Asetek (ASTK) investor relations material

Executive summary

• Q3 2025 revenue was $9.8 million, down from $12.2 million in Q3 2024, with year-to-date revenue at $30.9 million versus $37.1 million last year.

• Adjusted EBITDA for Q3 2025 was $(0.5) million, with year-to-date adjusted EBITDA at $(0.7) million, compared to $(0.3) million last year.

• Signed a major agreement with a global customer for high-end liquid cooling, with a minimum $35 million commitment over two years and deliveries starting in 2026.

• SimSports revenue was $1.3 million, stable quarter-over-quarter but impacted by ongoing U.S. import tariffs.

• Launched the Initium mass-market SimSports product line at Gamescom, with strong initial demand and positive reception.

Financial highlights

• Gross margin improved to 42% in Q3 2025 from 36% in Q3 2024, driven by product mix and supply chain improvements.

• Operating loss for Q3 2025 was $(2.0) million, a significant improvement from $(15.6) million in Q3 2024.

• Operating expenses for the quarter were $6.1 million, down 3% year-over-year, mainly due to lower personnel costs.

• Cash balance at quarter-end was $2.8 million, reduced due to higher working capital needs for holiday sales.

• Gross profit for Q3 2025 was $4.1 million, slightly down from $4.4 million in Q3 2024.

Outlook and guidance

• Full-year 2025 group revenue guidance revised to approximately $41 million (previously $45–$53 million), with adjusted EBITDA margin expected at negative 3–5%.

• Medium-term Liquid Cooling segment revenue ambition raised to above $65 million (from $50 million), targeting adjusted EBITDA margin above 25%.

• Liquid Cooling segment revenue expected at $36 million with gross margin of 40–45%.

• SimSports segment revenue expected at $5 million with gross margin of 25–30%.

• Growth expected to return in 2026, supported by new and returning customers and expanded product offerings.