Vickram Vathulya’s letter to shareholders, Interim Report Q2 2026

Continued Opportunity Pipeline Strength and Growing Production
Orders Position Sivers for 2027 Transformation

Q2 revenue was 53.8 MSEK, while Q2 AEBITDA was -35.5 MSEK. In addition to US defense budget approval delays, we have prioritized resources to enable key 2027 product ramps at the expense of NRE projects in the near-term. 

Sivers Q2 2026 product revenues increased by 18% YoY on a constant FX basis, while our opportunity pipeline grew strongly by 268% to $1.2B at the end of July 2026, compared to December 2025* . We also con- tinue to see production orders layer in across both our Photonics and Wireless businesses, including an $8.2M production order from ALL.SPACE, an initial $3M production order from Tachyon Networks, and an initial $3.4M program order from SemiNex. We are expecting orders from our strategic LiDAR customer for Q4 2026 as well as 2027 production demand, and Jabil is moving to Beta builds in Q4 2026 ahead of anticipated production orders in H1 2027.

We executed an oversubscribed capital raise of 700 MSEK in Q2 to for- tify our balance sheet. Given the increase in production orders received to date and more expected for 2027, we have made a strategic choice to focus more of our resources on enabling these key product ramps at the expense of delaying NRE projects. While this weighs on near-term revenue, it is the right move to ensure 2027 is a transformational year for the Company as we migrate to becoming a product business. We expect Q4 2026 to be the time frame for revenue inflection as a result of this strategic choice. In Photonics, we are expecting orders immi- nently from our strategic LIDAR customer for Q4 2026 and 2027 pro- duction demand. We are also strengthening our partnership at the top executive levels with our LIDAR customer as we identify future areas for continued strategic collaboration.

In AI datacenters, Sivers’ collaboration with Jabil continues to progress very well as we are moving to Beta builds in Q4 2026, which will be fol- lowed by customer qualification cycles. We anticipate production orders in H1 2027 for ramp in H2 2027. Additionally, we have sampled several pluggable customers and technically engaged with several others, with our 70mW and 100mW CW lasers and arrays. Pluggables remain very constrained on CW laser supply, and our products and manufacturing capacity are being received very positively in the market. Several attrac- tive opportunities have arisen for production revenue potential in 2027. These developments validate our strategic move in Q3 2025, to support pluggables in addition to CPO (Co-packaged Optics) solutions.

NPO (Near Packaged Optics) has gathered momentum through 2026 as it offers an easier approach (compared to CPO) to drive optics closer to the GPU/Switch ASIC while retaining many of the benefits of a pluggable architecture. We are engaging with thought leaders on NPO with our 200mW lasers and 100mW laser arrays for this topology. We continue to work with customers and partners in supporting multiple evolving CPO architectures as well.

We have made a strategic decision to move from a Fab-Lite to a Hybrid Manufacturing Model for our Photonics business. This is driven by AI datacenters’ insatiable need for fresh laser capacity, and to provide sup- ply resiliency. This decision reflects our confidence in the opportunity ahead and is intended to position us to capture the production oppor- tunities we are seeing in the market. We are using a portion of our re- cent capital raise to expand our Glasgow production facility and Phase 1 is underway already. The expanded facility will be functional by end of 2027. We have also enabled another strategic foundry partner who pro- vides immediate access to very meaningful capacity. This allows us to capitalize on pluggable opportunities quickly. Our long-term model is to have a 1:2 ratio of internal to partner foundry capacity on InP lasers.

In Wireless, we are now executing to production orders ($8.2M) from ALL.SPACE for 2027, signaling the start of a multi-year production cycle. This is a strong validation for industry leadership with our beamformers and ALL.SPACE Hydra 4 ground terminal platforms. ALL.SPACE’s cus- tomer pipeline continues to grow strongly as well.

In Fixed Wireless Access (FWA), we are building product against Tachyon Networks’ initial production order ($3M). Additionally, we remain on track to help our Tier-1 Telco customer release their FWA product by the end of 2026 and move into customer trials (CT) after that. We expect new production orders from this customer as well as from Tachyon Net- works in H1 2027. We also remain on track with our US Chips Act EW Star and IRIS2 programs.

We continue to progress our US dual listing preparations carefully and with discipline, and expect to complete all necessary preparations dur- ing H1 2027.

Our North Star remains delivering to our long-term financial model from 2028 onwards. During July, our USD 12 million convertible debt was con- verted into equity, and in August, we repaid our remaining USD 5 million term loan, leaving Sivers debt-free. With a healthy balance sheet, a tre- mendous opportunity pipeline, and a continuing flow of production or- ders, we are singularly focused on enabling the transformation into a product business in 2027, our next relevant horizon that matters.

Vickram Vathulya, President and CEO