Key Highlights

  • Group revenue was $656,747, up 37.7% from $476,994 in the June quarter, with Australian wholesale revenue up 39.2% to $525,390.
  • Audeara's first two AI noise reduction licensing programs entered commercial production, with initial purchase orders of approximately A$31k.
  • Net operating cash outflow was $1.292 million, against $795k in June, reflecting an inventory build ahead of pending AUA Technology orders.
  • Cash was $247k at 30 September 2026, with a second placement tranche of about $505k subject to approval at the 24 November AGM.

Audeara Ltd (ASX:AUA) recorded group revenue of $656,747 for the September 2026 quarter, up 37.7% from $476,994 in the June quarter. The hearing technology company said its first two proprietary AI noise reduction licensing programs reached commercial production, with initial purchase orders of approximately A$31k announced in August. Customer receipts were $617k, down 13.0% from $709k in June, and the Appendix 4C showed a net operating cash outflow of $1.292 million and closing cash of $247k.

Revenue by Division and Cash Receipts

Australian wholesale revenue rose 39.2% to $525,390 from $377,412 in the previous quarter, while AUA Technology revenue increased 193.2% to $62,195. Customer receipts of $617k compared with $1.229 million in the prior corresponding period, a fall of 49.8%. Audeara attributed the decline to the timing of purchase orders from key AUA Technology customers, which it anticipates in the current period.

Net operating cash outflow of $1.292 million compared with $795k in June, an increase the company linked to a build of inventory ahead of pending AUA Technology orders. Product manufacturing and operating costs were $806k and staff payments were $712k, up 36.4% from $522k. Administration and corporate payments fell 20.1% to $230k, research and development payments fell 29.5% to $79k, and advertising and marketing payments rose 42.6% to $77k. Payments to related parties of $138k covered wages and superannuation.

AI Noise Reduction Licensing and Partner Programs

Under the licensing model, Audeara's AI noise reduction algorithms are embedded in semiconductor platforms used by equipment manufacturers and product developers, so licensing revenue can come from products that other brands manufacture and distribute. Two programs have now reached commercial production, up from one that was approaching production in the June quarter.

Partner programs continued alongside the Australian clinical and wholesale channels. They include the customised OpenLearn Small solution with Shokz Health Global in education, an Auracast rollout at Bolton Clarke's Carrington Retirement Village, and white-label Auracast programs with Clinico. On 19 October 2026, Audeara reported that Clinico's introductory Auracast orders of approximately A$164,000 had been fulfilled and shipped, and that Clinico had launched the products in Taiwan. Audeara noted that Clinico's donation of 20 systems to Chung Shan Medical University is not an incremental sale, and that the roughly A$734,000 of purchase orders disclosed across the Clinico relationship is a historical total. After quarter-end, the company also took part in EUHA 2026 in Hanover, Germany.

Placement, Facilities and US Quotation

Audeara secured firm commitments for a $1.26 million two-tranche placement at $0.033 per share. Tranche 1 comprised 22,878,798 shares, raising $755,000 before costs, and was issued on 28 August 2026. The second tranche of approximately $505,000 requires shareholder approval at the AGM on 24 November 2026. One free attaching option is offered for every three placement shares, exercisable at $0.065 and expiring 28 August 2028.

Net financing cash inflow was $805k, made up of $755k of equity proceeds and $137k of borrowing proceeds, less $30k of issue costs, $32k of repayments, $2k of borrowing costs and $23k of lease repayments. Financing facilities of $1.151 million were fully drawn, including a $1,107,344 short-term loan from Sturt Capital Pty Ltd against the FY2026 R&D Tax Incentive rebate. On 14 September 2026, the company began an OTCID quotation process with Viriathus Capital to give US-based traders another route to trade its shares, subject to eligibility review and acceptance by OTC Markets.

Where the Quarter Leaves Audeara

The quarter combined higher revenue of $656,747, lower customer receipts of $617k and a cash balance of $247k. Two AI noise reduction licensing programs are in production, Clinico's first Auracast orders have shipped, and the second placement tranche of about $505k is scheduled for a shareholder vote on 24 November 2026.