In Q3, we report revenue of NOK 42 million, a gross margin of 44%, which is year-to-date a 47%. Our channel reports a 13% underlying growth year-on-year, driven by momentum in Americas and APAC. Our strategic partners have started to expand into new regions. However, the commercial rollout is slower than planned. For the 2026 outlook, we are therefore adjusting our revenue target. Bringing the focus to our business plan. Our focus is to continue the growth through our partners while we continue to monetize on our product development, keeping disciplined investments and strict cost controls.
Huddly has a strong position in the product portfolio of our signed partners, and together they hold a significant market share and are starting to expand into new regions. This despite the delays in the commercial rollout. Lenovo have started to ship into three regions globally and continue to build up their sales pipeline.
Together, we are working on accelerating the commercial rollout, latest with our joint sales training for the reseller community. We are also preparing upcoming activities such as ISE early next year. Bringing the focus to our channel. As of September, we appointed John Howard as our new global head of channel sales. John and the team will, going forward, focus on accelerating the growth in the channel. In Americas, we continue to see growing momentum, and the APAC region continues to deliver strong growth.
Despite it being still small numbers, it is a significant growth now seen coming from the region. In EMEA, we are strengthening our organization. In Q1, Huddly will launch a new leading product platform called Huddly Crew+, enabling video and audio not only in the small and medium spaces, but now also expanding into large and extra-large rooms.
This will expand the revenue potential both for Huddly, but also for our partners. In addition to the audio and video, Huddly Crew+ will also bring AI into one platform, driving and increasing the customer value. Huddly Crew+ is a complete AI room perception system, supporting the new era of working with AI. With that, I say thank you and give the word over to Abi.
Thank you very much. Let us now dive into the financial details of the quarterly presentation. Revenue in Q3 2026 was NOK 42 million. That is a 7% decline versus same quarter last year. However, if you adjust for currency changes, the decline was 1%. Strategic partner revenue in Q3 2026 was more or less in line with Q2 2026, and this is lower than expected as the commercial rollout has taken longer than planned. This is anticipated to ramp up through the coming quarters. Channel in the quarter grew by 7% reported, but adjusted for currency changes, the increase on a year-over-year basis is 13%.
We are seeing positive signs in the channel business with distribution stocking levels normalizing in the U.S. after a challenging first half of 2026, and we are seeing sales velocity from distributors to resellers trending positive in several regions.
For next quarter, Q4 2026, we estimate an increased momentum in both channel and strategic partners. The implied level of revenue in Q4 2026 is NOK 59 million-NOK 99 million. The wide range is mainly explained by timing uncertainty between Q4 2026 and Q1 2027 in strategic. Gross margin in Q3 was 44%. If you adjust for a one-off effect in the quarter, it was 45%. Gross margin at the company has been quite stable over the past few quarters, and we expect to be in line with the target of 45%-50% for the full year 2026. Year-to-date, the gross margin is 47%.
Gross margin has been challenging over the past few quarters due to increasing component prices. However, we have been able to take out quite a lot of that with price increases out to the customers.
We did see one effect in Q3 with purchasing price variance, which led to an increase in gross margin, sorry, a decline in gross margin by 2%. So without this, it would have been . Going forward, we plan to offset the price increases from RAM with increasing prices to customers. Our cost base is stable, and it's set up to deliver on the future growth plans. On a cash cost basis, the cost for Huddly is approximately NOK 60 million per quarter, with approximately two-thirds of that related to salaries and personnel.
We have a strong engineering organization which is capable of delivering on our roadmap, and with extensive experience within AI and machine learning, which is very important to drive the potential in this market.
In other words, we have a very strong degree of operating leverage in the company because we don't need to grow the cost base by much in order to support future revenue growth, which then again means that incremental gross profit from high volumes falls through straight to cash. Cash ends of Q3 2026 was NOK 66 million. The change from the start of the quarter is mainly related to net working capital and equity private placements, which we did in the quarter, which raised a total of NOK 70 million in gross proceeds.
Over the past few quarters, we have built up inventory, both for planned deliveries to strategic partners, so there's been a certain amount of buildup of inventory with delays in the commercial rollout for strategic partners.
However, it's important to acknowledge that this stock is current and will be delivered to customers once we start and pick up the revenue going forward. In the next few quarters, starting from Q4 2026, we expect the cash flow to improve as expected revenue growth drives up cash. In addition to that, with customer deliveries from existing inventory and lower production volumes, that will also mean that we will have an additional cash effect, which is positive for the company. Let me now wrap up this presentation with a summary and a quick outlook.
We have three very important growth drivers in the company: attractive market, which is both large and growing, product leadership with our AI-driven products, and finally, go-to-market with key partners, Lenovo, Jabra, Barco, and Shure, which is scaling our abilities to go to the market.
For 2026, we have revised the revenue target to NOK 200 million-NOK 240 million. We have capped the gross margin target between 45%-50%. 2027 and 2028 is otherwise unchanged. With that, we will then wrap up this presentation part of Q3 announcement, and we will now answer questions from the audience. Thank you very much.
Yes. We have already received a few questions. The first one, "Which steps are you taking to speed up the rollout of products from your strategic partners?" This is actually a very manifolded question. We are in a very close cooperation with our partners and in daily dialogues with them. We are taking actions that are from the more- less obvious, like obviously making the platform certifications finished, but also that we are working towards market access certifications, packaging, labeling requirements, et cetera, to the more obvious and more visible, such as events and pipeline buildup in sales.
Recently, like we have announced with some of our partners, like Lenovo, are doing sales training for the reseller community to activate that. This is amongst others. We are working closely together to accelerate the commercial rollout.
Let me see if there are more questions coming in. Yes, then another one pops in here. "Please explain how Huddly AI technology functions in practice in a meeting room, both current products and the coming Crew+?" One of the benefits of the Huddly products in the meeting room, and actually where you put them, they do have the entire infrastructure and the architecture of the whole system set up such that each individual device processes the AI and processes the technology on the edge, meaning the systems are fully modular and therefore easier to install, lowering the actual cost of installation as well.
Most importantly, they actually understand what's happening in the room. With Crew+, we will be taking this step even further, so adding not only video into the room, but also audio.
Even more importantly, the whole AI system becomes a more of a perception system, allowing the new tools, such as AI tools, as we are now getting used to and starting to have an essential part of our workspace, working in the meeting room as well. Then I think there are no more questions in here today, so we will take one last one. "What differentiates Crew+ from your other products?" I think the first part is obviously the audio, allowing the audio to both not only being the vendor of the video in the room, but also the audio.
Not only in small and medium rooms that we have had with our C1, now we have a full solution with audio and video in all room sizes. With the AI that is working on the edge, this also is a very flexible system.
Back to the architecture we discussed, it also allows us to price that system quite competitively. It is a very flexible, very competitively priced system that now expands in all room sizes. As an added bonus, it is also ready for f future era of working with being a perception system for all AI tools and agents as well. For the rest of you, if there are any more questions, please do not hesitate to reach out to us at ir@huddly.com, and we will come back to you on there. Thank you.