Highlights

  • Audinate reported FY26 Revenue of USD 46.0 million, up from USD 40.0 million, while gross Margin held at 82.0%.
  • Underlying EBITDA moved to a AUD 3.6 million loss as operating costs increased and Investment continued across audio, video and control platforms.
  • The Dante ecosystem expanded to more than 8 million devices shipped, 5,100-plus products and 542 OEM partners.
  • FY27 guidance points to continued Gross Profit growth, gross margin near 82% and broadly flat Australian-dollar operating costs excluding one-offs.

Audinate Group (ASX:AD8) closed FY26 with a mixed result: revenue growth returned and gross margins stayed high, but heavier investment pushed underlying Earnings into the red. The owner of the Dante audio-visual networking platform is now entering FY27 with a clearer cost framework and a larger ecosystem, making cash conversion the next major test of whether recent product investment can translate into stronger financial outcomes.

Revenue Growth Returns, but Profitability Slips

Audinate generated USD 46.0 million in FY26 revenue, up from USD 40.0 million, while gross profit increased to USD 37.7 million. In Australian dollars, revenue reached AUD 67.8 million and gross profit AUD 55.5 million. Gross margin remained broadly unchanged at 82.0%, showing that the company preserved pricing and product-mix strength despite higher investment.

Below gross profit, however, operating costs rose to about AUD 59.1 million. Underlying EBITDA moved to a AUD 3.6 million loss from a small profit a year earlier, while the statutory net loss attributable to members was AUD 19.6 million.

Investment Is Building a Broader Dante Platform

Management attributed the earnings decline to deliberate spending across audio, video and control platforms, along with integration costs linked to Iris Studio. Audinate acquired Iris Studio in July 2025 for USD 20 million, adding subscription-based video workflow capability to its portfolio.

The broader strategy is to shift Dante from a hardware-heavy model toward chips, IP cores, embedded software and recurring platform revenue. That can improve scalability over time, but the transition requires upfront development spending.

Ecosystem Expansion Remains a Key Strength

Audinate ended FY26 with 5,158 Dante-enabled products, including 555 launched during the year. It had 542 OEM partners shipping products and another 229 in development, while design wins increased to 137 from 129 in FY25.

The company also reported more than 375,000 certified AV professionals and more than 8 million devices shipped across the ecosystem. These metrics remain important because design wins can translate into product revenue over multi-year cycles.

Cash Flow Is the Next Operating Test

Free Cash Flow was an outflow of AUD 15.7 million, compared with an AUD 11.3 million outflow in FY25. Cash and term deposits declined to AUD 65.1 million, largely reflecting the Iris acquisition. No Dividend was declared.

The company expects materially stronger Operating Cash Flow in FY27, making the pace of cash burn reduction a central measure of progress.

What to Watch

FY27 gross profit growth, operating-cost discipline, platform software revenue and conversion of video and Dante Connect design wins will be key. The first-half FY27 result should also indicate whether the company is moving toward positive free cash flow.

Risks

Audinate remains exposed to elevated development spending, slower-than-expected design-win conversion, currency movements and integration risk from Iris. Continued negative free cash flow would also place greater focus on the company’s available cash reserves.