Airthings (AIRX) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues were $7.7M, down 11% year-over-year, mainly due to a weaker Consumer segment and negative impacts from US tariffs and promotional costs.

• Gross profit fell 19% to $4.4M, with gross margin declining to 57% from 62% in Q2 2024.

• Profitability was impacted by softer Consumer demand, US tariffs, and increased promotional costs, leading to a challenging liquidity situation.

• Annual recurring revenue (ARR) grew 6% year-over-year to $4.5M, driven by Business and Pro segments.

• EBITDA was negative $3.0M and EBIT was negative $3.4M for Q2 2025.

Financial highlights

• Q2 net loss was $6.6M, compared to a $2.1M loss in Q2 2024; H1 2025 net loss was $10.0M.

• Basic and diluted EPS were -$0.03, down from -$0.01 in Q2 2024.

• Cash and cash equivalents stood at $1.6M at quarter-end, down from $5.4M at Q1 2025 and $11.2M a year earlier.

• Equity ratio at quarter-end was 60%, down from 68.3% at Q1 2025.

• Total inventories increased to $13.2M, with average days of inventory at 283.

Outlook and guidance

• Inventory is expected to be reduced in H2 2025 following seasonality.

• Ongoing cost management initiatives include a workforce reduction of 35% planned for H2 2025.

• No revenue guidance provided for future periods due to macroeconomic volatility and tariff uncertainty.

• A capital injection of about NOK 100M is being contemplated, with a potential delisting from the Oslo Stock Exchange.