Asetek (ASTK) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was $41.5 million, down 21% year-over-year due to macroeconomic uncertainty, U.S. tariffs, and reduced orders from major liquid cooling customers who shifted to dual-sourcing.

• Gross margin was 41.2%, slightly lower than 41.8% in 2024, reflecting product mix changes and price sensitivity.

• Adjusted EBITDA was negative $1.7 million, compared to positive $0.3 million in 2024, with an operating loss of $10.0 million.

• A major long-term agreement was secured in October 2025 with a global PC gaming component provider, including a $35 million minimum revenue commitment over two years.

• In April 2026, all shares will be acquired by CQXA Holdings Pte. Ltd., a subsidiary of Suzhou Chunqiu, providing liquidity and operational funding.

Financial highlights

• Revenue: $41.5 million (2024: $52.5 million), gross profit: $17.1 million (2024: $21.9 million).

• Operating loss: $10.0 million (2024: $19.2 million loss).

• Net loss: $10.9 million (2024: $23.9 million loss).

• Gross margin: 41.2% (2024: 41.8%).

• Adjusted EBITDA: negative $1.7 million (2024: positive $0.3 million).

• Cash and cash equivalents at year-end: $3.6 million.

• Working capital: $5.7 million (2024: $4.4 million).

Outlook and guidance

• 2026 revenue expected at $55–60 million, with adjusted EBITDA around zero.

• Liquid Cooling segment revenue expected at $44–48 million, SimSports at $11–12 million.

• Gross margin guidance: 35–40% for Liquid Cooling, 28–32% for SimSports.

• Renewed growth anticipated from 2026, supported by new agreements and product launches.