Finnish laser technology company Modulight Oyj reported improved profitability in the second quarter of 2026, even as revenue declined, according to its earnings call transcript released on Friday.
The company posted Q2 2026 revenue of €1.6 million, an 18% decrease from the same period last year. Despite the revenue drop, Modulight’s EBITDA margin expanded to 2.3%, up from a loss in the prior-year period, marking an 185% improvement in absolute EBITDA terms. Operating cash flow turned positive at €22,000, compared with a negative €478,000 in Q2 2025. Net cash flow remained negative at €1.3 million, though this represented an improvement from €2.2 million a year earlier.
For the first half of 2026, Modulight’s revenue fell 13% year-over-year to €3.3 million. EBITDA margin surged to 30%, a 29 percentage-point increase from H1 2025, while operating cash flow totaled €841,000, reversing from a negative €1.8 million in the prior-year period. Net cash flow improved to negative €1.8 million from negative €5.1 million a year earlier. The company ended the period with 62 full-time employees, down from 70 in 2025.
Management attributed the revenue decline to project delays, delivery rescheduling, and a strategic decision to supply early-stage prototypes to large customers at mass-production pricing. The company’s shift toward photodynamic therapy (PPT) has gained traction, with PPT revenue growing 137% in H1 2026 compared with the first half of 2025. PPT now generates more revenue than the company’s legacy business model.
Pricing adjustments were implemented to reflect a more mature product set and delivered value. Management described the increases as “double-digit in percentage” and “clearly meaningful,” including higher treatment prices and the introduction of monthly fees to stabilize cash flows amid trial delays and variable patient recruitment. The company’s vertically integrated manufacturing facility, an indium phosphide fab, has attracted higher customer demand, particularly from the data center sector.
Modulight also highlighted progress in its clinical pipeline. A Phase III cancer-treatment trial completed patient recruitment ahead of schedule and entered a one-year follow-up period before regulatory discussions with the U.S. Food and Drug Administration. The company’s project pipeline totaled 36 projects at the end of the prior quarter.
Shares of Modulight slipped 0.89% to $1.11, near the bottom of its 52-week range of $0.99 to $1.46. Analysts had forecast an earnings per share loss of $0.0277 for the quarter.
