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 1H FY26, with strong bookings and a favorable shift toward higher-margin software products supporting the outlook.

• Gross margin improved to 82.6%, driven by increased software revenue and favorable product mix.

• The Iris platform was acquired and launched, expanding the ecosystem into video and cloud-enabled workflows, with Iris contributing A$0.1 million in revenue since launch.

• Organizational changes were implemented to align costs with strategic objectives, expected to deliver approximately $5 million in annualized cost benefits and reduce FY26 operating cost growth to 20% over FY25.

• 66 design wins and 344 new Dante-enabled products launched, with over 4,000 AV professionals trained monthly, reinforcing ecosystem expansion.

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 (US$17.4 million), with gross margin stable at 82.5–82.6%.

• Operating expenses increased 26% to AUD 28.8 million, reflecting ongoing investment in innovation and platform expansion.

• Underlying EBITDA/EBIT was a loss of 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, mainly due to increased investment, restructuring, and acquisition costs.

Outlook and guidance

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

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

• Operating cost growth for FY26 now forecast at 20% over FY25, down from previous 25% guidance.

• 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.