Translation: Original published in Finnish on 08/17/2026 at 08:15 am EEST

Nexstim’s revenue and earnings improved and exceeded our forecast in H1. The outperformance was mainly due to the recognition of the Sinaptica exclusivity agreement signed last year, which had no cash flow impact. Adjusted for revenue recognition, the figures were broadly in line with our expectations. Our current year estimates are on the rise due to the recognition of revenue and a revision of sales estimates. Our estimates for the coming years remain virtually unchanged, which is why we reiterate our recommendation and target price. Our positive recommendation relies on the potential of the Brainlab collaboration, with concrete developments expected later this year.

Comparable revenue grew by 6%

Reported revenue grew by 16% year-on-year to 5.2 MEUR (H1'25: 4.5 MEUR) and exceeded our 4.2 MEUR estimate. Adjusted for non-recurring items, comparable growth was 6%. The growth and the beat are explained by the recognition of revenue from the Sinaptica exclusivity agreement (0.8 MEUR) and a higher-than-expected guaranteed sales margin of 0.7 MEUR from Brainlab (H1’25: 0.1 MEUR). The revenue recognition concerns the 1.5 MEUR payments agreed upon last year, of which Nexstim received 0.5 MEUR in cash last year, and 1 MEUR was converted into Sinaptica's bond. Last year, 0.3 MEUR was recognized as revenue, and the remaining 1.2 MEUR will be recognized this year without a cash flow impact. Diagnostics and therapy revenue were at the level of the comparison period (-2% vs H1’25). During the period, 12 systems were delivered (H1’25: 10) and the order backlog at the end of June was 7 systems (H1’25: 8). Several orders have already been received in H2, which supports the growth outlook for the rest of the year.

Revenue recognition also supported the reported result

EBIT was -0.3 MEUR (Q2’25: -0.2 MEUR) and exceeded our -0.8 MEUR expectation. The earnings beat is also mainly explained by Sinaptica revenue recognition and a higher-than-expected guaranteed sales margin. Operating costs were slightly higher than we expected, as Nexstim had strengthened its organization with a few additional recruitments. The balance sheet strengthened as a result of the share issue carried out in the spring, and the company was net debt-free at the end of H1. Cash flow after investments was -0.9 MEUR. Cash flow was supported by a decrease in working capital from the turn of the year (+0.7 MEUR) due to a decrease in trade receivables.

Upward estimate revisions for the rest of the year – medium-term unchanged

We raise our current year revenue forecast to 13.9 MEUR as a result of the Sinaptica revenue recognition (impact +1.0 MEUR) and an increase in sales estimates (+0.2 MEUR) Our forecast for the rest of the year is based on the delivery of 18 new systems in addition to the already announced deals. Our estimates for the coming years remain practically unchanged, positively impacted by our estimate for Brainlab sales and negatively by the slow progress of Sinaptica and the Magnus Medical license fees, which we are pushing forward in time

Valuation cautiously attractive

The valuation relies on revenue multiples and the DCF model, as earnings multiples will only become viable in the medium term. On our estimates, the 2026–27 EV/S multiple is 5.5x–4.6x. We believe the multiples are absolutely neutral or cautiously attractive when reflecting on the growth and profitability potential. Relative to its peers, the stock has become more expensive due to the decrease in valuation multiples of medical device companies during 2026. Our DCF model suggests a moderate upside for the stock. We believe the risk/reward warrants a positive recommendation. However, the valuation necessitates success in the Brainlab collaboration in the coming years.