Elliptic Labs Accelerates Growth with Strategic Multi-Year Smartphone Agreements

Elliptic Labs, a pioneer in AI-driven virtual sensor technology, has announced a series of multi-year agreements with major smartphone Original Equipment Manufacturers (OEMs), signaling a significant acceleration in its market penetration and revenue trajectory. These partnerships, which expand the deployment of its AI Virtual Smart Sensor Platform™, underscore the company’s position as a disruptor in the hardware-to-software transition within the electronics industry.

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Key Terms of the Agreements

The cornerstone of Elliptic’s recent growth is a multi-year agreement with an existing top-tier smartphone OEM, which allows the customer to add up to five new smartphone models simply by providing written notice. Each added model comes with an automatic minimum volume commitment, ensuring steady revenue streams for Elliptic. Shipments for these models are scheduled between 6 to 12 months from the agreement’s announcement, contributing to a minimum of 46 committed smartphone models for 2025.

In parallel, Elliptic secured a separate deal with a Top-3 global smartphone OEM for 11 confirmed models, bringing the total committed deployments for the next 12–15 months to at least 41 models. These agreements are part of a broader strategy to streamline the procurement process for OEMs, reducing administrative friction and enabling rapid scaling of its AI Virtual Proximity Sensor INNER BEAUTY® and other solutions.

The company’s stock price has surged +150% year-to-date as investors digest these milestones, reflecting renewed confidence in its growth story.

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Customer Identity and Partnerships

While the Top-3 OEM’s identity remains undisclosed, Xiaomi—explicitly identified as a Top-3 global smartphone manufacturer—is a key partner. Elliptic has collaborated with Xiaomi since 2016, deploying its sensors across 64 models, including the Redmi Turbo 4 Pro and Redmi Note 14S series. Other partners include vivo, HONOR, and Transsion, whose brands (Tecno, Infinix) dominate emerging markets.

The expansion into the PC market adds further diversification. Elliptic recently signed contracts with existing PC customers for laptops and accessories, leveraging its AI Virtual Human Presence Sensor™ to enhance device intelligence. Notably, some laptop models now integrate two sensors per device, increasing revenue potential per unit.

Financial Implications

Elliptic’s financials reflect the success of its strategy:
- 2023 revenue: NOK 68.3 million (+31% vs. 2022).
- 2024 revenue: Soared to NOK 131.9 million (+93% vs. 2023), with Q4 2024 revenue hitting NOK 47.6 million (a +416% YoY jump).
- EBITDA profitability: Achieved for the first time in 2024, with cash reserves strengthening to NOK 76.4 million.

These results are pivotal for Elliptic’s NOK 500 million revenue target by 2025, which CEO Laila Danielsen calls “on track” despite delayed negotiations for some major contracts. The multi-year agreements ensure recurring revenue, while the scalability of its software-based model (deployed in over 500 million devices) provides a robust foundation.

The trajectory shows a CAGR of 64% since 2020, with 2025’s target representing a 280% increase from 2023 levels.

Technological Edge and Market Opportunity

Elliptic’s AI Virtual Smart Sensor Platform™ replaces physical sensors with software, reducing device costs by eliminating hardware dependencies. Its proximity sensor, for instance, saves battery life by disabling the touchscreen when a phone is held to the ear. The platform’s use of deep neural networks and cloud-based LLMs enables contextual intelligence, improving personalization and privacy.

This technology aligns with industry trends toward greener, smarter devices, a priority for top OEMs aiming to differentiate their products. As smartphone manufacturers seek to cut costs and enhance user experience, Elliptic’s solutions are becoming essential.

Conclusion: A Path to Dominance in AI-Driven Electronics

Elliptic Labs’ multi-year agreements, financial milestones, and technological leadership position it as a leader in the $15 billion virtual sensor market. With 144% smartphone business growth in 2024 and partnerships with Top-3 OEMs, the company is well-equipped to capitalize on its NOK 500 million revenue target.

The expansion into PCs and accessories further diversifies its revenue streams, while its AI-driven platform’s scalability ensures long-term growth. Even with delayed contract negotiations, Elliptic’s EBITDA profitability, strong cash reserves, and partnerships with industry giants like Lenovo and Xiaomi underscore its resilience.

Investors should note that Elliptic is not just a supplier but a strategic partner to OEMs, embedding its technology into over 500 million devices to date. As the transition from hardware to software accelerates, Elliptic’s ability to reduce costs, simplify supply chains, and enhance device functionality makes it a compelling investment in the AI-enabled electronics space.