Source: Inderes

Translation: Original published in Finnish on 8/18/2026 at 7:00 am EEST.

Modulight will publish its Q2 report on Friday, August 21. We expect the company's revenue to have decreased slightly from the comparison period, which was supported by the quantum computing project. We also expect earnings to weaken slightly due to the decline in revenue. In the report, our attention is particularly drawn to the development of recurring PPT revenue, the company's cost level, and the adequacy of cash. In addition, we will be following management's comments on the recently issued guidance for the current year, which points to growth.

Revenue declines slightly from comparison period, which was boosted by major one-off

We estimate Modulight's Q2 revenue to have decreased slightly year-on-year to 1.87 MEUR (Q2'25: 1.96 MEUR). In the comparison period, the company recognized a large portion of its quantum computing project, which had a total value of 0.8 MEUR. However, we expect the recurring Pay-Per-Treatment (PPT) revenue generated by the installed base to have continued its growth, providing the company with a more predictable revenue stream than before. Although the beginning of the year is somewhat soft in terms of revenue in our expectations, the company's guidance suggests that revenue growth will pick up as the year progresses. In the report, we will pay particular attention to comments on the development of customer activity and the progress of new projects towards the commercialization phase.

Cost savings support profitability

We expect Q2 EBIT to land at -1.29 MEUR (H1'25: -1.06 MEUR). We expect the reported result to weaken moderately due to lower revenue compared to the comparison period. There is uncertainty regarding the level of operating costs. Modulight implemented cost-saving measures at the end of last year, which resulted in very low costs in Q4'25. In Q1'26, costs were still lower than in the comparison period but higher than in the previous quarter. We expect costs to have increased slightly compared to Q1, as we estimate the impact of temporary cost savings to be fading. Modulight did not specify the savings achieved in the change negotiations in euro terms, but the company said it had agreed on temporary layoffs without redundancies. EBIT is burdened by high depreciation due to the company's production plant investments and development costs capitalized on the balance sheet. We expect the gross margin to remain at a good level, supported by high-margin PPT revenue.

Focus on cash development and project pipeline

Earlier this year, Modulight issued financial guidance for 2026, expecting the company's revenue and EBITDA for the financial year to increase from the previous year. We do not expect any changes to this in connection with the Q2 report. We would like to remind you that EBITDA does not account for the capitalization of development costs (approximately 0.9 MEUR/quarter), so EBIT provides a more realistic picture of the company's profitability and is better aligned with post-investment cash flow. For the full year 2026, we forecast revenue to grow to 8.0 MEUR and EBIT to be -3.9 MEUR.

In addition to the turnaround in results, a key area to watch in the report is the company's financial position and the development of its net cash. The decrease in costs has improved the outlook for cash adequacy, but since the business is still unprofitable, we believe the financing risk remains elevated. In the report, we will also be monitoring management's comments on the initiation of new customer projects and the progress of the commercialization of the Visudyne laser for ophthalmology in the United States. We believe it is important to see signs that the PPT model is scaling and beginning to support the company's journey toward a profitability turnaround.