Operator

Welcome to Tobii Q1 2026 Report Presentation. [Operator Instructions] Now I will hand the conference over to CEO, Fadi Pharaon; and Interim CFO, Asa Wiren. Please go ahead.

Fadi Pharaon
Chief Executive Officer

Good morning, everyone. This is Fadi Pharaon speaking to you, CEO of Tobii. I'm joined today by Asa Wiren, our Interim CFO; and Rasmus Lowenmo Buckhoj, who leads our Communications team. And thank you, everybody, for joining our Q1 2026 earnings call. So let's start with the quarter.

Q1 was a quarter with clear areas of progress, but also challenges that we are addressing. As you can see, the reported net sales decline year-on-year was 17%. However, organic sales actually increased by 5%. We additionally had an improved gross margin for the group by 7 percentage points. And furthermore, during and shortly after the quarter, we secured strategically important design wins. All of these developments together show that despite currency and timing-related headwinds, we continue to see underlying momentum in parts of our business.

We've continued our disciplined focus on cost reduction and operational efficiency. So during this quarter, we reached SEK 48 million in cost reductions if you compare to Q2 2025. Since that point, we've actually achieved SEK 120 million in total cost reductions, which actually exceeds our previously communicated target of SEK 100 million. And still, we have one more quarter to go in that program. If we move to free cash flow, that was positive for the second consecutive quarter now at SEK 17 million.

And our cash position stands at SEK 39 million, even after