Highlights

  • Audinate Group (ASX:AD8) gained 10% as FY26 results renewed focus on operating leverage.
  • FY26 Revenue reached US$46.0mn, up from US$40.0mn.
  • Gross Margin remained at 82.0%, while underlying EBITDA was a loss of AUD 3.6mn.
  • The company is targeting materially stronger Operating Cash Flow in FY27 as major development programs mature.

Audinate Group (ASX:AD8) has gained 10% as the market weighs a familiar tension in the Dante story: healthy revenue and gross-margin growth against continued Investment and cash burn. FY26 showed that customer Demand recovered, but the cost base remained too high to produce underlying EBITDA profit. FY27 is therefore shaping up as an operating-leverage test rather than simply another revenue-growth year.

Revenue Growth Returned in FY26

Audinate reported FY26 revenue of US$46.0mn compared with US$40.0mn in FY25. Gross Profit reached US$37.7mn and gross margin held at 82.0%.

Investment Still Weighed on Profitability

Underlying EBITDA was a loss of AUD 3.6mn as Audinate continued investing across audio, video, control and the integration of Iris Studio. Free cash flow also remained negative.

Dante Scale Remains the Core Asset

The Dante ecosystem has surpassed 8mn devices shipped and more than 5,100 products. That installed ecosystem supports Audinate’s long-term strategy of expanding software, licensing and platform revenue.

What to Watch

FY27 operating costs, gross-profit growth, free cash flow, platform-software revenue and conversion of video and Dante Connect design wins are the main indicators.

Risks

Product-development spending may take longer to monetise than expected. Negative cash flow, Acquisition integration and currency movements remain important risks.