Highlights

  • Audinate Group (ASX:AD8) gained 7.14% as FY26 results put growth and Investment spending side by side.
  • FY26 Revenue was US$46.0mn, up from US$40.0mn, while gross Margin held at 82.0%.
  • Underlying EBITDA was a loss of AUD 3.6mn as operating costs increased.
  • The Dante ecosystem surpassed 8mn devices shipped and more than 5,100 products.

Audinate Group (ASX:AD8) has gained 7.14% as FY26 results renewed the debate around the Dante platform’s operating leverage. Revenue and Gross Profit grew, and gross margin remained around 82%, but heavier product investment pushed underlying EBITDA into a loss. The central question for FY27 is whether a flatter operating-cost base allows continued gross-profit growth to translate into better cash generation.

Revenue Growth Returned

Audinate reported FY26 revenue of US$46.0mn, up from US$40.0mn, with gross profit of US$37.7mn. Gross margin was 82.0%, broadly unchanged from the prior year.

Investment Weighed on Earnings

Underlying EBITDA was a loss of AUD 3.6mn as the company invested across audio, video and control products and integrated Iris Studio. Free Cash Flow was also negative, increasing attention on cost control.

Dante’s Ecosystem Continues to Expand

Audinate reported more than 8mn Dante-enabled devices shipped, over 5,100 products and more than 500 OEM partners. The scale of the ecosystem remains the company’s key competitive asset.

FY27 Is About Operating Leverage

Management’s FY27 outlook centres on continued gross-profit growth, gross margin near 82% and a flatter Australian-dollar operating-cost base excluding one-offs. If achieved, that combination could improve operating cash flow.

What to Watch

Gross-profit growth, operating costs, free cash flow, software revenue and adoption of video and Dante Connect are the main indicators.

Risks

Audinate is still investing heavily and has reported negative free cash flow. Product adoption may take longer than expected, and currency movements can affect reported Australian-dollar results.