Audinate Group (AD8) H1 2025 earnings summary

Executive summary

• First half results exceeded guidance, but revenue declined 38% year-over-year as customers worked through excess inventory; FY25 is a transition year with normalization expected in FY26.

• Software revenue grew 13% year-over-year, offsetting hardware declines and driving gross margin improvement.

• Gross margin rose to 82.5% from 71.8% year-over-year, supported by a higher software mix.

• Dante Director launched as the first SaaS cloud offering, with further product launches and feature enhancements planned.

• Strong cash reserves of over $111 million support ongoing investment in R&D and new product development.

Financial highlights

• Revenue for 1H25 was A$28.7m, down 38% from A$46.6m in 1H24.

• Gross profit for H1 FY25 was AUD 24 million, down 29% year-over-year, with gross margin percentage rising to 83%.

• EBITDA for the half was $0.8 million, compared to $9.9 million in the prior period.

• Net loss after tax was $2.2 million, compared to a net profit of $4.7 million in the previous year.

• Free cash flow was negative A$8.1m, with positive operating cash flow of AUD 1.2 million.

Outlook and guidance

• Moderate gross profit growth expected in H2 FY25, with continued softness in chips and modules.

• FY25 is a transition year; normal order patterns and growth anticipated by FY26.

• New product launches in 2H25 are expected to positively impact earnings.

• Operating expenses expected to grow moderately in H2, at the lower end of previous guidance.

• Long-term demand indicators remain strong, with continued growth in OEM design wins and Dante device adoption.