Kalray (ALKAL) H1 2025 earnings summary

Executive summary

• No significant anomalies were identified in the limited review of the consolidated financial statements for the period ending June 30, 2025, confirming a fair presentation of the group's financial position and results.

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

• The group finalized the sale of non-strategic UK assets (Arcapix) for $12.5M upfront, with additional contingent payments possible, and used proceeds to fully repay a €3M revolving credit facility.

• Divested the "Data Acceleration Platform"/"Enterprise" 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 €7.9M, down from €10.9M year-over-year, mainly 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 loss narrowed to €2.1M from €11.1M year-over-year.

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

• Operating cash flow was negative at -€8.3M, but investing activities generated €12M, mainly from asset sales.

• Cash at period end was €2.3M, up from €1.7M at year-end 2024.

Outlook and guidance

• Liquidity is secured through September 2026 without new market funding; extending visibility to December 2026 requires drawing the remaining bond facility.

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

• Annual revenue projected to decline by 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.