NAPATECH  
HALF-YEAR REPORT 2025  
 
MANAGEMENT'S REPORT  
We’ve made significant progress executing against key milestones in our strategic roadmap, reinforcing our position as an early leader  
in the emerging mass market for Network Interface Cards (NICs). Over the past year, we’ve strengthened our core business and  
advanced toward critical design wins that support our goal of scaling to 60,000–80,000 units annually at peak production. These  
developments are tracking to plan, and compared to this time last year, our position is markedly stronger. Together, these gains  
enhance our visibility into the timing and magnitude of our transformation—while simultaneously reducing risk across our growth  
trajectory.  
Our second quarter financial results include revenue of $4.9M US dollars, an increase of 43% year-over-year, that lifts our first-half  
2025 revenue above 1H-2024 by 26%. Our 2Q gross margins remained healthy at 67%, up 2% compared to 2Q-2024, at finished 1H-  
2025 at 68.4%. While we will never be pleased with negative earnings and cashflow, we are pleased to report significant  
improvements in both of those areas, and to report we foresee further improvements in 3Q-2025. We’ve also continued our focus  
on improvements to net working capital, and have begun to see marked results.  
In support of the significant steps forward with our current customers and expanding design-win pipeline, Napatech successfully  
completed a private placement capital raise of 210M NOK. The Placement attracted interest from high-quality investors, including  
dedicated support from existing shareholders. ABG Sundal Collier ASA (?) and SpareBank 1 Markets AS (?) served as managers for the  
placement, with SB1 initiating coverage on Napatech. The proceeds will be used to finance the growth opportunity arising from the  
announced partnerships, pipeline and design wins.  
We also were fortune to augment our board of directors with new members holding key executive positions from respected  
companies, with proven success in with customers in the markers that Napatech is navigating today.  
We are inspired by the success we have in building a pipeline for our new products and solutions, that exceeds anything we have had  
in place from our base business. Our partnership with Intel-Altera continues to play a critical role in our strategy, by helping to  
contribute to valuable, high-volume opportunities to our pipeline from leading high-growth applications and use cases. In recent  
updates we had noted our expectation of growth from our base business, and we are pleased to report definitive results in that area,  
along with improved visibility to additional improvements in the second half of 2025. An important part of that strengthening was  
the increase in sales to our top customers, along with forecasts and commitments from those top customers for increased unit  
demand over the next 4 quarters. The improving base business, plus constantly expanding pipeline of opportunities and early success  
in new design wins provides great optimism towards realizing our growth ambitions  
Last year we announced a design win with Intel-Altera and a tie-1 server OEM to build next generation solutions to their specification  
for high volume use cases, as well as the general market. I am glad to report we consistently met the hardware mileposts ahead of  
plan and exceeded their expectations. We are intimately involved in the next stage of their process, which includes the development  
and integration of key software to meet their deployment requirements. We are excited that our efforts to date have resulted in  
expanding our cooperation to additional use cases and opportunities, all of which represent potentially transformational unit volumes  
to Napatech.  
We are equally excited today to share more information about our latest high-volume design win in Artificial Intelligence inferencing  
for hyperscale cloud, next-wave cloud, and enterprise datacenters. Our Intel-Altra programmable NIC delivers efficient ultra-low  
latency distributed inferencing across many AI servers. Customers get the benefit of deploying an industry-standard ethernet-based  
scale-out solution to take advantage of blazing fast inference speeds, all at massive scale. We are on track with our initial design win,  
and actively replicating this design by pursuing others in need of AI infrastructure.  
Finally, we recently disclosed other winning solutions across an array of applications and services by leading companies in their  
respective vertical markets, including a cyber security solution with Broadcom Symantec, a Network and Server Infrastructure  
solution with Eideticom, and Artificial Intelligence solution with Myrtla.AI and Xelera for ultra-low latency transactions in financial  
services markets. These are all examples of Napatech expanding its business to large or high-growth segments that require our  
programmable NICs. We’re also pleased that one of our 5G Packet Core design wins, has secured their first design win from a north  
American 5G operator, that is expected to lead to our first production deployment in late 2025.  
On behalf of Napatech we thank you for your interest in our business and hope you share our enthusiasm about our future.  
Best regards,  
Lars Boilesen  
Chief Executive Officer  
Napatech HALF-YEAR REPORT 2025  
page 2 of 16  
 
Highlights H1:  
•
Revenue in USD amounted to 8.2m in H1 2025, an increase of 26% compared to H1 2024. In DKK, revenue amounted to  
55.4m, an increase of 24% compared to H1 2024.  
•
•
•
•
•
•
•
The gross margin in H1 2025 was 68.4%, an increase of 0.2%-points compared to H1 2024.  
Staff costs and Other external costs in H1 2025 amounted to DKK 91.5m compared to DKK 83.9m in H1 2024.  
EBITDAC1 in H1 2025 amounted to negative DKK 53.6m compared to negative DKK 53.4m in H1 2024.  
EBITDA in H1 2025 amounted to negative DKK 48.7m compared to negative DKK 51.7m in H1 2024.  
Depreciation, amortization, and impairment for H1 2025 were DKK 12.3m compared to DKK 15.6m in H1 2024.  
Net Cash flow from operating activities in H1 2025 was negative DKK 44.3m compared to negative DKK 47.4m in H1 2024.  
Net working capital end of H1 2025 amounted to DKK 95.2m compared to DKK 65.2m end of H1 2024 and DKK 98.6m end  
of 2024.  
•
•
Net cash used in investing activities in H1 2025 amounted to DKK 6.3m compared to DKK 3.7m in H1 2024.  
Cash and cash equivalents at the end of H1 2025 amounted to DKK 133.4m compared to DKK 103.2m at the end of H1 2024.  
Highlights Q2:  
•
Revenue in USD amounted to 4.8m in Q2 2025, an increase of 43% compared to Q2 2024. In DKK, revenue amounted to  
31.6m, an increase of 36% compared to Q2 2024.  
•
•
•
•
•
•
•
The gross margin in Q2 2025 was 67%, an increase of 2%-points compared to Q2 2024.  
Staff costs and Other external costs in Q2 2025 amounted to DKK 42.6m compared to DKK 43.3m in Q2 2024.  
EBITDAC in Q2 2025 amounted to negative DKK 21.5m compared to negative DKK 28.2m in Q2 2024.  
EBITDA in Q2 2025 amounted to negative DKK 19.6m compared to negative DKK 27.4m in Q2 2024.  
Depreciation, amortization, and impairment for Q2 2025 were DKK 5.9m compared to DKK 7.7m in Q2 2024.  
Net Cash flow from operating activities in Q2 2025 was negative DKK 18.6m compared to negative DKK 41.9m in Q2 2024.  
Net cash used in investing activities in Q2 2025 amounted to DKK 2.5m compared to DKK 2.7m in Q2 2024.  
Key figures2:  
Revenue USD m  
Q2 2025 Q2 2024 YTD 2025 YTD 2024  
4.8  
43%  
31.6  
36%  
67%  
-21.5  
-19.6  
-18.6  
95.2  
133.4  
3.4  
-39%  
23.2  
-39%  
65%  
-28.2  
-27.4  
-41.9  
65.2  
8.2  
26%  
55.4  
24%  
68%  
-53.6  
-48.7  
-44.3  
95.2  
133.4  
6.5  
-40%  
44.7  
-40%  
68%  
-53.4  
-51.7  
-47.4  
65.2  
Growth YoY USD m  
Revenue DKK m  
Growth YoY DKK m  
Gross Margin  
EBITDAC DKK m  
EBITDA DKK m  
Net Cash Flow from Operating Activities DKK m  
Net Working Capital, end of period DKK m  
Cash and cash equivalents, end of period DKK m  
103.2  
103.2  
This is Napatech  
Napatech is a Danish tech company developing high-performance, programmable network interface cards and software for programmable NICs. The  
Napatech software suite ensures broad compatibility and seamless integration for our family of FPGA-based SmartNICs. With support for all major  
systems and a common API that easily integrates with custom-developed, open source, or commercial applications, we enable significantly reduced  
time-to-market for new products.  
Additional information is available at www.napatech.com\investor.  
1 EBITDAC: Earnings before depreciation, amortization and impairment, and cost transferred to development projects.  
2 Definitions: Gross Margin is calculated as ‘Gross Profit’ / ‘Revenue’; EBITDAC is calculated as ‘Earnings Before Interest, Taxes, Depreciation and Amortization’ before  
staff costs transferred to capitalized development costs; EBITDA is calculated as ‘Earnings Before Interest, Taxes, Depreciation and Amortization’; Net working capital  
represents the value of inventories, trade receivables of other current operating assets less trade payables and other current operating liabilities. Cash and cash  
equivalents and income tax receivable or payable are not part of the net working capital; Cash flows from operating activities are profit or loss before tax added or  
deducted changes in the net working capital, added or deducted changes in provisions and added the yearly depreciation and amortization; Free cash flow is net cash  
flow from operating activities added or deducted investing activities.  
Napatech HALF-YEAR REPORT 2025  
page 3 of 16  
 
Revenue and Gross Margin  
Financial Items  
H1  
H1  
Napatech reports revenue of DKK 55.4m in the first half  
of 2025 compared to DKK 44.7m in the same period in  
2024, equivalent to an increase of 24%. In USD, revenue  
was up 26% compared to H1 2024.  
Financial items for H1 2025 were negative DKK 4.0m  
compared to a negative DKK 0.7m in H1 2024.  
Q2  
Financial items for Q2 2025 were negative DKK 2.7m  
compared to a negative DKK 0.7m in Q2 2024.  
The gross margin in H1 2025 was 68.4% compared to  
68.2% in H1 2024.  
Taxes  
Q2  
H1  
Napatech reports revenue of DKK 31.6m in Q2 2025  
compared to DKK 23.2m in the same period in 2024,  
equivalent to an increase of 36%. In USD, revenue grew  
43% compared to Q2 2024.  
Taxes for H1 2025 amounted to a cost of DKK 0.1m  
compared to a an income of DKK 0.7m in H1 2024.  
Q2  
Taxes for Q2 2025 amounted to a cost of DKK 0.1m  
compared to an income of DKK 0.7m in Q2 2024.  
The gross margin in Q2 2025 was 67% compared to 65%  
in Q2 2024.  
Investments  
Costs  
H1  
H1  
The total net cash used in investing activities in H1 2025  
was DKK 6.3m, of which DKK 5.7m was invested in new  
product development. In H1 2024, the total net cash used  
in investing activities was DKK 3.7m, of which DKK 1.9m  
was invested in new product development.  
Staff costs and Other external costs in H1 2025 amounted  
to DKK 91.5m, compared to DKK 83.9m in H1 2024.  
Operating expenses after transferal of staff costs to  
capitalized development costs in H1 2025 amounted to  
DKK 86.6m, compared to DKK 82.2m in H1 2024.  
Q2  
The total net cash used in investing activities in Q2 2025  
was DKK 2.5m, of which DKK 2.2m was invested in new  
product development. In Q2 2024, the total net cash used  
in investing activities was DKK 2.7m, of which DKK 0.9m  
was invested in new product development.  
Q2  
Staff costs and Other external costs in Q2 2025 amounted  
to DKK 42.6m, compared to DKK 43.3m in Q2 2024.  
Operating expenses after transferal of staff costs to  
capitalized development costs in Q2 2025 amounted to  
DKK 40.8m, compared to DKK 42.4m in Q2 2024.  
Cash Flow  
H1  
Net cash flow from operating activities in H1 2025 was  
negative DKK 44.3m compared to negative DKK 47.4m in  
H1 2024.  
EBITDAC and EBITDA  
H1  
Earnings  
before  
Interest,  
Tax,  
Depreciation,  
Amortization, and Capitalization of development cost  
(EBITDAC) amounted to negative DKK 53.6m in H1 2025  
compared to negative DKK 53.4m in H1 2024.  
Free cash flow in H1 2025 amounted to negative DKK  
50.6m compared to negative DKK 51.1m in H1 2024.  
Net cash from financing activities in H1 2025 was positive  
DKK 121.6m, compared to positive DKK 111.7m in H1  
2024.  
EBITDA in H1 2025 was negative DKK 48.7m compared to  
negative DKK 51.7m in H1 2024.  
Q2  
Cash and cash equivalents at the end of H1 2025 was DKK  
133.4m compared to DKK 103.2m at the end of H1 2024.  
EBITDAC amounted to negative DKK 21.5m in Q2 2025  
compared to negative DKK 28.2m in Q2 2024.  
Q2  
EBITDA in Q2 2025 was negative DKK 19.6m compared to  
negative DKK 27.4m in Q2 2024.  
Net cash flow from operating activities in Q2 2025 was  
negative DKK 18.6m compared to negative DKK 41.9m in  
Q2 2024.  
Depreciation, amortization, and impairment  
H1  
Free cash flow in the quarter amounted to negative DKK  
21.2m compared to negative DKK 44.6m in Q2 2024.  
Depreciation, amortization, and impairment in H1 2025  
were DKK 12.3m compared to DKK 15.6m in Q2 2024.  
Net cash from financing activities in Q2 2025 was positive  
DKK 121.1m, compared to a positive DKK 120.2m in Q2  
2024.  
Q2  
Depreciation, amortization, and impairment in Q2 2025  
were DKK 5.9m compared to DKK 7.7m in Q2 2024.  
Napatech HALF-YEAR REPORT 2025  
page 4 of 16  
 
Changes in equity  
The company is exposed to risks that might affect our  
ability to reach our goals, such as currency fluctuations,  
general market uncertainty, and material changes in our  
large OEMs’ needs for Napatech’s products.  
The company's equity amounted to DKK 216.6m on June  
30, 2025, this is an increase of DKK 63.2m from December  
31, 2024. On May 27, 2025, Napatech completed a  
private placement of 10,000,000 shares at a subscription  
price of NOK 20.00 per share, raising DKK 130m in gross  
proceeds.  
Additionally, in 2025, we have seen increasing market  
uncertainty, particularly related to potential trade  
barriers, including tariff increases in the United States.  
With our products manufactured in the US and the  
majority of our customers also located in the US, we do  
not feel overly exposed. However, the lack of  
predictability and uncertainty surrounding tariff  
increases is a concern, and we will be monitoring the  
development closely.  
In H1 2025, Group equity decreased by the  
comprehensive income with DKK -67.0m and increased  
with DKK 130.2m by transactions with shareholders.  
Shareholders and Share Information  
Napatech, as of June 30, 2025, had 110,053,880 shares,  
each with a nominal value of DKK 0.25. The share capital  
is DKK 27,513,470.00, divided among the 1,906  
shareholders.  
Number of  
Investor  
% of total  
shares  
13,456,941  
10,013,618  
7,800,000  
6,200,738  
5,365,065  
4,512,992  
4,286,888  
4,204,445  
3,822,687  
3,645,221  
2,470,548  
2,180,828  
1,995,573  
1,992,022  
1,991,343  
1,844,840  
1,730,790  
1,565,200  
1,408,658  
1,379,749  
81,868,146  
28,185,734  
110,053,880  
SUNDT AS  
12.22%  
9.10%  
7.09%  
5.63%  
4.87%  
4.10%  
3.90%  
3.82%  
3.47%  
3.31%  
2.24%  
1.98%  
1.81%  
1.81%  
1.81%  
1.68%  
1.57%  
1.42%  
1.28%  
1.25%  
74.37%  
25.63%  
100%  
VERDANE CAPITAL VIII K/S  
ARBEJDSMARKEDETS TILLAEGSPENSION  
J.P. MORGAN SE  
PRIVATE INVESTOR  
EXTELLUS AS  
BANK PICTET & CIE (EUROPE) AG  
BROWNSKE BEVEGELSER AS  
SKANDINAVISKA ENSKILDA BANKEN AB  
SKANDINAVISKA ENSKILDA BANKEN AB  
J.P. MORGAN SE  
SKANDINAVISKA ENSKILDA BANKEN AB  
MANARA AS  
THE BANK OF NEW YORK MELLON SA/NV  
DANSKE BANK A/S  
PRIVATE INVESTOR  
MP PENSJON PK  
AREPO AS  
NORDNET BANK AB  
THE BANK OF NEW YORK MELLON  
Total number owned by top 20  
Total 1886 other shareholders  
Total Number of shares  
Events after the end of the period  
No significant events have occurred after the end of the  
reporting period.  
Outlook for 2025  
Napatech's financial expectations for 2025 remain  
unchanged:  
Guidance  
Revenue  
DKK 150 - 190m  
69 - 71%  
Gross margin  
Disclaimer:  
This report may contain statements regarding the future in  
connection with Napatech's growth initiatives, profit figures,  
outlook, strategies, and objectives. All statements regarding the  
future are subject to inherent risks and uncertainties, and many  
factors can lead to actual profits and developments deviating  
substantially from those expressed or implied in such  
statements.  
Staff expenses & Other external costs  
DKK 170 - 180m  
Staff costs transferred to capitalized  
development costs  
DKK 8 - 12m  
With performance in the middle of the guided ranges,  
EBITDA would be negative DKK 46m.  
Napatech HALF-YEAR REPORT 2025  
page 5 of 16  
 
MANAGEMENT STATEMENT  
The Board of Directors and the Executive Management have considered and adopted the interim report of Napatech Group  
for the period from January 1 to June 30, 2025  
The interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the EU, and  
additional Danish interim reporting requirements for listed companies.  
In our opinion, the interim report gives a true and fair view of the Group's assets, liabilities, and financial position on June 30,  
2025, and of the results of the Group's operations and cash flows for the period January 1 to June 30, 2025.  
We find that the Management's commentary provides a fair statement of developments in the activities and financial  
situation of the Group, financial results for the period, and the general financial position of the Group, and describes the  
major risks and elements of uncertainty faced by the Group. The term Company below refers as well to the Group.  
The interim report is unaudited and has not been reviewed by the company's auditors.  
Søborg, August 26, 2025  
Executive Management  
Lars Boilesen, CEO
Board of Directors  
Christian Jepsen, Chairman
Patricia Kummrow
Lynn A. Comp
Shannon John Poulin
Zane Ball
Svenn Tore Larsen
Napatech HALF-YEAR REPORT 2025  
page 6 of 16  
 
INCOME STATEMENT  
For the period ended June 30, 2025  
2nd quarter  
H1  
DKK'000  
Note  
3
2025  
2024  
2025  
2024  
Revenue  
31,571
(10,445)
21,126
(29,443)
(13,165)
(21,482)
1,843
23,176
(8,105)
55,420
44,718
(14,217)
30,501
(56,339)
(27,562)
(53,400)
1,716
Cost of goods sold  
Gross profit  
(17,523)
37,897
(64,502)
(27,011)
(53,616)
4,926
15,071
(28,581)
(14,726)
(28,236)
867
Staff costs  
Other external costs  
EBITDAC  
Transferred to capitalized development costs  
EBITDA  
(19,639)
(5,870)
(27,369)
(7,699)
(48,690)
(12,327)
(61,017)
209
(51,684)
(15,643)
(67,327)
1,206
Depreciation, amortization and impairment  
Operating result (EBIT)  
Finance income  
(25,509)
182
(35,068)
373
Finance costs  
(2,907)
(1,112)
(4,241)
(1,869)
Result before tax  
Income tax  
(28,234)
(100)
(35,807)
747
(65,049)
(94)
(67,990)
745
Result for the period  
(28,334)
(35,060)
(65,143)
(67,245)
H1  
Earnings / (loss) per share:  
Basic, DKK  
4
2025  
(0.64)
(0.64)
2024  
(0.73)
(0.73)
Diluted, DKK  
STATEMENT OF COMPREHENSIVE INCOME  
For the period ended June 30, 2025  
H1  
DKK'000  
2025  
2024  
Result for the period  
(65,143)
(67,245)
Items that may be reclassified to profit and loss in subsequent periods:  
Exchange differences on translation of foreign operations  
(1,835)
400
Other comprehensive income after tax  
(1,835)
400
Total comprehensive income  
(66,978)
(66,845)
Napatech HALF-YEAR REPORT 2025  
page 7 of 16  
 
CASH FLOW STATEMENT  
For the period ended June 30, 2025  
2nd quarter  
H1  
DKK'000  
2025  
2024  
2025  
2024  
Operating activities  
Income/Loss before tax  
(28,234)
(35,807)
(65,049)
(67,990)
Adjustments to reconcile profit before tax to net cash flows  
Finance income  
(182)
2,907
5,870
2,049
(373)
1,112
7,699
2,693
(209)
4,241
(1,206)
1,869
Finance costs  
Depreciation, amortisation and impairment  
Share-based payment expense  
12,327
4,815
15,643
4,707
Working capital adjustments  
Change in inventories  
15
3
(4,994)
3,006
(17,342)
14,775
Change in trade and other receivables and prepayments  
478
(11,881)
Change in trade and other payables and contract liabilities  
Interest received  
(870)
182
(4,434)
201
2,694
209
3,477
266
Interest paid  
(754)
(104)
(1,072)
(79)
(1,253)
(104)
(1,495)
(80)
Income tax received, net  
Net cash flows from operating activities  
(18,643)
(41,938)
(44,317)
(47,376)
Investing activities  
Purchase of tangible assets  
(248)
(2,232)
(56)
(1,740)
(896)
(555)
(5,671)
(56)
(1,740)
(1,905)
(46)
Investments in intangible assets  
Investments in leasehold deposits  
Net cash used in investing activities  
(46)
(2,536)
(2,682)
(6,282)
(3,691)
Free cash flow  
(21,179)
129,943
(44,620)
144,671
(50,599)
130,243
(51,067)
144,791
Financing activities  
Capital increase  
Transaction costs on issue of shares  
Increase (decrease) through treasury share transactions  
(4,874)
-
(5,188)
-
(4,874)
-
(5,188)
1,491
Payment of financial lease liabilities  
Proceeds from borrowings  
(678)
(1,144)
(873)
-
(1,587)
-
(1,746)
-
Repayment of borrowings  
(2,185)
(18,449)
120,161  
(2,185)
121,597  
(27,621)
111,727  
Net cash flows from financing activities  
121,062  
Net change in cash and cash equivalents  
Net foreign exchange difference  
99,883
(1,070)
75,541
147
70,998
(1,928)
60,660
179
Cash and cash equivalents at the beginning of the period  
Cash and cash equivalents at the end of the period  
34,598
27,518
103,206  
64,341
42,367
103,206  
133,411  
133,411  
Napatech HALF-YEAR REPORT 2025  
page 8 of 16  
 
BALANCE SHEET  
ASSETS  
30 June  
2025  
31 Dec.  
2024  
30 June  
2024  
DKK'000  
Note  
Development projects, completed  
Development projects, in progress  
Patents  
10,516
9,940
855
19,764
4,269
1,042
24,804
4,131
1,424
Intangible assets  
5
6
21,311
25,075
30,359
Plant and equipment  
Right-of-use assets  
4,005
7,840
487
4,765
9,200
441
4,146
6,250
378
Leasehold improvements  
Tangible assets  
12,332
14,406
10,774
Leasehold deposits  
1,643
1,587
1,587
Other non-current assets  
1,643
1,587
1,587
Non-current assets  
35,286
41,068
42,720
Inventories  
7
74,870
18,051
4,525
69,876
19,381
5,153
52,914
19,193
3,594
Trade receivables  
Prepayments  
Other receivables  
Income tax receivable  
Cash and cash equivalents  
19,814
6,253
23,762
6,345
19,461
6,729
133,411
64,341
103,206
Current assets  
256,924
188,858
205,097
Total assets  
292,210
229,926
247,817
Napatech HALF-YEAR REPORT 2025  
page 9 of 16  
 
EQUITY AND LIABILITIES  
DKK'000  
30 June  
2025  
31 Dec.  
2024  
30 June  
2024  
Note  
Share capital  
8
9
27,513
606,169
(619)
24,999
483,062
(619)
24,904
481,025
(619)
Share premium  
Treasury shares  
Foreign currency translation reserve  
Share-based payment reserve  
Retained earnings  
(1,282)
23,468
553
129
18,946
(373,518)
14,555
(329,515)
(438,619)
Equity  
216,630
153,423
190,479
Interest-bearing loans and borrowings  
Other non-current financial liabilities  
Non-current lease liabilities  
5,929
4,624
5,000
2,058
6,806
4,540
6,406
1,550
8,223
4,571
3,225
3,306
Non-current contract liabilities  
Non-current liabilities  
17,611
19,302
19,325
Interest-bearing loans and borrowings  
Current lease liabilities  
Trade payables  
34,706
3,214
5,247
11,438
3,364
36,098
3,124
5,789
8,953
3,237
8,123
3,275
8,277
11,048
7,290
Other payables  
Contract liabilities  
Current liabilities  
57,969
57,201
38,013
Total liabilities  
75,580
76,503
57,338
Total equity and liabilities  
292,210
229,926
247,817
Napatech HALF-YEAR REPORT 2025  
page 10 of 16  
 
STATEMENT OF CHANGES IN EQUITY  
Foreign  
currency  
Share  
based  
Share  
Share Treasury translation payment Retained  
Total  
capital premium shares  
reserve  
reserve earnings  
equity  
DKK'000  
2025  
Equity at January 1  
24,999 483,062  
(619)
553
-
18,946
(373,518)
(65,143)
-
153,423
(65,143)
(1,835)
Result for the period  
-
-
-
-
-
-
-
-
-
-
-
-
Total other comprehensive income  
Total comprehensive income for the period  
Transactions with shareholders  
Issue of shares  
(1,835)
(1,835)
(65,143)
(66,978)
2,514
127,729
-
-
-
-
-
-
-
-
130,243
(4,874)
1
Transaction costs  
-
-
-
(4,874)
-
-
Reversal, exercised and lapsed options  
Share-based payments  
252
-
-
-
(293)
4,815
42
-
4,815
216,630
Equity at June 30  
27,513 606,169  
(619)
(1,282)
23,468
(438,619)
H1 2024  
Equity at January 1  
22,544 343,064  
(2,110)
(271)
10,707
(262,224)
(67,245)
-
111,710
(67,245)
400
Result for the period  
-
-
-
-
-
-
-
-
-
-
-
-
-
Total other comprehensive income  
Total comprehensive income for the period  
Transactions with shareholders  
Issue of shares  
400
400
(67,245)
(66,845)
2,360
142,431
-
-
-
-
-
-
-
-
144,791
(5,188)
Transaction costs  
-
(5,188)
Increase (decrease) through treasury share  
transactions  
-
-
-
-
718
-
1,491
-
-
-
(46)
1,491
(187)
Reversal, exercised and lapsed options  
Share-based payments  
-
-
-
-
(859)
4,707
14,555
-
4,707
Equity at June 30  
24,904 481,025  
(619)
129
(329,515)
190,479
2024  
Equity at January 1  
22,544 343,064  
(2,110)  
(271) 10,707  
(262,224)  
(111,257)  
-
111,710  
(111,257)  
824  
Result for the period  
-
-
-
-
-
-
-
-
-
-
-
-
-
Total other comprehensive income  
Total comprehensive income for the period  
Transactions with shareholders  
Issue of shares  
824  
824  
(111,257)  
(110,433)  
2,455 143,117  
-
-
-
-
-
-
-
-
145,572  
(5,382)  
Transaction costs  
-
(5,382)  
Increase (decrease) through treasury share  
transactions  
-
-
-
-
2,263  
-
1,491  
-
-
-
(37)  
1,491  
(434)  
Reversal, exercised and lapsed options  
Share-based payments  
-
-
-
-
(2,660)  
10,899  
18,946  
-
10,899  
153,423  
Equity at December 31  
24,999 483,062  
(619)  
553  
(373,518)  
Napatech HALF-YEAR REPORT 2025  
page 11 of 16  
 
NOTES TO THE FINANCIAL STATEMENTS  
1. SIGNIFICANT ACCOUNTING POLICIES  
The interim condensed consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial  
Reporting, as adopted by the EU, and additional Danish disclosure requirements for listed companies.  
All new or amended standards (IFRS) and interpretations (IFRIC), as adopted by the EU and effective for the financial year  
beginning on January 1, 2025, have been adopted. The implementation of these new or amended standards and interpretations  
had no impact on the interim condensed consolidated financial statements.  
The accounting policies are consistent with those applied to the consolidated financial statements for 2024.  
The consolidated financial statements for 2024 contain a full description of accounting policies.  
The interim condensed consolidated financial statements  
The interim condensed consolidated financial statements comprise the parent company, Napatech A/S, and its subsidiary. The  
subsidiary is fully consolidated from the date of acquisition and/or incorporation, the date on which the parent company obtains  
control, until such control ceases. The subsidiary's financial statements are prepared for the same reporting period as the parent  
company's financial statements, using consistent accounting policies. The consolidated financial statements are prepared by  
consolidating the financial statements of the parent company and the subsidiary, eliminating all intragroup balances,  
transactions, unrealized gains and losses, and dividends.  
The interim condensed consolidated financial statements are prepared on a historical cost basis.  
The interim condensed consolidated financial statements are presented in thousand Danish kroner (DKK'000).  
2. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES, AND ASSUMPTIONS  
The preparation of the interim condensed consolidated financial statements requires the Management to make judgments,  
estimates, and assumptions that affect the reported revenues, expenses, assets, and liabilities.  
The accounting judgments, estimates, and assumptions that Management makes are the same for these interim condensed  
consolidated financial statements as for the consolidated financial statements for 2024.  
3. OPERATING SEGMENTS  
The following tables present revenue and gross profit information about the Group's operating segments for H1 2025 and H1  
2024, respectively:  
Geographical segments  
H1 2025  
AMERICAS  
ROW  
CONSOLIDATED  
DKK'000  
Revenue  
Total revenue  
43,186  
40,417  
2,769  
12,234  
55,420  
52,348  
3,072  
- Sales of goods  
- Sales of services  
Cost of goods sold  
11,931  
303  
(13,880)  
(3,643)  
(17,523)  
Segment gross profit  
H1 2024  
29,306  
8,591  
ROW  
37,897  
AMERICAS  
CONSOLIDATED  
DKK'000  
Revenue  
Total revenue  
33,289  
30,834  
2,455  
11,429  
11,288  
141  
44,718  
42,122  
2,596  
- Sales of goods  
- Sales of services  
Cost of goods sold  
(11,828)  
(2,389)  
(14,217)  
Segment gross profit  
21,461  
9,040  
30,501  
Napatech HALF-YEAR REPORT 2025  
page 12 of 16  
 
3. OPERATING SEGMENTS (CONTINUED)  
The geographical segmentation is based on the location of the customers. Explanation of abbreviations:  
AMERICAS = North & South America ROW = Rest of the World  
Business segments  
H1 2025  
SMARTNIC  
PRODUCTS  
ENGINEERING  
SERVICES  
CONSOLIDATED  
DKK'000  
Revenue  
Total revenue  
52,991  
52,348  
643  
2,429  
-
55,420  
52,348  
3,072  
- Sales of goods  
- Sales of services  
Cost of goods sold  
2,429  
(123)  
(17,400)  
(17,523)  
Segment gross profit  
H1 2024  
35,591  
2,306  
37,897  
SMARTNIC  
PRODUCTS  
ENGINEERING  
SERVICES  
CONSOLIDATED  
DKK'000  
Revenue  
Total revenue  
42,645  
42,122  
523  
2,073  
44,718  
42,122  
2,596  
- Sales of goods  
- Sales of services  
Cost of goods sold  
-
2,073  
-
(14,217)  
(14,217)  
Segment gross profit  
28,428  
2,073  
30,501  
Revenue from Engineering services is considered a separate segment from SmartNIC products due to the difference in economic  
characteristics and the timing of revenue recognition. According to IFRS 15, revenue from engineering service contracts is  
recognized in the income statement based on the stage of completion (over time), whereas the majority of revenue from  
SmartNIC products is recognized in the income statement at a point in time.  
The Group monitors the segments' performance at the level of gross profit. All other income statement items, as well as assets  
and liabilities, are managed on a group basis and therefore not allocated to individual segments.  
4. EARNINGS PER SHARE  
H1  
DKK'000  
2025  
2024  
Net profit attributable to equity holders of the parent company for basic  
earnings and the effect of dilution  
(65,143)  
(67,245)  
H1  
Thousands  
2025  
2024  
Weighted average number of shares for basic earnings per share  
101,536  
92,703  
Effect of dilution:  
Share options  
-
-
Weighted average number of shares adjusted for the effect of dilution  
101,536  
92,703  
Number of share options with potential effect of dilution:  
2,987  
3,229  
According to IAS 33, the effect of dilution from share options is not allowed to decrease the loss of earnings per share.  
Napatech HALF-YEAR REPORT 2025  
page 13 of 16  
 
5. INTANGIBLE ASSETS  
Development Development  
projects,  
completed  
projects,  
in progress  
Patents  
5,728  
Total  
212,644  
DKK'000  
Cost at 1 January 2025  
Additions in the period  
Cost at 30 June 2025  
202,647  
-
4,269  
5,671  
9,940  
-
5,671  
202,647  
5,728  
218,315  
Accumulated amortisation at 1 January 2025  
Amortisation for the period  
182,883  
9,248  
-
-
4,686  
187  
187,569  
9,435  
Accumulated amortisation and impairment 30 June 2025  
Carrying amount at 30 June 2025  
192,131  
10,516  
-
4,873  
855  
197,004  
21,311  
9,940  
The annual impairment test for the intangible assets will be performed on December 31, 2025. As of June 30, 2025, the  
Management has assessed that there were no indications of impairment concerning the Group's intangible assets in the reporting  
period.  
6. TANGIBLE ASSETS  
Leasehold  
Plant and  
equipment  
improve-  
ments  
Total  
21,268  
DKK'000  
Cost at 1 January 2025  
Additions in the period  
Presentation currency adjustment  
Cost at 30 June 2025  
19,270  
432  
1,998  
123  
-
555  
(72)  
(72)  
19,630  
2,121  
21,751  
Accumulated depreciation and impairment at 1 January 2024  
Depreciation for the period  
14,505  
1,182  
(62)  
1,557  
77  
16,062  
1,259  
(62)  
Presentation currency adjustment  
-
Accumulated amortisation and impairment 30 June 2025  
15,625  
1,634  
17,259  
Carrying amount at 30 June 2025  
4,005  
487  
4,492  
7. INVENTORIES  
30 June  
2025  
30 June  
2024  
DKK'000  
Consumables and components  
18,771  
56,099  
74,870  
-
15,793  
37,121  
52,914  
-
Finished goods and goods for resale  
Total inventories at 30 June  
Carrying value of inventories recognised at fair value  
The cost of goods sold also includes movements in inventory write-down. Movements in inventory write-down are as follows:  
DKK'000  
2025  
2024  
Inventory write-down at 1 January  
Inventory write-down for the year  
Reversal of inventory wirte-down  
Inventory write-down at 30 June  
3,090  
-
1,908  
144  
(243)  
2,847  
(35)  
2,017  
The reversal of inventory write-down relates mainly to products sold in 2025.  
Napatech HALF-YEAR REPORT 2025  
page 14 of 16  
 
8. ISSUED SHARE CAPITAL AND RESERVES  
Authorised shares  
2025  
2024  
Thousands Thousands  
Ordinary shares of DKK 0.25 each at 1 January  
Increase in ordinary shares DKK 0.25 each  
Ordiniary shares of DKK 0.25 each at 30 June  
99,997  
10,057  
90,175  
9,440  
110,054  
99,615  
9. TREASURY SHARES  
Treasury shares have been acquired to settle share options in the Group's share option program.  
10. COMMITMENTS AND CONTINGENCIES  
Collaterals  
The Group has issued a floating charge of DKK 40 million secured on receivables, inventories, patents, and plant and equipment  
as collateral for loans.  
Napatech HALF-YEAR REPORT 2025  
page 15 of 16  
 
Napatech A/S  
Tobaksvejen 23A, 1  
DK-2860 Søborg  
Denmark  
CVR no. 10109124  
Phone: +45 4596 1500  
www.napatech.com  
Napatech HALF-YEAR REPORT 2025  
page 16 of 16