Interim Report Q3 2025: Solid quarter with 1% organic growth, 11% EBITA margin and DKK 410 million cash flow

Highlights

• The Hearing division delivered 7% organic revenue growth driven by the continued strong performance of ReSound Vivia, enabling broad-based market share gains. The divisional profit margin ended at 34%, driven by positive operating leverage, but partly offset by negative country mix
• The Enterprise division continued to experience positive sell-out growth outside of Europe, driven by strong channel execution and market leading innovation, while Europe continued to be challenged due to market uncertainty. Reflecting continued inventory reductions in North America, organic revenue growth ended at -4%. The divisional profit margin ended at 34%, as a result of negative operating leverage and tariff headwinds offset by price increases and cost focus
• The Gaming division continued to perform well and take share in a challenged market, delivering organic growth of 3%. The divisional profit margin (excluding wind-down effects) ended at 9%, reflecting tariff costs, partly offset by price increases
• Group reported EBITA ended at DKK 435 million (equal to an EBITA margin of 11%), reflecting the development in revenue and the strong cost focus
• Free cash flow excl. M&A ended at DKK 410 million reflecting the earnings profile and positive impact on working capital. Net interest-bearing debt ended at DKK 9.4 billion, equaling a reported leverage of 4.0x (reported leverage of 4.3x in Q3 2024)
• Following a successful execution in the first nine months of the year, GN’s financial guidance for 2025 is confirmed

Financial guidance for 2025

Key revenue assumptions for the financial guidance 2025

Hearing division
GN is exposed to an attractive hearing aid market, which has historically been growing 4-6% in volumes driven by ongoing favorable demographic trends. With an assumed -1% yearly ASP impact, the structural market value growth assumptions of 3-5%. As a consequence of the slower beginning of the year driven by the uncertain macroeconomic environment, it is still expected that the market in 2025 will grow slower than its structural trend. Based on the strong sales momentum of ReSound Vivia and ReSound Savi, GN in 2025 expects to continue to gain market share. In the beginning of 2025, we assumed the Hearing division to contribute with organic revenue growth of 5% to 9%. Due to the lower market growth assumption, it is still assumed that the Hearing division will grow at the lower half of that range.

Enterprise division
The uncertainty and change in the trade environment are impacting our Enterprise division. We have taken significant actions to further diversify our manufacturing footprint to mitigate this, and we have also implemented targeted price adjustments in the U.S. With these initiatives in place, we are progressing well towards the existing assumptions for the year. In April 2025, we assumed the Enterprise division would contribute with organic revenue growth of -8% to 0%, and we are continuing to assume a contribution in the middle of this range.

Gaming division
Similar to the Enterprise market, the Gaming market is also impacted by the change in trade environment and general weak consumer sentiment. We have taken several mitigation actions including diversification of our manufacturing footprint and targeted price increases. These initiatives work well. In April 2025, we assumed the Gaming division to contribute with organic revenue growth of -6% to +2% (excluding the impact from the wind-down). Driven by the strong execution in the first nine months of the year, the Gaming division is still assuming to contribute with organic revenue growth in the upper half of that range.

Key EBITA margin assumptions for the financial guidance of 2025
In light of the evolving changes in the global trade environment, GN launched significant mitigation actions in May 2025 to protect Group profitability. These significant actions included but were not limited to 1) Acceleration of diversification of manufacturing footprint; 2) U.S. price increases for Enterprise and Gaming; 3) Group-wide cost and cash initiatives.

In the quarter, the changing trade environment has been managed well. The efforts to diversify the supply chain are now more or less concluded, meaning that GN will be able to serve the vast majority of the U.S. market with manufacturing outside of China by the end of 2025. Thanks to this, the group-wide cost control efforts and the commercial actions that were taken across Enterprise and Gaming, the overall impact is being mitigated well. We are continuously assessing the developments and additional prudent and diligent actions will be taken as needed going forward. It is still expected that the net impact from tariffs will impact group EBITA margin by around -1% in 2025 (as earlier communicated), of which around 0.5% has a more temporary effect.

Quotes from Executive Management
Peter Karlstromer, CEO of GN Store Nord, comments: “We are executing well across our priorities in markets currently growing below normal trends. The diversification of our manufacturing footprint progresses according to plan, and this together with commercial levers and cost control help us manage the tariff situation in line with our plans. We continue to see the benefits of our market-leading product portfolio, and remain excited about our innovation pipeline to support GN’s growth in the years to come.“

Financial overview Q3 2025

* Excluding wind-down effect. Reported organic revenue growth of -1%

Teleconference
GN Store Nord will host a teleconference at 11.00 a.m. CET on November 6, 2025. Please visit www.gn.com/investor to access the teleconference. Presentation material will be available on the website prior to the start of the teleconference.

For further information, please contact:

Investor Relations
Rune Sandager +45 45 75 92 57

Media Relations
Steen Frentz Laursen +45 20 65 34 20

Forward-looking statements
The forward-looking statements in this report reflect the management's current expectations of certain future events and financial results. Statements regarding the future are, naturally, subject to risks and uncertainties, which may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events, which may prove incorrect. Changes to such expectations and assumptions will not be disclosed on an ongoing basis, unless required pursuant to general disclosure obligations to which GN is subject.

Factors that may cause actual results to deviate materially from expectations include – but are not limited to – general economic developments and developments in the financial markets as well as foreign exchange rates, technological developments, changes and amendments to legislation and regulations governing GN’s markets, changes in the demand for GN's products, competition, fluctuations in sub-contractor supplies, and developments in ongoing litigation (including but not limited to class action and patent infringement litigation in the United States).

For more information, please see the "Management's report" and "Risk management” sections in the Annual Report. This Report should not be considered an offer to sell securities in GN.

About GN
GN brings people closer through our leading intelligent hearing, audio, video, and gaming solutions. Inspired by people and driven by innovation, we deliver technologies that enhance the senses of hearing and sight. We help people with hearing loss overcome real-life challenges, improve communication and collaboration for businesses, and provide great experiences for audio and gaming enthusiasts. GN was founded more than 150 years ago with a vision to connect the world. Today, inspired by our strong heritage, GN touches more lives than ever with our unique expertise and the broadest portfolio of products and services in our history – bringing people closer to what is important to them.

We market our solutions with the brands Jabra, ReSound, SteelSeries, Beltone, Interton, BlueParrott, Danavox, and FalCom in 100 countries. Founded in 1869, GN Group employs more than 7,000 people and is listed on Nasdaq Copenhagen (GN.CO).

Visit our homepage GN.com and connect with us on LinkedIn, Facebook and X.

Attachment

• GN Interim Report Q3 2025