Airthings (AIRX) Q3 2025 earnings summary

Executive summary

• Executed a turnaround plan with organizational restructuring and a capital raise, focusing on cost reductions and a more efficient operating model.

• Revenues declined 34% year-over-year to USD 6.6 million in Q3 2025, mainly due to lower Consumer segment sales.

• Gross margin improved to 64% from 59% year-over-year, supported by disciplined pricing and reduced discounting.

• Annual recurring revenue (ARR) grew 7% year-over-year to USD 4.6 million, with growth in both Pro and Business segments.

• Significant cost reductions and a capital raise are expected to stabilize liquidity and set the stage for a turnaround in 2026.

Financial highlights

• Q3 2025 revenues: USD 6.6 million, down 34% from Q3 2024.

• Gross profit: USD 4.3 million, down 27% year-over-year; gross margin improved to 64%.

• EBITDA: negative USD 3.2 million (Q3 2024: negative USD 1.3 million).

• EBIT: negative USD 3.6 million (Q3 2024: negative USD 1.9 million).

• Net loss: USD 4.0 million for Q3 2025; YTD net loss USD 14.0 million.

• Cash and cash equivalents at quarter-end: USD 2.7 million.

Outlook and guidance

• Market for indoor air quality monitoring expected to grow, driven by increased awareness and regulation.

• Short-term challenges include declining revenues and liquidity pressure; 2026 expected to be a turnaround year.

• Ongoing capital raise of USD 10.5 million and cost reductions to stabilize financial position.

• Application submitted to delist shares from Euronext Oslo Børs; segments to become more independent.