Modulight’s profitability improved significantly – order intake among the strongest in the company’s history

This release is a summary of Modulight's interim report for January-September 2026. The whole report is attached to this stock exchange release as a pdf file, and is also available on the Modulight website at https://modulight.com/reports-presentations/.

The figures in brackets refer to the corresponding period of the previous year. This half-year financial report is unaudited.

Highlights in July–September 2026

• Revenue increased by 7% from the comparison period to EUR 1.9 million. EBITDA rose to EUR 1.0 million, and the EBITDA margin reached 53.2%. PPT sales increased by 110% from the comparison period to EUR 0.5 million.
• Order intake increased by 154% from the comparison period to EUR 3.5 million and was among the strongest in the company’s history. A larger proportion of orders than previously consisted of product sales rather than product development projects and NRE work.
• Revenue was EUR 1,886 (1,765) thousand.
• EBITDA was EUR 1,003 (-184) thousand.
• EBITDA margin was 53.2 % (-10.5) % of revenue.
• Operating result (EBIT) was EUR -393 (-1,220) thousand.
• Operating result margin (EBIT-%) was -20.8 % (-69.2) % of revenue.
• Result for the reporting period was EUR -395 (-1,227) thousand.
• Free cash from operations was EUR 241 (-1,076) thousand
• Earnings per share was EUR -0.01 (-0.03).

Highlights in January–September 2026

• Revenue was EUR 4,985 (5,333) thousand.
• EBITDA was EUR 1,370 (-810) thousand.
• EBITDA margin was 27.5 % (-15.2) % of revenue.
• Operating result (EBIT) was EUR -2,802 (-3,861) thousand.
• Operating result margin (EBIT-%) was -56.2 % (-72.4) % of revenue.
• Result for the reporting period was EUR -2,718 (-3,953) thousand.
• Free cash from operations was EUR -1,239 (-3,942) thousand
• Earnings per share was EUR -0.06 (-0.09).

Key figures

¹⁾ Audited
²⁾ Figure refers to the end of the review period

Outlook for 2026 remains unchanged
Modulight estimates that the company’s revenue and profitability will increase compared with the previous year.
 
On 21 April 2026, Modulight Corporation announced that, as of that date, it would begin providing financial guidance regarding its revenue and EBITDA. The purpose of the guidance is to increase transparency and improve the predictability of the company’s financial performance for investors and other stakeholders. The guidance reflects management’s expectations regarding the company’s financial performance and is based on the information available at the time of publication. The company will update or revise its guidance, as necessary, in connection with its interim reports or in the event of material changes.

Most of Modulight’s customer projects are various types of early-stage development projects. These projects are focused on commercializing Modulight’s own products. The progress of individual projects is difficult to predict, and macroeconomic and geopolitical uncertainty continues to impact market development and the company’s revenue. In line with its strategy, Modulight is also transitioning from device delivery-based payments to a new treatment session-based payment model (PPT business model). In 2025, the number of PPT sites increased to 80, and the business grew rapidly. Strong growth has continued in 2026; however, the pace of the transition remains difficult to assess.

Seppo Orsila, CEO
The company’s development continued strongly in the third quarter. Revenue returned to growth, profitability improved significantly, and order intake was among the strongest in the company’s history. We made good progress with several projects and, at the same time, added numerous new opportunities to our product development pipeline. I am particularly pleased that interest in our products and manufacturing capabilities is very broad across different customers, applications, and industries in Asia, Europe, and our most important market, the United States.

Our revenue increased by 7% in Q3 2026 compared with the corresponding period to EUR 1.9 million. At the same time, our profitability improved in line with our plan. EBITDA rose to EUR 1.0 million, and the EBITDA margin reached 53.2%. The significant improvement in profitability is particularly noteworthy because we simultaneously continued investing in future growth, customer relationships, and the development of new products.

The improvement in profitability was supported by the PPT pricing model, increased operational efficiency, an improved cost structure, broader utilization of our product platform, and the development of our business structure. A larger proportion of orders in Q3 2026 than previously consisted of product sales rather than product development projects and NRE work. During the reporting period, we also continued investing in our own product development and future products. Over the past few years, we have developed our laser platform so that, with minor configuration, it is suitable for an increasing number of applications. This reduces the need for customer-specific development work and strengthens our confidence in the scalability of our business. In the previous report, I thanked our technical team for this, but it is important to emphasize that the development of our laser platform is the result of the efforts of our entire laser family. Every individual plays an important role.

Order intake strengthened significantly
Order intake strengthened clearly during the summer and early autumn. Order intake in Q3 2026 amounted to EUR 3.5 million, representing an increase of approximately 154% compared with the corresponding period. Order intake for January–September rose to EUR 5.7 million and was approximately 11% higher than in the corresponding period.

We consider the development of the order intake structure particularly positive. A significant proportion of orders in Q3 2026 consisted of products rather than product development projects or NRE work. This is an important step in the implementation of our strategy: the objective of the product development work we have carried out over the years is to gradually transition projects from product development to productization and subsequently to ongoing product business. We expect the same development to continue during the remainder of the year as our products establish their position and our customers’ projects progress. In connection with their orders, several customers have emphasized the conservative nature of the volume estimates they have used and have assessed that actual demand could exceed the quantities ordered.

Due to the nature of our business, quarterly order intake will continue to fluctuate significantly, and strong order intake in a single quarter should not, as such, be interpreted as an indication of development in future quarters. However, the expansion of our customer base, the increasing number of projects, and the progression of more projects than previously toward production improve our visibility over the longer term.

PPT business continued very strong growth
Our Pay Per Treatment (PPT) business, based on payments per treatment session, continued to grow very strongly. PPT sales increased by 110% in Q3 2026 compared with the corresponding period to EUR 0.5 million, and by 127% in January–September to EUR 1.5 million. In September, PPT sales reached a record level of EUR 0.22 million, representing an increase of 168% compared with the corresponding period.

The importance of the PPT business to Modulight is growing rapidly. In Q3 2026, PPT sales already accounted for approximately 30% of the company’s revenue. This is an important indication for us that the treatment session-based business model we have been developing for a long time is maturing and becoming an essential part of the company’s business. The pricing changes we implemented earlier are now beginning to benefit us and support the improvement in profitability.

Interest from major technology companies is growing
Our product development pipeline continued to develop positively. We have focused particularly on initiating productization projects with leading companies in their respective industries. Several of these are among the world's largest companies in their industries. We consider it particularly promising that certain customers are seeking to accelerate the transition to production and begin production already during the coming quarters.

The number of audits conducted by customers has remained high, and the audits have progressed well. Several customers have emphasized the importance of audits when transitioning from product development toward the production phase. As a result of the audits, we have received not only positive customer feedback but also new projects and product concepts.

The effects of developments in the semiconductor industry, investments in artificial intelligence, and geopolitical developments are becoming increasingly evident in our customer discussions. Interest in our production operations located in Finland and our products designed in Finland increased across several sectors. In particular, Modulight’s indium phosphide (InP) technology and manufacturing capabilities have attracted interest from major international technology companies. We are engaged in discussions with several parties.

The strong growth in investments in AI infrastructure is being raised increasingly frequently in customer discussions. Indium phosphide technology and the related manufacturing processes are controlled by relatively few companies worldwide and require significant specialized expertise. Modulight has extensive experience in this technology dating back to the company’s founding. This has led to new inquiries from both existing and new customers, particularly from North America and Europe, but also from Asia.

Interest is also no longer limited to individual laser products. Discussions have expanded to include our in-house semiconductor manufacturing, manufacturing capacity, semiconductor processes, and potential long-term production partnerships. We see two complementary business opportunities here: the growth of products based on our own technology platforms and the broader utilization of our unique manufacturing and process expertise. The number of inquiries is increasing.

The value of vertical integration is becoming increasingly important
The importance of Modulight’s own vertically integrated manufacturing facility is further emphasized in this environment. Geopolitical developments, which negatively affected our business just a few years ago, are now increasingly supporting our Western and particularly European high-technology manufacturing operations.

The vast majority of our projects are of a nature in which the customer effectively commits to Modulight as a long-term technology partner. The United States remains the company’s primary focus, but business opportunities are increasingly emerging from other regions as well, particularly Europe. At the same time, we have continued developing our opportunities to increase local manufacturing in the United States.

We see particularly good opportunities in medicine, flow cytometry, microscopy, the semiconductor industry, quantum technology, and the defense and space industries. In these areas, our customers include globally significant companies that are among the largest in the world in their respective industries. During Q3 2026, we once again received interesting new initiatives from, among others, the semiconductor industry and the space and defense sectors, where our technology platform appears to be well suited to several new applications.

Outlook for the strategy period
The objectives of our strategy period 2026–2027 are strong annual revenue growth and a return to strong profitability. In addition, our objective is to achieve positive cash flow by the end of the strategy period.

The development in Q3 2026 was a significant step toward achieving our objectives for the strategy period. Revenue returned to growth, and EBITDA rose to over EUR 1 million, with an EBITDA margin of 53.2%. At the same time, the PPT business continued to achieve triple-digit growth, order intake strengthened considerably, and an increasing number of previously initiated customer projects progressed toward productization and production.

We believe that quarterly fluctuations will continue due to the nature of our business. However, the diversification of our customer base, the increasing number of projects, and their growing maturity strengthen our confidence in long-term growth. At the same time, we have improved our operational efficiency and paid particular attention to the adequacy of our cash resources.

Our growth strategy is progressing in the right direction. Q3 2026 demonstrated particularly clearly how revenue growth, a scalable product platform, strong growth in the PPT business, and an improved cost structure can together result in significantly improved profitability. EBITDA of over EUR 1 million and an EBITDA margin of 53.2% are an important indication of the potential of our business model, although quarterly fluctuations in our business will continue.

Webcast

Modulight's CEO Seppo Orsila will present the result in an English-language webcast, which will be held on October 26, 2026, at 11:00 a.m. EEST. Registration and access to the webcast are available through the following link:
https://modulight.zoom.us/webinar/register/WN_-b50yFg3Qumbt2Xn3NlmDg. Questions are to be submitted in writing in the webcast portal. CFO Anca Guina will also be present to answer questions. Presentation materials will be available before the start of the event on the company’s website at modulight.com/reports-presentations/.