Asetek (ASTK) Q3 2025 earnings summary

Executive summary

• Year-to-date revenue was $30.9 million, down from $37.1 million last year, mainly due to fewer liquid cooling shipments and lower SimSports sales impacted by U.S. tariffs.

• Adjusted EBITDA was negative $0.7 million, compared to negative $0.3 million in the prior year.

• Signed a major agreement with a global customer for high-end liquid cooling, with a minimum $35 million commitment over two years and deliveries starting in 2026.

• SimSports revenue was $1.3 million in Q3, stable sequentially but down year-over-year due to U.S. tariffs.

• Launched the Initium mass-market SimSports product line at Gamescom, with strong initial demand and positive reception.

Financial highlights

• Q3 revenue was $9.8 million, down from $12.2 million year-over-year.

• Gross margin improved to 42% in Q3 (up from 36% last year), and year-to-date gross margin was 44% (up from 42%).

• Operating loss for Q3 was negative $2 million, a significant improvement from negative $15.6 million last year.

• Cash and cash equivalents at period end were $2.8 million, reflecting increased working capital for holiday sales.

• Working capital increased to $8.7 million from $4.4 million at year-end 2024.

Outlook and guidance

• Full-year 2025 revenue guidance revised to around $41 million (previously $45–$53 million), with adjusted EBITDA margin at negative 3–5%.

• Medium-term Liquid Cooling segment revenue ambition raised to above $65 million, targeting adjusted EBITDA margin above 25%.

• SimSports segment revenue for 2025 expected between $5–$10 million, with gross margin of 25–33%.

• Growth expected to resume in 2026, supported by new and returning customers and expanded product offerings.