Asetek (ASTK) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue ranged from $11.2M to $12.2M, down from $12.7M in Q2 2024, with sequential growth in liquid cooling and SimSports revenue impacted by U.S. tariffs.

• Gross margin remained stable at 44.8–45% for Q2 and H1 2025, with adjusted EBITDA positive but lower year-over-year.

• Mass-market product launches at Gamescom and new OEM agreements aim to expand the addressable market and drive future growth.

• Ongoing preliminary discussions regarding potential strategic transactions, with no certainty of outcome.

• $10.3M raised via equity rights offering in H1 2025, supporting investments in SimSports and product development.

Financial highlights

• Q2 2025 revenue was $11.2M–$12.2M, down from $12.7M in Q2 2024; H1 2025 revenue at $21M, down from $24.9M last year.

• Gross margin stable at 44.8–45% for Q2 and H1; liquid cooling segment at 45–46%, SimSports at 30–35%.

• Operating expenses reduced by 8–9% year-over-year due to organizational downsizing.

• Operating loss for Q2 2025 was $1.3M, with net loss for H1 2025 at $4.0M.

• Cash and equivalents at June 30, 2025: $7.3M; interest-bearing debt of $20.9M–$21M, maturing March 2028.

Outlook and guidance

• Full-year 2025 revenue guidance maintained at $45–$53M, with adjusted EBITDA margin of 0–3%.

• Liquid cooling segment expected at $40–$43M revenue, gross margin 40–45%; SimSports revenue forecasted at $5–$10M, gross margin 28–33%.

• Positive outlook for 2026, anticipating return to growth with new and returning customers and product launches.