Audinate shares slump amid soft FY25 results
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More news: Shares in Audinate slumped in morning trade after the audiovisual technology business announced a $6.8 million net loss for the year and lower than expected EBITDA.
At 11:47am AEST, Audinate’s share price had fallen 17.1% to $5.03.
UBS analysts flagged that cost reinvestment was “larger than likely price by market (even after adjusting for Iris acquisition” and suggested that Audinate’s stock would likely “trade down”.
The analysts also flagged that operating costs of about $50.5 million were higher than UBS’ expectation of $48.2 million. This drove the softer than expected EBITDA result of about $700,000.
UBS analysts had expected EBITDA to be $2.7 million while the market consensus estimate, according to Visible Alpha, was $1.2 million.
Audinate reports $6.4m full-year loss
The news: Audiovisual technology business Audinate has reported a full-year loss of $6.38 million for the 2025 financial year due to a previously flagged inventory overhang at its customers and softening AV industry growth.
The numbers: The FY25 result was down compared to the net profit of $10.2 million reported in the previous year but better than consensus estimates for a $7.9 million net loss, according to Visible Alpha data.
Total revenue for the financial year came in at $62.07 million, lower than the $91.48 million reported in FY24. This was lower than the market consensus estimate of $61.7 million.
EBITDA for 2025 also fell by nearly 100% to $26 million and no dividends were declared. Gross margin increased to 82.1%, from 74.2%, as the company's product mix shifted towards higher-margin software solutions.
The context: Audinate had warned that FY25 revenue was expected to fall, partly due to an end of the "conservative over-ordering" that drove record sales in FY24 and continued to flag profit headwinds throughout the year.
What they said: "In a year of transition, we shipped 1M Dante Devices, established our first cloud-based management platform and completed the strategic acquisition of Iris," Audinate co-founder and CEO Aidan Williams said.
