Kalray (ALKAL) H2 2025 earnings summary

Executive summary

• Achieved first-ever strongly positive EBITDA, reaching €6.2M for the semiconductor segment and €4.6M consolidated, driven by a shift to an IP licensing and services model.

• Revenue for the semiconductor segment quadrupled year-over-year to €14.3M, while consolidated revenue was €16.4M, reflecting the divestiture of the Data Acceleration Platform business.

• Positive free cash flow of €2.3M, a significant turnaround from negative €21.1M in 2024, supported by asset disposals and cost reductions.

• Major new contract in AI & HPC infrastructure valued at over €10M is being finalized, with additional royalties expected.

• Extended partnership with Openchip, focusing on joint development in HPC, AI, and defense sectors.

Financial highlights

• Gross margin surged to 93.3% from 51.5% year-over-year, reflecting the new business model's impact.

• Operating expenses dropped 44.4% to €23.1M due to cost-saving measures and business scope changes.

• Net income improved to €(4.5)M from €(23.3)M year-over-year, aided by exceptional gains from asset disposals.

• Shareholders' equity stood at €32.7M at year-end 2025.

• Available cash increased to €3.0M from €1.7M year-over-year.

Outlook and guidance

• Anticipates double-digit revenue growth and further EBITDA improvement in 2026.

• Plans to continue developing IP modules for DPU-type architectures, targeting AI, HPC, telecom, and defense markets.

• Ongoing discussions with multiple industrial players for new acceleration solutions.