SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

October 14, 2025

Commission File Number

000-12033

LM ERICSSON TELEPHONE COMPANY

(Translation of registrant’s name into English)

Torshamnsgatan 21, Kista

SE-164 83, Stockholm, Sweden

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F [x] Form 40-F [ ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):__

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):__

Announcement of LM Ericsson Telephone Company, October 14, 2025 regarding “Third quarter report 2025”

LOGO

Third quarter report 2025

Strategic highlights – operational excellence and enhanced financial flexibility

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Strong commercial momentum with significant customer agreements including in India, Japan and the UK.

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Operational excellence and cost efficiency actions driving gross margins to strong sustainable levels.

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5G Open RAN-ready portfolio breadth and technology leadership position reaffirmed by Gartner and Omdia.

Financial highlights – further profitability growth

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Organic sales declined by -2%, with growth in three out of four market areas. Reported sales were SEK 56.2 (61.8) b., with an FX impact of SEK -4.2 b.

●

Adjusted¹ gross income decreased to SEK 27.0 (28.6) b. as currency headwinds offset strong operational execution. Reported gross income was SEK 26.8 (28.2) b.

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Adjusted¹ gross margin was 48.1% (46.3%) driven by improvements in Networks and Cloud Software and Services. Reported gross margin was 47.6% (45.6%).

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Adjusted¹ EBITA was SEK 15.8 (7.8) b. with a 28.1% (12.6%) margin, including a SEK 7.6 b. capital gain benefit from the divestment of iconectiv. Reported EBITA was SEK 15.5 (6.2) b. with a 27.6% (10.0%) margin.

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Net income was SEK 11.3 (3.9) b. including a benefit from the capital gain. EPS diluted was SEK 3.33 (1.14).

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Free cash flow before M&A was SEK 6.6 (12.9) b. Net cash increased to SEK 51.9 b.

Börje Ekholm, President and CEO, said: ”In Q3, we established margins at a new long-term level following strong operational execution over the past few years. Cloud Software and Services sales grew 9%*, driven by strong growth in core networks.

Our solid progress on technology initiatives continues. Gartner and Omdia reconfirmed our 5G solutions are industry leading. Our Open RAN-ready portfolio includes an AI native, future proof software architecture which is hardware agnostic. The portfolio integrates with third-party radios and supports Ericsson silicon and third-party CPU/GPUs.

Looking ahead, we expect Enterprise organic sales to stabilize in Q4 and the RAN market to remain broadly stable. Solid recurring cash flow and the iconectiv sale contributed to a strong Q3 cash position, offering scope for increased shareholder distributions. The Board’s recommendation on the scale and mechanism for the distribution will be included in the Q4 report for decision at the AGM.”



SEK b.	Q3 2025		Q3 2024		YoY change		Q2 2025		QoQ change		Jan-Sep 2025		Jan-Sep 2024		YoY change

Net sales		56.2		61.8		-9%		56.1		0%		167.4		175.0		-4%

Organic sales growth ²*		-		-		-2%		-		-		-		-		0%

Gross income		26.8		28.2		-5%		26.6		0%		80.0		76.7		4%

Gross margin ²		47.6%		45.6%		-		47.5%		-		47.8%		43.8%		-

EBIT (loss)		15.2		5.8		162%		6.4		137%		27.5		-3.6		-

EBIT margin ²		26.9%		9.3%		-		11.4%		-		16.4%		-2.1%		-

EBITA ²		15.5		6.2		150%		6.8		129%		28.9		13.5		114%

EBITA margin ²		27.6%		10.0%		-		12.0%		-		17.3%		7.7%		-

Net income (loss)		11.3		3.9		191%		4.6		144%		20.1		-4.5		-

EPS diluted, SEK		3.33		1.14		192%		1.37		143%		5.94		-1.43		-

Free cashflow before M&A ²		6.6		12.9		-49%		2.6		157%		11.9		24.2		-51%

Net cash, end of period ²		51.9		25.5		103%		36.0		44%		51.9		25.5		103%

Adjusted financial measures ¹ ²

Adjusted gross income		27.0		28.6		-5%		27.0		0%		80.7		77.7		4%

Adjusted gross margin		48.1%		46.3%		-		48.0%		-		48.2%		44.4%		-

Adjusted EBIT (loss)		15.5		7.3		111%		7.0		119%		28.7		-0.3		-

Adjusted EBIT margin		27.5%		11.9%		-		12.6%		-		17.2%		-0.1%		-

Adjusted EBITA		15.8		7.8		104%		7.4		113%		30.2		16.9		78%

Adjusted EBITA margin		28.1%		12.6%		-		13.2%		-		18.0%		9.7%		-

*	Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.

¹	Adjusted metrics are adjusted to exclude restructuring charges.

²	Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.



1 Ericsson \| Third quarter report 2025. October 14, 2025.

Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations, also named organic sales growth. These numbers present performance on a comparable basis to improve the comparability of results between periods. Organic sales growth figures are non-IFRS measures.

‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures.

See ‘Financial statements and other information’ for Alternative performance measures.

Group results



	Q3		Q3		YoY		Q2		QoQ		Jan-Sep		Jan-Sep		YoY
SEK b.	2025		2024		change		2025		change		2025		2024		change

Net sales		56.2		61.8		-9%		56.1		0%		167.4		175.0		-4%

Organic sales growth ¹		-		-		-2%		-		-		-		-		0%

Gross income		26.8		28.2		-5%		26.6		0%		80.0		76.7		4%

Gross margin		47.6%		45.6%		-		47.5%		-		47.8%		43.8%		-

Research and development (R&D) expenses		-11.5		-13.1		-		-12.2		-		-35.8		-39.6		-

Selling and administrative expenses		-7.9		-9.4		-		-8.2		-		-24.7		-41.1		-

Impairment losses on trade receivables		0.0		0.1		-		0.0		-		0.1		-0.3		-

Other operating income and expenses		7.7		0.0		-		0.1		-		7.8		0.7		-

Share in earnings of associated companies		0.0		0.0		33%		0.0		9%		0.1		0.1		23%

EBIT (loss)		15.2		5.8		162%		6.4		137%		27.5		-3.6		-

EBIT margin ¹		26.9%		9.3%		-		11.4%		-		16.4%		-2.1%		-

EBITA ¹		15.5		6.2		150%		6.8		129%		28.9		13.5		114%

EBITA margin ¹		27.6%		10.0%		-		12.0%		-		17.3%		7.7%		-

Financial income and expenses, net		-0.2		-0.5		-		0.0		-		-0.3		-1.3		-

Income tax		-3.6		-1.4		-		-1.8		-		-7.1		0.5		-

Net income (loss)		11.3		3.9		191%		4.6		144%		20.1		-4.5		-

Restructuring charges		-0.3		-1.6		-		-0.7		-		-1.2		-3.4		-

Adjusted financial measures ¹

Adjusted gross income		27.0		28.6		-5%		27.0		0%		80.7		77.7		4%

Adjusted gross margin		48.1%		46.3%		-		48.0%		-		48.2%		44.4%		-

Adjusted EBIT (loss)		15.5		7.3		111%		7.0		119%		28.7		-0.3		-

Adjusted EBIT margin		27.5%		11.9%		-		12.6%		-		17.2%		-0.1%		-

Adjusted EBITA		15.8		7.8		104%		7.4		113%		30.2		16.9		78%

Adjusted EBITA margin		28.1%		12.6%		-		13.2%		-		18.0%		9.7%		-

¹	Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.

Net sales

Reported sales decreased by -9% YoY to SEK 56.2 (61.8) b., including a SEK -4.2 b. currency impact. Networks sales declined by -11% to SEK 35.4 b. Cloud Software and Services sales increased by 3% to SEK 15.3 b. Enterprise sales declined by -20% to SEK 5.1 b., impacted by the divestment of iconectiv in the quarter. Sales in segment Other were SEK 0.4 b.

Organic sales declined by -2%* YoY. Networks sales declined by -5%* as sales growth in market area Europe, Middle East and Africa as well as in North East Asia, was offset by sales declines in the other market areas. Sales in India were weak, as customer network investments remained low. Cloud Software and Services sales grew by 9%* supported by growth in three of the four market areas. Sales in segment Enterprise declined by -7%*, with lower sales in Global Communications Platform, reflecting the impact of the 2024 decision to reduce activities in some countries, partly offset by slightly higher organic sales in Enterprise Wireless Solutions.

IPR licensing revenues decreased to SEK 3.1 (3.5) b. as Q3 2024 benefited from retroactive revenue for unlicensed periods. 82% of IPR licensing revenues are reported in segment Networks, with the remainder in Cloud Software and Services. IPR licensing revenue growth opportunities remain, including from increased penetration of the smartphone market and from new applications. Optimizing the terms and value of new agreements and renewals will remain a priority.

Gross income and margin

Gross margin increased to 47.6% (45.6%). Networks gross margin increased, reflecting prior periods’ cost-reduction actions and operational efficiency. Gross margin in Cloud Software and Services increased as a result of prior periods’ cost-reduction

actions and improved delivery performance. The margin declined in Enterprise as the impact of the divestment of iconectiv in the quarter more than offset margin improvements in Global Communications Platform and Enterprise Wireless Solutions.

Gross income decreased to SEK 26.8 (28.2) b., as improvements in gross margin were offset by negative currency movements and lower sales.

Adjusted gross income decreased to SEK 27.0 (28.6) b., with a margin of 48.1% (46.3%), impacted by a currency effect of SEK -2.0 b.

Research and development (R&D) expenses

R&D expenses decreased to SEK -11.5 (-13.1) b., including a currency benefit of SEK 0.4 b. Increased investments in R&D for technology leadership were offset by savings from prior periods’ cost-reduction actions.

Selling and administrative (SG&A) expenses

SG&A expenses were SEK -7.9 (-9.4) b., including a currency benefit of SEK 0.5 b. SG&A expenses declined in all segments as a result of prior periods’ cost-reduction actions.



2 Ericsson \| Third quarter report 2025. October 14, 2025.		Group results

Other operating income and expenses

Other operating income and expenses increased to SEK 7.7 (0.0) b. reflecting a SEK 7.6 b. capital gain from the divestment of iconectiv.

Restructuring charges

Restructuring charges were SEK -0.3 (-1.6) b., with SEK -0.3 (-0.4) b. included in gross income and SEK 0.0 (-1.1) b. in operating expenses.

EBITA

EBITA increased to SEK 15.5 (6.2) b. including a SEK 7.6 b. capital gain from the divestment of iconectiv. Lower operating expenses, benefiting from prior periods’ cost-reduction actions, were partly offset by lower gross income. The EBITA margin was 27.6% (10.0%), including a 13.5 percentage point benefit from the iconectiv gain.

Adjusted EBITA increased to SEK 15.8 (7.8) b., including the capital gain from the divestment of iconectiv and a currency impact of SEK -1.2 b. The adjusted EBITA margin was 28.1% (12.6%), including a 13.5 percentage point benefit from the iconectiv gain.

EBIT

EBIT increased to SEK 15.2 (5.8) b. with a margin of 26.9% (9.3%). Amortization impacted EBIT by SEK -0.4 (-0.4) b.

Adjusted EBIT increased to SEK 15.5 (7.3) b. with a margin of 27.5% (11.9%).

Financial income and expenses, net

Financial income and expenses were SEK -0.2 (-0.5) b. Financial net improved, primarily as a result of a higher net cash position and lower interest rates on borrowings.

Income tax

Taxes were SEK -3.6 (-1.4) b. The estimated tax rate for the year is 26%.

Net income

Net income was SEK 11.3 (3.9) b. EBIT and financial net increased, partly offset by higher taxes.

Diluted EPS was SEK 3.33 (1.14), including a SEK 1.72 per share benefit from the gain related to the divestment of iconectiv.

Employees

The number of employees on September 30, 2025, was 89,898 compared with 91,937 on June 30, 2025. On September 30, 2024, the number of employees was 95,984.

Financial highlights, year-to-date (Jan-Sep) development

Reported sales decreased by -4% to SEK 167.4 (175.0) b. with a currency impact of SEK -7.1 b. Networks sales declined by -4% to SEK 106.8 (111.4) b., while sales in Cloud Software and Services declined by -1% to SEK 42.7 (43.2) b. and Enterprise sales declined by -12% to SEK 16.5 (18.8) b.

Organic sales were stable*. Cloud Software and Services sales increased by 2%*, while Networks sales were stable* and Enterprise sales declined by -7%*.

Sales increased in market area Americas, benefiting from growth in North America, while sales in Latin America declined. Sales declined in the other market areas, with the largest reduction in market area South East Asia, Oceania and India, primarily due to reduced investment levels in India. Sales were supported by IPR licensing revenues of SEK 11.2 (10.5) b.

Gross income increased to SEK 80.0 (76.7) b. with a gross margin of 47.8% (43.8%). The improved gross margin is a result of cost- reduction actions, operational efficiency and increased IPR licensing revenues.

Adjusted gross income increased to SEK 80.7 (77.7) b. including a currency impact of SEK -3.6 b. Adjusted gross margin increased to 48.2% (44.4%).

EBITA increased to SEK 28.9 (13.5) b. including a SEK 7.6 b. capital gain from the divestment of iconectiv. The increase in EBITA was also supported by higher gross income and lower operating expenses, partly offset by negative currency impacts. The EBITA margin was 17.3% (7.7%), including a 4.5 percentage point benefit from the iconectiv gain.

Adjusted EBITA increased to SEK 30.2 (16.9) b., including the capital gain from the divestment of iconectiv and a currency impact of SEK -2.3 b. The adjusted EBITA margin was 18.0% (9.7%), including a 4.5 percentage point benefit from the iconectiv gain.

EBIT (loss) increased to SEK 27.5 (-3.6) b., with a margin of 16.4% (-2.1%). Amortization of intangible assets was SEK -1.5 (-2.0) b. 2024 EBIT was impacted by a SEK -15.1 b. impairment charge.

Adjusted EBIT (loss) was SEK 28.7 (-0.3) b. with a margin of 17.2% (-0.1%).

Net income (loss) increased to SEK 20.1 (-4.5) b. 2024 included a SEK -11.4 b. net impact from impairment charges. Diluted EPS increased to SEK 5.94 (-1.43), including a SEK 1.72 per share benefit from the gain related to the divestment of iconectiv.



3 Ericsson \| Third quarter report 2025. October 14, 2025.		Group results

Market area sales



SEK b.	Q3 2025		Q3 2024		YoY change		YoY organic growth		Q2 2025		QoQ change		Jan-Sep 2025		Jan-Sep 2024		YoY change		YoY organic growth

Americas		19.8		23.4		-15%		-8%		19.8		0%		60.3		59.7		1%		6%

Europe, Middle East and Africa		16.7		16.9		-1%		3%		16.2		3%		47.4		49.4		-4%		-2%

South East Asia, Oceania and India		7.1		7.7		-8%		1%		5.5		29%		19.8		24.0		-17%		-13%

North East Asia		3.8		3.7		4%		10%		3.8		2%		10.8		11.7		-7%		-5%

Other		8.8		10.1		-13%		-2%		10.9		-19%		29.1		30.2		-4%		3%

Of which IPR		3.1		3.5		-10%		-		4.9		-36%		11.2		10.5		7%		-

Total		56.2		61.8		-9%		-2%		56.1		0%		167.4		175.0		-4%		0%

Market Area Americas

Sales declined by -8%* YoY. North America Networks sales declined, following a particularly strong Q3 2024, which benefited from the ramp-up of deliveries from new contract wins and selective network investments by some large customers. In Latin America sales declined significantly as a result of continued intense competition and lower customer network investments. Cloud Software and Services sales increased due to growth in core networks in North America driven by a modernization project. Reported sales declined by -15% YoY.

Market Area Europe, Middle East and Africa

Sales grew by 3%* YoY. Networks sales in Africa grew strongly, driven by 4G modernization, and new 5G launches in Egypt and Morocco. In the Middle East, sales fell due to the timing of project deliveries. Sales declined in Europe, following the completion of modernization projects and continued cautious customer investment levels. Cloud Software and Services sales increased due to timing of project delivery milestones. Reported sales decreased by -1% YoY.

In the quarter, an 8-year partnership was announced with VodafoneThree to supply a significant majority of its next-generation UK mobile network and the entire core network.

Market Area South East Asia, Oceania and India

Sales increased by 1%* YoY. Networks sales declined, primarily due to reduced network investment levels in India, as well as increased competition in South East Asia. Cloud Software and Services sales increased, reflecting timing of project deliverables. Reported sales declined by -8% YoY.

In the quarter, a contract was announced with Bharti Airtel to support the rollout of Fixed Wireless Access with Ericsson’s core network portfolio.

Market Area North East Asia

Sales increased 10%* YoY. Networks sales increased, benefiting from higher deliveries in Japan. Cloud Software and Services sales were stable. Reported sales increased by 4% YoY.

In the quarter, several new agreements were awarded with key customers in Japan, including to enhance Softbank’s 4G and 5G networks, and to expand 5G standalone coverage.

Market Area Other

Market area Other includes IPR licensing revenues and almost all sales in segment Enterprise. Sales decreased by -2%*, with sales decline in segment Enterprise as well as lower IPR licensing revenues. Reported sales decreased by -13% YoY.



4 Ericsson \| Third quarter report 2025. October 14, 2025.		Market area sales

Segment results



Mobile Networks – Segment Networks

SEK b.	Q3 2025		Q3 2024		YoY change		Q2 2025

Net sales		35.4		40.0		-11%		35.7

Of which IPR licensing revenues		2.6		2.9		-10%		4.0

Organic sales growth		-		-		-5%		-

Gross income		17.7		19.3		-8%		17.6

Gross margin		50.0%		48.3%		-		49.3%

EBIT		7.1		7.5		-6%		6.4

EBIT margin		20.0%		18.7%		-		17.8%

EBITA		7.1		7.5		-6%		6.4

EBITA margin		20.0%		18.8%		-		17.9%

Restructuring charges		-0.1		-0.6		-		-0.1



Adjusted financial measures

Adjusted gross income		17.8		19.5		-9%		17.7

Adjusted gross margin		50.1%		48.7%		-		49.5%

Adjusted EBIT		7.2		8.1		-11%		6.5

Adjusted EBIT margin		20.2%		20.2%		-		18.1%

Adjusted EBITA		7.2		8.1		-12%		6.5

Adjusted EBITA margin		20.3%		20.3%		-		18.2%

Breakdown of sales into products, services and IPR licensing is available in note 3.

Net sales

Sales decreased by -5%*. Sales grew in market area Europe, Middle East and Africa as well as in North East Asia, while sales declined in the other market areas. Services sales grew, increasing sales mix share. Reported sales decreased by -11% YoY to SEK 35.4 (40.0) b., including a currency impact of SEK -2.8 b.

Sales growth in market area Europe, Middle East and Africa was driven by strong sales growth in Africa, while sales in market area North East Asia increased primarily due to growth in Japan. Sales in market area Americas declined, reflecting the strong pace of North America deliveries in the prior year period as well as lower sales in Latin America. Sales declined in market area South East Asia, Oceania and India, primarily in India.

Gross income and margin

Adjusted gross margin increased to 50.1% (48.7%). Prior periods’ cost-reduction actions and operational efficiency more than offset a negative impact from product mix. Adjusted gross income decreased to SEK 17.8 (19.5) b., despite a higher gross margin, reflecting lower net sales and a negative currency impact of SEK -1.4 b.

EBITA

Adjusted EBITA decreased to SEK 7.2 (8.1) b. YoY including a SEK -1.1 b. currency impact. Lower gross income was partly offset by lower operating expenses. Operating expenses decreased, benefiting from continued efficiency improvements and positive currency impacts. R&D investments remained stable, supporting the strategy to build high-performing programmable networks and maintain technology leadership. The adjusted EBITA margin was 20.3% (20.3%).

Net sales rolling four quarters were SEK 153.6 b. and the adjusted EBITA margin rolling four quarters was 20.4%.



Mobile Networks - Segment Cloud Software and Services

SEK b.	Q3 2025		Q3 2024		YoY change		Q2 2025

Net sales		15.3		15.0		3%		14.4

Of which IPR licensing revenues		0.6		0.6		-10%		0.9

Organic sales growth		-		-		9%		-

Gross income		6.5		5.5		17%		6.0

Gross margin		42.1%		37.0%		-		41.5%

EBIT (loss)		1.7		-0.4		-		0.8

EBIT margin		11.2%		-3.0%		-		5.8%

EBITA (loss)		1.7		-0.4		-		0.8

EBITA margin		11.2%		-2.9%		-		5.9%

Restructuring charges		-0.2		-0.9		-		-0.5



Adjusted financial measures

Adjusted gross income		6.7		5.8		16%		6.2

Adjusted gross margin		43.6%		38.7%		-		43.2%

Adjusted EBIT		1.9		0.4		-		1.4

Adjusted EBIT margin		12.5%		2.8%		-		9.6%

Adjusted EBITA		1.9		0.4		-		1.4

Adjusted EBITA margin		12.5%		2.9%		-		9.6%

Breakdown of sales into products, services and IPR licensing is available in note 3.

Net sales

Sales increased by 9%*, primarily driven by increased core networks sales across all market areas. The product mix remained stable YoY. Reported sales increased by 3% to SEK 15.3 (15.0) b., despite a currency impact of SEK -0.9 b. Services sales accounted for 65% (65%) of sales.

Sales growth in market area Americas was driven by strong sales growth in North America. Sales grew in market area Europe, Middle East and Africa as well as in market area South East Asia, Oceania, and India, while sales remained stable in market area North East Asia.

Gross income and margin

Adjusted gross margin increased to 43.6% (38.7%), benefiting from effective strategy execution in recent years. Adjusted gross income increased to SEK 6.7 (5.8) b. despite a SEK -0.3 b. currency impact.

EBITA

Adjusted EBITA was SEK 1.9 (0.4) b. supported by higher gross income and lower operating expenses, reflecting strong strategy execution. The decrease in operating expenses was driven by prior periods’ cost-reduction actions and positive currency impacts. Adjusted EBITA included a SEK -0.1 b. currency impact. The adjusted EBITA margin was 12.5% (2.9%).

Net sales rolling four quarters were SEK 62.1 b. and the adjusted EBITA margin rolling four quarters was 8.5%.



5 Ericsson \| Third quarter report 2025. October 14, 2025.		Segment results



Enterprise — Segment Enterprise

SEK b.	Q3 2025		Q3 2024		YoY change		Q2 2025

Net sales		5.1		6.3		-20%		5.5

Of which Global Comms Platform (Vonage)		3.2		3.8		-17%		3.2

Of which Enterprise Wireless Solutions		1.2		1.3		-7%		1.2

Organic sales growth		-		-		-7%		-

Gross income		2.6		3.3		-21%		3.0

Gross margin		51.6%		52.3%		-		54.9%

EBIT (loss)		6.6		-1.2		-		-0.9

EBIT margin		131.5%		-19.0%		-		-15.7%

EBITA (loss)		7.0		-0.8		-		-0.5

EBITA margin		138.1%		-13.0%		-		-9.4%

Restructuring charges		0.0		0.0		-		0.0



Adjusted financial measures

Adjusted gross income		2.6		3.3		-21%		3.0

Adjusted gross margin		51.6%		52.4%		-		54.9%

Global Comms Platform (Vonage)		46.2%		44.0%		-		47.8%

Enterprise Wireless Solutions		63.5%		60.7%		-		62.8%

Adjusted EBIT (loss)		6.7		-1.2		-		-0.9

Adjusted EBIT margin		132.0%		-18.4%		-		-15.5%

Adjusted EBITA (loss)		7.0		-0.8		-		-0.5

Of which Global Comms Platform (Vonage) ¹		-0.6		-0.4		-		-0.4

Of which Enterprise Wireless Solutions ¹		-0.3		-0.5		-		-0.4

Adjusted EBITA margin		138.7%		-12.4%		-		-9.3%

¹Common costs are included at segment level only (not distributed within the segment).

Net sales

Sales declined by -7%* YoY, driven by lower sales in Global Communications Platform. Reported sales decreased by -20% YoY to SEK 5.1 (6.3) b. reflecting lower sales in Global Communications Platform, the divestment of iconectiv in the quarter, and a currency impact of SEK -0.5 b.

Sales in Global Communications Platform declined by -9%* YoY, reflecting the 2024 decision to reduce activities in some countries. This impact largely concluded in the quarter. Execution of the turnaround plan continues, with a second quarter of sequential sales growth in Q3, excluding currency impacts. Sales in Enterprise Wireless Solutions grew by 2%* YoY.

Gross income and margin

Adjusted gross margin decreased to 51.6% (52.4%), primarily reflecting the divestment of iconectiv in the quarter. Gross margin improved in Global Communications Platform and in Enterprise Wireless Solutions, benefiting from improved product mix. Adjusted gross income was SEK 2.6 (3.3) b., primarily reflecting the divestment of iconectiv in the quarter, as well as a negative currency impact of SEK -0.3 b.

EBITA (loss)

Adjusted EBITA (loss) was SEK 7.0 (-0.8) b., mainly reflecting the SEK 7.6 b. capital gain from the divestment of iconectiv. Adjusted EBITA included a SEK 0.0 b. currency impact. Adjusted EBITA margin was 138.7% (-12.4%), including a 150 percentage point benefit from the divestment of inconectiv.

Net sales rolling four quarters were SEK 22.6 b. and the adjusted EBITA margin rolling four quarters was 21.2%, including a 33.5 percentage point benefit from the iconectiv gain.

Divested operations

In Q3 2025, Aduna and iconectiv were divested. The contribution to Enterprise Q3 2025 results from divested operations was SEK 0.6 b. in net sales, SEK 0.4 b. in adjusted gross income, and SEK 8.1 b. in adjusted EBITA.



Segment Other

SEK b.	Q3 2025		Q3 2024		YoY change		Q2 2025

Net sales		0.4		0.5		-19%		0.5

Organic sales growth		-		-		-15%		-

Gross income		0.0		0.0		-100%		0.0

Gross margin		0.0%		1.8%		-		0.4%

EBIT (loss)		-0.3		-0.1		-		0.0

EBIT margin		-71.5%		-14.6%		-		9.5%

EBITA (loss)		-0.3		-0.1		-		0.0

EBITA margin		-71.3%		-14.6%		-		9.5%

Restructuring charges		0.0		-0.1		-		0.0



Adjusted financial measures

Adjusted gross income		0.0		0.0		-85%		0.0

Adjusted gross margin		1.0%		5.1%		-		0.4%

Adjusted EBIT (loss)		-0.3		0.0		-		0.0

Adjusted EBIT margin		-70.6%		-1.4%		-		9.5%

Adjusted EBITA (loss)		-0.3		0.0		-		0.0

Adjusted EBITA margin		-70.3%		-1.4%		-		9.5%

Net sales

Reported sales were SEK 0.4 (0.5) b.

Gross income and margin

Adjusted gross income was SEK 0.0 (0.0) b. Adjusted gross margin was 1.0% (5.1%).

EBITA (loss)

Adjusted EBITA (loss) was SEK -0.3 (0.0) b., reflecting a revaluation of the Ericsson Ventures portfolio.

Net sales rolling four quarters were SEK 1.9 b.



6 Ericsson \| Third quarter report 2025. October 14, 2025.		Segment results

Cash flow and financial position



Free cash flow bridge, SEK b.	Q3 2025		Q3 2024		Q2 2025		Jan-Sep 2025		Jan-Sep 2024

Adjusted EBITA		15.8		7.8		7.4		30.2		16.9

Depreciation and amortization of non-acquired assets		1.8		1.9		1.8		5.6		5.8

Restructuring charges		-0.3		-1.6		-0.7		-1.2		-3.4

Changes in operating net assets		-0.5		7.8		-2.7		-6.0		15.0

Interest paid/received, taxes paid, and other		-8.9		-1.5		-1.8		-12.1		-5.5

Cash flow from operating activities		7.9		14.4		4.2		16.4		28.7

Net capex and other investing activities		-0.8		-0.8		-1.0		-2.9		-2.7

Repayment of lease liabilities		-0.5		-0.6		-0.6		-1.7		-1.9

Free cash flow before M &A		6.6		12.9		2.6		11.9		24.2



Cash flow from operating activities		7.9		14.4		4.2		16.4		28.7

Cash flow from investing activities		3.2		-0.3		-10.9		-6.4		-7.6

Cash flow from financing activities		-1.2		-4.2		-3.5		-5.4		-18.4



SEK b.	Sep 30 2025		Sep 30 2024		Jun 30 2025

Gross cash		88.4		62.2		73.3

- Borrowings, current		6.7		3.1		7.3

- Borrowings, non-current		29.9		33.5		29.9

Net cash		51.9		25.5		36.0

Equity		102.5		85.4		85.7

Equity ratio (% )		36.3%		31.3%		31.7%

Capital turnover (times)		1.5		1.5		1.6

Return on capital employed (%)		22.5%		1.3%		16.8%

Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.

Cash flow

Cash flow from operating activities was SEK 7.9 (14.4) b. Cash flow was driven by earnings, excluding the impact of the gain from the divestment of iconectiv. Net operating assets remained broadly stable.

Cash flow from operating activities decreased compared to the prior year period. EBITA increased YoY, excluding the impact of the gain from the divestment of iconectiv. However, Q3 2024 cash flow benefited from a significant reduction in operating working capital, reflecting the completion of large-scale roll-out projects and inventory reductions.

Cash flow from investing activities was SEK 3.2 (-0.3) b. as the proceeds from the divestment of iconectiv were largely offset by investments in interest-bearing securities.

Cash flow from financing activities was SEK -1.2 (-4.2) b. There were no material financing activities in Q3 2025.

Financial position

Gross cash increased sequentially by SEK 15.1 b. to SEK 88.4 b. driven by the proceeds from the divestment of iconectiv and positive free cash flow before M&A.

There were no material funding activities in the quarter. As of September 30, 2025, total unutilized committed credit facilities amounted to SEK 23.5 b.

The average maturity of parent company borrowings was 3.0 years as of September 30, 2025, compared with 3.8 years as of September 30, 2024.

Net cash increased sequentially by SEK 15.8 b. to SEK 51.9 b.

Liabilities for post-employment benefits decreased to SEK 19.3 b. from SEK 24.9 b. in Q2 2025 reflecting a higher Swedish discount rate. The Swedish defined benefit obligation (DBO) was calculated using a discount rate based on the yields of Swedish government bonds. If the discount rate had been based on Swedish covered mortgage bonds, the liability for post-employment benefits would have been approximately SEK 10.4 b., which is SEK 8.9 b. lower than current DBO.



7 Ericsson \| Third quarter report 2025. October 14, 2025.		Cash flow and financial position

Key data points

Market

Dell’Oro estimates that the global RAN equipment market will remain stable in 2025.

Source: Dell’Oro Mobile RAN Quarterly Report 2Q25, Aug 2025.

Ericsson

Net sales

Reported average seasonality last 3 years (2022–2024), %.



	Q4èQ1	Q1èQ2	Q2èQ3	Q3èQ4

Networks	-24%	+8%	+3%	+16%

Cloud Software and Services	-33%	+15%	+1%	+33%

Net sales may show large variations between quarters, including currency changes.

IPR licensing revenues

At the end of Q3 2025, recurring annual IPR licensing revenues were approximately SEK 13 b.

Currency exposure

Rule of thumb: A 10% appreciation/depreciation in the USD vs. SEK would have a positive/negative impact of approximately 5% on net sales.

Amortization of intangible assets

Amortization of intangible assets is expected to be around SEK -0.5 b. per quarter, of which approximately SEK -0.4 b. related to segment Enterprise.

Restructuring charges

Restructuring charges for 2025 are expected to remain at elevated levels.

Segments

Increased uncertainty remains on the outlook, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment.

Networks

Sales growth in Q4 2025 is expected to be broadly similar to 3-year average seasonality.

Adjusted gross margin in Q4 2025 is expected to be in the range of 49% to 51%.

Cloud Software and Services

Sales growth in Q4 2025 is expected to be broadly similar to 3-year average seasonality.

Enterprise

In Q3 2025, the contribution to Enterprise results from divested operations was SEK 0.6 b. in net sales, SEK 0.4 b. in adjusted gross income, and SEK 8.1 b. in adjusted EBITA.

The financial impact of the 2024 decision to reduce Global Communications Platform activities in some countries largely concluded in Q3 2025. Enterprise organic sales are expected to stabilize YoY in Q4 2025.

Capital allocation

The Board remains focused on both maintaining a solid net cash position to support R&D investment through the cycle and returning excess capital to shareholders.

The Board communicated at the March 25, 2025, Annual General Meeting that they would be undertaking a review of the balance sheet structure during the year and will return with more information after this.

The Company currently has strong generation of recurring free cashflow and a strong net cash position, supported by the iconectiv divestment. This presents scope for increased shareholder distributions through higher dividends and/or a share buyback program.

The Board intends to revert with a final proposal for shareholder approval at the 2026 AGM.



8 Ericsson \| Third quarter report 2025. October 14, 2025.		Key data points

Parent Company

Income after financial items January – September 2025, was SEK 28.9 (-4.0) b.

At the end of the quarter, gross cash (cash, cash equivalents plus interest-bearing securities, current and non-current) amounted to SEK 76.3 (46.2) b.

There was a decrease in intercompany lending of SEK 4.7 b. and an increase in intercompany borrowing of SEK 1.7 b. in the quarter.

At the end of the quarter, non-restricted equity amounted to SEK 41.1 (13.9) b., and total equity amounted to SEK 89.4 (62.1) b.

The Parent Company has recognized dividends from subsidiaries of SEK 9.6 (3.1) b. in the quarter.

The holding of treasury stock on September 30, 2025, was 38,065,074 Class B shares.



9 Ericsson \| Third quarter report 2025. October 14, 2025.		Parent Company

Other information

Legal proceedings involving governmental authorities

In February 2022, Ericsson publicly disclosed that an internal investigation in 2019 included a review of the conduct of Ericsson employees, vendors and suppliers in Iraq during the period between 2011 to 2019. The investigators could not determine the ultimate recipients of any payments, nor identify that any Ericsson employee was directly involved in financing terrorist organizations. The Company’s 2019 internal Iraq investigation did not conclude that Ericsson made or was responsible for any payments to any terrorist organization.

The Company continues to fully cooperate with the DOJ in its investigation into matters discussed in the 2019 internal Iraq investigation report and related topics concerning jurisdictions including Iraq, and the Company is providing additional documents and other information which continue to be requested by the DOJ. As additional information continues to be identified and evaluated in continued cooperation with the DOJ during its ongoing investigation, it is expected that there will not be any conclusive determinations on the outcome until the investigation is completed. The scope and duration of the investigation remains uncertain.

As part of its defense to a now settled patent infringement lawsuit filed by Ericsson in 2013 in the Delhi High Court against Indian handset company Micromax, Micromax filed a complaint against Ericsson with the Competition Commission of India. The Competition Commission of India decided to refer the case to the Director General’s Office for an in-depth investigation. The Competition Commission of India opened similar investigations against Ericsson in January 2014 based on claims made by Intex Technologies (India) Limited and, in 2015, based on a now settled claim from iBall. Ericsson has challenged Competition Commission of India’s jurisdiction in these cases before the Delhi High Court. On July 13, 2023, the Division Bench of the Delhi High Court found that in this instance the Competition Commission of India has no power to conduct the pending investigations against Ericsson. The Competition Commission of India appealed this order to the Supreme Court of India. On September 2, 2025, the Supreme Court dismissed the case concluding that the Competition Commission of India does not have jurisdiction to investigate Ericsson’s patent licensing conduct.

In April 2019, Ericsson was informed by China’s State Administration for Market Regulation Anti-monopoly Bureau (SAMR) that SAMR has initiated an investigation into Ericsson’s patent licensing practices in China. Ericsson is cooperating with the investigation, which is still in a fact-finding phase. The next steps include continued fact-finding and meetings with SAMR in order to facilitate the authority’s assessment and conclusions. In case of adverse findings, SAMR has the power to impose behavioral and financial remedies.

Legal proceedings not involving governmental authorities

In August 2022, a civil lawsuit was filed in the United States District Court for the District of Columbia against Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively, the “Ericsson defendants”). The lawsuit was brought by US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 2021, as well as by their family members. The lawsuit asserts claims against the Ericsson defendants under the U.S. Anti-Terrorism Act alleging that the Ericsson defendants made payments that ultimately aided the terrorist organizations that committed, planned or authorized the attacks. In November 2022, the Ericsson defendants filed a motion to dismiss the complaint. On December 20, 2022, plaintiffs filed an amended complaint, which added additional plaintiffs, including a plaintiff injured in Turkey, and also named Ericsson AB (collectively with the Ericsson defendants, the “Ericsson corporate defendants”), President and CEO Börje Ekholm and a former employee (who has not been served with process) as additional defendants and also asserted additional allegations and claims. In March 2023, the Ericsson corporate defendants and Mr. Ekholm filed motions to dismiss the amended complaint. Plaintiffs filed their oppositions to defendants’ motions to dismiss the amended complaint in June 2023, and defendants filed reply briefs in support of their motions to dismiss in July 2023. All briefing has been submitted, and resolution of the matter is pending with the District Court. All defendants will continue to vigorously defend this matter.

In February 2024, a second civil lawsuit also alleging violations of the U.S. Anti-Terrorism Act was filed in the United States District Court for the District of Columbia. The lawsuit was filed by the same law firm and involves substantially similar factual allegations and claims as those made in the Anti-Terrorism Act lawsuit originally filed in August 2022, and similarly names the same Ericsson corporate defendants, President and CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan, Syria, Turkey, Niger, and France from 2005 to 2021, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its decision on the motions to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter.

Beginning on August 4, 2023, a number of civil lawsuits have been filed against Telefonaktiebolaget LM Ericsson in Solna District Court, Sweden. 93 claimants have filed suit, which are coordinated and financed by a UK-based litigation funder. The claimants consist of a group of non-Swedish funds and financial institutions that allegedly are or have been shareholders of the Company. Their damages claims are primarily based on alleged inadequate disclosure of the contents of the Company’s 2019 internal Iraq investigation report. Ericsson filed its statement of defense on March 15, 2024. On February 14, 2025, the District Court ordered Ericsson to produce the 2019 internal Iraq investigation report to the claimants’ external counsel. Ericsson appealed the decision and on August 15, 2025, the Court of Appeal overturned the District Court’s decision. The claimants have appealed the decision to the Supreme Court. Proceedings on the merits of the case are stayed pending final resolution of the document production issue. Ericsson will continue to vigorously defend this matter.



10 Ericsson \| Third quarter report 2025. October 14, 2025.		Other information

The Company actively manages its IPR portfolio and its need for third-party licenses and is involved from time to time, in the ordinary course of business, in litigation related thereto, as plaintiff, defendant and other capacities.

In addition to the proceedings discussed above, the Company is, and in the future may be, involved in various other regulatory investigations, enforcement actions, lawsuits, claims (including claims by third-parties the Company has indemnified against infringement liability or provided guarantees to) and proceedings incidental to the ordinary course of business and transactions.

PRESS RELEASES


Jul 29, 2025		Ericsson announces completion of Aduna transaction
Aug. 22, 2025		Ericsson completes sale of iconectiv
Aug. 27, 2025		Ericsson announces change to the Executive Team



11 Ericsson \| Third quarter report 2025. October 14, 2025.		Other information

Risk factors

Ericsson is exposed to a number of risks in its activities. To stimulate identification and support cross-functional treatment within the Ericsson Group, risks are grouped in a number of categories, including, for example, risks relating to technology, IPR, compliance, project execution, operations, products and services, treasury and accounting, the geopolitical environment, M&A, cybersecurity and occupational health and safety. Ericsson’s risk management is embedded into strategy development and operational processes, and material Group risks are regularly assessed and reviewed by executives as required by Ericsson’s Material Group Risk Protocol to ensure accountability, effectiveness, efficiency, business continuity and compliance. Risks are defined in both a short-term and long-term perspective and are related to long-term objectives and strategic direction as well as to short-term objectives. Risk factors and uncertainties of relevance to Ericsson are described in the Ericsson Annual Report 2024 and in the Annual Report on Form 20-F for the year ended December 31, 2024 (in the following, the “Annual Report 2024”). See also the risks set out in the section titled “Forward-looking statements.”

Stockholm, October 14, 2025

Telefonaktiebolaget LM Ericsson

Börje Ekholm, President and CEO

Org. No. 556016-0680

Date for next report: January 23, 2026



12 Ericsson \| Third quarter report 2025. October 14, 2025.		Risk factors

Editor’s note


Media and analyst briefing		Investors
Ericsson invites media, investors and analysts to a conference call and		Daniel Morris, Vice President,
live video webcast at 09:00 AM CEST on October 14, 2025.		Head of Investor Relations
		Phone: +44 7386 657217
Link to the webcast, dial-in to audio conference, supporting material		E-mail: investor.relations@ericsson.com
and replay will be available at:
www.ericsson.com/investors and		Lena Häggblom, Director,
www.ericsson.com/newsroom		Investor Relations
		Phone: +46 72 593 27 78
For further information, please contact:		E-mail: investor.relations@ericsson.com
Lars Sandström, Senior Vice President, Chief Financial Officer
Phone: +46 72 161 20 04		Alan Ganson, Director,
E-mail: investor.relations@ericsson.com		Investor Relations
		Phone: +46 70 267 27 30
Stella Medlicott, Senior Vice President, Chief Marketing and		E-mail: investor.relations@ericsson.com
Communications Officer
Phone: +46 73 095 65 39		Media
E-mail: media.relations@ericsson.com		Ralf Bagner, Head of Media Relations
		Phone: +46 76 128 47 89
Telefonaktiebolaget LM Ericsson		E-mail: media.relations@ericsson.com
Org. number: 556016-0680
Torshamnsgatan 21		Corporate Communications
SE-164 83 Stockholm		Phone: +46 10 719 69 92
Phone: +46 10 719 00 00		E-mail: media.relations@ericsson.com
www.ericsson.com



13 Ericsson \| Third quarter report 2025. October 14, 2025.		Editor’s Note

Forward-looking statements

This report includes forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “expect,” “foresee,” “anticipate,” “assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,” “estimate,” “forecast,” “will,” “should,” “would,” “predict,” “aim,” “ambition,” “seek,” “potential,” “target,” “might,” “continue,” or, in each case, their negative or variations, and similar words or expressions are used to identify forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking statements, including, in particular the following:

–

Potential material additional liability resulting from past conduct, including allegations of past conduct that remains unresolved or unknown in multiple jurisdictions including Iraq, which remains the subject of ongoing investigations by Ericsson and US governmental authorities

–

Risks related to internal controls and governance, including the potential to incur material liability in connection with internal controls surrounding payments made to third parties in connection with past conduct in multiple jurisdictions including Iraq which remains the subject of ongoing investigations by Ericsson and US governmental authorities

–

The risk that the ongoing investigations by Ericsson and US governmental authorities result in a conclusion by Ericsson or US governmental authorities that the Company’s past conduct included making or having responsibility for making payments to a terrorist organization or other improper payments, which could lead to material additional liability

–

Risks related to our ongoing compliance with obligations under the National Security Agreement entered into in connection with Ericsson’s acquisition of Vonage, which may adversely affect the Vonage business and subject the Company to additional liabilities

–

Our goals, strategies, planning assumptions and operational or financial performance expectations

–

Macroeconomic conditions, including inflationary pressures and effects on customer investments, market recovery and growth

–

Ongoing geopolitical and trade uncertainty, including challenging global economic conditions, market trends and the imposition of tariffs and sanctions

–

Continued growth of mobile communications, the success of our existing and targeted customer base, and our ability to maintain technology leadership

–

Success in implementing key strategies, including improving profitability, capturing 5G market opportunities, capitalizing on network API and Enterprise opportunities, and expected benefits from restructuring activities

–

Risks related to cybersecurity and privacy, security and data localization

–

Industry trends, future characteristics and development of the markets in which we operate

–

Risks of global operations, including legal and regulatory requirements and uncertainties, and unfavorable lawsuits and legal proceedings

–

Our future liquidity, capital resources, capital expenditures, cost savings and profitability, and risks related to financial condition

–

The expected demand for our existing and new products and services as well as plans to launch new products and services including research and development expenditures

–

Our ability to deliver on future plans and achieve future growth

–

The expected operational or financial performance of strategic cooperation activities and joint ventures

–

Risks related to acquisitions and divestments that may be disruptive and incur significant expenses, including our ability to successfully consummate such transactions, protect the value of acquisitions during integration, or achieve the value anticipated with an acquisition

–

Trends related to our industry, including our regulatory environment, competition and customer structure

–

Intense competition from existing competitors, and new entrants, including vendor consolidation

–

Limited number of third-party suppliers, large, multi-year agreements with limited number of key customers, and operator consolidation

–

Risks related to intellectual property, key employees, and unforeseen risks and disruptions due to natural or man-made events

–

Risks related to environmental, social and business conduct

–

Extent of impairment impacts on cash flow and dividend capacity in future periods, which is assessed based on full-year performance and is impacted by a variety of factors, including earnings, business outlook and financial position

–

Other factors included in our filings with the SEC, including the factors described throughout this report, included in the section Risk Factors, and in “Risk Factors” in the Annual Report 2024, as updated by subsequent reports filed with the SEC.

These forward-looking statements also represent our estimates, assumptions and expectations only as of the date that they were made, and to the extent they represent third-party data, we have not undertaken to independently verify such third-party data and do not intend to do so. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and are urged to carefully review and consider the various disclosures made in this report and in other documents we file from time to time with our regulators that disclose risks and uncertainties that may affect our business. We expressly disclaim a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this report, to reflect events or changes in circumstances or changes in expectations or the occurrence of anticipated events, whether as a result of new information, future events or otherwise, except as required by applicable law or stock exchange regulations.



14 Ericsson \| Third quarter report 2025. October 14, 2025.		Forward-looking statements

Auditors’ Review Report

Introduction

We have reviewed the condensed interim financial information (interim report) of Telefonaktiebolaget LM Ericsson (publ.) as of September 30, 2025, and the nine months period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity.

A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed

in a review do not enable us to obtain assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, October 14, 2025

Deloitte AB

Jonas Ståhlberg

Authorized Public Accountant



15 Ericsson \| Third quarter report 2025. October 14, 2025.		Auditors’ Review Report

Financial statements and other information



Contents

Financial statements (unaudited)			17

Condensed consolidated income statement			17

Condensed statement of comprehensive income (loss)			17

Condensed consolidated balance sheet			18

Condensed consolidated statement of cash flows			19

Condensed consolidated statement of changes in equity			20

Condensed consolidated income statement – isolated quarters			20

Condensed consolidated statement of cash flows – isolated quarters			21

Condensed Parent Company income statement			22

Condensed Parent Company statement of comprehensive income (loss)			22

Condensed Parent Company balance sheet			23

Accounting policies and Explanatory notes (unaudited)			24

Note 1 – Accounting policies and Other changes			24

Note 2 – Segment information			25

Note 3 – Financial income and expenses, net			29

Note 4 – Provisions			30

Note 5 – Financial risk management			31

Note 6 – Cash flow			32

Note 7 – Contingent liabilities and Assets pledged as collateral			32

Note 8 – Share information			33

Note 9 – Employee information			33

Note 10 – Information on iconectiv divestment			33

Alternative performance measures (unaudited)			34

Sales growth adjusted for comparable units and currency			34

Items excluding restructuring charges and impairments of goodwill and intangible assets			35

EBITA and EBITA margin / Adjusted EBITA and EBITA margin			36

Rolling four quarters of net sales and adjusted EBITA margin (%)			36

Gross cash and net cash, end of period			37

Capital employed			37

Capital turnover			37

Return on capital employed			38

Equity ratio			38

Return on equity			38

Operating working capital			39

Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales)			39

Sales growth by segment adjusted for comparable units and currency			40

Sales growth by market area adjusted for comparable units and currency			40

Rolling four quarters of net sales by segment			40

Gross margin by segment by quarter			41

EBIT margin by segment by quarter			41

EBITA and EBITA margin by segment by quarter			42

Restructuring charges by function			43

Restructuring charges by segment			43

Adjusted gross income and gross margin by segment			44

Adjusted EBIT (loss) and EBIT margin by segment			45

Rolling four quarters of adjusted EBITA margin by segment (%)			45

Adjusted EBITA and EBITA margin by segment			46

Operating working capital days			46



16 Ericsson \| Third quarter report 2025. October 14, 2025.		Financial statements and other information

Financial statements (unaudited)

Condensed consolidated income statement



			Q3							Jan-Sep

SEK million	Note		2025		2024		Change			2025		2024

Net sales		2		56,239		61,794		-9	%		167,396		174,967

Cost of sales				-29,462		-33,609		-12	%		-87,433		-98,309

Gross income		2		26,777		28,185		-5	%		79,963		76,658

Research and development expenses ¹⁾				-11,510		-13,140		-12	%		-35,754		-39,637

Selling and administrative expenses¹⁾				-7,913		-9,380		-16	%		-24,714		-41,145

Impairment reversals/losses on trade receivables				46		78		-41	%		112		-263

Operating expenses			-19,377		-22,442		-14%			-60,356		-81,045

Other operating income and expenses ²⁾		10		7,715		4		—			7,790		680

Share of earnings of associated companies				36		27		33	%		76		62

Earnings (loss) before financial items and income tax (EBIT)		2		15,151		5,774		162	%		27,473		-3,645

Financial income and expenses, net		3		-212		-501		-58	%		-252		-1,333

Income (loss) after financial items				14,939		5,273		183	%		27,221		-4,978

Income tax ¹⁾				-3,639		-1,392		161	%		-7,078		473

Net income (loss)				11,300		3,881		191	%		20,143		-4,505

Net income (loss) attributable to:

Owners of the Parent Company				11,149		3,814					19,865		-4,759

Non-controlling interests				151		67					278		254

Other information

Average number of shares, basic (million)		8		3,333		3,333					3,333		3,332

Earnings (loss) per share, basic (SEK) ³⁾		8		3.34		1.14					5.96		-1.43

Earnings (loss) per share, diluted (SEK) ^{3) 4)}		8		3.33		1.14					5.94		-1.43

¹⁾	Jan-Sep 2024 includes an impairment of intangible assets reported in the second quarter, of which R&D expenses SEK -1.2 billion, SG&A expenses SEK -12.6 billion and Income tax SEK 3.7 billion.

²⁾

Jan-Sep 2025 and Q3 2025 includes a gain of SEK 7.6 billion due to the divestment of iconectiv. Jan-Sep 2024 includes a goodwill impairment of SEK -1.3 billion reported in the second quarter, and a one-time gain of SEK 1.9 billion reported in the first quarter from the resolution of a commercial dispute.

³⁾	Based on net income attributable to owners of the Parent Company.

⁴⁾	Potential ordinary shares are not considered when their conversion to ordinary shares would improve earnings per share.

Condensed statement of comprehensive income (loss)



	Q3				Jan-Sep

SEK million	2025		2024		2025		2024

Net income (loss)		11,300		3,881		20,143		-4,505

Other comprehensive income

*Items that will not be reclassified to profit or loss*

Remeasurements of defined benefit pension plans		5,698		1,103		4,881		1,248

Revaluation of credit risk on borrowings		-93		109		-2		-439

Tax on items that will not be reclassified to profit or loss		-1,143		-365		-1,130		-169

*Items that have been or may be reclassified to profit or loss*

Cash flow hedge reserve

Gains/ losses arising during the period		29		1,521		4,684		-764

Reclassification adjustments on gains/ losses included in profit or loss		-59		222		263		476

Translation reserves

Changes in translation reserves		-1,029		-3,247		-10,927		1,273

Reclassification to profit or loss		1,304		22		1,358		-82

Share of other comprehensive income of associated companies		-8		-16		-64		11

Tax on items that have been or may be reclassified to profit or loss		6		-359		-1,019		59

Total other comprehensive income (loss),net of tax		4,705		-1,010		-1,956		1,613

Total comprehensive income (loss)		16,005		2,871		18,187		-2,892



Total comprehensive income (loss) attributable to:

Owners of the Parent Company		15,872		2,764		17,758		-3,104

Non-controlling interests		133		107		429		212



17 Ericsson \| Third quarter report 2025. October 14, 2025.		Financial statements

Condensed consolidated balance sheet



SEK million	Note		Sep 30 2025		Dec 31 2024



Assets

Non-current assets

Intangible assets

Capitalized development expenses				3,964		4,593

Goodwill				47,996		56,077

Customer relationships, IPR and other intangible assets				5,858		7,954

Property, plant and equipment				8,881		10,545

Right-of-use assets				6,575		6,487

Financial assets

Equity in associated companies				1,797		1,179

Other investments in shares and participations		5		1,648		2,029

Customer finance, non-current		5		242		190

Interest-bearing securities, non-current		5		37,370		19,440

Other financial assets, non-current		5		5,432		5,161

Deferred tax assets				21,573		24,412

				141,336		138,067

Current assets

Inventories				27,519		27,125

Contract assets				7,494		6,924

Trade receivables		5		38,136		44,151

Customer finance, current		5		1,290		4,332

Current tax assets				5,172		6,083

Other current receivables				10,489		9,261

Interest-bearing securities, current		5		8,345		12,546

Cash and cash equivalents		5		42,695		43,885

				141,140		154,307



Total assets				282,476		292,374



Equity and liabilities

Equity

Stockholders’ equity				102,658		94,284

Non-controlling interest in equity of subsidiaries				-164		-1,301

				102,494		92,983

Non-current liabilities

Post-employment benefits				19,301		24,448

Provisions, non-current		4		2,478		3,511

Deferred tax liabilities				1,349		1,295

Borrowings, non-current		5		29,872		31,904

Lease liabilities, non-current				5,581		5,363

Other non-current liabilities				899		996

				59,480		67,517

Current liabilities

Provisions, current		4		5,345		8,204

Borrowings, current		5		6,680		6,137

Lease liabilities, current				1,809		2,132

Contract liabilities				40,642		41,229

Trade payables		5		25,352		30,173

Current tax liabilities				6,069		3,322

Other current liabilities				34,605		40,677

				120,502		131,874



Total equity and liabilities				282,476		292,374



18 Ericsson \| Third quarter report 2025. October 14, 2025.		Financial statements

Condensed consolidated statement of cash flows



			Q3				Jan-Sep

SEK million	Note		2025		2024		2025		2024

Operating activities

Net income (loss)				11,300		3,881		20,143		-4,505

Adjustments for

Taxes				3,647		1,397		7,350		-23

Earnings/ dividends in associated companies				50		110		30		72

Depreciation, amortization and impairment losses		6		2,129		2,292		7,056		22,919

Other				-7,549		592		-7,844		1,356

				9,577		8,272		26,735		19,819



Changes in operating net assets

Inventories				-680		1,358		-2,738		7,332

Customer finance, current and non-current				372		1,211		2,627		2,980

Trade receivables and contract assets				-889		3,524		-1,013		5,617

Trade payables				1,102		-3		-1,106		-2,084

Provisions and post-employment benefits				-565		955		-3,178		-1,011

Contract liabilities				-2,869		-117		4,398		5,005

Other operating assets and liabilities, net				3,047		859		-4,970		-2,851

				-482		7,787		-5,980		14,988



Interest received				433		506		1,567		1,282

Interest paid				-328		-526		-1,798		-2,500

Taxes paid				-1,261		-1,642		-4,077		-4,841



Cash flow from operating activities				7,939		14,397		16,447		28,748



Investing activities

Investments in property, plant and equipment		6		-491		-540		-1,781		-1,673

Sales of property, plant and equipment				57		36		136		102

Acquisitions/divestments of subsidiaries and other operations, net		10		10,064		-62		10,201		-216

Product development		6		-286		-264		-786		-977

Purchase of interest-bearing securities				-9,633		-5,517		-28,448		-12,980

Sales of interest-bearing securities				3,549		4,937		11,821		8,642

Other investing activities				-106		1,113		2,454		-523

Cash flow from investing activities				3,154		-297		-6,403		-7,625



Financing activities

Proceeds from issuance of borrowings				—		1,161		198		3,130

Repayment of borrowings				-26		-5,127		-537		-15,544

Dividends paid				-1		-8		-4,811		-4,719

Repayment of lease liabilities				-507		-607		-1,654		-1,866

Other financing activities				-643		356		1,424		581

Cash flow from financing activities				-1,177		-4,225		-5,380		-18,418



Effect of exchange rate changes on cash				-841		-1,288		-5,854		-572



Net change in cash and cash equivalents				9,075		8,587		-1,190		2,133



Cash and cash equivalents, beginning of period				33,620		28,736		43,885		35,190



Cash and cash equivalents, end of period				42,695		37,323		42,695		37,323



19 Ericsson \| Third quarter report 2025. October 14, 2025.		Financial statements



Condensed consolidated statement of changes in equity
								Jan-Sep

SEK million									2025	2024

Opening balance									92,983	97,408

Total comprehensive income (loss)									18,187	-2,892

Sale/repurchase of own shares									-116	-21

Share issue, net									116	21

Long-term variable compensation plans									115	58

Dividends to shareholders ¹⁾									-9,545	-9,219

Transactions with non-controlling interests									754	-

Closing balance									102,494	85,355

¹⁾Jan-Sep includes the second payment of SEK 4,769 (4,498) million of dividend approved by the Annual General Meeting on March 25, 2025, which was paid out on October 2, 2025.

Condensed consolidated income statement – isolated quarters
	2025				2024

Isolated quarters, SEK million		Q3	Q2	Q1		Q4	Q3		Q2	Q1

Net sales		56,239	56,132	55,025		72,913	61,794		59,848	53,325

Cost of sales		-29,462	-29,483	-28,488		-40,206	-33,609		-34,033	-30,667

Gross income		26,777	26,649	26,537		32,707	28,185		25,815	22,658

Research and development expenses ¹⁾		-11,510	-12,212	-12,032		-13,877	-13,140		-14,926	-11,571

Selling and administrative expenses ¹⁾		-7,913	-8,180	-8,621		-10,512	-9,380		-23,074	-8,691

Impairment reversals/losses on trade receivables		46	34	32		-2	78		-84	-257

Operating expenses		-19,377	-20,358	-20,621		-24,391	-22,442		-38,084	-20,519

Other operating income and expenses ²⁾		7,715	67	8		-50	4		-1,299	1,975

Share of earnings of associated companies		36	33	7		-308	27		49	-14

Earnings (loss) before financial items and income tax (EBIT)		15,151	6,391	5,931		7,958	5,774		-13,519	4,100

Financial income and expenses, net		-212	34	-74		-391	-501		-361	-471

Income (loss) after financial items		14,939	6,425	5,857		7,567	5,273		-13,880	3,629

Income tax ¹⁾		-3,639	-1,799	-1,640		-2,688	-1,392		2,881	-1,016

Net income (loss)		11,300	4,626	4,217		4,879	3,881		-10,999	2,613



Net income (loss) attributable to:

Owners of the Parent Company		11,149	4,567	4,149		4,779	3,814		-11,132	2,559

Non-controlling interests		151	59	68		100	67		133	54

Other information

Average number of shares, basic (million)		3,333	3,333	3,333		3,333	3,333		3,332	3,331

Earnings (loss) per share, basic (SEK) ³⁾		3.34	1.37	1.25		1.44	1.14		-3.34	0.77

Earnings (loss) per share, diluted (SEK) ^{3) 4)}		3.33	1.37	1.24		1.44	1.14		-3.34	0.77

¹⁾	Q2 2024 includes an impairment of intangible assets, of which R&D expenses SEK -1.2 billion, SG&A expenses SEK -12.6 billion and income tax SEK 3.7 billion.

²⁾	Q3 2025 includes a gain of SEK 7.6 billion due to the divestment of iconectiv. Q2 2024 includes a goodwill impairment of SEK -1.3 billion. Q1 2024 includes a one-time gain of SEK 1.9 billion from the resolution of a commercial dispute.

³⁾	Based on net income attributable to owners of the Parent Company.

⁴⁾	Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.



20 Ericsson \| Third quarter report 2025. October 14, 2025.		Financial statements



Condensed consolidated statement of cash flows – isolated quarters
	2025						2024

Isolated quarters, SEK million		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Operating activities

Net income (loss)		11,300		4,626		4,217		4,879		3,881		-10,999		2,613

Adjustments for

Taxes		3,647		1,949		1,754		2,563		1,397		-2,693		1,273

Earnings/ dividends in associated companies		50		-22		2		387		110		-41		3

Depreciation, amortization and impairment losses		2,129		2,177		2,750		2,815		2,292		18,015		2,612

Other		-7,549		-410		115		528		592		424		340

	9,577		8,320		8,838		11,172		8,272		4,706		6,841



Changes in operating net assets

Inventories		-680		210		-2,268		2,876		1,358		3,239		2,735

Customer finance, current and non-current		372		391		1,864		-225		1,211		-365		2,134

Trade receivables and contract assets		-889		188		-312		-3,041		3,524		1,857		236

Trade payables		1,102		-636		-1,572		2,580		-3		1,941		-4,022

Provisions and post-employment benefits		-565		-298		-2,315		958		955		304		-2,270

Contract liabilities		-2,869		-1,329		8,596		-407		-117		-1,398		6,520

Other operating assets and liabilities, net		3,047		-1,187		-6,830		5,088		859		890		-4,600

	-482		-2,661		-2,837		7,829		7,787		6,468		733



Interest received		433		458		676		518		506		385		391

Interest paid		-328		-699		-771		-543		-526		-677		-1,297

Taxes paid		-1,261		-1,268		-1,548		-1,463		-1,642		-1,606		-1,593



Cash flow from operating activities	7,939		4,150		4,358		17,513		14,397		9,276		5,075



Investing activities

Investments in property, plant and equipment		-491		-561		-729		-667		-540		-699		-434

Sales of property, plant and equipment		57		40		39		14		36		42		24

Acquisitions/divestments of subs. and other operations, net		10,064		141		-4		-95		-62		-48		-106

Product development		-286		-193		-307		-323		-264		-327		-386

Purchase of interest-bearing securities		-9,633		-12,295		-6,520		-6,642		-5,517		-5,845		-1,618

Sales of interest-bearing securities		3,549		2,568		5,704		2,605		4,937		1,501		2,204

Other investing activities		-106		-562		3,122		-3,219		1,113		-611		-1,025

Cash flow from investing activities	3,154		-10,862		1,305		-8,327		-297		-5,987		-1,341



Financing activities

Proceeds from issuance of borrowings		-		198		-		485		1,161		2		1,967

Repayment of borrowings		-26		-432		-79		-373		-5,127		-16		-10,401

Dividends paid		-1		-4,810		-		-4,514		-8		-4,711		-

Repayment of lease liabilities		-507		-554		-593		-626		-607		-658		-601

Other financing activities		-643		2,127		-60		-419		356		-313		538

Cash flow from financing activities		-1,177		-3,471		-732		-5,447		-4,225		-5,696		-8,497



Effect of exchange rate changes on cash		-841		-787		-4,226		2,823		-1,288		-705		1,421



Net change in cash and cash equivalents	9,075		-10,970		705		6,562		8,587		-3,112		-3,342



Cash and cash equivalents, beginning of period	33,620		44,590		43,885		37,323		28,736		31,848		35,190



Cash and cash equivalents, end of period	42,695		33,620		44,590		43,885		37,323		28,736		31,848



21 Ericsson \| Third quarter report 2025. October 14, 2025.		Financial statements



Condensed Parent Company income statement

	Q3				Jan-Sep

SEK million	2025		2024		2025		2024

Net sales		-		-		-		-

Cost of sales		-		-		-		-

Gross income		-		-		-		-

Operating expenses		-371		-252		-1,237		-983

Other operating income and expenses		640		747		1,956		4,245
EBIT		269		495		719		3,262

Financial net		9,295		2,630		28,149		-7,273
Income (loss) after financial items		9,564		3,125		28,868		-4,011

Transfers to (-) / from untaxed reserves		-		-		-		-

Income tax		-335		-159		-514		-668
Net income (loss)		9,229		2,966		28,354		-4,679


Condensed Parent Company statement of comprehensive income (loss)

	Q3				Jan-Sep

SEK million	2025		2024		2025		2024

Net income (loss)		9,229		2,966		28,354		-4,679

Other comprehensive income (loss), net of tax		-		-		-		-

Total comprehensive income (loss)		9,229		2,966		28,354		-4,679



22 Ericsson \| Third quarter report 2025. October 14, 2025.		Financial statements



Condensed Parent Company balance sheet

SEK million	Sep 30 2025		Dec 31 2024

Assets

Fixed assets

Intangible assets		146		160

Tangible assets		253		295

Financial assets¹⁾		134,820		121,721

	135,219		122,176

Current assets

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ERICSSON LM TELEPHONE CO 6-K