Welcome to ContextVision, welcome to the presentation of our third quarter 2026 results. Today, with Richard, our CFO.
Thank you.
Myself, Gerald. We have a lot of good news to share, in particular financially, so I hope you will be excited about the first slide. I also ask you to stay throughout the presentation to learn what it means for our future. Highlights. We have delivered a strong underlying revenue growth with 34.5% in the quarter and 11.7% for the first nine months. This resulted in a revenue for the quarter of SEK 26.5 million and an adjusted EBITDA of SEK 9.2 million.
That was driven mainly by positive developments in our license sale, and there, in particular, the Chinese market that has continued to show signs of stabilization, as we talked about in the second quarter. We have seen interesting developments in the industry in line with our strategy and an increased focus on application-specific imaging.
Last but not least, we have successfully initiated our share buyback program, which, just after the closing of the third quarter, has already exceeded the 5% threshold for our total holdings. Good progress also on the share buyback program.
Let us look a little bit more into what is happening in the market. As mentioned, we have seen a stabilizing market. In particular, the primary demand for our customers in China has increased, and consequently, the procurement of licenses from ContextVision has seen a positive development.
Let me also mention that throughout the quarter, we have received a substantial bulk order from one of the Chinese customers, which can be seen as a very positive impact, because we usually expect that order to happen in the fourth quarter, but it could just also be a timing effect. It is probably too early to expect a very strong positive market development.
We remain cautious in our outlook for a stable year 2026 compared to last year. However, we've seen an announcement from one of the major players in the ultrasound market that has decided to stop sales with the general imaging portfolio and focus their development entirely on procedural imaging.
That is a very natural move for major companies to look into profitable segments, which are typically interventional or application-specific. We have decided already longer ago in our strategy to focus exactly on those areas, application-specific image enhancement, but also disease-specific quantitative biomarkers.
The trends that we're seeing in the market are confirming our strategy and our way forward, and that is good to see given the major investments that we're making and betting on those trends in the market. Let's look into the business during the third quarter.
For our image quality or image enhancement business, we've seen a development of customer relations in line with our expectations. Very positively, we see upgrades that we had launched earlier in 2025 and 2026 materializing in license sale, driving especially profitability from existing accounts, but we've also signed a new customer during the third quarter. All in all, a stable development of our image enhancement business.
If we look into our business development program in quantification, we're making good progress in the patient recruitment for our clinical development program. We are at 25 patients in our liver disease program so far, so that's out of the target of 110.
A reasonably good progress given the complexity of the study, and we remain optimistic that the recruitment rate is going to increase, which then obviously also has an impact on future costs of the program.
Last but not least, we have talked earlier about the collaboration with our Korean medical AI partner, BeamWorks. We've seen great progress in getting together and understanding how we jointly build and launch products based on components that we jointly contributed.
ContextVision's experience in integrating and implementing software into OEM imaging systems together with the AI capabilities that BeamWorks brings into the table. This will open up entirely new market segments for both of the companies. But obviously, those discussions require a solid contractual framework,
S tay tuned in the next months about further announcement on this progress. Now, having that said, let's spend some time in looking into the financial details about the success in the third quarter and the first nine months. I'll hand over to Richard to take us through the numbers.
Thank you, Gerald. Let me start with the revenue development for the third quarter. Revenue amounted to SEK 26.5 million compared to SEK 23.7 million in the same quarter of last year, representing an increase of 11.5%. As Gerald mentioned earlier, increased license sales in some of our key customer markets were the main driver of this growth.
As discussed in previous quarters, we've refined our assessment of the timing of revenue recognition under IFRS 15. In the third quarter, this had a negative impact of SEK 4.1 million on reported revenue. Adjusting for this effect and translational effects, underlying revenue growth amounts to approximately 34.5% for the quarter.
For the first nine months of the year, revenue reached SEK 90.3 million compared to SEK 78.6 million of last year, with underlying revenue growth of approximately 11.7%. Moving on to profitability.
Adjusted EBITDA for the third quarter amounted to SEK 9.2 million, up from SEK 4 million of last year. This corresponds to an adjusted EBITDA margin of 34.7%, up from 16.7%. Reported EBITDA increased SEK 7.1 million from SEK 1.4 million of last year, resulting in an EBITDA margin of 27% versus 5.7%. Adjusted earnings per share also improved to SEK 0.09 from SEK 0.03 in quarter three of last year.
The improvement in profitability was mainly driven by increased license sales and continued cost control while maintaining our investments in R&D. As mentioned earlier, refined assessment of revenue recognition had a negative impact on the quarter's reported revenues. Despite this, we delivered a clear improvement in profitability compared with last year.
The cash flow from operating activities for the third quarter saw an increase up to SEK 7.2 million after changes in working capital, compared to -SEK 2 million in quarter three of 2025, with improved operating results as the primary driver. From financing activities, cash flow amounted to -SEK 4.1 million, largely impacted by the repurchase of our own shares.
Total cash flow for the quarter was SEK 3.1 million versus a -SEK 2.9 million of last year. At the end of the quarter, we have a cash position of SEK 81.6 million, displaying a continued strong financial position. With that, I hand over the word to Gerald to take the stage again.
Well, Richard, thank you for the deep dive into the numbers. I think it is fair to conclude that we have delivered a very solid financial quarter, and we have seen good progress in the areas that will drive our long-term strategy. Let me just add by looking ahead that just after closing of the third quarter, we have already signed an additional partnership agreement with Linköping University, Region Östergötland, and CMIV.
This is to expand our clinical footprint to create more clinical evidence for the solutions that we have ahead of us. It gives us an opportunity to broaden our biomarker development and opens up to also evaluate solutions that we will jointly develop with our partners, for example, with BeamWorks. Looking ahead, we are full steam ahead in executing our quantitative imaging program. We have added new partners.
We also need to be aware that this is likely to drive our R&D investments moving forward. In particular, patients recruited into studies have a price tag earmarked, so we are going to see that impact in a positive way moving forward. We need to remain, obviously, cautious in cost control.
Now, we are all ready and set to meet our customers and bring that message also into the market when we travel to RSNA in a couple of weeks, the big conference in our business where the good news will hopefully spread to our customers. Stay tuned for an exciting year-end race and an exciting year ahead of us.
Okay.
Thank you.
Thank you.