As I reflect on Q2, I am encouraged by our steady progress with execution, the demand from the market for modern identity security expanding, and our net sales and profitability improvements. Despite a complex macroeconomic environment, our focus remains building and delivering authentication products that enable our customers to be secure, compliant and resilient. .

Securing the AI frontier with hardware-backed trust 

As AI transforms operations, software-only defenses are no longer sufficient against automated threats. Securing identity now requires extending trust beyond basic authentication to authorizing high-consequence actions with verified human intent.

Building on our relationship with OpenAI, our partnership reached another milestone: OpenAI now requires all members of its Trusted Access for Cyber (TAC) program to adopt hardware-backed passkeys recommending users order a YubiKey . When AI leaders secure critical systems, they rely on phishing-resistant hardware as the gold standard.

Our latest platform advancements extend this trust to verified authorization—allowing organizations to securely approve high-consequence operations, sign critical documents, and govern AI agents using open standards.

Maintaining compliance continuity and post-quantum readiness 

For critical sectors- including public sector, defense, financial services, and manufacturing- validated security is essential.

During the quarter, we completed the transition of our YubiKey 5 FIPS Series and YubiHSM 2 FIPS portfolio to achieve official FIPS 140-3 validation under CMVP. Yubico remains the only provider offering a fully validated portfolio ensuring an uninterrupted path to regulatory compliance. The YubiKey 5 FIPS Series also remains the only authenticator authorized under U.S. DoD guidance to support both DoD PKI credentials and FIDO2 passkeys on one physical device.

Meanwhile, post-quantum readiness is rapidly becoming an immediate architectural imperative. Interest in our post-quantum cryptography roadmap accelerated across governments and cloud providers. To guide this global transition, we also joined the European Cyber Security Organisation (ECSO) to help shape Europe’s future digital identity and post-quantum standards.

Looking ahead 

Over the past year, AI has accelerated the urgency for high-assurance identity solutions. At the same time, Yubico continues evolving from a hardware authentication pioneer to a comprehensive digital identity company.

I look forward to sharing more about our strategic journey and long-term opportunities at our Capital Markets Day in Stockholm on November 19.

Thank you to our employees, customers, and partners for your continued trust and shared commitment to a safer digital future.