Audientes (AUDNTS) Q2 2025 earnings summary

Executive summary

• Focused on self-fitting hearing solutions and advanced hearables, targeting affordable, high-quality products for moderate to profound hearing loss.

• H1 2025 was challenging due to tight funding, but legacy debt was reduced via equity conversions, eliminating loans from 2022.

• Expanding from product sales to software licensing, with new partnerships in China, India, and the Middle East.

• Commercial progress was made in China, India, MENA, Japan, and Europe, with new sales orders expected to strengthen H2 2025.

• Delays in expected Q2 sales shifted revenue recognition to Q3, impacting cash flow and liquidity.

Financial highlights

• Q2 2025 revenue was TDKK 4, down from TDKK 12 in Q2 2024; H1 2025 revenue was TDKK 84, up from TDKK 27 in H1 2024.

• H1 EBITDA net loss of -DKK 3.1 million; Q2 2025 EBITDA was negative TDKK -1,520, with a net loss of TDKK -3,282.

• Equity at end Q2 2025 was negative DKK 1.2 million, with an equity ratio of -18.6%.

• $214,000 in other operating income recognized from prior grant funding, allocated monthly to R&D costs.

• Cash and cash equivalents at June 30, 2025, were TDKK 7.

Outlook and guidance

• Management expects H2 2025 to be a turning point, with new orders in India and MENA, and e-commerce expansion in Europe and Japan.

• Corporate bond issuance of up to DKK 15 million is targeted for September 2025 to support operations and growth.

• Expecting revenue growth and cash flow break-even by end of 2025, with break-even targeted for 2026, contingent on successful funding and commercialization.

• Anticipates stronger second half as delayed Q2 sales materialize in Q3.

• Ongoing focus on leveraging partnerships and expanding licensing business.