Earnings call transcript: Nordic Semiconductor Q3 2025 sees strong revenue growth

Nordic Semiconductor reported its third-quarter 2025 earnings, showcasing a strong financial performance with revenue slightly exceeding guidance. The company recorded $179 million in revenue, surpassing its earlier forecast. Gross margin also improved, reaching 52%, continuing the positive trend seen in previous quarters where gross profit margin was 49.75% for the last twelve months. Trading at $15.13, the stock has delivered impressive 55.2% year-to-date returns. The company maintains an optimistic outlook for future growth, with significant product launches and strategic initiatives planned.

Key Takeaways

• Revenue for Q3 2025 reached $179 million, slightly above guidance.
• Gross margin improved to 52%, compared to the 50% guidance.
• New product launches include the nRF54 Series and nRF9151 long-range chip.
• The company forecasts Q4 revenue between $155 and $175 million.
• Nordic Semiconductor aims for 20% average annual growth through the decade.

Company Performance

Nordic Semiconductor demonstrated robust performance in Q3 2025, with revenue growth driven by new product introductions and strategic acquisitions. The company’s gross margin improvement highlights its operational efficiency. Despite a challenging macroeconomic environment, Nordic continues to outperform its guidance, indicating strong demand for its innovative semiconductor solutions.

Financial Highlights

• Revenue: $179 million, slightly above guidance
• Gross Margin: 52%, compared to 50% guidance
• Q4 Revenue Forecast: $155-$175 million
• Full Year 2024 Revenue Projection: $653-$673 million
• Approximately 30% year-over-year growth

Outlook & Guidance

Nordic Semiconductor is targeting significant growth, with plans to achieve an average annual growth rate of 20% through the decade. The company expects the nRF54 Series to contribute significantly in 2026. Future product lines, including the nRF70 Series Wi-Fi products, are expected to drive further growth. The company is also preparing its manufacturing capacity for a ramp-up in 2026.

Executive Commentary

CEO Vegard Wollan expressed optimism about the company’s trajectory, stating, "We are enjoying a gradual recovery continuing through 2025." He also highlighted the success of the existing product lines, noting, "The nRF52 Series clearly has been extremely impressive." Wollan emphasized the company’s strategic direction, asserting, "We strongly believe in this strategy."

Risks and Challenges

• Supply Chain Constraints: Potential disruptions could impact production timelines.
• Market Saturation: Increased competition in the semiconductor industry may pressure market share.
• Macroeconomic Pressures: Economic instability could affect customer purchasing decisions.
• Manufacturing Capacity: Ensuring adequate capacity to meet future demand is crucial.
• Regulatory Changes: Compliance with evolving regulations could impact operations.

Q&A

During the earnings call, analysts raised questions about the company’s channel inventory levels, which were described as healthy but slightly light. Discussions also covered operational expenditure variations due to recent acquisitions and bonuses. Analysts sought clarity on growth dynamics and potential manufacturing capacity constraints, which the company is addressing as it prepares for future demand.

Full transcript - Nordic Semiconductor ASA (NOD) Q3 2025:

Moderator/Host: Welcome everyone to this group meeting or fireside or what you want to call it with the Nordic Semiconductor management team. Thank you everyone for joining. Thanks to the Nordic team for taking the time. I think there’s probably a lot of questions, so maybe we can start off with just a quick intro, Vegard Wollan, on just not the whole Q3 presentation all over again, but just like what you think are some of the key takeaways from the presentation and what’s been going on in the company the last two months, and I think latest and greatest before we jump into Q&A.

Vegard Wollan, CEO/Management, Nordic Semiconductor: Yeah, of course. Hi Christopher, hi everyone. Thanks for joining. Q3 came in slightly above our guide, in the higher end of our guiding range at $179 million, and we are enjoying a gradual recovery continuing through 2025, which we are enjoying with strong competitiveness from relatively old products. Gross margin came in at almost 52% compared to our guidance of around 50%. Looking ahead, our Q4 quarter is expected to come in, based on current orders, forecasts, and our acquired businesses, between $155 million to $175 million, implying a revenue between $653 million and $673 million for the full year. We are happy with these improvements in gross margin, which is mainly depending on product mix and some development in the broad market and our acquired nRF Cloud businesses. We are continuing to guide there also on above 50%.

We continue to see great customer traction and activity in all of our new product introductions, which we are intensively working at the moment. Also, a very active pipeline and design pipeline where we are supporting and developing with our customers at the moment, and that is particularly with the nRF54 Series and what we have launched so far, of course, as well as the nRF9151 and our PMIC products. At the moment, some more limited traction in the market at the moment based on the Wi-Fi side, where we are looking forward to the nRF70 Series products coming next year. I think that’s maybe a good intro. We onboarded Memfault, integrated that into our new nRF Cloud offering.

Pleased with the progress, pleased with the product we launched as early as less than three months into the journey with them, seeing customers signing on and a lot of interest and evaluation happening on that side, which is very encouraging, and that execution and journey on the strategic transition to become a complete technology solutions partner based on our connectivity position with our customer base across the three pillars of hardware, software, and cloud services.

Sophie, Executive/Financial Officer, Nordic Semiconductor: You mentioned the first design with all of these products.

Vegard Wollan, CEO/Management, Nordic Semiconductor: We also commented on one of the one design win as we all saw, as many of us saw yesterday also, which is a spin-off and incubation company of Rivian, the U.S. car maker which we talked about yesterday, who launched their recent E Bikes E Mobility platform systems last week at an event in San Francisco. That’s a product which is using three connectivity chips from Nordic Semiconductor: nRF54H20, so a high-end short range chip, as well as the nRF9151 for long range, and nRF7001 from the Wi-Fi team. During the development phase over the recent months, they have also learned to appreciate a lot the nRF Cloud powered by Memfault Solutions. They have also become a user and customer on that FORT product offering from us.

Excellent, excellent proof point for us on a strategy to move towards cross selling and upselling and delivering more value add per customer and per end device business being used with Nordic products. I think it’s a good intro. Christopher, over to you.

Thanks, that’s super. I’ll just jump start with a couple of questions and then everyone here, if you have questions, please raise your hand and we’ll try to get through them all and unmute yourself and all that. Just to start off, can you talk before we get into all the details on the different segments and different products and so on, just about how, if we keep the numbers out, how you have been seeing customer behavior changing through the quarter and into the current quarter? Without quantifying it, just what segments are improving, which ones are maybe deteriorating, where are you seeing inventory being low, where is it high? Just how you see the market dynamics developing through the quarter up until today. What you’re seeing today would be helpful.

Yeah, that’s clear, Christopher. I think we haven’t seen huge patterns or trends or any bigger patterns to follow and to comment on. Actually, we have seen some improvement in Europe, which we have commented on previously, although probably more so in our sector. There might be a bit of seasonality low in Q3 in Europe because of manufacturing cycles and vacation cycles in that part of Europe. We didn’t comment on that this time for our Q3. We don’t see impact and bigger changes on the tariffs. We do see some customers moving manufacturing sites, and we are obviously supporting that, and there isn’t any bigger changes or bigger moves or drama in what we see in that regard. If there is probably one thing to comment on for us, I would say it’s, and that’s a bit to the Nordic team.

It has been a busy year in introducing new products and supporting customers, and that part of it has intensified tremendously over the last four or five months. It is a lot of load on our teams at the moment, which is positive, but it’s also both exciting and, for some of the team, stressful. That’s why you’re giving them these appreciations. Many people skipped their vacations during the summer breaks this year because we had so many important and urgent programs going at the same time related to product introductions. Again, having said that, this is also something where we see some of our customers are very thorough, systematic in their product developments. They take their time, and we need to allow them for that to happen. There are product qualifications, radio system certifications and qualifications, and ramps and developments happening.

We are really pleased about that activity throughout the quarter.

Yeah, I was just going to ask about the channel inventory. If you’ve seen any changes, you’ve seen any changes there, if you know how that has been moving. Is it now starting to rise again or is it still like, is it low, or given yourself through distributors just to get kind of a clearer picture of that, since you didn’t comment on that earnings.

That’s a good question, Christopher. I think we are at healthy levels relatively. Probably a bit on the lighter side levels as we see it, but relatively healthy levels. The main thing for us now is that as we are introducing quite a few additional SKUs at the moment with our product expansion at the same time as we are also supporting our existing products, part of it is being taken care of. I think if you look at it on an overall value-based metric, it’s slightly light but healthy, I would say. I guess we don’t specify it usually, so we don’t do that this time either.

All right. I think some people have kind of been focused on that. Your days of sales and your receivables have been pretty low on a relative basis over the last few quarters relative to the historical pattern. It’d be interesting to just hear your take on what’s going on there, if you’re kind of starving the channel or if it’s some other dynamic which is enabling you to have that low level of receivables outstanding per quarter end over the last year or so. I’m just interested in hearing your thoughts on that.

Sophie, Executive/Financial Officer, Nordic Semiconductor: Thank you, Sophie. It’s a good question and we’ve talked about that several times and there’s a few things. First of all, I think we have a very good team that is good at working closely with distribution to get it in the money. That’s only part of the story. The other part is that since revenue now is more even out in the quarter. At some period, for some years ago, especially pre-Covid, a lot of the sales was the last week of March with discounts and everything, and then there was a big receivable at the end of the quarter. Now we’re very good at selling, optimizing deliveries throughout the quarter, and that’s good both for receivables. It’s definitely good for gross margins because we even out production more. It’s good for the customer relationship.

It’s a good work by the entire team, to be honest, is the main reason for this.

That’s clear. On the distributor side, you seem like you made some changes there to how you work with the distributors and you’ve added at least one distributor. Can you just talk a bit about how your kind of approach to the channel has changed over the last couple of quarters and months, I guess with the addition of Future Electronics and stuff like that.

Vegard Wollan, CEO/Management, Nordic Semiconductor: Yeah, we are really happy about having signed on board Future Electronics as a new worldwide Nordic Pan and global distributor. We have had kickoffs and got them started well during Q3. Very motivated, enthusiastic team, and they have participated in quite a lot of product training with us, et cetera. That has been very positive. Other than that, we also started phase one initiatives for the broad market towards the very end of last year, which we are seeing the first results of at the moment, and we are currently moving that into a second phase. This is relating to some of our engagements with our distribution partners, the models we are exchanging with them, also motivating, incentivizing, et cetera, as well as the way we train and collaborate in the market together.

Without going into further detail on that, that’s certainly something we are working and paying a lot of attention to as well at the moment, and that has been also ongoing for some time, and we are continuing to step up the.

Game there and you’re seeing kind of a clear untapped potential in kind of the broad market through those initiatives to kind of get that back to a.

A level.

Of momentum that you, you’ve kind of lost now but you had in the past. It’s like what kind of timeline are you thinking about there? Is it like a multi-year journey or is it more like the next six to 12 months? You’re hoping you’ll get that raw market back. There are lead times on projects and stuff, so maybe it’s a bit difficult to know.

Yeah, it’s also there pretty much. You know, the customer designing lead times are fairly long, but they also vary a lot. There are some companies, some customers that are faster than others and others with more complex products, lower, etc. There is a profile and spread in that. Of course, key thing for us is that we see that the broad market pipeline is building and that funnel and machinery is working such that we see the increase coming through in our systems, how we measure it. Of course, there is.

There.

is a bit of a time gap there as well before you recognize that in revenue numbers. We are really encouraged about the increased activity and what we internally call design wins in that space as well, both of that. This is also something which is fairly common knowledge that the enthusiasm and energizing the broad market and the distribution channel is also something which is much easier, and the right point in time to do that is also when you get to market with new products. That’s an excellent timing. We are happy and lucky with that timing as we are in the midst of our own and complete portfolio renewal, so to speak.

That’s great. Thanks. Just moving on to the quarter and the cost base. I think at least compared to our estimates we were materially off on the OpEx in the quarter even if we adjust for the kind of the non-recurring items. It just seems to us about maybe the cost base was a bit higher than at least what you’ve indicated in your previous written communications. I’m not trying to get that to here, just trying to understand how you conceptually think about how kind of the mismatch between your own expectations for both revenues and OpEx interlinked and how we should think about that into next year. Does this set like a completely new base or is this abnormal and then next year maybe it will be an easy comp on OpEx?

Just trying to understand all the dynamics during the Q3 OpEx because you just had so many questions on what’s going on there and why everyone got this wrong it seems on the sell.

Sophie, Executive/Financial Officer, Nordic Semiconductor: I agree there’s been a mismatch, we can agree on that, and then there’s several reasons for that, not going into the details. On the numbers, it’s really two items that are fixed, that always happen. The first was, of course, the acquisitions and added approximately $4 million cash or in payroll cash payroll quarter. There’s also some other payroll in this number, the RSUs, etc. Then the share buybacks, but if you look at the cash payroll, it added $4 million quarter, and then, of course, it’s the annual salary increase that always happens in Q3, which costs around $2 million quarter. Adding up these two things, you have around $6 million. Then there is sort of the more unknowns that I understand you couldn’t have caught, the difficult to cop, and the first of them is, of course, the bonus accruals.

The way we do this is that we, at the beginning of the year, and you probably should look at the process, but sometimes it goes this way, sometimes it goes the other way. This year, it had a negative impact, and that’s because during Q3 we saw that we’re delivering further down on many of the KPIs, and it’s not just revenue and EBITDA, it’s a lot of KPIs in there, and you can read about that in the remuneration report. Together with higher Social Security due to the high share price increase, this added around $5 to $16 quarter reporter. So this number is, and then finally you have the FX, which we had pretty good. The two latter of these are, of course, off, that it’s difficult to know what it’s going to be the next quarter and the next year.

In total, given the fact that we’re not planning to grow a lot of employees, but at the same time we’re not going to let Sevyn go, probably a little bit lower than before, but still as inflation salary increases next year, I think the current run rate is good. On the run rates, of course, you have holiday pay in some of the months and not in others, so there’s some variations quarter to quarter, this quarter versus next is.

Yeah, sure, that’s helpful. Moving on to how to think about the growth ahead going forward. You’re getting a lot of questions on the growth this year seemingly turning out significantly better than you anticipated, and then you have people asking, like on the earnings call yesterday, I think one of the analysts was saying, putting words in your mouth, saying that you’d said that growth has been exceptional this year with the big customers, and that’s kind of setting you up for a tough comparable next year, all that stuff. Again, I’m not asking you to quantify any outlook for next year or anything beyond the current quarter, but just how you think about the year that has gone or about to have been completed and the growth there.

I think there were some inventory dynamics in 2024, the base of the growth this year, which are worth maybe mentioning as having distorted the reported growth. Although the growth looks really high, and for some people maybe it isn’t that high. Those sort of things. Just how you think about this whole growth path and how people are saying that this year’s growth makes for a tough comp next year for starters. I guess that was a weird question, but.

Vegard Wollan, CEO/Management, Nordic Semiconductor: I think I get your point there. If we look at our midpoint now for Q4 at $165 million and the year of $630 million, just comparing the numbers as you say, that will actually be pretty much exactly 30% growth from 2024. As you said, we did a significant inventory adjustment in Q1 2024. If you adjust for that, the growth would still be good, would still probably be about the 20% level. That is something we are happy about, of course, and it is also clearly somewhat better than we thought about a year ago, which I think we commented on yesterday. I think we do have the Capital Markets Day 2024 communicated plan of having an ambition to deliver annual average growth about 20% throughout the decade. Clearly, we have started off on that.

It is high ambition, but it’s also realistic and something we feel we are on track towards. Having said that, more or less half of that growth is probably market developing, and the other part of it is us taking market share, plus minus, give or take. I think the key thing for us is the power we see with our renewed portfolio, which is now appearing. It’s effective to a large degree, but it’s also a lot to come in that. With that, I think we are seeing that these are absolutely ambitions we are realistically planning to deliver on and pretty much on track to what we communicated. Points to that without commenting specifically on the near-term outlook within that.

When it gets to where our growth has come, I think it’s also fairly clear from our material that growth from last year to this year has come quite equal among the key customers and the bigger, larger customers as well as the broad market. As I commented a minute ago, taking back and further growing in the broad market is something we are extremely focused on, and we are changing our engagement there as we are changing how we work and engage with our partners. Truly, lots of stuff happening, and we see the first results in our pipeline management system on that, which is giving us encouragement that we are on track to see that part of it continuing.

That’s helpful, thanks. Just again trying to click a bit on some dynamics here. I think some people are claiming or arguing that 2025 is the year these big customers have been ramping and that’s been driving this tailwind for you guys to grow 30%. Me personally at least, I would think more about this has been actually a year of really the tail end of an old product. You’re probably losing some share due to decisions having been made by customers one or two years back. Would you, if you had to choose, which side of it are you guys on?

Do you feel like this has been the most incredible year of big customer ramps and excitement, or is that more on the design win arena, and then in the revenue arena it’s been more reflective of actually being a tad of losing share in some pockets and the excitement is still ahead of us in terms of ramping? I don’t know, just trying to understand because there’s so many narratives out there in the market, right?

Yeah, appreciate that question. Obviously we are extremely proud and happy with all our customers’ products at all points in time. Our customers are making truly great products. I also think it’s fair to say that there hasn’t been a huge amount. There has not been a huge amount of exciting new releases. There have been quite a few, let’s call them probably more regular upgrades happening, and we probably believe that 2026 from that point of view is going to be hopefully a bit more exciting.

That’s helpful. Sorry for really hammering and drilling down on this, but in terms of, I think, one discussion we often have with people is that current revenues are more based on decisions made by customers one to two years and sometimes even longer back in time, right? It’s not really necessarily reflective of your current momentum in winning new or losing new sockets. I was just after your, like, do you feel like 2025 revenue thus far has been reflective of, like, win here, win there, or more like that it’s reflective of a period where your nRF52 Series product was losing some of its edge and you’re still waiting for nRF54 Series to be in a position to win? Some people are arguing that this year the growth is so strong because all these big customers are ramping in.

I’m on the other side, kind of, but just share revenue share in the market. Is it potentially reflecting some losses in 2025, and then the future might hold upside? You’ll have to comment on that, but the first part of it maybe.

Yeah, it’s very clear that the nRF54 Series is contributing very small in 2025. It is a year where our workhorse, the nRF52 Series and to some degree the nRF53 cases, is predominantly our revenue and as you say products that are relatively old and to some degree very solid products and impressive how they are holding up, but in certain areas running out of steam I think. I think the Nordic team has done a great job to defend that position in 2022, 2023, 2024 up until having the nRF54 Series. I really have to give kudos to the team for that. I don’t think there are many losses. There are probably.

There are almost certainly during those two, three years and from a revenue point of view we are probably and from a certification point of view, to some degree we are also still seeing some of that effect of the older portfolio. What’s really energizing for us and positive is that we see the strong competitiveness of our new 22 nanometer platforms. We are truly delivering a lot lower battery power consumption, longer battery lifetimes, more compute power. We see our customers moving to use more software, more functionality, which is also very encouraging and really look forward to more of these products hitting the ground and hitting the shops around. That’s something which is going to gradually happen now and accelerate throughout next year.

The nRF9151, comment on that too because that’s a product starting now to participate slightly more meaningfully in our figures more or less as we speak. We are increasing that production quite substantially now and it was also launched a quarter prior to the nRF54 Series, so it is encouraging to see that that happens. Still also very solid design pipeline with the nRF9151 and also people with plans for our nRF92 Series coming there, coming after and also still a lot of customers there spending and needing a bit more time before they launch their products based on these products.

That’s great. In your experience, you’ve been in both small and big semiconductor companies for decades. The shelf life and the durability of the competitiveness of the nRF52 Series is, in your experience, is that a 10-year-old product? With this kind of gross margin stability, how impressive is it? Is this something we should expect for the nRF54 Series as well? It’s really interesting to see the R&D put into the nRF52 Series and what is generated and what it could end up generating in value. Just your reflections on that history of the nRF52 Series and how we should extrapolate that onto the nRF54 Series, perhaps.

Yeah, I think, you know, of course if you look at Nordic Semiconductor, it has been a tremendous growth journey from a much, much lower base of course prior to 2015, but it was accelerated and really, really a lot of the massive growth coming with the 52 Series taking things to the next level, next heights, and it probably has been one of the more impressive competitive edges for such a long time. Particularly considering the number of competitors that are trying to break in and fight with us in this space, that is impressive. I also think on a general note, Christopher, it’s fair to say that the longevity of the products, probably particularly in broad based, is to some degree a bit more long lived than some of the cutting edge stuff you see currently with our peers making generative AI.

Sophie, Executive/Financial Officer, Nordic Semiconductor: Looking at the nRF24L01+, we still sell it.

Vegard Wollan, CEO/Management, Nordic Semiconductor: Yeah. The longevity is absolutely there for the type of products we make. You do see that in certain older areas as well. I think if you look at some of the larger broad based semis, they probably have a very good mix of old products mixed with some more recent products. The nRF52 Series clearly has been extremely impressive as part of that journey.

I don’t think they’re growing 30% year over year, but okay.

Sophie, Executive/Financial Officer, Nordic Semiconductor: No, but one other thing that has made the 52 family the world’s most sold leadership is maybe also because we made it easy to use. We talk about the development tools together with the 52, the nRF5 SoftDevice that was easy to do design with for engineers. As we launched last quarter, they actually came out with the nRF Connect SDK bare metal. I think that is something that people should notice because this is also to make the 54 easy to do design. It makes it easier for engineers to do design instead of using real-time operating systems and more complex, then they have an easy way in from 52 to 54.

Vegard Wollan, CEO/Management, Nordic Semiconductor: Introducing the bare metal is clearly part of our broad market strategy because we, while analyzing exactly the power and the great competitiveness of the nRF52 Series still being, as you say Christopher, this competitive 10 years after its launch. The SoftDevice was a critical component, and the synergy between the nRF52 Series and the software was just fantastic. That’s what we are doing with nRF Connect SDK. You can see us bare metal now exactly the same.

Yeah, that’s great. Thank you. I think we have about six minutes left or something like that. Again, the audience or the attendees here, if there are any questions, please raise your hand and then you are through to ask questions. If not, I’ll continue. I guess I’ve been asked to ask you guys about next year and you obviously are not guiding for next year, but just to kind of help us understand how you think conceptually about the launch of the nRF54 Series and these other new products. You said they will not be significant this year, but in 2026 they will. I think on the earnings call you talked a bit about how you will gradually see customers launching on the nRF54 products through 2026 and then inherently there will be a stronger tailwind in the second half than in the first half.

Can you just recap what you were trying to say there in a crisp, short manner? Just what you are trying to say on that would be helpful?

Yeah, I think it’s just based on the fact that the design times at our customer side is varying as well as, you know, sometimes they launch products based on our availability, but many times they launch products based on their plans and their cycles as well. With that, there is a spread from when we can, when we launch a product up until we see meaningful revenues of that. On the other hand, like the LM20A, the 54 LM20A which launched now in September, it’s also a product which is developed in close collaboration with our key customers. The way we develop and innovate and create products, and they have typically then also had the product for a couple of months prior to us launching it.

When we launch to the broad market, we enable tens and hundreds of customers, and in the first months after that, also customers typically lined up and expecting that to happen. These timelines are usually extremely important to hit those schedules. That’s where we see we are now executing. That’s what we are doing. We are hitting those timelines as we have planned with our customer base. That trust is important because they base their products and product development cycles on us launching to them, however they need to develop their software. If I qualify, ramp to production. I think there has been examples which are public now where we see some customers moving extremely fast, maybe down to six to eight months after we launch products.

I think it’s fair to say that between a year or between a year and two is more the regular we see for most customers. Of course, when you then have hundreds of them and you profile that out, it will be a gradual acceleration and increase happening.

That’s great. Tobias, you want to unmute?

Sophie, Executive/Financial Officer, Nordic Semiconductor: Yeah, I hope you can hear me. Yeah, yeah. A question on the attach rates, and maybe you can comment a bit on kind of what you’re seeing in terms of attach rate on nRF Cloud or the long range product line, for example, or PMIC, or what trends are you seeing, what types of customers are purchasing Wi-Fi modules and stuff like that. Also, how dependent is all of this on the main series and how much is standalone. Some comments on those would be great. Thanks.

Vegard Wollan, CEO/Management, Nordic Semiconductor: Thanks to Bears. We don’t publish numbers on that. What I can say is that from not having formalized structure on this, we now have formalized programs. We measure, we incentivize, and we drive increasing touch rates. We are seeing PMIC increasing touch rates and multi-connectivity products and projects happening in a much larger degree than we did previously. nRF Cloud, that’s an area where we came from having about 100 customers prior to the acquisitions, also the Memfault customers. Whereas the premise is of course to excite the 1,500 customers on the Nordic side to grow that. It’s relatively early days still, but we are seeing a lot of enthusiasm and engagement, and as we talked about, quite a few contracts already signed on that. I think it is encouraging, but we don’t publish specific data on that yet.

We will have to get back to how we are going to try to give you some updated figures on this. We strongly believe in this strategy, and on the other side, we don’t want to educate our competitors. It is that balance. We are a bit thoughtful to be on that area.

Sophie, Executive/Financial Officer, Nordic Semiconductor: Great, thank you.

Yep. Antoni, hello.

Is there any particular reason that you stopped giving the loss on a long Range business? We try to reduce the number of PPMS performance measures in the report, and we haven’t written a lot about that lately, so that’s why we took it out. As I commented on the call yesterday, by taking the revenue in the report and the presentation, actually the OPEX is there, and then you take margins, costs, easy to calculate. The numbers are there.

Okay.

We don’t have a gross margin, but we can take some approximations. Okay, thank you.

Anyone else? Final one before they have to jump. Yes.

Yes. If I understand you guys correctly, you have hundreds of customers testing out your new product, but do you have the capacity to deliver to everyone if there is like a really, really good feedback from all the customers?

Vegard Wollan, CEO/Management, Nordic Semiconductor: Yeah, that’s a great, great, great question, Andreas. Usually, we forecast quite tightly with our larger customers. What’s happening there is if there are thousands of broad market customers that are going to have tens of millions each at the same time, that might be a bit of a challenge. We see that we have fairly good capacity. It’s something we are working very intensively and hard as well. We have held back a bit on our capital investments for the test manufacturing equipment on the nRF54 Series, which we are now accelerating, and it is happening as we prepare for the 2026 and onwards production that’s related to that capital census. We have in our numbers permanently part of that. We are fairly optimistic, I would say, short answer, that we should be getting the capacity.

Excellent collaborations with TSMC and GlobalFoundries as our two main foundries, and they work very closely with us as well. Fairly optimistic that we should be able to manage that.

Sophie, Executive/Financial Officer, Nordic Semiconductor: Okay, just to follow up, that means that your guidance for 2026 is pretty much based on feedback from the customers that are already done with their testing, and you still have a lot of customers that are testing that haven’t decided yet, and that’s not a part of your numbers for 2026 so far. Am I understanding that correct?

Vegard Wollan, CEO/Management, Nordic Semiconductor: It’s hard to say. I wouldn’t say that that’s completely the view. We probably have some ways we are using to estimate, which we are using again. We are careful not talking about numbers beyond the current quarter. Have to be.

Sophie, Executive/Financial Officer, Nordic Semiconductor: Okay, thank you.

All right. Thanks a lot, guys, for joining everyone on the call, and thanks to the Nordic team for staying four minutes into the time. Appreciate it.

Thank you.

Good luck. Bye.

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