Asetek (ASTK) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined to $9.8 million from $12.2 million in Q1 2024, driven by soft SimSports demand, lower ASPs in Liquid Cooling, and macroeconomic uncertainty.

• SimSports revenue dropped to $1.1 million from $2.2 million, impacted by U.S. tariffs, logistical delays, and weaker consumer spending.

• Group gross margin remained stable at 44.2% year-over-year.

• Net loss widened to $2.3 million from $0.6 million in Q1 2024; operating expenses reduced by 9–10%.

• A rights issue in January 2025 raised $10.4 million, strengthening the cash position and funding SimSports investment.

Financial highlights

• Q1 2025 Liquid Cooling revenue was $8.6 million, down from $10 million year-over-year; SimSports revenue was $1.1 million, down from $2.2 million.

• Group gross margin was 44.2%; SimSports gross margin was 26%, affected by low scale and logistics.

• Adjusted EBITDA was negative $306 thousand, compared to negative $37 thousand in Q1 2024; Q1 2025 adjusted EBITDA margin was negative, with full-year margin outlook lowered.

• Operating expenses reduced to $6.1 million, down 9–10% year-over-year.

• Cash at quarter-end was $9 million, up from $3 million at year-end due to the rights issue.

Outlook and guidance

• Full-year 2025 group revenue guidance revised to $45–$53 million (previously $52–$58 million); SimSports revenue now expected at $5–$10 million (was $12–$15 million).

• Adjusted EBITDA margin guidance lowered to 0%–3% from 3%–5%.

• SimSports gross margin guidance cut to 28–33% (was 30–35%).

• Liquid Cooling segment revenue guidance unchanged; long-term growth expected from new product launches and post-COVID PC upgrades in 2026.