Audinate Group Limited

FY26 revenue was USD 46 million, up 15% year over year, and gross margin was 82%. In Australian dollars, revenue was AUD 68 million, up 9%, with gross margin at 81.9% versus 82.3% in FY25. Underlying EBITDA was a loss of AUD 3.6 million versus a profit of AUD 0.7 million in FY25, while operating cash flow was AUD 1.2 million and cash movement for the year was an outflow of AUD 44.8 million. Cash and term deposits ended at AUD 65 million, with no external debt. For FY27, management expects revenue and gross profit growth in line with or slightly ahead of FY26, gross margins to be maintained, operating costs to be flat, and materially stronger operating cash flow, but not free cash flow breakeven in FY27.

Aidan Williams framed the year as both a milestone and a strategic reset, highlighting Audinate’s 20th anniversary, the strength of the Dante ecosystem, and the opportunity to extend beyond audio into video and control. He stressed that the company is now aligning around three business categories—embedded components, installed products, and software/services—and said the purpose of recent changes is to capture more value from the broader AV installation market. His tone was optimistic but disciplined, emphasizing long-term platform building rather than near-term hype.

Chris Rollinson focused on the financial bridge from FY26 to FY27: AUD 68 million revenue, 81.9% gross margin, AUD 3.6 million underlying EBITDA loss, AUD 1.2 million operating cash flow, and AUD 65 million in cash and term deposits. He said cost increases were driven by Iris, incentive payments, and headcount, while the restructure removed 10% of roles across the broader group and should flow through in FY27. He also said FY27 capex should be around AUD 13 million, Iris-related non-cash acquisition costs will be AUD 1.8 million, and operating cash flow should improve as revenue grows and the cost base stays leaner.

Analysts focused on when cash flow and profitability might inflect, and management repeatedly said FY27 should improve operating leverage but not reach free cash flow breakeven; they pointed investors to FY28 for more clarity and possible breakeven. Questions on Iris drew a strategic explanation: Aidan Williams said Iris is a different monetization model for video/control, with revenue already showing up in FY26 at USD 200,000, but management is still early in building adoption and recurring revenue. There were also concerns about inventory destocking, memory/RAM shortages, and AV market softness; management said destocking is largely behind them, but RAM and FPGA supply constraints are still affecting costs and require price increases and supply-chain work.