• Returned to growth in 2H25 with double-digit software revenue growth
• Expanded gross margins, maintained strong cash position, and launched new products
• Acquisition of Iris accelerates video roadmap and expands control capabilities

Audinate Group Limited (ASX:AD8) announced its financial results for the year ended 30 June 2025 (FY25), delivering performance in line with prior market guidance and revenue growth in the second half of the year. FY25 was a transitional year, with financial performance temporarily impacted by an inventory overhang at OEM customers and softening AV industry growth rates. However, Audinate expanded gross margins, maintained a strong cash position, launched multiple new software and cloud products, and delivered double-digit growth in embedded software revenue. The company also announced the acquisition of Iris Studio Inc., a US-based leader in AI-powered, cloud-first camera control, which significantly strengthened Audinate's video and control capabilities and accelerated its strategy execution. Audinate invested in product innovation and platform expansion, including the launch of Dante Director, a cloud-based management platform, and Dante Device Link, which enables centralized control of large fleets of Dante devices. The company also expanded its AVIO adaptor range and delivered a major user interface upgrade to Dante Controller. Audinate enters FY26 with a strengthened revenue outlook and clear strategic priorities, including driving ecosystem expansion, delivering integrated solutions, executing the Iris market launch, and evolving the Dante Director platform.

For FY26, Audinate expects US-dollar gross profit growth between 13% and 15% over FY25, representing 2-3 times the industry growth rate. Gross margin percentage is expected to remain broadly consistent with FY25. Operating costs in FY26 are expected to increase by 25% over FY25 due to investments in strategic opportunities with Iris, Dante Director, and the Dante platform. Audinate expects to report negative free cash flow in FY26, reflecting the purchase of Iris and planned strategic investments.

Audinate enters FY26 with a strengthened revenue outlook and clear strategic priorities, including driving growth in Dante-enabled devices, delivering seamless, end-to-end user experiences across the Dante ecosystem, executing a coordinated go-to-market plan for Iris, and expanding the functionality and commercial rollout of Dante Director with a focus on enterprise AV network management.