2025 Half Year Results Market Release
Audinate Group Ltd
Key points
- Q2 FY25 gross profit exceeded Q1 FY25, with moderate strengthening expected in 2H25
- Gross profit of US$16 million (1H24: $22 million), down 29% on prior period
- Positive EBITDA of A$1 million (1H24: $10 million) and positive operating cash flows of A$1 million (1H24: A$12 million)
Full summary
Audinate Group Limited (ASX: AD8), developer of the professional AV-industry-leading Dante media networking solution, has announced its results for the financial half-year ended 31 December 2024 (1H25). The company's financial performance was impacted by manufacturing customers working through accumulated inventory balances, leading to a dampening in short-term demand for Audinate's hardware chips, cards and module (CCM) products. Revenue from CCM products in 1H25 was US$10.1 million, down from US$22.7 million in 1H24. However, software revenue continued to grow, up 13% to US$8.3 million, demonstrating the increasing demand for Dante technology independent of accumulated stock levels. Audinate's gross margin percentage increased to 82.2% in 1H25, up from 71.5% in 1H24, driven by a favourable product mix shift toward software-based solutions. The company reported positive EBITDA of $0.8 million and positive operating cash flows of $1.2 million for the half-year. Audinate remains confident in the fundamental strength of its business model, with indicators of underlying growth remaining solid, including a 15% increase in design wins and growth in the number of OEMs developing and shipping Dante-enabled products.
Guidance
Audinate expects a return to normal order patterns and growth by FY26. The company's long-term outlook remains strong, underpinned by a growing installed base of over 6 million Dante devices in the field, with more than a million being added each year.
Outlook
Audinate expects Q2 FY25 gross profit to exceed Q1 FY25, with a moderate strengthening expected in the second half. FY25 remains a transitional year as customers work through inventory backlogs, but the company is focused on deploying its cash balance strategically to enhance its product offerings and accelerate market adoption.