SDS wins new order of SEK 5 million and reconfirms SEK 45-55 million in Earnings Before Tax for 2026

Seamless Distribution Systems AB (publ) ("SDS") has received an order from an existing telecom customer, a leading mobile operator in the Bahamas. The product license is worth SEK 5 million.

The order relates to an upgrade to ERS 5, SDS's platform for the sale and distribution of digital products. The upgrade will enable improved operational efficiency, enhanced scalability and a stronger foundation for future digital service expansion. The solution leverages SDS's modern, modular architecture, supporting increased flexibility and enabling operators to adapt to changing market demands.

After an extensive restructuring in 2025, the company is now covering its total operating costs through recurring revenue from customer support. This means that all new product agreements during the year will have a direct positive effect on the company's earnings and cash flow. Revenues from product implementation will gradually be recognized as the delivery progresses and are expected to be completed in 2026. With this order, SDS has secured more than 40 percent of the full-year forecast of SEK 45-55 million.

This is the fourth ERS 5 upgrade order that the company has won this year, reflecting the increasing demand among SDS' existing customer base to migrate to the company's latest platform generation. With a global installed base of telecom operators using previous generations of SDS's platform, SDS is positioned for additional product licenses and services from the company's existing customer base.

"This order reinforces the strong demand we are seeing for platform upgrades across our customer base. As operators continue to invest in modernization, we see clear opportunities to expand our engagements and deliver additional value over time. This order further confirms and strengthens our goal of delivering a strong earnings improvement in 2026. We have already, at this stage, secured more than 40% of the full year forecast in Earnings Before Tax for 2026 and it further cements the forecast of SEK 45-55 million for the full year 2026." comments Martin Schedin, CEO".

For more information, please contact:

Jens Ålander

CFO

+46 73 095 8269

[email protected]

About SDS

SDS is a Swedish international software company specializing in mobile payment services for mobile operators, distributors, retailers, and consumers. SDS ensures that telecom operators can sell voice time, data, and ancillary services, while SDS products and services handle up to 90% of telecom operators' sales. Today, SDS has implemented solutions in Fintech, advanced analytics, and retail value management, and these products have turned into so-called SaaS solutions for the telecom operator.

SDS has approximately 185 employees in Sweden, South Africa, Algeria, Ghana, Nigeria, the United Arab Emirates, Pakistan and India. SDS handles more than 15 billion transactions worth over $14 billion annually. Through over 3 million active digital product retailers per month, more than 1,100 million consumers are served indirectly globally.

SDS's share is listed on Nordic SME on the Nordic Growth Market.