Huddlestock Fintech AS (HUDL) Earnings Call Transcript & Summary

Hello, everyone, and welcome to this quarterly presentation Q2 2026 of Huddlestock. My name is Leif Arnold Thomas. I'm the CEO of Huddlestock. And today, I have with me the Chairman of the group, Øyvind Hovland. I have with me Ramtin Matin, who is my new colleague from July; and also Simon Lange from GIGA Broker, who will share some perspectives during the presentation. The presentation is set for 30 minutes, including a Q&A session of 5 minutes at the end. There is a button on the top where you can type in questions during the presentation and we will answer those at the end of the session. And both myself and Øyvind and Ramtin will be available for that part. As always, this presentation will be recorded, and it will be available on our website later on today. So that was the start. And once again, welcome, everybody, and thanks for joining. But first, we have a new face here today, and that's my new colleague, Ramtin. So Ramtin, please introduce yourself and share a little bit about your views and why you chose to join Huddlestock.

Thank you very much, Leif Arnold. As you know, my name is Ramtin. I have taken the role as COO and CTO of Huddlestock. My experience is 20 years within technology, consulting and finance. And latest my position was as the VP of Innovation & Partnership within SpareBank 1 Sør-Norge, former SR-Bank. And I've been approached on why I chose to join Huddlestock as part of the management team. And the fact is that the business model and the value proposition that we and Huddlestock are providing is to me a game-changing enough that I wanted to be a part of it. As you know, my experience within the finance industry in the past 10 years has shown me how all the processes works behind the scenes. And it's safe to say that there are room for improvement. And seeing what we have in our toolbox with our licenses, our compliance structure, our competency and most importantly, the technology, it was an easy choice for me. We have the right pieces of the puzzle to make a real difference within the market. And I would like to share a couple of perspectives on this, if you could share the presentation like DoLand, exactly. Because from the outside, it might look very easy that we're just providing an app. But the fact is that this is a quite complex machinery, which the team led by Robert in Germany has created in a very lean and agile way. So ranging from the licenses which we have been issued by the financial authority, BaFin in Germany to our API-first architecture, all the way to how we handle the customer support and complaints ticket shows the span of tasks that we are actually handling today, which is quite many. So what real industry problems do we actually solve? If you go into a partnership with us, regulation suddenly does not become a hurdle anymore because we have the right competency and the licenses in place in order to provide that. We also reduce the time to market from years to months because we have done all the hard work and have the building blocks to provide our partners and customers with a multi-tenant solution, which takes into account both data protection and security and can deliver this in a very, very smooth way. Also, if you want to grow within the different countries of Europe, you can easily passport our solution across this. So there's a very, very good possibility to take different types of markets. And if you want to go into the decentralized and tokenized space, we also have the tools and licenses for that. And the silver lining here, which is, to a certain extent, maybe been undercommunicated is that we do all this for a fraction of the price, and we do it as a service. And that is a feedback we have gotten from several prospects, which shows that we have legitimate -- providing legitimate value in the market. So who are we dealing with here? Our current focus is mainly within wealth managers and independent financial advisers. But we also see that our offering sits extremely well within these segments, ranging from neobrokers and digital investment platforms to large enterprises and system integrators seeking to use our technology and infrastructure. So this was just a quick overview of the different segments that we are working with. I think I have spoken enough for now. But if you have questions, please don't hesitate to contact us, and I will give the mic back to you, Leif Arnold.

Thanks very much, Ramtin. And let's jump right into the most important projects we are working on. And this summer has definitely not been a calm summer. It has been hard work over the last week for sure for very many people. GIGA Broker is our first customer on the white label solution. And during June and July, we continued to expand the user group during the summer and the objective was to make sure that the trades that was initiated from the platform was executed successfully, which they did. Then now in August and going into September, we will continue to develop and finalize features in the app. We will increase the number of users to see that we receive more and more feedback from the ones that are using the app, both on the UX, but also from the functionality perspective. We are preparing the marketing and commercial preparations. And of course, since this is about securities, we will also do a very important penetration and security testing as part of the whole thing. What we have seen during the summer is that we have received very much valuable feedback and areas where we want to improve and also add some extra requirements. That has added some complexity, but at the same time, it's easy when you have good feedback from the customers that it should be taken into account to also include that in the final product in order to have the best platform in the market when we go live. So the live is now planned for October. And one of the participants in this project that are, of course, very important is GIGA Broker, and Simon Lange, who is the CEO of GIGA Broker, is with us today. And please, Simon, I would like to -- if you can share some of your perspectives, that would be very nice and hopefully interesting for the audience as well.

Good morning, guys. Hello, everyone. I'm Simon Lange, CEO of the GIGA Broker and the Co-CEO of AVL. And really thanks for inviting me back to Huddlestock's quarterly investor presentation. I hope everyone has had a great summer. From our side, it's safe to say it's been a busy one. The project teams at GIGA and Huddlestock have been working hard with one clear goal in mind, getting the GIGA app ready for launch in Germany. As I did in May, I would like to give you a brief update on where we are and what we have been working on together. We are building -- what we are building is much more than just another investment app. Together, we are creating a modern investment platform with ambitions well beyond the initial launch. That requires solid regulatory, technical and operational foundations as well as a platform that is robust, scalable and ready to support long-term growth. Our focus has never been to launch as quickly as possible, but to launch something we can be proud of and continue building on for years to come. Over the summer, Leif, Robert, Ramtin, and I have been in close contact, working through progress and priorities. During the ongoing user testing, we have received valuable feedback and identified several improvements and additional requirements. This has added some complexity, but it's also helping us to build a stronger and robust platform. What has been particularly encouraging is the way that the Huddlestock team has approached these challenges, solution-orientated, proactive and focused on maintaining momentum. That collaboration continues to be one of the key strengths of the project, to be honest. What has been particularly based on the feedback from the ongoing user testing, the improvements identified and the remaining launch readiness work, we are now targeting a public launch in October. I'm really excited about what we are building together with Huddlestock and look forward to sharing more progress with you in the months ahead. Thank you very much, guys, and keep the strong work going forward, and I'm sure we will be successful in my point of view.

Thank you very much, Simon, for sharing your perspectives with us. Okay. Then let's continue. We now talks about -- very much about Investment as a Service. But as you all know, we also have another part of the group, which is the consulting business. And for the consulting business, we have set ambitious targets for 2028, where we have ambitions of reaching NOK 100 million in revenues more than that and also have a profitability above 20%. The strategy and activities and the road to that goal is divided. Number one is to grow the current business. And it is very -- I'm pleased to announce today that the Visigon business in the second quarter of '26 is 20% above last year. We are working on expanding the business out of the Nordics. We have established a Polish entity to have access to skilled resources there. And we are now also exploring to be more visible in other markets and have decided to participate at -- in Fintech conference in Germany in October. But in addition to growing the existing business, both in the Nordics and in Central Europe, we have also part of the strategy to explore new initiatives. And yesterday, we published and announced a news about that we have acquired the assets in a software company called DoLand in Denmark. And as part of that business, we have agreed a 5-year agreement with a bank called Merkur Andelskasse. So perhaps, Ramtin, you could share a few words about that case.

Yes. So I spent quite considerable time besides the GIGA project in July and August with our team in Copenhagen. And I was fortunate enough to work closely with Lars and Jens to acquire DoLand here, which provides sustainability reporting to Merkur Andelskasse. And this for us has been a very deliberate and strategic expansion in order to provide managed services in the Nordic financial market. It strengthens our position within the banking alliance, but also shows that we have the competency and merits in order to actually do so. It provides us basically from day 1 with new revenue streams within the sustainability reporting. And the good thing is here that we can utilize our already established sales channels within Copenhagen, Stockholm, Norway, and Germany in order to tell the market how we can provide these services. So it will give us an increased cash flow and profit for Visigon, and it's a very good candidate for recurring revenue increase over the coming years. And as Leif Thomas said, we have entered the 5-year agreement with Merkur Andelskasse, which gives us a foreseeable time in order to actually make this work. And from what I've seen until now, the technical solution is quite good and quite promising. So things are moving forward here.