Elliptic Labs changes timing of contract revenue recognition and restates Q3 2025 financials

23 Feb 2026 16:30 CET

Oslo, Norway 23 February 2026 - Elliptic Labs (OSE: ELABS) today announces
that it will recognize the minimum commitment milestone revenue from two major
laptop contracts entered into in the second half 2025 with equal parts over
the three-year contract period 2025-2027, rather than recognizing the entire
minimum amount in 2025.

This update reflects the timing of revenue recognition under IFRS and does not
affect the underlying commercial agreements, the operational execution of the
contracts, the expected timing of shipments, or the cash flows. Elliptic Labs
will receive payments upon shipping of the laptops to end-customers over the
contract period.

The decision to change the revenue recognition profile follows discussions
with auditors in connection with the ongoing auditing of the company's annual
results for 2025, with the auditors emphasizing that the contracts cover
future models expected to be launched over a three-year period.

The minimum value of the two multi-year contracts, announced on 25 August and
27 August 2025, respectively, has also been adjusted downward by USD 0.5
million to USD 4.7 million.

This combined value of the two contracts will be recognized as revenue in the
Income Statement with NOK 16.1 million in Q4 2025, with the remainder of the
combined contract value expected to be recognized with equal amounts in 2026
and 2027, respectively. Additional revenue from the two contracts will be
recognized if shipments exceed the minimum committed levels during the
contract period.

The company previously recognized revenue of NOK 34.2 million related to the
contracts in the Income Statement for Q3 2025. The total revenue of NOK 42.6
million previously reported for Q3 2025 will hence be restated to total
revenue of NOK 8.5 million. Correspondingly, EBITDA for Q3 2025 will be
restated to a loss of NOK 21.5 million, whereas profit before tax for Q3 2025
will be restated to a loss of NOK 28.7 million.

Elliptic Labs will report financial results for the fourth quarter and
preliminary full year 2025 on 26 February 2026.

For further information, please contact:
Interim CEO Ola Sandstad, ola.sandstad@ellipticlabs.com
Interim CFO Mathias Norderud, mathias.norderud@ellipticlabs.com

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 PlatformTM 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.

This information is subject to disclosure under the Norwegian Securities
Trading Act, §5-12. The information was submitted for publication, through the
agency of the contact persons set out above, at 2026-02-23 16:30 CET.

More information:
Access the news on Oslo Bors NewsWeb site

666503_Elliptic Labs changes timing of contract revenue recognition and restates Q3 2025 financials.pdf
666503_Elliptic Labs Report 2025 Q3 Restated.pdf