The helmet safety technology company saw total sales increase 72 percent to SEK 232 million (~$25 mm) for the period, compared to SEK 132 million in the 2025 second quarter.
Mips AB reports in the Swedish krona (SEK) currency. All conversions are calculated at the average 1 SEK = 0.1067 USD conversion rate for the second quarter as posted by X-Rates.
“The increased organic growth rate is primarily attributable to continued gains in market share, but also partly due to easier comparators,” Strandwitz shared in a quarterly letter to investors. “Although the second quarter of 2025 showed organic growth of 12 percent, sales were temporarily adversely impacted by the U.S. tariffs imposed during that quarter. Koroyd, which we acquired in December 2025, performed well and contributed with 30 percent growth during the quarter.
Strandwitz said the exchange rates effects remained the same during the quarter compared to last year.
Regional Summary
Performance was reported to be strong across all geographic markets during the first quarter, but Strandwitz said the company was “particularly pleased” with the performance in Europe, where Mips revenues grew 48 percent year-over-year (y/y) to SEK 73 million (~$8 mm), driven by the Sports category.
“In North America, we faced a weak comparative figure following the introduction of tariffs in the prior year and we therefore grew by as much as 91 percent during the quarter,” the CEO noted. “Adjusted for those effects, we see continued strong performance in the U.S. market, particularly in the higher price segments. It is also pleasing to see that the Asian market has returned to strong growth after a period of weaker performance.”
North America sales reached SEK 126 million, or ~$13 million.
Revenue by Category
The Group’s revenue primarily comprises sales of component kits (license and components) to helmet manufacturers. Sales of services is attributable to the development of Mips’ technology and Koroyd’s technology for a specific customer and helmet model.
Sales for the Koroyd brand reportedly continued to perform well, with good performance in both the Sports and Safety categories. Strandwitz said Mips also saw positive developments in body protection, protective gloves, and footwear.
Helmet Category / Sports
In the Sports category, Mips reportedly achieved total growth of 51 percent during the quarter, of which organic growth amounted to 40 percent.
The Snow sub-category, which was said to be the largest in the second quarter, performed well, particularly in the European market, which benefited from a strong start to the 2025–2026 winter season. In North America, conditions were more reportedly challenging for customers due to an unusually poor season in terms of snow in the central and western U.S. as has been widely reported over the last six to nine months.
“This was partially offset for us as we compared against the lower comparative figures, which had been impacted by tariffs, from the same period the previous year,” Strandwitz noted.
The Bike sub-category continued to perform very well in Q2, and the quarter reportedly marked the eleventh consecutive quarter of growth, following the post-pandemic slowdown in the sector as a whole.
“We are gaining market share and continue to see very strong performance, especially in the European market,” the CEO claimed. “This positive trend is being driven by several factors, the most important of which is a continued strong biking trend combined with a growing share of e-bike sales and an ongoing “premiumization” of the market. This trend is being driven both by the higher share of e-bike sales and by increasingly discerning consumers who are willing to pay more for higher-quality products, which benefit strong brands such as Mips.”
Helmet Category / Motorcycle
Mips achieved reported growth of 80 percent in the Motorcycle category this quarter. Organic sales growth amounted to 56 percent.
“We saw continued strong performance in the Off-Road sub-category, as well as solid performance in the On-Road sub-category, Strandwitz noted. “During the first six months of the year, growth amounted to 49 percent, of which organic growth accounted for 28 percent.”
He said they were pleased that they are continuing to strengthen their position in both sub-categories, despite a challenging market. “We also see that stricter competition standards in off-road are leading more customers to seek partnerships with us to ensure access to the right expertise and technology as helmet requirements become more stringent,” he added.
“Given the continued high level of activity in the category, we believe that this positive trend will continue. We have maintained a high pace of innovation, and the rollout of these innovations will continue to support our growth journey in this category,” the CEO concluded.
Helmet Category / Safety
Safety category sales grew by 604 percent during the quarter, with organic sales growth reaching 80 percent. During the first six months of the year, growth amounted to 342 percent, of which organic growth accounted for 39 percent.
“In June this year, Mips and Koroyd exhibited together for the first time at the ASSP (American Society of Safety Professionals) trade show in the U.S.,” Strandwitz shared. “Interest in the Mips and Koroyd brands was very high, with many positive comments regarding the Group’s combined potential in the Safety category. It was also evident during the trade show that our efforts to educate the industry about the harmful effects of rotational motion are beginning to bear fruit, which is another reason we continue to invest in our organization in the U.S. market.”
During the quarter, Mips made its first entry into fire helmets, a new area for the company, by launching a product in collaboration with the leading brand Dräger.
“Although the market for fire helmets is limited in size, we see this as very exciting, partly because there are many accident scenarios to address, but also because it gives us the opportunity to make a difference for a profession dedicated to saving lives,” Strandwitz said.
“Through the Koroyd brand, we can now as a group offer a broader and more complete product portfolio for the safety industry,” he continued. “When it comes to helmet solutions, we look forward to launching several recently developed products in the coming years, with a particular focus on full-brimmed helmets for the U.S. market, which is the largest market for premium helmets and a priority focus area for both Koroyd and Mips. The portfolio will also be expanded even further to include solutions for body protection and gloves, among other things, which will enable broader commercial discussions with both current customers and new companies in the safety industry in general.”
Profitability
The CEO added that the strong growth and their scalable business model led to an improvement in profitability during the quarter.
Operating profit amounted to SEK 95 million in the quarter, compared to SEK 41 million in the year-ago period. Operating margin increased to 41 percent of sales in Q2, from 30 percent in the 2025 Q2 period.
Adjusted operating profit, which are calculated primarily excluding costs related to the legal dispute that was settled in July, amounted to SEK 108 million in Q2, compared to SEK 55 million in Q2 last year. Adjusted operating margin was 47 percent of sales in Q2, compared to 40 percent in Q2 2025.
Organic Operating Margins
Diluted earnings per share amounted to SEK 2.55 in Q2 2026, compared to SEK 1.20 in Q2 2025.
Patent Litigation Resolved
In early July 2026, Mips together with its customer Revelyst, decided to reach a settlement in the U.S. patent dispute in which Revelyst was a party. Legal costs related to the patent dispute amounted to SEK 12 million, compared to SEK 14 in the year-ago period.
“Mips was not a party to the lawsuit, but since the dispute concerned areas where Mips has intellectual property rights, that are an important cornerstone of our strong brand, we chose to get involved in the process,” Strandwitz explained. “The decision to reach a settlement was made to avoid the costs and, to some extent, the uncertainties that legal proceedings can entail. Nothing in the settlement should be construed as an admission of liability, wrongdoing, or infringement on the part of Mips or Revelyst; rather, it is solely related to the fact that the settlement now allows us to focus fully on our business.”
The settlement reportedly releases all alleged claims and prevents any and all existing or future claims against Mips or any of Mips’ customers. Mips will pay $3.25 million as part of the settlement, which will be recognized during the third quarter of 2026.
“I am pleased that we have put the specific patent dispute that has been ongoing for the past year behind us so that we can focus on our ongoing successful growth journey,” the CEO said. “Sometimes, for commercial reasons, it may be better to reach a settlement than to pursue a protracted and costly legal process, even when you’re convinced that you are in the right. Legal proceedings of this kind are extensive and costly, but protecting our position and intellectual property rights, and thereby securing our commercial opportunities, is and will continue to be a core part of our business model. All in all, I look forward to an exciting second half of the year.”
Cash Flow
Operating cash flow for the quarter amounted to SEK 62 million, compared to SEK 18 million in Q2 last year.
Outlook
Strandwitz conclude his letter by stating that “the first half of the year has been strong, with positive performance in all categories and geographic markets, including the acquired business under the Koroyd brand.”
He said they still believe there is excellent potential for growth in all categories by continuing to gain market share with new solutions and further strengthening Mips’ market-leading position.
“There is significant interest from customers in pursuing new development projects with us for both the Mips and Koroyd brands,” he said. “We continue to make major investments in product development and our innovation pipeline is stronger than ever. Through the Koroyd acquisition, we have become even more relevant to existing customers, while also opening the door to entirely new areas for Mips.”
Images, data and tables courtesy Mips
