You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial statements and related notes appearing elsewhere in this annual report. In addition to historical information, this discussion contains forward-looking statements based on our current expectations that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in the “Item 3 D. Key Information—Risk Factors” and “Special Note Regarding Forward-Looking Statements” sections and elsewhere in this annual report. A.Operating Results Refer to Part I, Item 5 in our Annual Report on Form 20-F for the financial year ended December 31, 2024 (filed with the SEC on February 12, 2025) for additional discussion of our financial condition and results of operations for the year ended December 31, 2023, as well as our financial condition and results of operations for the year ended December 31, 2024, compared to the year ended December 31, 2023. Overview For a description of business highlights in 2025, please refer to “Item 4B. Information on the Company—Business Overview.” 135 Financial Operations Overview Income and Expenses Revenue from sale of commercial products and clinical trial supply is recognized when the customer has obtained control of the goods and it is probable that we will collect the consideration to which we are entitled for transferring the goods. Control is transferred upon delivery. Cost of sales are recognized when the sales take place. Rendering of services is recognized as revenue over the service period as stipulated under the applicable agreement. License agreements which transfer rights to our intellectual property (“IP”) with significant stand-alone value are classified as “right-to-use,” with revenue recognized at the point in time when the customer can use and benefit from the IP. Our operating expenses relate to research and development activities and to selling, general, and administration activities. Research and development expenses (“R&D expenses”) consist primarily of product development and pre-commercial manufacturing costs, preclinical and clinical study costs and costs for process optimizations and improvements performed by Clinical Research Organizations (“CROs”) and Contract Manufacturing Organizations (“CMOs”), salaries and other personnel costs including pension and share-based payment, the cost of facilities, professional fees, cost of obtaining and maintaining our IP portfolio, and depreciation of non-current assets used in research and development activities. Selling, general, and administrative expenses (“SG&A expenses”) comprise salaries and other personnel costs including pension and share-based payment, office supplies, cost of facilities, professional fees, and depreciation and amortization of non-current assets related to selling, general, and administrative activities, and pre-commercial and commercial activities. A material portion of our operating expenses are denominated in other currencies than the Euro, which expose our operating expenses to volatility. We do not currently enter into derivative financial instruments to manage our exposure to foreign exchange risks. Operating Assets and Liabilities Our operating assets and liabilities primarily relate to property, plant and equipment, inventories, receivables, prepayments and accruals for development costs, lease liabilities, trade payables, other liabilities, and contract liabilities. Property, plant and equipment primarily relate to leased facilities which are recognized and measured as right-of-use assets. Our receivables and liabilities are exposed to development in foreign currencies, primarily with respect to the U.S. Dollar. Please refer to the “Foreign Currency Risk” section under “Item 11 Quantitative and Qualitative Disclosures about Market Risk” and to Note 18, “Financial Risk Management,” for an analysis of our foreign currency exposure. We have built up inventories to support the commercialization of YORVIPATH® and SKYTROFA®. In addition to commercial inventories, manufacturing of pre-launch inventories is initiated for late-stage product candidates and is recognized as inventories. However, since pre-launch inventories are not realizable prior to obtaining marketing approvals, pre-launch inventories are immediately written down to zero through research and development expenses. Capital Structure Our capital structure consists of equity and external borrowings obtained through issuance of convertible senior notes (“convertible notes”) and royalty funding liabilities. We are not subject to any contractually imposed capital requirements or financial covenants. For further details, please refer to “Item 5 B. Operating and Financial Review and Prospects—Liquidity and Capital Resources” and Note 17, “Financial Assets and Liabilities” for further information about our convertible notes and royalty funding agreements. 136 Results of Operations Comparison of the Years Ended December 31, 2025 and 2024 Financial Highlights (EUR’000) 2025 2024 Change Revenue 720,132 363,641 356,491 Gross profit 625,217 319,383 305,834 Operating expenses (1) (761,488) (598,146) (163,342) Operating profit/(loss) (136,271) (278,763) 142,492 Net profit/(loss) for the year (228,034) (378,084) 150,050 Cash flows from/(used in) operating activities 53,897 (306,197) 360,094 (1)Operating expenses comprise research and development expenses and selling, general and administrative expenses. Compared to the year ended December 31, 2024, revenue for the year ended December 31, 2025, primarily benefited from the continued growth of YORVIPATH global sales. Operating loss was €136.3 million, representing an improvement of €142.5 million compared to December 31, 2024, which, in addition to an increase in revenue, was impacted by higher operating expenses related to commercial expansion. We had a net loss of €228.0 million for the year ended December 31, 2025, which, in addition to operating loss, was driven primarily by non-cash financial items. In addition, net loss was positively impacted by share of profit/(loss) of associates, which includes a non-cash gain of €35.7 million related to the Initial Public Offering of VISEN in March 2025. Cash flows from operating activities were positive for the year ended December 31, 2025 representing an improvement of €360.1 million, compared to last year, attributable to improved operating performance. Refer to section “Liquidity and Capital Resources” for further information. Foreign currency translation reduced reported revenue for the year ended December 31, 2025 by €38.9 million compared to last year’s exchange rate. Similarly, operating expenses decreased due to currency translation by €14.6 million compared to last year. Our total equity presented a deficit of €162.8 million as of December 31, 2025, compared to a deficit of €105.7 million as of December 31, 2024. Further details about our results of operations are described in the following sections. Revenue The following table summarizes our revenue for the years ended December 31, 2025 and 2024: (EUR’000) 2025 2024 Change Commercial products 683,572 225,728 457,844 Services and clinical supply 18,008 15,570 2,438 Licenses 5,630 122,343 (116,713 ) Milestones 12,922 — 12,922 Total revenue 720,132 363,641 356,491 Revenue for the year ended December 31, 2025 was €720.1 million, representing an increase of €356.5 million compared to last year. This increase was primarily attributable to the continued growth of YORVIPATH global sales, partly offset by the recognition of a $100 million upfront payment in 2024 related to our exclusive license agreement with Novo Nordisk. 137 Revenue from sale of commercial products was as follows: (EUR’000) 2025 2024 Change Revenue from commercial products YORVIPATH® 477,412 28,727 448,685 SKYTROFA® 206,160 197,001 9,159 Total revenue from commercial products 683,572 225,728 457,844 Cost of Sales Cost of sales for the year ended December 31, 2025 was €94.9 million, representing an increase of €50.7 million compared to last year. This increase was primarily attributable to increased sales of commercial products and costs under our Strategic Collaborations. Research and Development Expenses The following table specifies external project costs on the development pipeline and other R&D expenses. (EUR’000) 2025 2024 Change External project costs Hypoparathyroidism 11,979 6,777 5,202 Growth Disorders 84,367 102,385 (18,018) Oncology 33,791 41,166 (7,375) Other project costs 2,112 1,656 456 Total external project costs 132,249 151,984 (19,735) Other research and development expenses Employee costs 145,673 131,867 13,806 Other external costs 14,378 15,698 (1,320) Depreciation, amortization and impairment 11,321 7,455 3,866 Total other research and development expenses 171,372 155,020 16,352 Total research and development expenses 303,621 307,004 (3,383) R&D expenses for the year ended December 31, 2025 were €303.6 million representing a decrease of €3.4 million compared to last year. This decrease was primarily due to completion of certain clinical trials and development activities within our Endocrinology Rare Disease pipeline, partly offset by reversal (income) of prior period write-downs related to pre-launch inventories for Hypoparathyroidism in 2024 of €12.6 million due to the launch of YORVIPATH, and by higher employee costs to support future growth. Selling, General, and Administrative Expenses The following table specifies SG&A expenses: (EUR’000) 2025 2024 Change Selling, general, and administrative expenses Employee costs 210,418 144,181 66,237 External costs 237,626 139,899 97,727 Depreciation, amortization and impairment 9,823 7,062 2,761 Total selling, general, and administrative expenses 457,867 291,142 166,725 SG&A expenses for the year ended December 31, 2025 were €457.9 million representing an increase of €166.7 million compared to last year. This increase was primarily due to the continued impact from global commercial expansion, including global launch activities for YORVIPATH. 138 Finance Income and Finance Expenses The following table specifies the result of finance income and expenses, further disaggregated into cash and non-cash items: (EUR’000) 2025 2024 Change Net finance income/(expenses) Finance income 113,999 25,609 88,390 Finance expenses (206,687) (100,027) (106,660) Total net finance income/(expenses) (92,688) (74,418) (18,270) Specified in cash and non-cash items Cash items Finance income received 15,302 14,374 928 Finance expenses paid (22,935) (15,205) (7,730) Non-cash items Remeasurement gain/(loss) of financial liabilities (105,571) 3,874 (109,445) Currency gain/(loss) 78,229 (27,149) 105,378 Amortization charges, accruals, and other items (57,713) (50,312) (7,401) Total net finance income/(expenses) (92,688) (74,418) (18,270) Interest expenses measured under the effective interest method, related to: Convertible senior notes (36,675) (36,116) (559) Royalty funding liabilities (39,572) (26,000) (13,572) Lease liabilities (4,186) (3,303) (883) The development in non-cash items was driven primarily by remeasurement loss from financial liabilities, partly offset by translation net-gain of U.S. dollar denominated monetary positions into Euro, primarily cash and cash equivalents, convertible notes and royalty funding liabilities. The development was further driven by amortization charges, accruals, and other items, primarily due to our royalty funding liabilities which we entered into in September 2023 and September 2024. 139 B.Liquidity and Capital Resources Our liquidity and capital resources comprise cash and cash equivalents. As of December 31, 2025, these amounted to €616.0 million. Our expenditures primarily relate to research and development activities and selling, general, and administrative activities to support our business, including our continued development of products and product candidates within Endocrinology Rare Disease and Oncology portfolios, the commercialization of YORVIPATH and SKYTROFA, and expenses made in anticipation of potential future product launches. We manage our liquidity risk by maintaining adequate cash reserves. The risk of shortage of funds is monitored, through the financial forecasting process, to ensure sufficient funds are available to settle liabilities as they fall due. As of December 31, 2025, the equity in the consolidated statements of financial position presented a deficit of €162.8 million. Under Danish corporate law, as Ascendis Pharma A/S, the parent company of the Company, holds a positive balance of equity, the Company is currently not subject to legal or regulatory requirements to re-establish the balance of equity. There is no direct impact from the negative balance of equity to the liquidity and capital resources. Historically, we have funded our operations primarily through the issuance of preference shares, ordinary shares (including public offerings and exercise of warrants), convertible debt securities, payments to us made under collaboration agreements, and our royalty funding agreements. Including our initial public offering, since February 2015, we have completed public offerings of American Depositary Shares (“ADSs”), latest in September 2024, with total net proceeds of $2,580.2 million (or €2,259.0 million at the time of the offerings). Refer to Note 17, “Financial Assets and Liabilities” for further information about our convertible notes and royalty funding agreements. Cash requirements We maintain cash-forecasts to ensure sufficient cash reserves are available to settle liabilities as they come due. As of December 31, 2025, our cash requirements primarily relate to the following: •Semi-annual interest payments and potential repayment (April 1, 2028) of principal amount of convertible notes; •Payments to Royalty Pharma under our royalty funding agreements of 3% on net revenue from sales of YORVIPATH in the U.S., and 9.15% on net revenue from sales of SKYTROFA in the U.S., subject to caps as described in Note 17, “Financial Assets and Liabilities;” •Lease obligations related to our office, research and development facilities; •Purchase obligations under our commercial supply agreements and related activities; •Research and development activities related to clinical trials for our product candidates in clinical development; •Operating an integrated organization to support the ongoing commercialization of YORVIPATH and SKYTROFA in the U.S. and Europe; and •Purchase of the Company’s own ADSs in connection with settlements of equity incentive plans. Our cash requirements are determined in Euro applying foreign exchange rates at December 31, 2025. Accordingly, actual cash payments are exposed to development in foreign currencies, primarily with respect to the U.S. Dollar. For a description of our exposure to market risks, credit risk and liquidity risk, refer to Note 18, “Financial Risk Management.” Our borrowings comprise convertible notes, royalty funding liabilities and lease liabilities. As of December 31, 2025, short-term (payable within twelve months after the reporting date) and long-term (payable beyond twelve months after the reporting date) expected cash requirements (on an undiscounted basis) for convertible notes and royalty funding liabilities were €51.1 million and €952.8 million, respectively. Expected maturity for royalty 140 funding liabilities is based on anticipated amount and timing of future revenue from sale of commercial products. Further details regarding the payment structure of the royalty funding agreements and convertible notes are provided in Note 17, “Financial Assets and Liabilities.” As of December 31, 2025, the length of non-cancellable leases is up to 15 years. Our cash requirements for lease obligations (on an undiscounted basis) are €20.4 million and €176.2 million, for short-term and long-term, respectively. In addition, our lease obligations establish ancillary contractual commitments in relation to utilities, maintenance, levies, and other services. Further, we have commitments related to short-term leases and leases of low value assets, IT and facility related services. Costs relating to those commitments are expensed as incurred. We have also entered into long-term commercial supply agreements, primarily related to commercial manufacturing of YORVIPATH and SKYTROFA. Commercial supply agreements may include purchase obligations, usually determined on binding and non-binding supply forecasts, that are subject to continuous negotiation and adjustments according to individual contractual terms and conditions. As of December 31, 2025, our short-term and long-term cash requirements were €46.3 million and €120.3 million, respectively, excluding non-binding commitments for purchase of raw materials and intermediates used in the manufacturing process. As part of our ordinary activities, we engage third-party CROs to perform clinical trial activities, which primarily are studies for more than one year. We are not subject to contingent liabilities from potential milestone payments related to in-licensing of IP. We have not entered into any off-balance sheet arrangements or any holdings in variable interest entities. In addition, we are not aware of any significant legal claims or disputes. Based on our current operating plan, we currently estimate that our existing cash and cash equivalents will be sufficient to fund our operations for at least twelve months from the date of this annual report. However, our operating plan and actual cash requirements may change as a result of many factors. For example our future funding requirements will depend on many factors, including, but not limited to those described in “Item 3.D – Key Information—Risk Factors—Risks Related to Our Limited Operating History, Financial Condition and Capital Requirements” in this annual report. Additional funds may not be available if we need them or on terms that are acceptable to us, or at all. If adequate funds are not available to us on a timely basis, we may be required to delay, limit, scale back or cease our research and development and commercialization activities. The following table summarizes our cash flows for the years ended December 31, 2025 and 2024: Year Ended December 31, (EUR’000) 2025 2024 Change Cash flows from / (used in) Operating activities 53,897 (306,197 ) 360,094 Investing activities (8,485 ) 6,876 (15,361 ) Financing activities 36,328 443,929 (407,601 ) Increase/(decrease) in cash and cash equivalents 81,740 144,608 (62,868 ) Cash flows from/(used in) Operating Activities Cash flows from operating activities for the year ended December 31, 2025 were €53.9 million, representing an improvement of €360.1 million compared to last year, of which €182.0 million related to improved operating performance, primarily driven by commercial revenue growth, and €178.1 million related to working capital improvements, which include settlement of the upfront payment from our exclusive license agreement with Novo Nordisk of $100 million plus related indirect taxes. 141 Cash flows from/(used in) Investing Activities Cash flows used in investing activities for the year ended December 31, 2025 were €8.5 million, representing an increase of €15.4 million compared to last year. This increase was primarily attributable to €7.3 million settlements of marketable securities in 2024 and from leasehold improvements in 2025. Cash Flows from/(used in) Financing Activities Cash flows from financing activities for the year ended December 31, 2025, were €36.3 million, representing a decrease of €407.6 million compared to the last year. This decrease was primarily due to: •The follow-on public offering of ADSs with net proceeds of €290.6 million and the $150.0 million capped synthetic royalty funding agreement with Royalty Pharma, with net proceeds of €134.2 million, both completed in September 2024; •Acquisition of treasury shares of €17.4 million in 2025; and •Payment of withholding taxes under stock incentive programs of €11.4 million in 2025, partly offset by increased warrant exercise activity of €56.6 million in 2025. C. Research and Development, Patents and Licenses, etc. See “Item 4 B. Information on the Company—Business Overview” and “Item 5 A. Operating and Financial Review and Prospects – Operating Results—Financial Operations Overview—Research and Development Expenses.” D. Trend Information See “Item 5 A. Operating and Financial Review and Prospects—Operating Results.” E. Critical Accounting Estimates The consolidated financial statements are prepared in accordance with the IFRS Accounting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), and as adopted by the European Union (“EU”). A description of critical accounting estimates is provided in Note 3, “Significant Accounting Judgements and Estimates” under the Significant Estimation Uncertainties sub-section in the audited consolidated financial statements as of and for the years ended December 31, 2025, 2024 and 2023, of this annual report.