Elliptic Labs Q2 2026: Focused execution through a transition year

(Oslo, Norway 27 August 2026) Q2 was a quarter of focused execution in a transition year for Elliptic Labs (OSE: ELABS). The financial performance was impacted by the milestone-based contract phasing previously flagged, with revenue development remaining challenging in the second quarter of 2026. Despite this, the quarter reflected momentum across the business: strong laptop shipment growth, a renewed Top-3 smartphone customer contract, and continued progress in adjacent verticals and Edge AI.

Revenue in the quarter was NOK 13 million (Q1: NOK 17 mn). Operating expenses, excluding depreciation and amortisation, decreased to NOK 18 million (Q1: NOK 24 million), as the ~15% annualized operating cost base reduction implemented in Q1 continued to take effect. The full cash effect from the cost efficiency measures is expected from the second half of 2026.

“Q2 was a quarter of focused execution through our transition year. We are executing our strategy across core and new growth areas with increased efficiency, and are on track with the direction we have set. Converting these opportunities into sustainable, profitable growth remains our clear priority,” says Ola Tviberg Sandstad, CEO of Elliptic Labs.

Business highlights Q2 and to date:

Revenue of NOK 13 million
33% year-over-year growth in laptop shipments, reflecting continued operational momentum
Smartphone contract renewed with an existing Top-3 global vendor, covering eight models
14% combined year-over-year growth in smartphone and laptop model launches
Commercial discussion in progress with vendors of next generation wearables
Positive validation from hardware and IP vendors within Edge AI
~15% annualized operating cost base reduction progressing according to plan

Adjacent Verticals and Edge AI
Traction across Elliptic Labs’ strategic initiatives continued to strengthen.

Within wearables commercial discussion is in progress with vendors of next generation devices. The customer dialogue is an encouraging proof that a market exists for the company's technology in this new category.

Elliptic Labs continued to progress opportunities in smart glasses where its audio-based sensing approach offers a more privacy-friendly alternative to camera-based solutions.

The quarter brought positive validation of Edge AI from chipset and IP vendors, and the company's established partner footprint continues to create opportunities to explore applications in new customer segments.

Outlook
Elliptic Labs continues to view 2026 as a transition year with strong focus on execution across both the established business and new strategic initiatives. The company reiterates its target of reducing the annualized operating cost base by approximately 15%, with full cash effect expected from the second half of 2026.

Within laptops and smartphones, the company expects continued momentum supported by new launches and shipment volumes. While revenue development in the first half of 2026 was impacted by low incremental volume revenue, Elliptic Labs expects gradual improvement through the second half of the year.

At the same time, operational progress within adjacent verticals and Edge AI is on track, supporting the ambition to reach commercial execution in the second half of 2026. Revenue impact is expected to materialise from 2027.

CEO Ola Tviberg Sandstad and CFO Mathias Norderud will present the Q2 2026 results today at 08:00 CEST. Please use the following link to access the presentation:
https://qcnl.tv/p/SNsqHvnAILzADsKqrGWcGQ

Contacts:
CEO Ola Sandstad, [email protected]
CFO Mathias Norderud, [email protected]

About Elliptic Labs
Elliptic Labs is a global Edge AI company delivering trusted, low-power on-device sensing at scale. Our AI Virtual Smart Sensor Platform™ enables intelligent, always-on contextual awareness directly on devices — without the need for additional hardware or continuous cloud processing.

Deployed in over 500 million devices worldwide, our platform powers software-defined sensing across a broad range of consumer and enterprise products. By executing compact neural networks directly on-device, our technology delivers adaptive, real-time sensing that preserves user privacy while minimizing power consumption.

For more than a decade, Elliptic Labs has specialized in efficient neural network execution using proprietary runtimes and custom-built sensing models optimized for real-world environments. Built on balanced, self-collected datasets and engineered to operate across diverse hardware architectures, our AI Virtual Smart Sensors enable seamless integration across product generations and device categories.

Our solutions enhance security, personalization, productivity, and user experience — forming a scalable foundation for the next generation of AI-enabled devices.

Headquartered in Norway, with a presence in the USA, China, South Korea, Taiwan, and Japan, Elliptic Labs is listed on the Oslo Stock Exchange. All technology and intellectual property are developed in Norway and are solely owned by the company, ensuring independence and long-term innovation.