`

DataWalk Capital Group

1H 2025

Wroclaw, August 2025

Our results for the first six months show revenues of PLN 23.8 million (USD 6.2 million), representing a 118%

increase over the same period last year and nearly matching our full-year revenues for 2024. This performance

is a direct validation of the strategic transformations we have implemented in our go-to-market approach, pricing,

and focus on enterprise-level clients. However, while we are encouraged by this momentum, we remain grounded.

Our annual objectives are contingent on the successful closure of key, high-value contracts in the second half of the

operational and R&D expenses are similar to last year's levels. This was a conscious decision, as we carefully

layer and further streamline our onboarding processes. Mastering this internal scalability is crucial before we can

significantly increase our hiring pace to match our growth ambitions, ensuring that our expansion is both sustainable

and efficient.

increasingly recognizes the foundational importance of Knowledge Graphs. As highlighted in Gartner's AI Hype

Cycle, Knowledge Graphs have advanced to the "Slope of Enlightenment", signaling a maturation beyond hype and

into productive, mainstream adoption. This industry trend validates our long-held conviction: to unlock the true

potential of AI and complex analytics, organizations must move beyond flattening data into rows and columns. Our

platform, with its Knowledge Graph core, is purpose-built to preserve the intricate web of meaning, context, and

deployments, we have significantly simplified scaling and management of our platform, aligning with modern

cloud-native practices and further cementing our big data capabilities. Version 5.0 also delivered a leap forward

in many of our core functionalities, such as next-generation Entity Extraction. Leveraging state-of-the-art AI models,

this advancement provides our clients with unprecedented accuracy in creating a single, unified view from disparate

data sources.

to DataWalk; our clients have deployed machine learning, neural networks, natural language processing (NLP)

and graph algorithms on our platform for many years. We are now advancing this capability by integrating LLMs

and GenAI to enable automated workflows and agentic AI at an enterprise scale. We are on track to begin beta tests

of this new functionality with select customers in Q4 2025, with the intent to introduce it as a new, licensable

results. We are managing our growth prudently, our core technology is aligning perfectly with key market trends,

50-130 Wrocław

638,298.80 paid in full

50-130 Wrocław

638,298.80 paid in full

may affect the effectiveness of the sales process. Particularly in industries with long sales cycles, such as the one in

which the DataWalk Group operates, funnel analysis allows you to assess sales potential in the medium term and

adjust your strategy to increase conversion.

The sales process in the sector in which the DataWalk Group operates is characterized by a relatively long cycle.

The average time from the qualification of a sales project to the signing of a contract is 12 to 18 months for medium-

sized commercial customers. For government customers or large commercial customers, the sales cycle can even

last 24 to 36 months.

In the funnel analysis, as well as in the broader analysis of the market potential in which the DataWalk Group

operates, it is important to refer to the Gartner Hype Cycle. According to this methodology, knowledge graphs,

which are the foundation of DataWalk's technology, have reached the Slope of Enlightenment phase. This means

that the technology is moving from early adoption to increasingly widespread use in enterprises. In this phase,

technology users are beginning to increasingly appreciate the value of knowledge graphs that support data

50-130 Wrocław

638,298.80 paid in full

Source: Issuer.

The sales project qualification process, i.e., the transition from MQL to SQL, requires key criteria to be met, such

as the customer's readiness to purchase, which means, among other things, determining the initial scope of the

project, in particular the budget, and designating a project team on the customer's side.

50-130 Wrocław

638,298.80 paid in full

50-130 Wrocław

638,298.80 paid in full

STATEMENTS OF DATAWALK S.A. AND THE CONSOLIDATED FINANCIAL STATEMENTS AND

50-130 Wrocław

638,298.80 paid in full

specializes in developing and providing the advanced DataWalk analytical platform, an innovative graph analysis

tool that uses artificial intelligence, enabling the analysis of complex data structures. “Issuer”), specializes in

developing and providing the advanced DataWalk analytics platform, an innovative graph analytics tool powered

by artificial intelligence that enables organizations to efficiently process and analyze large data sets. The Group also

includes DataWalk Inc., which focuses on sales and implementation in North America.

The DataWalk platform integrates graph analytics, artificial intelligence, knowledge graphs, OLAP operations, and

advanced data search technologies into a single monolithic solution. This enables effective information management

in dynamic environments and informed, data-driven decision-making. The DataWalk solution is used by public and

private institutions around the world, including for crime detection, risk management, operational optimization, and

with language models (LLM) minimizes errors and provides fact-based analysis.

The semi-annual condensed consolidated financial statements of the DataWalk Capital Group and comparative data

have been prepared in accordance with applicable accounting principles, i.e. International Accounting Standard No.

34 "Interim Financial Reporting" approved by the European Union.

50-130 Wrocław

638,298.80 paid in full

estimated and non-cash costs, which include the costs of the incentive program (in this case also due to the indefinite

settlement date), changes in impairment losses on assets, as well as depreciation and amortization. These items do

not affect the current financial position (in particular liquidity) of the Company and the Group.

Consolidated adjusted EBITDA for the first half of 2025 amounted to PLN -2,150 thousand, compared

to PLN -11,864 thousand in the comparative period. The most significant factors contributing to this change were

in particular:

In the first half of 2024, the cost of the RSU program recognized in operating expenses amounted to PLN 24,388

thousand, of which:

During the reporting period, the Group recognized impairment losses on non-financial assets, in particular

development work, in the total amount of PLN 1,190 thousand. In addition, write-downs for net credit risk

(understood as the difference between increases and decreases in the value of write-downs during the period) in the

area of receivables and assets under contracts were recognized in the total amount of PLN 258 thousand.

The net financial result for the first half of 2025 amounted to PLN -51,306 thousand, compared to PLN -38,728

thousand in the comparative period. Apart from the factors described above, the change in the financial result was

mainly influenced by:

50-130 Wrocław

638,298.80 paid in full

and in the first half of 2024 (in PLN thousand).

services.

50-130 Wrocław

638,298.80 paid in full

The sale of DataWalk licenses does not involve significant unit production or delivery costs to customers, as it is

the result of completed research and development work. The unit cost of sales is marginal, as the intellectual property

rights to the DataWalk software belong to the Group and the number of licenses that can be granted is virtually

unlimited. As a result, the main items of the cost of sales of licenses include only the costs of purchasing external

licenses used as components of the DataWalk system and commission costs directly related to the sale of DataWalk

licenses.

Table 3. Gross margin on license sales in the reporting period and the comparable period.

419%), which was significantly influenced on the revenue side by the aforementioned sale of licenses to Rabobank.

In turn, lower costs result in particular from the renegotiation of the terms of cooperation with the supplier of the

license constituting the main component of the DataWalk system, which took place in mid-2024.

In the period under review, the gross margin on sales of technical support services was 52%, which is a noticeable

improvement compared to the comparable period. The increase in the margin by PLN 1,438 thousand is mainly due

to two factors:

Source: Issuer.

The increase in revenue from maintenance in the first half of 2025 by PLN 1,433 thousand compared to the

comparative period results from:

50-130 Wrocław

638,298.80 paid in full

50-130 Wrocław

638,298.80 paid in full

50-130 Wrocław

638,298.80 paid in full

50-130 Wrocław

638,298.80 paid in full

The Group's general and administrative expenses increased by PLN 2,841 thousand in the first half of 2025 compared

to the same period last year. This change was driven by two main factors.

Firstly, overhead costs are also affected by the allocation of expenses to the Field Engineering team, which have not

been assigned to the cost of sales or operating costs in the sales and marketing or research and development areas.

This is the case when the team works on internal projects, such as improving implementation processes, onboarding

new employees, or developing internal training programs. The increase in this item in the first half of 2025 was

related to the hiring of several new specialists and the costs of their onboarding, which were recognized in general

and administrative expenses and were PLN 2,002 thousand higher than in the first half of 2024. Secondly, the

The main components of the Group's other net operating costs in the analyzed period were impairment losses on

intangible assets and receivables.

Compared to the first half of 2024, these write-downs were lower by PLN 2,350 thousand, which was due to two

factors:

50-130 Wrocław

638,298.80 paid in full

Costs by nature

Table 9. Costs by type and adjusted costs by nature of the Group in the first half of 2025 and the comparable period

(data in PLN thousand).

Source: Issuer.

Adjusted costs by type = Total costs by type - incentive program costs (settled in cash) - incentive program costs (settled in equity instruments) -

depreciation

The main reason for the increase in adjusted costs by type by PLN 3,141 thousand was the increase in remuneration

costs and external services resulting in particular from the recognition of higher variable costs dependent on the

Group's results by PLN 2,346 thousand, capitalization of a lower value of costs in the area of R&D by PLN 1,518

thousand, as well as a reduction in the costs of suppliers of services not related to revenues by PLN 584 thousand.

50-130 Wrocław

638,298.80 paid in full

Source: Issuer.

CFF = net cash from financing activities.

As at June 30, 2025, the Group maintained a satisfactory liquidity position, which enables the Management Board

The cash flow analysis shows the following trends:

Cash flows from operating and investing activities (FCF) in the last six months of 2025 amounted to PLN -7,529

Based on the above data, the current cash run rate is 42 months. Taking into account the long-term portion of

uninvoiced receivables and assets under contracts, this ratio increases to 45 months.

The Group's cash flow from operating activities (CFO) amounted to PLN -6,023 thousand in the first half of 2025,

The Group's cash flows from investing activities (CFI) in the first half of 2025 amounted to PLN -19,231 thousand,

which was significantly affected by:

50-130 Wrocław

638,298.80 paid in full

was influenced by: