Good morning, and welcome to IDEX's second quarter presentation for 2026. My name is Anders Storbråten, and I am the Executive Chairman of IDEX. For those of you who have been following us for quite some time, you will now see on the slide deck that this is our new brand identity and we are identifying ourselves as a human. We will come back to what that means later on in the presentation. Let's go. Yes, there is also on the website, there is a new film that is describing what we are doing at IDEX at the moment, and I encourage you all to spend one minute to review that one.
There is also a link to the video in the presentation. Let's dive into the highlights for Q2. Q2 was very active in IDEX. We tripled our active pilots from Q1. We have estimated around NOK 20 million of revenues from that portfolio of pilots. We had four POs in Q2, both in access and pay. Our channel partner network is really growing and is being activated. It is now standing at 25 versus nine in Q1. This is really helping us to build a global presence with the best distributors available. One example is Infinigate, which was initially a Norwegian agreement, has now been lifted up to cover all of Europe.
On the certification side, we are now certified by FIDO level two. That means broadening our reach to high security customers. When we combine that with our certified Visa biometric card, we are the first in the world to have a certified Visa FIDO 2 card. We are also on the product development side. We have two products in process. One is preparing for the post-Quantum world and also making our card work seamlessly with the mobile. When we look at the highlights on the financial side, the backlog is up to NOK 23.7 million, and it is all committed for 2026.
Revenue was NOK 1.6 million in the quarter, and gross margin is 19%. There are two things to say on the gross margin. New POs has substantially higher gross margin, but also we are delivering from our inventory, so the cash effect is close to one-to-one. OPEX, pretty much stable at around NOK 20 million, and our cash position is at NOK 28.5 million. We have no interest-bearing debt as we cleaned out the convertible in the previous quarter. We do expect in the second half to have both strong growth in POs and revenues.
We have already booked NOK 4.5 million for Q3, and we have committed NOK 8.5 million. That is before any conversion of pilots and new business, which we think are meaningful in both Q3 and Q4. So we feel very good about our second half of the year. This marks a big shift for IDEX, which is now delivering revenues and cash flow. As we can see from the table here, where we were in May, we were at seven pilots, now at 23. We had one pilot converted, which was an Indian bank. That is an area to follow.
No pilots have been discontinued, and we have more pilots in the near term. We do estimate this to be around NOK 20 million of potential POs. This is before our partners are taking our product to their customers. So we are actively out right now working with the partners. Coming back to that. But what our customers are looking for is to eliminate phishing risk and consolidate physical and digital access, which is a very important driver at the moment with the cybersecurity issues that we are facing. Getting a little bit into the details on the channel partners, we are now at 25, up 16.
This really means that we can leverage our product. We are very good operationally geared and working well with partners. The best partners that we can find, we get proper scale. Infinigate, as I mentioned, is now a PAN EMEA agreement in place. AdvanIDe is the world's largest NXP reseller, and we are working actively with that partnership across several geographies. Sotera, a new one, which is the platform for personalization of access cards, and they are working on delivering their products to the leading physical access security companies.
HID NXP, we are working very well with that ecosystem and will be a very interesting second half of the year. A little bit about where we are on the product development and what the principles are. We are working along two really important vectors. One is we need a product that can work well in the post-quantum world. Industry-leading security levels we will have and are having today. We are also focusing on how can we reduce friction and improve user friendliness, and we have improved enrollment significantly, and IDEX Mobile will make it a seamless experience to use our products with mobile.
This just demonstrate what we are doing on the Quantum side. This is what enrollment looks like at scale. Very easy to enroll for corporations and banks, etc. , their IDEX portfolio. Here, how can we make sure that everybody is carrying a mobile and they can use our card together with it. The financial highlights, our backlog is up to NOK 23.7 million. This is strong development in the period. We see also acceleration of POs in Q3 and Q4. This backlog, again, is fully committed for the second half of 2026.
Because we are delivering it from our inventory, it carries almost 100% gross margin. Q2 revenues came in at NOK 1.6 million, which is a little bit up from last year. What is really to bear in mind here is where we are now in Q3 already. We have NOK 8.5 million committed and already NOK 4.5 million shipped. The gross margin is expected to improve significantly as we are rolling out our access control with full commercial pricing. Cost, no meaningful changes. We are managing to scale the commercial activities without increasing costs.
Cash position. We ended the period with $28.5 million in cash. The capital raise we did earlier this year enabled us to clean out the balance sheet. We had an EBITDA negative of NOK 20 million in Q2. When we are looking at the backlog of NOK 23.7 million for the remainder of the year, which is more or less 100% cash conversion and the pilots and also meaningful POs that does not require pilots, we feel very comfortable about the financial stability of IDEX. Outlook. This is what is the most pressing issue out there at the moment.
We actually no longer know who is on the other side, a bot or a human, when a transaction or authentication takes place. IDEX, you all think about it as a sensor biometric company, but we are in the business of not delivering that. We are in the business of verifying human identity in both physical and digital world. We are doing that much better than anyone else. This is how the automated systems that you see today identify or try to identify whether it is a human on the other side. There are puzzles, there are questions, math. This takes time.
There is no way that these puzzles can actually guarantee that there was a human there, but more importantly, whether it was the right human. Even Perplexity AI needs some help to verify whether you are a human, which is quite interesting. If you ask AI about what actually protect against identity theft, this is our results. It needs to be multi-factor. It needs to be phishing resistant. It needs public key cryptographic . It needs to be hardware bound on device biometrics. Nobody scores better on that than IDEX Biometrics.
The macro backdrop. Four drivers just moved from forecast to deadline. We all in Q1, we focused on the 7th of April MITRE Corporation's announcement that gave us 6-18 months. Warnings become live incidents in months. 7th of July, the European Central Bank gave the banks four months window to have a plan in place. On the 18th of August, close to us, Novo Nordisk was hacked, or it was the results of the hack that they had captured 1.3 TB of data, showing that the attacks are real and the world needs systems that make sure that not only that you protect the outside.
Once the hackers are on the inside, you have systems that kind of stops them once they are on the inside. I think that is something everybody needs to be aware of, that you should assume that you are hacked and you have hackers inside your systems. They are not asking for ransomware, but they are monitoring data and they are positioning themselves for bigger economic gain or other threats down the road. What you need is systems that are protecting you and assume, because they cannot move around once they are on the inside.
Compliance is the other big macro backdrop. NIS2 Directive and Digital Operational Resilience Act, there is no guidance anymore. They are actively out there with fines and the entire ecosystem is affected, and this becomes now a leadership responsibility and not the IT department. When we look at solutions out there are, as I showed you, it is hard to verify a human, at least what we are seeing from the market. Visa acquired BioCatch two weeks ago. That is to try to close or get closer to a solution. But again, this is a machine against the machines and it is not a permanent solution.
Finally, quantum computers, we call it synthetic quantum, is that large data is already harvested. The large data sets, they might not be able to hack them today, but they will able to decrypt them at a later stage. What is important here and the same goes out there is that you need to start implementing this now. Where are we on the pilots to orders? So far we have had pilots that are now coming into orders, and then products will ship and revenue recognized. That will be the second half. The first part was the first part of the year.
But what we are also seeing now is that because we have proven that our product works, customers are skipping pilots and they go straight to shipment and delivery. What to watch from here, a significant step up in both order intake and revenues. Conversion of pilots. We think that we estimate the current pilot portfolio to be around NOK 20 million in combined POs. Q3 revenues is already standing at NOK 8.5 million committed, NOK 4.5 million shipped. The rest of the backlog is set for delivery in the second half.
This exclude new orders. There might be some cost increases in Q3, but we are closely monitoring our expenses. New pilots will be launching. We will see significant scale from our channel partners. A channel partner for us is not something we put in the drawer once it is signed. We are actively out with them in the market, visiting their customers, doing demos, giving them all the materials. We are really partners in that. Finally, I would say something on IDEX Pay. IDEX Pay was something we were putting on the backlog.
This is really coming back into full force with the first PO in India. There are more to come, but also banks in other markets are now, both in the U.S. and in Europe, is now seriously considering IDEX. That is it for today. Any questions? Well, thank you everybody for attending and again, I encourage you all to visit our website now to see the latest film and how we position IDEX Biometrics, identify yourself as a human. Thank you very much.