Q2 2026 Nordic Semiconductor ASA Earnings Call Transcript
Key Points
- Record Q2 revenue of $219 million, up 33% year-over-year, at the high end of guidance.
- Gross margin improved to 53.1% from 50.7% year-over-year, driven by product mix, broad market sales, and cloud services.
- Adjusted EBITDA grew 75% year-over-year to $36 million, with margin up to 16.6%.
- Strong growth in broad market revenue, up nearly 60% from 2024 lows on a rolling 12-month basis.
- Long-range revenue nearly doubled to $15 million, with both hardware and cloud services growing.
- New product portfolio (nRF54 series, nRF9151, nRF92 series) gaining momentum and contributing to revenue.
- AI-assisted development tools launched, enhancing developer experience and product lifecycle value.
- Strong balance sheet with $276 million in cash and $200 million unused credit facility.
- Q3 revenue guidance of $220-240 million implies 23-34% year-over-year growth.
- Bluetooth Low Energy certifications account for 31% of total, maintaining market leadership.
- Broad market revenue still almost 20% below 2022 peak levels, indicating room for recovery.
- Bluetooth certification share dropped below 30% in Q2, though management cautions on metric relevance.
- Net working capital increased to 26% of revenue, slightly above the 25% target, due to deliberate inventory buildup.
- R&D spending remains high, with long-range and early-stage businesses consuming over 40% of R&D despite only 10% of revenue.
- Potential risk of order pull-ins due to semiconductor supply tightness, which could impact future quarters.
- Cash flow from operations was only $15 million due to working capital increase, despite higher profits.
- Industrial and healthcare revenue remains dependent on a small number of key customers, causing volatility.
- No specific guidance on Q4 seasonality, with consumer market seasonality expected to persist.
- Management declined to provide detailed breakdowns on long-range revenue mix or product-specific margins, limiting transparency.
- Inventory buildup may lead to higher carrying costs and potential write-down risks if demand softens.
At this time, I'd like to welcome everyone to this Nordic Semiconductors Q2 2026 presentation. (Operator Instructions) This call is being recorded.
I'd now like to turn the call over to Head of Investor Relations, Stale. Please begin.
Thank you, Rasmus, and good morning, everyone. Please note that this presentation, as Rasmus said, is being recorded and will be accessible afterwards on our Investor Relations website, where you also find the earnings press release, quarterly report, and presentation material.
With me today, we have our CEO, Vegard Wollan; CFO, PÃ¥l Elstad. They will share details about our second-quarter 2026 financial performance and updates on key business developments.
Following the presentation, we will move on to Q&A segment. During this time, live questions can be submitted through the Q&A dial-in feature. For instruction on how to dial in, please refer to the earnings call invitation available on the stock exchange
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