Letter from the CEO

In the first three months of 2026, Bittnet Group recorded consolidated revenues of 53.2 million RON (+15% vs. Q1 2025) and a gross margin of 10 million RON (+22.8%). Operating profit improved significantly from -7.3 million RON on 31.03.2025 to -2.9 million RON on 31.03.2026, and the net result remains negative at -3.8 million RON, however the loss was decreased compared to Q1 2025. Structurally, First quarter remains the smallest of the year for our group: below 15-20% of annual revenue because, on the digital infrastructure vertical, projects are negotiated in the first part of the year and implemented in the second part. Even in this context, revenues from services doubled compared to Q1 2025: from 15.8 million to 31.7 million RON, confirming the strategic direction we are pursuing: building an antifragile group, focused on high value-added projects delivered by our own teams.

Dendrio delivered in Q1 over 1,100 projects for more than 400 clients and reached the budgeted operating profit, despite a restrained commercial dynamic in the first quarter. Although not an event of first quarter, Dendrio Innovations signed two significant contracts in April and May that confirm the company’s positive direction: a contract worth 10.1 million RON for a technical support solution in the electronic ID card, and one of 24.2 million RON for cybersecurity solutions for IT systems. Cybersecurity and AI remain the two main axes of demand in both the enterprise and the public sectors, and Dendrio is strategically positioned on both, including through its participation in Datacenter Forum Romania 2026, where the discussion is already moving toward data centers, AI and critical IT infrastructures.

AI (artificial intelligence) competencies cut across all three pillars of the group. In Education pillar, we attracted over 1,300 participants to AI webinars in Q1 and are preparing for the end of Q2 the launch of an AI training product for the B2C segment. In the Digital Platforms pillar, Elian is investing in AI agent-based solutions for ERP, following Microsoft direction, while Nenos has consolidated reusable Agentic AI modules and obtained the AWS GenAI Services competency, the first of this kind in Romania. In the Digital Infrastructure pillar, AI is both the main demand driver and an increasingly present component in the projects we deliver. As AI modules accelerate, it is becoming ever clearer that technology is not what makes the difference, but organizations’ ability to actually use it, and our group is built exactly for this bridge: the infrastructure that supports it, the solutions that operationalize it and the people who learn to use it.

Capital structure and portfolio monetization. In April 2026, the General Meeting of Shareholders approved three important decisions for long-term value creation: a new issue of corporate bonds of up to EUR 15 million, with an interest rate of 10.6% and maturity in 2031; a share buyback program (maximum celling of 300 million shares, approved at the OGMS); and an operation to reduce the share capital by cancelling the repurchased shares. In parallel, in May 2026 we completed the sale of Bittnet’s stake in Softbinator Technologies to co-founder Marius Băisan, in a transaction worth over EUR 500 thousand. The transaction is in line with the strategic direction we have undertaken of continuously monetizing the assets in our portfolio and channeling the resources obtained toward rewarding shareholders.

At the group level, the contracts backlog with delivery in 2026 is approximately 219 million RON, with an estimated gross margin of 36 million RON, to which is added a qualified pipeline of 289 million RON, with a historical conversion rate of approximately 50%.

As always, we thank you for your trust and remain available for questions or feedback at the dedicated address investors@bittnet.ro.

Mihai Logofătu,
CEO & Co-founder Bittnet Group