poLight ASA (“poLight” or “the Company”) published on August 6, 2026, the Company’s quarterly report for the second quarter of 2026. The quarter was characterized by continued high activity within AR/MR development programs, headlined by the Company’s first consumer AR/MR design-in with expected product release in 2026. Total revenues of NOK 9.1m came in somewhat below the record Q1-26 level, as anticipated, while representing strong growth YoY. The following are some key financial metrics that we have chosen to highlight in connection with the report:
- Total revenues of NOK 9.1m (3.0) in Q2-26, corresponding to a YoY increase of approximately 206%, supported by NOK 3.7m in NRE-related revenue
- Gross profit of NOK 4.4m (-0.2), corresponding to a gross margin of approximately 48%, burdened by a NOK 2.2m inventory obsolescence provision
- EBITDA of NOK -33.1m in Q2-26 (-29.5), where the decline is attributable to NOK 7.1m in higher share option-related expenses driven by the share price appreciation; EBITDA ex share options improved to NOK -22.9m (-26.4)
- Cash position of NOK 243.7m at the close of the quarter (NOK 261.7m at the end of Q1-26)
Summary
poLight delivered a Q2-26 report in line with the trajectory outlined in our preview comment, with revenues stepping down sequentially from the Q1-26 record while roughly tripling YoY. The reported outcome of NOK 9.1m came in clearly above communicated orders with stated Q2-26 delivery of approximately NOK 3.5m, supported by NRE revenue and a continued underlying delivery base. AR/MR accounted for more than 80% of quarterly revenue, up from approximately 66% in Q1-26, reinforcing the segment’s increasing commercial weight.
The most important development in the report is that the consumer AR/MR case, first disclosed on April 7 and formally classified as a design-in on July 10, is now included in the Company’s pipeline with expected product release in 2026. As CEO Øyvind Isaksen notes, this brings hope that 2026 may become the year in which poLight technology starts shipping in a consumer AR/MR product, which would represent a major milestone. In parallel, the first camera modules under the NOK 5m order announced in October 2025 from a top-tier U.S. consumer electronics OEM were tested and shipped for customer validation at the end of the quarter, marking tangible progress in a second late-stage program.
Headline EBITDA weakened YoY, although the deterioration is explained by higher non-cash share option expenses, where accrued employer’s NICs increased by NOK 7.6m as a direct consequence of the share price appreciation during the quarter. EBITDA ex share options improved by NOK 3.5m YoY, supporting the view of gradually improving underlying operating leverage. poLight ended the quarter with a cash position of NOK 243.7m, retaining meaningful financial flexibility through the ongoing qualification cycle.
Revenue Outcome Confirms Normalization with AR/MR Increasing in Weight
During the second quarter of 2026, poLight reported total revenues of NOK 9.1m (3.0), corresponding to a YoY increase of approximately 206% and a QoQ decrease of approximately 20% versus the record NOK 11.4m in Q1-26. Total revenues consisted of sale of goods of NOK 5.4m and rendering of services of NOK 3.7m. Revenue in the first half of 2026 amounted to NOK 20.6m (6.8), thereby already surpassing the full-year 2025 level of NOK 20.5m.
As highlighted in our preview comment, communicated orders with stated Q2-26 delivery amounted to approximately NOK 3.5m, and the clear outperformance versus this level, which also came in above our expectations, reflects NRE activity and base deliveries not tied to announced purchase orders. Of the NOK 3.7m in NRE revenue, approximately NOK 1.8m related to poLight’s continued support for the establishment of Q Tech’s TLens® assembly and test line, invoiced for work performed during the quarter, compared to the NOK 3.0m recognized in Q1-26 for work performed in 2025. Sale of goods of NOK 5.4m declined from NOK 7.2m in Q1-26, consistent with our view that underlying volumes remain comparatively low and delivery-schedule dependent, while the barcode-related order intake of approximately NOK 1.5m (0.9m in Q1-26) indicates a stable industrial contribution. AR/MR accounted for more than 80% of quarterly revenue, with industrial just above 10%, underlining the increasing concentration toward the Company’s primary long-term value driver.
For the last twelve months (LTM), poLight’s total revenues amounted to NOK 34.2m, compared to NOK 20.5m for the full year 2025 and NOK 28.1m in the LTM period ended Q1-26. This can also be compared to our full-year 2026 estimate of NOK 38.6m, which was set before the communicated design-in. The formally classified design-in, now included in the Company’s pipeline with an expected product release in 2026, creates a potentially strong near-term revenue driver and represents a clear validation of the Company’s technology in consumer products. The design-in from a consumer OEM for AR/MR use is ahead of our expectations and, in our view, creates a clear possibility for a formal design-win in connection with a potential product launch toward the end of 2026, a timeline supported by the stated Q4-26 delivery schedule of the latest purchase order. Management clarified in connection with the report that a design-win is classified once the product is confirmed for market release, typically around a product announcement, which makes a launch the concrete trigger for reclassification. Such an outcome, however, remains dependent on external factors such as the final launch date and the commercial success of the end product. While initial volumes in such a scenario would likely be limited, with a more meaningful contribution dependent on the commercial adoption of the end product, a launch would represent the Company’s first consumer AR/MR design-win and a structurally important milestone.
Gross Margin Reflects Less Favorable Mix and Continued Provisioning
poLight reported COGS of NOK 2.5m in Q2-26, which combined with an inventory obsolescence provision of NOK 2.2m resulted in a gross profit of NOK 4.4m, corresponding to a gross margin of approximately 48% (Q1-26: 69%). The sequential decline primarily reflects a lower NRE share of revenue and a higher COGS-to-goods ratio. Excluding the NRE contribution, the underlying gross margin amounted to approximately 12%, or approximately 53% when also excluding the obsolescence provision, compared to approximately 51% on the corresponding basis in Q1-26. Analyst Group views the quarterly margin variability as an expected feature of the current development phase, where low absolute volumes, project mix and provisioning policy can swing reported margins materially between quarters and continues to place limited weight on individual quarterly margin data points ahead of a potential volume ramp.
Notably, management stated during the presentation that the three purchase orders related to the consumer design-in have been placed at mass production prices, indicating that this case is already priced on volume terms rather than development-phase ASPs. Management also noted that the customer operates with minimal inventory, placing recurring orders against forecast, which explains the size distribution across the three orders. This reduces the ASP normalization risk historically associated with a transition toward volume deliveries, although mix effects across the broader portfolio will still influence reported margins.
Cost Base Reflects Strategic Scaling and Share Price-Driven Non-Cash Effects
EBITDA for Q2-26 amounted to NOK -33.1m (-29.5). The YoY decline is attributable to NOK 7.1m in higher share option plan expenses including employer’s NICs, of which NOK 7.6m relates to increased NIC accruals driven by the share price appreciation during the quarter, a non-cash item that mechanically follows the share’s strong performance. Excluding share option-related expenses, EBITDA improved to NOK -22.9m (-26.4), driven by a NOK 4.6m higher gross profit contribution against a moderate NOK 0.9m increase in underlying operating expenses.
R&D expenses amounted to NOK 11.2m (11.7), sales and marketing expenses to NOK 7.2m (4.7), operational and supply chain expenses to NOK 10.1m (6.1) and administrative expenses to NOK 9.0m (6.8). The cost composition continues to reflect the reclassification of pre-sales customer development support from R&D to sales and marketing effective January 1, 2026, while administrative expenses excluding share option effects were NOK 1.8m lower YoY. Adjusted for these effects, the underlying cost base continues to expand in line with the communicated strategy, and Analyst Group expects operating expenses to remain elevated through 2026 as poLight invests in qualification programs and organizational readiness.
Cash Flow and Financial Position
As of 30 June 2026, poLight reported cash and cash equivalents of NOK 243.7m, compared to NOK 261.7m at the end of Q1-26. Net cash outflow from operating activities amounted to NOK 17.7m in Q2-26 (-23.9), where a NOK 10.2m working capital release, primarily reflecting reduced inventories and higher payables, offset the operating loss. Net cash flows used in investing activities of NOK 1.3m primarily related to new test equipment. With a continued robust cash position and a moderating operational burn rate at the underlying level, poLight retains meaningful financial flexibility to remain in execution mode, where conversion of the design-in into a formal design-win remains one of the key variables to monitor.
Design-In Marks Pipeline Milestone Ahead of Potential 2026 Product Release
poLight’s pipeline reached a structurally important milestone, with the consumer AR/MR case classified as a design-in post-quarter now included in the Company’s pipeline overview, lifting total design-ins to 5 (4), while design-wins remained at 44 (44) and completed PoCs increased to 155 (144). The design-in, backed by three follow-on purchase orders totaling approximately NOK 4.0m since April, carries an expected product release in 2026 according to the Company’s outlook. Analyst Group notes that a design-in does not yet constitute a formal design-win or volume commitment, and the Company’s commentary that success depends on delivering to customer expectations warrants continued attention to execution risk. Nevertheless, the progression from qualification iteration in Q1 to a classified design-in with a stated release window represents a tangible de-risking of the consumer AR/MR pathway, and further details around this program, alongside the camera module validation under the October 2025 top-tier OEM project, will be central to monitor in coming quarters.
With respect to TWedge®, purchase orders of approximately NOK 0.5m were received during the quarter (1.7m in Q1-26), while major consumer OEMs continue to test prototypes for future AR/MR display solutions. The Company aims to initiate the next development phase and has commenced dialogues around securing financial contributions to the development, discussions the Company continues to describe as multi-faceted and complex. In industrial and machine vision, the MLens® portfolio was expanded with two larger-format lenses, and the positive reception at Automate in June supports the strategy of positioning poLight higher up the value chain. Combined with continued progress in the lead-free TLens® project, which addresses a stated preference among certain OEMs and future-proofs the platform, poLight exits the first half of 2026 with multiple progressing optionalities, where the conversion of the consumer AR/MR design-in into a formal design-win and commercial product launch remains the principal value driver to monitor going forward.
We will return with an updated equity research report of poLight.