusing on our consultancy services as a way forward to balance out the mix.

Second, the integrations business. This unit engages with customers who want to integrate Tobii's technologies into their own offerings like assisted communication or VR technologies. Again, in Q4 of 2025, this business represented 24% of Tobii's net sales, and the EBIT was negative SEK 24 million. But if we exclude the adjustments and write-offs, the EBIT would be -- or would have been a positive SEK 8 million. We also saw a new design win for a VR headset, which was secured during the quarter. And we noted an uptick in interest in smart glasses.

And the third business unit, Autosense is one that focuses on developing and providing driver and occupant monitoring solutions to automotive OEMs and Tier 1s. And in the fourth quarter of '25, this unit represented 19% of Tobii's overall net sales. This is actually a significant increase compared to last year. And the reason for that is the onetime of revenues that were generated by the DMS technology licensing agreement that was signed in that quarter. As I mentioned, the majority of the revenue of this segment will come in the first half of 2026. This segment delivered a negative SEK 172 million EBIT. And if we, again, exclude adjustments and write-offs, it would have been a negative SEK 9 million.

Here, I'd like to invite our CFO, Asa to please go through the financials.

Thank you, Fadi, and good morning to everyone. The fourth quarter continued with weak revenue development with total revenue amounting to SEK 193 million. The stronger Swedish krona had a negative impact of SEK 17 million in the quarter. Reported EBIT amounted to minus SEK 196 million and includes the noncash impairments of goodwill and projects together with adjustments of continued considerations, totaling a net of minus SEK 195 million, resulting in an underlying EBIT of SEK 1 million. Although this represents a decrease to previous years, cost reductions have efficiently offset lower revenue. This is also evident when looking at the development over the past 8 quarters.

Please turn to the next page for further comments regarding products and solutions. Fadi mentioned explanation for weaker sales. But here, it's clear how cost reductions have -- are having an impact. The drop in results in Q2, as you may recall, was impacted by project impairments of SEK 33 million.

On the next page, we can see the development for integrations with both lower revenue and margins. One contributing factor is imagining related revenue that ceased in the second quarter of 2025. The margin on this revenue was 100%. Underlying EBIT adjusted for goodwill impairment of SEK 32 million amounted to a positive SEK 8 million.

On next page, we can see the development for Autosense during the quarter. Revenues have been positively impacted by the initial part from the DMS agreement. Reported EBIT includes noncash goodwill impairments, a minor part, SEK 36 million regarding Tobii's legacy automotive business and SEK 176 million relating to the acquisition of FotoNation. The seller's opportunity to receive additional considerations in the first case, expired on last of December 2025, resulting in the reversal of a previously recognized earnout liability of SEK 18 million.

SEK 49 million of the reversal is attributable to the revaluation of variable considerations related to the FotoNation acquisition. In addition to this, projects have been impaired by SEK 18 million during the quarter. All in all, as previously mentioned, noncash adjustments add up to minus SEK 195 million.

Underlying EBIT adjusted for noncash impairments and revaluation amounted to minus SEK 9 million. The goodwill impairment is a result of the annual goodwill review for which Fadi previously presented the reason in his presentation. The reported values represent management's and the Board's best assessment at the time of the report.

And then if we turn to the next page and take a look at the balance sheet. Tobii's balance sheet has naturally been affected by actions taken, such as lower intangible assets via impairment, reduced liabilities due to repayment to Swedish Tax Authority earlier this year or last year, reduced liabilities due to revaluation but also due to the stronger Swedish krona, which decreased the debt denominated in U.S. dollar.

Cash and cash equivalents as of December 31 amounted to SEK 117 million. We report a strong free cash flow for the period, SEK 57 million, key components include the payment of SEK 47 million from Dynavox, which I mentioned already in the third quarter was to come in the fourth and the initial payment for the DMS transaction in the fourth quarter.

Our credit facility of SEK 50 million was utilized with SEK 47 million as of the balance sheet date and is reported in the Q1 2025 report the credit runs until 31st of March this year, and we are in ongoing discussions regarding financing solutions.

During 2025, SEK 91 million relating to COVID loans was repaid to the Swedish Tax Agency and a further SEK 40 million will be repaid during Q1 2026. Given the company's current position, there remains a risk that Tobii may not have sufficient financing for the coming 12 months. Addressing this is one of our top priorities and also describe additionally in the year-end report.

I would like to take this opportunity to summarize a number of the strategic measures that have been implemented during the year. The ongoing strategic review encompass the entire organization and can be structured into 4 different categories, one being cost adjustments, another one being product portfolio valuation, third divestments or development of partnerships for various business segments and the fourth, of course, being strengthening our financial position.

Some examples. When it comes to cost adjustments, in 2025, the initial savings program was completed, resulting in a reduction of OpEx by SEK 263 million. The goal was SEK 200 million. A further savings initiative of SEK 100 million was launched in Q3 with additional cost reductions already identified, SEK 43 million in Q4 and SEK 29 million in Q3. Several projects aim to enhance competitiveness and improve cash flow.

When it comes to product portfolio valuation, such as duplicated functions arising from the acquisition have been consolidated, and a clearer prioritization is being applied to future investments with unprofitable segments discontinued. For divestments in partnerships, noncore assets have been divested including the tech spin-off as well as nonstrategic patents that were divested during the first quarter of 2025. And new forms of collaboration and partnerships are being developed, and the DMS deal presented in Q4 is a notable example to that one.

And to strengthen our financial positions, all the mentioned categories are designed to improve the company's financial position and cash flow resulting in a more focused and efficient Tobii. In addition to operational measures and divestment, work is being conducted in parallel with advisers to explore various financing and capital market solutions. While significant progress has been made across all areas, the review process is ongoing and will continue over several quarters.

By that, I would like to hand over to you, Fadi, for some final words.

Thank you very much, Asa. So let's summarize the quarter. Q4 2025 was a weak quarter for us, but with strong delivery on our SEK 100 million cost-cutting program, as well as a strategic review initiative with the DMS technology licensing agreement as 1 proof point. This has enabled us to achieve a healthy cash flow for the quarter of SEK 57 million. Now we took significant write-offs and adjustments mainly towards Autosense. We remain fully committed to grow our business with DMS and OMS and the recent single camera DMS plus OMS launch with a premium European OEM has garnered keen interest in our interior sensing offering.

Our ambition for the long term is to achieve a sustainable positive cash flow, so we can enable value creation and also ensure we have the full capabilities to drive profitable growth. We will continue our focus on our sales and commercial initiatives to do so.

Now in the near term, we remain focused on addressing our financial needs. These previously announced cost reduction target is progressing well, and it will definitely improve our liquidity in 2026. We continue executing on strategic reviews, which include potential divestments. And as earlier announced, the Board has engaged an external adviser to evaluate financing and capital market options. So the ongoing work is aimed at resolving our financial needs, and that allows us to further focus on our objective to achieve sustained profitability and positive cash flow.

Considering all of what I mentioned, the Board decided to remove the current financial targets announced in 2024, and we will be sharing new ones in due times.

Finally, on a personal note, I'd like to share that I'm very delighted to joining Tobii, and I'm highly motivated and energized to work closely together with the team in shaping the company's trajectory forward.

Thank you very much for listening. And Rasmus, can we please now open the Q&A.

Yes. Thank you. And we will start with questions online. And we have a question from Daniel Thorsson from ABG Sundal Collier.

The next question comes from Daniel Thorsson from ABG Sundal Collier.

Yes. Fadi and Asa, can you hear me?

Yes, Daniel.

Excellent. So a couple of questions. I'm a bit curious, how large was the free cash flow from the DMS deal in Q4 alone? And then what do you expect in H1 from this one? .

We don't comment on specific customers or projects, but as we've said, there was a part coming in Q4, but the significant part will come in Q1 during the first half year of 2026.

Okay. So more expected than we saw in Q4, at least?

Yes.

What's the underlying business in Q4 free cash flow positive?

Yes.

Okay. And then for your full year 2026, you made a comment that you -- if I heard correct, that you may not be 100% financed throughout the next 12 months. But do you expect a positive or a negative free cash flow in 2026 based on what you see today?

No, we don't comment -- we don't do forecast or outlook in that way. We have mentioned like the long term and the assessment of the 12 months ahead of us. And I think that is what I -- what I can comment on at this stage.

Okay. Excellent. Then I have 2 questions regarding the business. First one, in terms of automotive progress, is the market more challenging due to higher competition and price pressure? Or is it just customers delaying some projects that you expect to come later? .

Well, the market is part of the expansion for the delays. As we all know, the automotive market has had a lot of different competitive forces, strategies between conventional fuels and electricity. So there's a lot of moving parts, let's say, in the entire supply chain, and that would naturally sometimes lead for certain delays. However, of course, with the EU regulation coming in, in this 2026 year, we will see that putting us an acceleration on those plans.

Okay. It doesn't sound like you have lost business to competitors, it's more the market being delayed? Is that correct?

Now we're seeing now more and more keen interest actually in our single camera DMS and OMS solution since we have press released last year, we are working with a European OEM. So we believe that we will have to work, of course, on all this keen interest and do our utmost to put it in the pipeline.

Okay. Excellent. And then the last question on the business here. I'm a little bit curious around the smart glasses market. Do you have any design wins that you can share or customer names or any expected design wins that will result in product launches within the next 12 months or so? .

No. I mean we don't share any forward-looking statements on design wins or not, but I mean, as you can see from the general trend, the smart glasses is a developing market. It's still being shaped. I would say, early days, a lot of course, of technology interest, and eye tracking will play a certain role in the smart glasses market. So we are very keen here at Tobii to make sure that we cement our role in that market and let's see where that would lead us.

Okay. But can you comment if you are involved in any projects that you expect to start production phase in the next 12 months or not? .

Once these events take place, we will be able to communicate, at this moment we won't comment on any projects.

We have no more people in the queue waiting to ask a question online, but we do have a number of questions written in the chat. So we will head over and start to go through them.

Now the first question comes from [ Jeb ] asking. Can you explain what the major automotive supplier will receive through the DMS licensing agreement than what the total revenue for Autosense will be from this deal?

I'm assuming the question is targeted towards the newly signed DMS technology license agreement. So as the word in itself says, it is actually a technology license. So it's a new way for Tobii to monetize on the R&D work that we've done. In terms of explicit terms on the value, it's something that we will not be commenting on. But we will see, of course, the outcome of the payments that will come in H1 of 2026.

And a follow-up question from Jeb. What revenue contribution was recognized from the DMS licensing agreement with the major automotive supply in Q4? And what contribution is expected in Q1? Additionally, from this quarter, should we assume that no further revenue will be recognized under this agreement.

As I mentioned, when Daniel asked the question that we are not commenting on specific customer deals or amounts. So -- but what we have said is that part was recognized in Q4, and the remaining part will come during H1 2026.

A follow-up question from Jeb, why haven't new business deals materialized in the anticipated rate for Autosense?

I mean, as I mentioned before, partially, it's because of the international automotive industry where we've seen a weaker unexpected development. But also may because we have been working very hard on getting that very important single camera DMS and OMS project out with the European premium OEM. And since we've done that, I think it has been a clear signal to the industry that single camera or sensing does provide a very high value. So we are going to definitely leverage on this kind of a premium black project that has been now out in the market, and we're going to put all of our efforts to ensure that we can work with all of the interested parties and engaging the sales engagement has required actually to turn those into hopefully, contracts in the future.

Another follow-up question from Jeppe. With no new OEM design wins for SCDO, should we interpret this as evidence that competitive intensity is higher than expected, driven by peers delivering solutions that match or exceed your offering?

I think it is no secret that this is a competitive market, and I'm sure you have seen consolidations as well over the past few months. But that's why our strategy is to carve a clear leadership role by being first with a market implemented and validated single camera for DMS and OMS.

Follow-up question from Jeppe. Autosense competitors have secured design wins that include alcohol impairment action. When will Autosense be in a position to deliver this capability?

I think I need to get back to you. I don't have the full road map to be honest yet in my head, but let's get back to that to you with this, yes offline.

Another follow-up question from Jeppe. What was the license revenue contribution for SCDO in Q4?

We don't comment on that specifically for a SCDO.

And Jacob is asking what was the impact of the DMS payment? And what is the expected sales of DMS contract in Q1 '26 and Q2 '26?

And I think I repeat myself once again that we don't comment on specific customer deals, and we don't give any forward-looking statements.

And a follow-up pressure from Jacob. You utilized SEK 47 million of the credit facility. Will we have to repay this in Q1? And will you be able to extend the credit liability?

We have described the situation in the report. And as we say there, we are in discussions. So I think that is what I leave it to that at the moment.

A question from Peter. How much of the performance in Autosense is driven by onetime licensing agreements? And how does the performance excluding any onetime payments compared to Q4 '24? How much of the performance in Autosense is related to the Autosense division is driven by the commercial market versus the passenger vehicle market?

And the fourth question, let's break them up. Let's start with how much of the performance in Autosense is driven by onetime licensing agreements? And how does the performance excluding any onetime payments compared to Q4 '24?

The answers to those questions would be too detailed to share publicly. So we don't comment on that.

How much of the performance in Autosense is related to the orders -- is driven by the commercial market versus the passenger vehicle market?

Again, I would say, same answer that Asa has already given. We will -- we're not in a position to deep dive into proprietary information.

And final question from Peter. Does your outlook for this division differ between these 2 segments versus the performance so far.

Same.

A question from Jacob. Have you received cash for the DMS deal? Can you elaborate on the...

Working capital...

Working capital dynamics of the deal.

We have received one part of it, but the main part will come during the first half of 2026. And what was invoiced during the fourth quarter was also received in 2025.

And a question from [ Yamil ]. So no more revenues from the Tier 1 deal after H1 and the Tier 1 deal referring to the DMS licensing agreement, I understand.

As we've communicated, it will come during the fourth quarter and the first half year of 2026.

And I don't see any further questions in the chat. Is there any other questions?

If not, thank you, everybody, for listening in and your interest in your questions, and we'll be meeting you for the next quarter financial report. Thank you very much. All the best.

Thank you.

Welcome to the conference call. [Operator Instructions] Now I will hand the conference over to the speakers. Please go ahead.

Okay. Thank you, and welcome again, everyone. This is Anand Srivatsa. I'm the CEO of Tobii. Joining me today is Asa Wiren, who is our Interim CFO, along with Rasmus, who heads our Investor Relations.

I want to remind you that I have announced my decision to resign from Tobii in August of this year. My intention is to move back to the United States for family reasons, and my family has already relocated. I will remain with Tobii in my current role until the end of January 2026, and the Board is in the process of looking for a new CEO. And at this point, we do not have any additional information to share on the process. Now let's move on to the quarterly results. Q3 was a weak result for Tobii on both the net sales basis as well as on overall results. The net sales reduction is related to the end of acquisition-related revenue as well as lower-than-expected revenue in all 3 segments. In the Products & Solutions segment, we saw a year-on-year decline in revenue because of weakness in the U.S. market, while other regions demonstrated growth.

In the Integration segment, we saw weakness in our XR NRE project pipeline, but we do expect to see some improvement in Q4 as customers shift their focus to new smart glasses type of solutions. On the Autosense side, we had a reduction in year-on-year revenue, but this is related largely to revenue recognition timing based on NRE projects. We expect that the Autosense business will show robust growth on a full year basis, and we expect that quarterly revenue levels will become more stable as we transition from NRE to license revenue over the next couple of years. The overall lower levels of revenue resulted in lower overall result, but we have still taken steps to move towards profitability with one clear example of our -- being our cash-related OpEx being 30% lower than the comparable quarter last year.

Beyond the financials for the quarter, this was a milestone quarter for our Autosense business with our single camera DMS and OMS offering launching at IAA Munich. I will speak more about the significance of where we are with Autosense at the end of this presentation.

Finally, we continue to be extremely focused on addressing our financing needs for the company. This has been an explicit focus over the last 1.5 years. Evaluating where we stand at the end of Q3 2025, we assess that we need additional cash to ensure that we are adequately financed for the next year. We intend to take the following steps to address this. We're taking a new cost savings target to reduce cash-related OpEx by SEK 100 million versus our Q2 2025 baseline for the 12 months that follow that timeline starting in Q3 2025. We're also continuing our strategic review process, including the divestment of assets, and this effort has made progress over the quarter, and we expect that a successful outcome will substantially strengthen our cash reserves. The Board has also selected an external adviser to evaluate capital market options as a backup for these strategic initiatives if needed. With the combinations of these tools, we believe that we can address our financing need for 2026.

Before we discuss our financial results in detail, let's take a quick overview of our 3 business segments. Tobii is organized into 3 business segments with each of them at different stages of maturity and scale. Our expectations are that the Products and Solutions and Integration business segment will be profitable in the near-term, while Autosense is still in an investment phase. The Products & Solutions business delivers vertical solutions to thousands of customers every year, ranging from university research labs to enterprises and PC gamers. In Q3 of 2025, the Products & Solutions business represented 53% of Tobii's net sales. The EBIT result of Q3 of negative SEK 22 million is a slight improvement versus our last year results despite revenue decline because of our lower OpEx level. The Integration business segment engages customers who integrate Tobii's technologies into their offerings. This segment also includes some revenue from acquisition-related revenue.

The onetime effects of that have ended in Q2 2025. In Q3 2025, this business represented 43% of Tobii's net sales, and this business was profitable for the sixth straight quarter. The result for the quarter does reflect temporary effects of the Dynavox contract that we signed in Q2 2025. The Autosense business segment sells driver monitoring and occupancy monitoring software solutions to automotive OEMs and Tier 1s. In Q3 2025, this business represented 4% of Tobii's overall net sales and delivered overall net sales. The business delivered minus SEK 42 million EBIT, a slight improvement versus last year despite a lower revenue level, lower capitalization and higher levels of depreciation. We expect the Autosense business to show solid revenue and profitability improvement on a full year basis.

Now over to Asa for the detailed financials.

Thanks, Anand, and good morning, everyone. Needless to say, Q3 was a weak quarter. Product & Solutions has its market challenges, for example, in the U.S., integrations, where the last part of the Dynavox deal did not fully compensate for the acquisition-related revenue that ended in Q2. For Autosense, we see a timing matter. Operating result and margin have decreased compared to last year, even if our cost levels is significantly lower. On that note, I will already now put some more flavor to our new savings target that Anand mentioned.

When we presented our Q2 results, we emphasize that our cost reduction and efficiency focus still remains. Our target is to lower cost by at least another SEK 100 million for the 4 quarters starting Q3 2025 compared to Q2 2025. This is the same methodology we used for our previous initiative for which we reached savings of SEK 263 million, SEK 63 million above the target. This demonstrates that we have the ability to deliver. The savings will further rightsize the company for us being able to continue our product development and meet customer demands. That being said, let's move to Page 6 and look at some group details.

I've already commented on the figures as such, but what this illustrates is the impact of the work that has been done. We see overall EBIT and EBIT margins lower than the comparable quarters last year. This is, of course, driven by lower revenue levels, but also by lower levels of capitalization and higher level of depreciation in this quarter. If we normalize for effects of capitalization and depreciation, we would have an improved level of profitability in this quarter. This improvement is due to the significant progress we have made on cost reductions. We are on the right track, but more work needs to be done.

Turn to Page 7 for some Product and Solutions comments. The negative sales trend continues with a decline of 5% in organic growth and is mainly related to the Americas. Cost level is lower than previously. And to remind ourselves, in Q2 this year, write-downs of SEK 33 million impacted EBIT.

Turn to Page 8 for some integrations comments. The last part of the Dynavax prepurchase deal did not fully compensate for the acquired imaging-related revenue that ended in Q2. As mentioned in Q2, from Q3 and onwards, there is a quarterly minimum guarantee in the Dynavax deal until 2029. We also saw fewer nonrecurring revenue projects during the third quarter.

Turn to Page 9 for the Autosense segment. This segment is still in a phase with lumpy timeline dependent revenue as well as with nonrecurring revenue. These elements impact both how revenue is recognized and cost, such as capitalization and depreciation, as mentioned before. In Q3, revenue was pushed forward, capitalization decreased and depreciation increased.

Let's continue to Page 12 for comments on our balance sheet and cash flow. During Q3, Tobii repaid SEK 91 million of its COVID-related tax release. This remaining -- the remaining debt has been reclassified to short-term and long-term interest-bearing debt previously reported as current liabilities. In Q4, we received the last SEK 45 million from Dynavox prepurchase deal. Where we are right now, there is a risk of insufficient financing for the coming 12 months. Having said that, with the measures taken and in progress, I repeat that we believe we can address the financing needs for 2026.

With that said, thank you for your time, and over to you again, Anand.

Thank you, Asa. Now I'm going to spend a few minutes talking a little bit more about Autosense. Q3 2025 was a milestone quarter for this business, and I want to share with you where we stand in our journey to become a leader in automotive interior sensing.

First, let's take a look back at what has happened since our acquisition of the FotoNation business in February 2024. Since making the acquisition, we have built a comprehensive and combined road map that enables us to offer a leading in-cabin sensing product portfolio. This was capped off with the successful launch and final release acceptance of our SCDO product in Q3. We have continued to demonstrate our credibility in bringing our solutions to vehicles on the road over the last 1.5 years. We've increased the number of OEMs who are choosing Tobii solutions from 9 to 12, and our solutions are being deployed in volume from 300,000 vehicles on the road at the time of the acquisition to more than 800,000 vehicles currently. We are working hard on ensuring that our solutions meet the demanding requirements of the automotive industry in terms of quality and process. Notably, we have achieved ASPICE Level 2 for our SCDO program operating as a software Tier 1 to a leading European OEM. Our solutions have also achieved regulatory approval with EU homologation for both our DMS and SCDO offering.

Finally, we have built an efficient and empowered team where Autosense engineering has been consolidated into Romania, and the organization has more centralized responsibility to deliver on our ambition by having functions from engineering to sales reporting into the same leader. We have realized the investment synergies as part of getting this efficiency by reducing our investment levels by more than 40% versus our 2024 peak. Looking back, I would say that we have substantially realized the rationale for the acquisition, including the synergies we expected. We have done this by reducing our overall investment, building a leading product portfolio and increasing our credibility in the automotive industry. A critical aspect of building automotive credibility is showing that your technology can get through the rigorous testing and validation of OEMs and start shipping in vehicles on the road.

Tobii's Autosense Interior solutions have been shipping in vehicles on the road in 2019, and we continue to see significant growth in this footprint. As of the end of Q3 2025, we have more than 875,000 vehicles on the road with Tobii solutions, and we expect that this number will continue to accelerate as our high-volume passenger car wins get into production in 2026.

Now I want to talk a little bit more about building a leading product portfolio for in-cabin sensing. The rationale for making the acquisition of FotoNation was the realization that for success in this space, Tobii required a full offering, not just driver monitoring systems. We could already see in 2023 that RFQs were looking for offerings that could support both driver and occupancy monitoring. Our belief was that the market would see increased adoption of DMS and OMS to the point that they would both become required capabilities. We are already seeing the early stages of this play out as we expected. Camera-based DMS is already a requirement in the EU starting in 2026. And we now see that Euro NCAP requirements for 5-star safety require more occupancy monitoring capabilities over the next few years. We believe that for new platform shipping in 2028, OMS will be required to get a 5-star rating.

Tobii has been shipping DMS and OMS systems into vehicles in the road since 2019 and 2021, respectively. We recognize that while in DMS, we are not the market leader, our bet has been to move -- that move into a leading position in the space is based on our leadership in single camera DMS OMS and that this method will be the preferred deployment for in-cabin sensing systems in the future. Over the last 3 years, Autosense has pitched single-camera DMS OMS, but this approach has been met with skepticism as companies were unsure whether DMS from a rearview mirror location would get regulatory approval. This concern from the industry reflects the fact that DMS methodology from a rearview mirror position is quite different than the typical DMS systems that are deployed today, which have a much clearer and closer view of the driver's face. Given this context, our achievement this quarter is extremely meaningful in both getting EU homologation for our support regulatory approval and getting acceptance for our final release for our premium European OEMs launch in the second half of this year.

We expect that our SCDO system will start shipping with our OEM in the second half of 2025 and be in end customers' hands in early 2026. Now we have expected over the last year -- last 3 years that a single camera DMS and OMS solutions mature, that the industry as a whole will also validate our view that this approach is not only feasible, but the most cost-effective approach for in-cabin sensing. The question, of course, is when would the industry take notice of SCDO and share their view on this approach? I am thrilled that we have seen significant industry momentum already this month with the keynotes and presentations at in-cabin Barcelona 2 weeks ago. At the event, Volkswagen, Magna and Gentex, leading OEMs and Tier 1s in the industry, shared their view of the suitability of doing DMS and OMS from the rearview mirror position.

Volkswagen was even more specific, as you can see the slide that's shared on the screen about the benefits that this approach offers over traditional DMS and OMS systems that require 2 cameras. They shared that the single camera approach from a rearview mirror position saved over 30% of BOM cost, implementation cost, design complexity, et cetera. This is a stunning number that validates our view that SCDO will likely be the volume deployment for in-cabin sensing in the future. The outcome from this event is certainly surprising to us, but surprising for industry analysts as well. To quote Colin Barnden, principal analyst from Semicast Research from his post on LinkedIn following this event, he says, "What came over me in Barcelona is the sudden shift in industry awareness of the viability of both driver and occupant monitoring from the mirror. For several years, it has been clear there was a campaign of misinformation from some parties saying that the mirror is unsuitable for driver cabin monitoring. Those voices magically have become advocates of this idea already.

He declares in his post that after the event, the question is, why wouldn't an OEM do DMS and OMS from the mirror? We at Tobii could not agree more. With a proven and mature offering that has gone through grueling acceptance test at one of the most demanding OEMs in the world, Tobii is well positioned to win as more OEMs come to the conclusion that DMS and OMS from the mirror is the most cost-effective and scalable approach for in-cabin sensing.

Okay. Let's wrap up. Q3 2025 was a mixed quarter where we saw significant milestones achieved in Autosense, but where we saw weak revenue in the quarter that resulted in lower profitability. Our ambition in the long-term is clear that we intend to be leaders in all of our business segments and execute in a profitable and financially self-sustainable way going forward. We are already leaders in our Integrations and Products and Solutions business segments. And the progress that we have made so far in the Autosense business segment and industry validation of our approach puts us in a great position to build a leadership position as SCDO scales in the market. In the near-term, we have a key focus on addressing our financing needs. We will address this with 3 major approaches. The first is our new cost reduction target, which will reduce our cash need in 2026. We're also executing on a strategic review, which includes potential divestments, and our belief is a successful outcome in this area will substantially strengthen our cash reserves.

Finally, the Board has engaged an external adviser to evaluate capital markets options as a back for these strategic initiatives. We are confident that with these tools, we will be able to resolve our near-term financial needs and allow us to focus on our objective to achieve sustained profitability, which we remain fully committed to.

With that, thank you, and over to Q&A.

We have received several questions about our combined DMS and OMS solution, how our offering compares to our competitors, what Tobii's position in the market is relative to our competitors and how we view the time line regarding ramp-up of SCDO. Can you please provide a comment on these questions?

Absolutely. As I shared in my deeper dive on Autosense, we believe that we have been the clearest voice around the fact that the most scalable and most cost-effective approach for in-cabin sensing is a single camera DMS and OMS offering from the rearview mirror position. There are other players who have launched hardware solutions. And from our proprietary research, we believe that at the time of our launch, we have the most complete offering as well as an offering that delivers both DMS and OMS. We believe that our position in this space is that we have the leading offering here as well as an offering that has both proven itself and has matured as we have had to go through acceptance as a software Tier 1 for one of the most demanding OEMs in this space.

We acknowledge that, of course, in this in-cabin sensing arena, we are not the -- driver monitoring systems, but our bet for getting to a long-term leadership position is that as SCDO sales, our leading position will put us in a great place to go and win future RFQs. We recognize again that over the last couple of years, there has been industry skepticism about whether a single camera approach will work, especially because the position of the sensors are farther away from the driver. We believe that a lot of these concerns are being addressed now with the successful launch that we have enabled, and we believe that RFQs will increasingly request this type of approach, and we are well positioned to win in the space.

Is Tobii provider for eye tracking to Samsung Moohan?

Samsung announced a new high-end VR headset. We are not the eye-tracking provider for that headset.

Did you receive the SEK 30 million out of the SEK 100 million in Dynavox revenue in cash this quarter? And did you also receive the SEK 45 million in royalty from Dynavox from previous quarter this quarter?

And I'll let Asa take that and clarify that question.

We received the SEK 30 million in Q3 and the SEK 45 million in Q4.

What types of assets are you planning to divest? Would you consider divesting one of the business units?

Again, as you can imagine, these strategic reviews are extremely sensitive. We're not going to go into details of exactly what assets we are planning on divesting except for the fact that we believe that a successful outcome here will substantially strengthen our cash reserves. We will share more details as possible as these activities progress into maturity.

Thank you for this presentation. On Autosense, in materials from Qualcomm, Tobii is a pre-integrated partner. What does this mean? Also, this seem to be a much wider opportunity than with EU regulatory requirements. What is your look on this?

One of the big advantages of the engagement that we have had is that our solution is shipping on Qualcomm's Snapdragon Ride platform with our premium OEM. This has meant that we have done substantial work to go and pre-integrate the solution. Qualcomm's expectation is that they want to sell a pre-integrated solution that delivers their domain controller type architecture along with their ADAS functionality. The ADAS functionality does depend on capabilities that are enabled by in-cabin sensing technologies that we have -- like we have. We believe this is a big asset for Tobii, not only that we've gone and delivered a mature and proven platform, but that partners like Qualcomm see our solution as pre-integrated and an easy way for them to scale their offerings into the automotive industry as well.

What is the total cost in absolute numbers for OMS and DMS for the car manufacturer? Please elaborate on the topic.

We cannot, of course, share algorithm pricing levels. And in terms of overall system cost, you will have to go and speak to the Tier 1s who typically provide the hardware. Again, what I think is super meaningful as we look at the in-cabin sensing opportunity as a whole is that DMS and OMS are increasingly becoming requirements in this market. And therefore, from a regulatory perspective, these are required systems. And again, there's high interest from the OEMs to offer these in the most cost-effective and scalable way possible. The fact that Volkswagen has been clear that there is a substantial cost savings by offering DMS and OMS from a rearview mirror position in a single camera offering validates our view that this will be the way that in-cabin sensing is typically delivered to go and ensure that you can meet your regulatory needs.

Is it correct to assume that you are involved in Samsung XR through your collaboration with Qualcomm?

So you should assume that we are talking to lots of different companies in the XR space. We're talking to most of their leaders. We understand that people make decisions on their choices of algorithms for a variety of reasons. As I've mentioned before, on the specific Samsung Moohan VR headset, we are not the eye tracking provider in that system.

Is the total Dynavox royalty SEK 52 million or SEK 45 million from Dynavox? In that case, when are the remaining SEK 7 million received in cash?

The total is SEK 52 million, and the cash was delivered in Q4.

Congratulations to fast acting. Is Tobii eye tracking integrated in Sony Siemens XR headset?

I don't think we have made any announcement there. We will -- again, we will not comment on that particular headset.

Okay. Thank you very much. That's the end of the Q&A section. Thank you all very much for participating, and we look forward to sharing our next set of results with you in 2026. Thank you.

Thank you.

Welcome to the Tobii Q2 Report 2025. [Operator Instructions] Now I will hand the conference over to CEO, Anand Srivatsa and Interim CFO, Asa Wiren. Please go ahead.

Welcome again, everyone. Joining me today on this Q2 earnings presentation is Asa Wiren, our Interim CFO. And I'm going to walk you through some of our results and also will talk you through some of the detailed financials.

Now in the second quarter, Tobii continued to execute on our communicated strategies to stay on a path of sustained profitability and improved cash flow. Specifically, at the end of Q1, we shared our intention to strengthen our cash position and to continue a strategic review to focus our business via cost reductions and portfolio optimization. I am pleased that we can clearly demonstrate progress on all of these fronts.

Our free cash flow for Q2 2025 improved by nearly SEK 200 million versus Q2 2024. A significant contributor to the improved cash flow was the new agreement we signed with Dynavox Group, which included a SEK 100 million prepurchase of components. On the cost reduction front, we have achieved SEK 263 million of cash-related OpEx savings versus our Q2 2024 baseline, significantly exceeding the SEK 200 million target we set last year. These reductions have also played a significant role in the improved cash flow.

Finally, as we have reviewed our product portfolio with an emphasis on focus, we have made the decision to take a onetime write-off of intangible assets of around SEK 48 million. Given all of these activities, there are significant onetime effects in this quarter, but in total, we were able to deliver a positive EBIT of SEK 24 million, and we have a positive EBIT result as well on a rolling 12-month basis.

Beyond working on our financial health for Tobii in the quarter, we've continued to make progress on strengthening our product offerings. We launched our new Glasses X product, a cloud-native wearable eye tracker, our glasses product lines are the largest revenue contributor to the company today, and the new Glasses X product enables customers to accelerate their workflows in market research and training assessment. I will speak to this product more at the end of this presentation.

After the quarter, in July this year, we also achieved a significant milestone achieving homologation in the European Union for our single camera DMS and OMS offering. Achieving this regulatory approval for our innovative approach into interior sensing is confirmation of the robustness of our solution and will increase our credibility when we compete for new business in the automotive segment.

Now before we discuss our financial results in detail, I want to do a quick overview of our 3 business segments. Tobii is organized into 3 business segments with each of them at different stages of maturity and scale. Our expectations are that the Products & Solutions and the Integrations business will be profitable in the near term, while Autosense is still in an investment phase. The Products & Solutions business delivers vertical solutions to thousands of customers every year, ranging from university research labs to enterprises and PC gamers.

In Q2 of '25, the Products & Solutions business represented 33% of Tobii's net revenue. The EBIT result for this business segment was minus SEK 59 million, which is lower largely because of the onetime write-offs we spoke about earlier. If we remove the effect of those onetime write-offs, the EBIT was largely flat year-on-year with the decrease in revenue balanced by reductions in OpEx.

The Integration business segment engages customers who integrate Tobii's technologies into their offerings. This segment also includes some revenue from the acquisition that we made of FotoNation related to legacy imaging business from that acquisition. In Q2 2025, this business represented 63% of Tobii's net sales, and this business was profitable for the fifth straight quarter. The result for this quarter, as mentioned earlier, does reflect onetime effects related to the Dynavox contract.

The Autosense business segment sells driver monitoring and occupancy monitoring software solution to automotive OEMs and Tier 1s. In Q2 2025, this business represented 5% of Tobii's overall net sales and delivered significant organic growth on a year-on-year basis. Again, the revenue in this business right now is largely nonrecurring engineering revenue prior to our major programs going into production. And so there is some lumpiness in the revenue profile for the business so far. The business delivered a minus SEK 28 million EBIT in Q2, which is a SEK 32 million improvement versus the quarter last year.

Now I'm going to hand it over to Asa to provide more details on the financial development.

So thank you, Anand, and hi, everyone. The overview of the second quarter shows that we are continuing in the right direction. There are some one-offs to consider in this quarter, which I will come back to. Reported net sales were up by 41% and the organic growth was even higher at 54%. We reported a positive EBIT of SEK 24 million, and as Anand mentioned, EBIT positive on a rolling 12-month basis.

So let's turn page and look into some details. Net sales were up by 41% in Q2, and the organic growth was 54% since we excluded the acquired revenue stream as previously explained. The nonorganic revenue stream amounted to SEK 25 million in Q2 and currency impacted revenue negatively by 4% in the quarter. Gross margin was 83% compared to 79% last year. The improvement is thanks to a mix shift with more Integrations business.

A positive EBIT of SEK 24 million, an improvement of SEK 90 million compared to the same quarter last year, and I believe the graph speaks for itself regarding the trend. Our cost level is reduced and the cost savings program has delivered above target. During the quarter and as part of our strategic review, we have written down some intangible assets in total SEK 48 million, mainly in the Products & Solutions segment. The new agreement with Dynavox also had a positive impact from the prepaid purchase and the royalty catch-up.

So if we then move to the next page, we can see that the cost savings program that was initiated a year ago has delivered SEK 263 million in savings compared to the target of SEK 200 million. Our cost and efficiency focus continues to be of utmost importance.

If we then turn to Page 9 and take a look at the segments. For Products & Solutions, the organic net sales continued the negative trend from Q1, with uncertainty in Americas and lower demand in the gaming part. EBIT was negatively impacted by a write-down of SEK 33 million. And when excluding that, EBIT is actually flat compared to last year, even with lower sales, which is mainly thanks to our cost reductions.

The Integrations segment was significantly impacted by the Dynavox deal with the prepurchase where SEK 70 million out of the SEK 100 million was recognized and delivered during the quarter and the SEK 45 million catch-up also recognized in the quarter. The remaining part of the prepurchase that is SEK 30 million will be delivered and recognized in the third quarter. The acquired imaging-related revenue amounted to SEK 25 million and this was the final quarter with that revenue stream. Gross margin decreased due to a mix change with a larger portion of hardware sales in 2025.

On the next page, we find more details relating to the Autosense segment, which reports an organic growth of 44% or an increase from SEK 9 million to SEK 12 million. The business is in a phase with nonrecurring, quite lumpy and time line dependent revenue. EBIT improved heavily year-on-year by SEK 32 million, even with a substantially lower level of capitalization.

And then finally, when it comes to our balance sheet and cash flow, our free cash flow improved almost SEK 200 million compared to the same period last year. Improvement is partly due to specific actions taken as agreements with customers and prepayments, but also thanks to the lower cost level. Our cash position was at SEK 150 million at the end of the quarter, and we repaid SEK 89 million of the COVID-related tax deferrals in mid-July. All in all, we continue to focus on rightsizing the business and strengthening cash flow.

And thank you for your time. And by that, back to you, Anand.

Thank you very much, Asa. Now I'm going to speak a little bit on where we are in Autosense and also give you a quick introduction into our new Glasses X product. Let's first start by talking about Autosense. Once again, as we talked about quarter-on-quarter, we believe that we are starting to demonstrate our ability to be a leading provider of interior sensing solutions.

A critical aspect of building credibility in this space is showing that your technology can get through the rigorous testing and validation of OEMs and start shipping into vehicles on the road. Tobii's Autosense interior sensing solutions have been shipping in vehicles on the road since 2019, and we continue to see significant growth in this footprint. As of the end of Q2 2025, we have more than 775,000 vehicles on the road with Tobii Solutions, and we expect to see this number continue to accelerate as our high-volume passenger car wins get into production in the second half of this year.

Now in addition to building credibility with having our technology on the road, we have also talked about demonstrating credibility of our innovative Lens platform. And in July of this year, after the end of Q2, we achieved a significant milestone with homologation of this particular platform. Now we have been describing for several quarters that there is an evolution currently underway in the interior sensing market.

The first set of technologies that have been deployed in interior sensing are driver monitoring systems. And the focus of this technology has very much been about improving safety. Since 2021, we have also seen the adoption of occupancy monitoring systems, which can both address some safety-related features, but also improve the user experience in the cabin and enable OEMs to offer a differentiated experience for owners of their vehicles.

These 2 systems, DMS and OMS, have typically relied on fully separate cameras and compute platforms in order to be delivered. Tobii's single camera DMS and OMS system enables a much lower cost overall deployment by using only 1 camera and compute to deliver a feature set that meets the regulatory safety requirements that are required for DMS. And at the same time, enables OEMs to deliver value-add and differentiated features that improve the user experience in the cabin.

Over the last year, we've talked about the progress we have made in this SCDO program with a premium European OEM. We've talked about the fact that we've delivered numerous releases thus far and that our program has achieved ASPICE Level 2. In July, we achieved the next major milestone, which was the achievement of homologation or regulatory approval for our single camera solution.

Getting to this milestone is a critical proof point that our SCDO solution meets the regulatory requirements and getting past this milestone will enable us to better compete for future business with this disruptive approach. The program that we're currently engaged on with the premium European OEM is expected to start shipping in the second half of this year.

Now let's shift and talk about our Glasses X product that we are super excited to also bring out in our Products & Solutions business unit. So in addition to the focus that we've talked about around Autosense and strengthening our product portfolio, we have continued to sustain investment in the next generation of products across the Tobii family and in June -- and in May this year, we actually announced the next generation of our wearable eye trackers for Products & Solutions.

Wearable eye trackers from Products & solutions are the single largest revenue contributor to Tobii overall today. And the product we have in market right now is called the Tobii Pro Glasses 3. The Pro Glasses 3 product sets the standard for high fidelity eye-tracking and is used in both academic research applications as well as commercial applications. One consistent message we've heard from commercial customers is that while the value of eye tracking and helping drive business outcomes is well understood for market research or even training and assessment use cases, the current workflow is too time consuming and cumbersome.

And this is where our new Glasses X product really shines. It is an easy-to-use cloud-native solution that when paired with our Glasses Explore SaaS solution will accelerate our customers' workflows. The Glasses Explore SaaS platform can harness the latest innovations in AI to automate time-consuming activities like metadata tagging and shorten the time to insight. For our commercial customers, this means quicker and cheaper access to critical insights that can improve customer experience, employee training, quality assurance and ultimately, profitability.

I'm super excited about this product, Glasses X, as I expect that it will enable us to scale our footprint of wearable eye trackers from technology enthusiasts to the broader set of users who can truly benefit from the power of eye tracking. I believe that this new product and platform is a critical element of our path to growth in the Products & Solutions business unit.

Now let's summarize the quarter and wrap up. In Q2 of 2025, as we said before, we have executed on several of our stated strategies, and I'm proud of the progress we have made overall. We intended to strengthen our cash position with working -- by working with our customers, and we've done so. We expect it to continue the focus on cost reductions, and we have substantially exceeded our SEK 200 million target.

By taking these actions, we have seen a nearly SEK 200 million impact in free cash flow compared to the Q2 2024 quarter. The actions we've taken have enabled us to deliver an EBIT profitable Q2 and help Tobii be profitable on a rolling 12-month basis. While we have worked on improving our financial results, we've also strengthened our product portfolio, particularly in Autosense and in the Products & Solutions business unit. These product investments are critical to help us achieve our longer-term financial objectives.

We recognize that the results in this quarter are impacted by onetime effects, and we expect that as we go forward, there will be variation in the results of individual quarters; however, we are determined to continue our efforts to stay on the path of sustained improvement and build on the solid results of the first half of this year.

With that, I'd like to open it up for questions.

[Operator Instructions] The first question comes from [ Björn Engvall ] [indiscernible]. Are you still confident in reaching #1 position in DMS and OMS interior sensing? And if so, when could that be achieved, do you think?

Thank you for the question. Again, our ambition very much is to be the leader in this interior sensing space, but we recognize that today, we are very much of a challenger. Our expectation is to try to get to a leadership position by the end of the decade. And in order to go and get there, we've talked about the fact that we need to build credibility in the offerings we have in the market. And again, today, we talked about 2 elements of that.

One part of it is to demonstrate that our technology is robust enough to get to vehicles on the road, and we have been doing that with our driver monitoring and occupancy monitoring system solutions. We have more than 775,000 vehicles on the road today. One of the big things that gives us confidence in our ability to go in and close the gap between us and our competitors is this innovative approach on single camera DMS and OMS, which we think is going to be a very cost-effective way for OEMs to deliver both the requirements for regulatory approval, but also to deliver differentiated feature sets.

And again, hitting the milestones that we have on this program is extremely critical to build credibility that we can close the gap and become a leader in the space. We have done some of that from a quality control perspective, achieving ASPICE Level 2, which we did in Q1. But again, the critical milestone is achieving regulatory approval, which we have now done so, and we look forward for this program to get into production in the second half of the year.

Again, I think that the progress we've made, I think it's very much in line with our expectations, and we hope that this will transition very much to new business won and put us on our path to getting to leadership in the space by the end of the decade.

All right. And the second question comes from [ Kevin Bucher ]. Could you clarify if Tobii is currently pursuing any collaboration or major deals with leading technology or automotive companies. For example, in robotics or auto -- I'm sorry, autonomous driving such as with partners like Tesla or Microsoft?

So again, I think that we don't specifically talk about individual customers that we're engaged with. But given sort of Tobii's position in this space, we are working with all of the leading technology providers in the different vertical industries we're engaged in. Again, on the automotive side, as we build more and more credibility, we expect that more of the leading players in the space are going to be aware of the solutions we have and have credibility to source us for future programs.

So you should absolutely expect that we are talking to the industry leaders in the space, but we don't specifically comment on exactly who we're talking to at this point in time.

And the next question is from Björn Engvall again. Can you comment on the IDC recently forecasted XR market growth of 86% from 2025 to 2026. What could it mean for Tobii's integration XR growth? All things equal, what about smart AI, AR glasses market in the future, will Tobii benefit from it?

Thank you again for the questions. Now again, I think what we have seen in the overall augmented and virtual reality space is that this market is very dynamic, and there have been a lot of expectations of growth that haven't always materialized. At the same time, today, there is still continued excitement in the space. What has been, I think, set up in the market is the fact that the use cases for eye tracking are quite strong, both in the virtual reality space.

If you look at the benefits that eye tracking can bring in terms of user interaction in these virtual environments as well as the ability to go and drive much lower levels of graphics need while still providing immersive experience. We also see that as new form factors come in, whether these are smart glasses or augmented reality, there's a significant opportunity for eye tracking to create value around new use cases like Contextual AI, the opportunity for AI to provide meaningful insight, understanding what the user is looking at in the environment.

So I think fundamentally, as these categories grow, the opportunity for eye tracking grows. And I think naturally for us, as a company that's leading in the space, the more companies that are engaged, the more units that are out there, the more significant our opportunity is to grow our business from where we stand today.

Okay. And the next question comes from [ Adelson ]. Congrats to great quarter again. About XR integrations revenue, are you receiving licensing fees steadily now? Or is it mostly NREs?

So I think we've talked about the fact that the combination in the integration space is still both NREs and licensing revenues. One of the challenges I think we have had overall is that some of the programs that we have engaged in have not materialized to the level of volume we would expect. A notable element of this, for example, is the win we had with Sony PlayStation VR2.

Historically, we would have expected that at this point in time, it would be a much bigger contributor from a license revenue perspective, but with the weakness we've seen overall in the VR market, those volumes have not materialized. So we're still in a camp now where it's a combination of license revenue and a lot of nonrecurring engineering revenue in there.

And this next is from Jacob. Just to make sure, will the SEK 25 million in FotoNation revenue disappear completely in Q3? And what are the gross margin and OpEx related to that revenue stream?

So we've talked about the fact that we had a revenue stream that we got from the acquisition that was going to be temporary in nature. This was the last quarter of that revenue stream that we received. And so yes, going into Q3 and beyond, that revenue stream will not be there. This is a revenue stream that's quite special, it doesn't drive OpEx investment from our side, and it is a 100% margin type of revenue stream.

And the next question comes from NK. Do you plan to expand your solution to more cars starting 2025?

Absolutely, our intention is that we have to go and win new business. We are participating in many RFQs. We have seen delays in decisions around RFQs in the first half of this year; again, the automotive industry is going through some churn at this point in time. But we feel that as we demonstrate more credibility with our solution and getting through milestones like homologation, it will put us in a better position to win new business with this approach. And we're absolutely focused on trying to go and compete and win for new businesses and expand our solution to new customers.

Okay. And the next question comes from M. Is royalty for Dynavox in Q2 a one-off?

So the business structure with Dynavox steady state includes a component associated with hardware purchases, but also component royalties. So that will be steady-state of portion of the Dynavox revenue going forward, so we expect to receive that in Q3, Q4 and beyond all the way through 2029 into the program we have -- into the agreement we have now extended with them.

However, there is an element as we've gone and changed our agreement with Dynavox where there was a catch-up of royalty related to hardware that had already been acquired and that is the onetime impact that we see in Q2 of SEK 45 million.

Okay. And the next question comes from [ Hamish Adam ]. There is a boom emerging in robotics. It strikes me that Tobii's Tech could be very relevant in this field. Could you speak to any developments for Tobii into this field?

So I would say that, again, we believe very strongly that technology, in general, needs to communicate with humans on human terms. And the ability to go and drive nonverbal interactions the way humans communicate with each other is, I think, the most natural way for technology to evolve. So to the extent that we are going to start to see robots amongst us, whatever their form and shape, I think the expectation is going to be that these technology innovations will communicate with humans the way we communicate with each other.

So again, it's still very much the early phases of this industry from a robotics perspective like it is in other spaces. But again, this is another industry where I do think that the solutions that we bring to market could have a lot of value.

Okay. And here comes 4 questions from Daniel Djurberg. I read them 1 question and then you answer, and then 1 more. How come you have 100% gross margin in Autosense? No COGS for any customer deployments/projects in the quarter.

So I think the way that we deal with the engineering cost is on OpEx here, Daniel, so that is how we're managing the cost line from an Autosense perspective. Also, if you remember from an actual product perspective, the solutions that we sell are software only. And so that's why the structure of the margin is in that type of setup.

And he also asks, can you comment on the incremental numbers of added OMS, DMS on the road in Q2 versus Q1?

So I think if you look at what we said in Q1, we were about 700,000 units on the road. In Q2, we said 775,000. So it's a 75,000 net type of number, that's sort of where the incremental number is.

And he also asks what is the target by year-end? Please also comment on the pricing in the single camera, the ASP versus a traditional setup?

So I would say that, again, we don't have a specific target for where we are on the deployment by the year-end. But again, we're going to start to see our solutions start to get into higher volume vehicles with this premium European OEM, and we think that will actually drive the volume of our deployments up substantially. Again, specific commentary on the second half of the year, I think is very much premature.

We get these numbers from our customers on what they've deployed. So you should expect that we will continue to provide you with where we are in deployments at the end of the quarter.

All right. And the last question from Daniel, how many design wins do you aim for in H2 '25 with a single camera? Finally, comment on your USP with competitors with a single camera.

So again, I don't think we have a specific target that we are going to share with you; again, our ambition is very clear. We want to be a leader in this space, which means that we have to, of course, win additional design wins and scale beyond our current customers. We think that a significant part of being able to go win that business is demonstrating the credibility we have so far of getting products on the road and being able to go and get to regulatory approval on single camera, DMS, OMS.

When we talk about the unique selling points, again, I think single camera DMS, OMS as a technology is quite disruptive in terms of the ease of integration, the ease of sort of the integration program needed for an OEM to deploy the full set of features. There's also the cost savings in terms of being able to go to a single camera and a single compute platform rather than having 2 separate systems that drive them. And increasingly, as regulatory frameworks like NCAP require focus on occupants as well for some of the safety-related points, the need to deploy DMS and OMS becomes more significant.

So I would say that, that USP for our end customers is very much around simplicity of integration and lower system cost. And that's what we believe is going to drive the market towards single camera DMS, OMS. I think for us, in the solution, I think we can demonstrate that we have a very high-quality and robust single camera DMS, OMS. We have delivered this in a scheme where we are effectively a Tier 1 to a major OEM. So the robustness of our solution, I think, is quite high. And I think getting to homologation is a major milestone as well, which I think will mean that for many people, this is a low-risk path to go and choose Tobii.

Okay. And this next question comes from Jacob. How should we think about the cost base, including CapEx for H2 compared to H1? Will it go down or remain on the same levels?

Asa?

So we're continuing to sizing our staffing, and we took additional actions in April and, of course, we are continuously working with lowering our cost base. So yes, one could expect lower cost during the second half of the year; however, we have chosen not to quantify at this moment. And I don't know, Anand, if you are going to -- if you can give some flavor to the CapEx.

No, I think you answered it absolutely correctly. Again, we are determined to stay on this path of improvements in profitability, and we think that working and maintaining our focus on the cost base is a critical part of that.

All right. And the next question comes from [ Mart ]. What is the share of global market size in the interior sensing that your solution addresses?

I would say that today, we have the full sort of technology set in terms of addressing the interior sensing market. We have a DMS solution that has been homologated in the EU, that has been shipping in commercial vehicles since 2019. We are the first company in the world that is shipping an occupancy monitoring system starting in 2021. And now we have a single camera DMS, OMS offering that is getting ready for production to 2025. So I would say that we are largely able to address all of the interior sensing opportunities.

If you think about what drives the growth of interior sensing versus the overall automotive market as a whole, I would say that it's driven very much by regulatory demands in the EU, which really come in 2026, but also the need to have driver monitoring paired with higher levels of autonomy to ensure that the driver is paying attention to the task of driving what would be considered eyes on hands-off type of driving.

So these are 2 major trends that drive the need for interior sensing into the larger automotive market. And again, we think that we can address most of those use cases already with the portfolio we have now.

And the next question comes from Jacob. Was the additional SEK 45 million in royalties from Dynavox received in cash this quarter? And is that included in the 12% underlying organic growth? And can you give some color about the SEK 45 million royalty?

So the SEK 45 million in royalties, we recognize the revenue. The cash is not included in the quarter so far. I'm not sure that I understand the 12% underlying organic growth. But again, we have said that when we look at what makes up organic growth, we would say that it is part of our sustained business and Dynavox is very much part of that. Typically, what we remove from organic growth is currency effects. And we've also said that we were not including the onetime nonrecurring revenue that we got from the acquisition.

So everything outside of that special revenue stream as well as currency effects is included in the organic growth. In terms of giving some color on the SEK 45 million royalties, as we said, our business setup with Dynavox includes compensation for hardware components and component royalty. That will be part of our ongoing engagement with Dynavox in the new setup. But as we have changed the setup, there was some catch-up of royalty related to hardware that had already been acquired and that is the effect that we see in Q2.

And next question comes from NK. Are you looking at expanding into commercial vehicle space, especially autonomous trucks?

So again, we have our solution targeting commercial vehicles already in some cases, so we have been shipping driver monitoring systems in Japan into commercial vehicles. We received homologation for our DMS solution with the commercial vehicle earlier this year in the EU. So very much commercial vehicles are part of our focus from a driver monitoring setup.

Now in terms of autonomy, in general, there is a need for driver monitoring coupled with higher levels of autonomy. So as trucks get to more autonomy, if there's still the expectation that there's a driver in the truck, we think that, that will increase the need to have driver monitoring systems in there beyond where the regulatory approval or the regulatory demands are clear. So we would say we are already addressing that and we'll continue to do so.

And the next question comes from [ Cal ]. Could the interior sensing part of Tobii become a new Dynavox?

I'm not sure if I fully understand the question, but again, we are organized into 3 separate business units at this point in time. The Autosense business we've talked about, we have completed the integration of the acquisition we have made so far. And again, we believe that this can be a strong growth driver from a revenue perspective, and we think that this is something that we believe in the long term creates a lot of value for Tobii.

And the next question comes from Justin. What is your expectation on percentage of royalty revenue stream contributing to overall sales revenue volume?

I'm not sure how to answer this question specifically, I would say that, again, when we look at the different revenue streams and the different business units, they are quite different in nature. Our Products & Solutions business, for example, is sold largely in many cases, as a hardware purchase, typically at quite high ASPs. There are elements of software licensing there as well. There are different setups in the different business units, so I would say that this is a difficult question specifically come out with a percentage here going forward. And again, we don't typically provide this kind of guidance either.

Okay. And that was the last question. So I'll hand it back to you, speakers, for any closing comments.

So once again, thank you, everyone, for joining and giving us your questions. I'm very pleased with our Q2 report in the sense that it continues the progress we have said that we are going to focus on, improvements in profitability, focus on cost, improving our cash position. I think we continue to execute on our strategies as we've stated for them, and we are determined to continue to stay on this path of sustained improvement and to build on a solid first half of the year.

Our next report will be released on October 22, 2025, and looking forward to seeing you then. Thank you very much.