Kalray (ALKAL) H1 2025 earnings summary

Executive summary

• Achieved positive EBITDA and free cash flow in H1 2025, marking a significant turnaround driven by strategic refocusing and cost-saving measures.

• Divested the "Data Acceleration Platform" business, focusing on core DPU development and co-development/service agreements.

• Launched a strategic industrial cooperation with Openchip, opening new commercial opportunities in AI and high-performance computing.

Financial highlights

• Revenue for H1 2025 was €7.9 million, down from €10.9 million in H1 2024 due to the business disposal.

• Gross margin rose sharply to 87% from 54% year-over-year, reflecting the new business model.

• EBITDA turned positive at €253k, compared to (€4.8m) in H1 2024.

• Net profit improved to (€2.1m) from (€11.4m) year-over-year.

• Free cash flow was €3.1m as of June 30, 2025, versus (€21.1m) at year-end 2024.

Outlook and guidance

• EBITDA expected to be strongly positive for full-year 2025.

• Annual revenue projected to decline by around 35% due to the business disposal, but to increase fourfold on a like-for-like basis.

• Profitability trajectory confirmed, with continued focus on cost control and new business model.

• Financing horizon extended to June 30, 2026, supported by new contracts and debt renegotiations.