Audinate Group (AD8) Q1 2025 TU earnings summary

Executive summary

• Q1 FY25 gross profit reached US$7.2M (A$10.6M), reflecting industry-wide inventory challenges and softer end-user demand.

• Headwinds such as shorter order lead times and elevated inventories are expected to persist into Q2 FY25.

• FY25 is positioned as a transitional year, with growth anticipated to resume in FY26 as customer order patterns normalize.

Financial highlights

• Q1 FY25 unaudited gross profit was US$7.2M (A$10.6M).

• Q2 FY25 gross profit run rate is expected to be in line with Q1 FY25.

• Full-year FY25 gross profit is now expected to be lower than FY24 due to first-half performance.

Outlook and guidance

• Management anticipates a moderately stronger second half of FY25, with new product launches contributing to earnings.

• Cost growth for FY25 is projected at 7%-9%, significantly lower than the 28.5% average over the past three years.

• Long-term outlook remains positive, with growth expected to return in FY26.