Creative Technology (C76) H1 2026 earnings summary

Executive summary

• H1 FY2026 net sales were $34.2m, down 9% YoY; gross margin rose to 30% from 27%, while net loss narrowed to $1.2m from $6.1m.

• Lower payroll costs after the FY2025 restructuring helped reduce expenses; operating cash flow was $3.9m.

Financial highlights

• Net sales were $34.162m versus $37.384m; gross profit was $10.177m versus $10.225m.

• SG&A expense fell 19% YoY to $9.329m; R&D expense fell 52% to $2.368m, mainly due to lower payroll following the FY2025 restructuring.

• Net loss was $1.243m versus $6.101m; basic and diluted loss per share were each $0.02 versus $0.09.

• FY2025 net loss included $0.9m of employee severance charges; FY2026 other gains included a $0.2m gain on sale of intellectual property assets.

Outlook and guidance

• Next-half revenue is expected to decline in line with the historical seasonal sales trend, with an operating loss expected.

• A gain of about $0.9m from the January 2026 asset divestment is expected to be recognised in H2 FY2026.