Audinate Group (AD8) H1 2026 earnings summary

Executive summary

• Revenue grew 12% year-over-year in both USD and AUD, reaching US$21.1 million (AUD 32.2 million) for the first half of FY 2026, driven by hardware and high-margin software products.

• Gross margin improved to 82.6%, supported by a favorable shift toward software-based solutions.

• The acquisition and commercial launch of the Iris platform expanded the product ecosystem into video-led and cloud-enabled workflows.

• Organizational changes reduced expected operating cost growth for FY 2026 to 20% over FY 2025 and aligned the cost base with strategic objectives.

• 66 design wins and 344 new Dante-enabled products launched during the half, supporting future growth.

Financial highlights

• Revenue for the half was AUD 32.2 million (US$21.1 million), up 12% year-over-year.

• Gross profit reached AUD 26.6 million, with gross margin stable at 82.5–82.6%.

• Underlying EBITDA/EBIT loss was AUD 2.3 million, compared to a gain of AUD 0.8 million in the prior period.

• Net loss after tax widened to AUD 10.6 million, reflecting increased investment, restructuring, and amortisation.

• Operating expenses increased 26% to AUD 28.8 million, driven by investment in new products and capabilities.

Outlook and guidance

• FY26 full-year US-dollar gross profit growth expected at 13–15% over FY25, outpacing industry growth rates.

• Operating cost growth for FY26 revised to 20% over FY25, down from previous 25% guidance.

• Gross margin percentage anticipated to remain stable, with a shift toward higher-margin software revenue.

• Free cash flow expected to remain negative in FY26 due to strategic investments, but balance sheet remains strong.

• Continued investment in Iris and Dante Director to drive adoption and platform integration.