Alphawave IP Group (AWE) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 increased 13% year-over-year to $103.0m, but bookings fell 29% to $159.4m due to customer uncertainty following the announced Qualcomm acquisition.

• Operating loss widened to $172.8m from $48.3m in H1 2024, driven by higher R&D, acquisition-related costs, and impairments.

• Adjusted EBITDA loss deepened to $43.0m (negative 42% margin) from $11.8m (negative 13% margin) in H1 2024.

• The Group disposed of its WiseWave joint venture in June 2025, recording no gain or loss as the investment was previously written down.

• The recommended acquisition by Qualcomm, valuing the Group at $2.4bn, is expected to close in Q1 2026, pending regulatory approvals.

Financial highlights

• Gross margin declined to 38% from 45% year-over-year due to higher NRE project costs and increased commissions.

• Cash and cash equivalents at period end were $118.7m, down from $180.2m at December 2024 and $76.3m at June 2024.

• Net debt increased to $231.4m from $171.9m at December 2024 and $141.6m at June 2024.

• Pre-tax operating cash outflow was $15.3m, compared to an inflow of $50.4m in H1 2024, despite a $90.6m working capital improvement.

• Bookings for License and NRE dropped 47% year-over-year, while Royalties and Silicon bookings rose 139%.

Outlook and guidance

• Anticipated customer ASIC tapeouts and conversion of bookings into revenue are expected to drive significant revenue growth in H2 2025.

• The acquisition by Qualcomm is expected to enhance the Group’s platform and market reach, subject to regulatory and shareholder approvals.