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Introduction & Market Context
Elliptic Laboratories AS (OB:ELABS) presented its third quarter 2025 results on November 20, showcasing strong financial performance amid growing adoption of its AI Virtual Smart Sensor technology. The Norwegian software company reported significant revenue growth as global smartphone shipments showed positive momentum and AI-capable laptops continued their market penetration.
The presentation, delivered by Interim CEO Ola Sandstad and Interim CFO Mathias Norderud, highlighted how Elliptic Labs has capitalized on the recovering smartphone market and expanding AI-enabled laptop segment. Global smartphone shipments increased 2% year-over-year to 1,258 million units in Q3 2025, with Elliptic Labs' OEM customers outperforming the market with average volume growth of 5.2%.
As shown in the following chart of smartphone shipment trends and OEM performance:
Quarterly Performance Highlights
Elliptic Labs reported revenue from customers of NOK 42.3 million in Q3 2025, representing a 50% increase compared to NOK 28.2 million in Q3 2024. This growth was primarily driven by milestone revenue from laptop contracts. The company's EBITDA surged to NOK 12.7 million, a dramatic improvement from NOK 0.5 million in the same period last year.
The company maintained a stable cash position of NOK 54.8 million while continuing to invest in its AI Virtual Smart Sensor Platform. The equity ratio improved to 92%, reflecting a strengthened balance sheet.
The following slide illustrates the company's Q3 2025 financial highlights:
Elliptic Labs has demonstrated impressive growth in shipped volumes, which serve as the underlying driver of the company's revenue expansion. Customer laptop shipments have increased 152% since Q3 2023, while smartphone shipments from customers with unit-based contracts have surged 233% over the same period.
The company's financial performance summary shows the substantial year-over-year improvement:
Detailed Financial Analysis
A key strength in Elliptic Labs' financial performance is its ability to grow revenue significantly while maintaining tight cost control. Total operating expenses increased by only 8.6% year-over-year, compared to the 50% revenue growth over the same period. This operational leverage has enabled the substantial improvement in EBITDA.
The following chart demonstrates this favorable revenue-to-cost relationship:
The company reported positive operating cash flow of NOK 6.5 million in Q3 2025, a significant improvement from the negative NOK 9.3 million reported in Q2 2025. This was driven by the NOK 5.5 million profit before tax, partially offset by a NOK 10.7 million net increase in accounts receivables.
The cash flow analysis reveals that while the overall cash position remained relatively flat, the underlying operational performance has improved:
Elliptic Labs has seen growth across both its smartphone and laptop verticals. The company's revenue diversification strategy appears to be yielding results, with both segments contributing to the overall growth trajectory.
As illustrated in the following chart of vertical revenue growth:
Strategic Initiatives & Outlook
Elliptic Labs is targeting double-digit revenue growth for the full year 2025, though management noted this depends on Q4 shipment volumes and new contracts. The company is currently conducting a strategic review to assess product and customer roadmaps and market opportunities.
The growth strategy focuses on four key areas: fully monetizing existing contracts, expanding with existing customers, launching multiple models with more customers and verticals, and adding more AI Virtual Smart Sensors per device.
The company's strategic roadmap is outlined in the following slide:
Elliptic Labs continues to expand its product portfolio of AI Virtual Smart Sensors, addressing a growing range of use cases across multiple device categories. The technology platform enables software-based solutions that can replace hardware sensors, reduce costs and power consumption, and enable device interoperability and contextually aware AI agents.
The following image illustrates the company's expanding opportunity space:
Competitive Industry Position
Elliptic Labs has established a strong market position with its AI Virtual Smart Sensors, particularly in the smartphone segment where the company has launched 220 models to date. In 2025 alone, 58 smartphone models featuring the company's technology have been launched, demonstrating accelerating market adoption.
The company's leading market position allows for rapid adoption without proof-of-concept testing, and partnerships with chipset providers Qualcomm and MediaTek facilitate market expansion. Notably, three of the top five global smartphone OEMs are now Elliptic Labs customers.
The following slide showcases the company's rapid smartphone deployment:
In the laptop segment, Elliptic Labs has launched 58 models since 2016, with 25 laptops launched year-to-date containing 34 AI Virtual Smart Sensors. The company is well-positioned to capitalize on the growing demand for AI-capable laptops, which are forecast to increase from 9% market share in 2022 to 70% by 2028.
The model and product expansion with leading OEMs demonstrates the company's growing market penetration:
While Elliptic Labs' presentation highlighted strong growth and expanding market presence, investors reacted cautiously. The stock closed at NOK 8.4 on November 20, down 2.38% from the previous close, suggesting that despite the positive results, the market may be waiting to see if Q4 shipment volumes will support the full-year growth target.
Full presentation:
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