Kalray (ALKAL) H2 2024 earnings summary

Executive summary

• FY2024 revenue reached €24.8M, slightly down from €25.8M in 2023, amid a challenging economic environment and strategic refocus.

• EBITDA was -€8.2M, in line with guidance, compared to -€1.1M in 2023, impacted by the Data Acceleration Platform business.

• Sale of the Data Acceleration Platform business for up to $20M, with $12.5M received immediately, to refocus on core semiconductor activities.

• Ongoing strategic discussions and cost-cutting measures to extend financial visibility beyond May 2025.

Financial highlights

• Gross margin declined to 51% in 2024 from 67% in 2023 due to higher hardware component costs.

• Total operating revenue increased to €45.4M, driven by €15.7M in capitalized R&D and €3.1M in subsidies.

• Operating loss (adjusted for research tax credit) widened to -€23.2M from -€11.8M year-over-year.

• Net loss was -€23.3M, with -€11.3M attributable to the divested business.

• Excluding divested assets, 2024 revenue rose to €3.6M (from €1.5M), with EBITDA at -€3.9M (improved from -€4.9M in 2023).

Outlook and guidance

• Cash horizon remains until end of May 2025, with ongoing efforts to secure strategic partnerships or further asset sales.

• Strategic focus on custom semiconductor design and service-based offerings.

• Failure to secure new funding or partnerships may threaten ability to meet financial obligations beyond May 2025.