Audinate (ASX:AD8): Can Dante Expansion and High Margins Support the Next Technology Growth Phase?

Aditi Sarkar

02 September 2026 05:01 PM AEST

Audinate (ASX:AD8): Can Dante Expansion and High Margins Support the Next Technology Growth Phase?

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Highlights

Audinate develops Dante, a leading technology platform for professional audio networking and expanding video applications.
FY26 results showed Revenue growth while maintaining strong gross margins.
The company continues expanding Dante across audio, video and control markets.
Future performance depends on platform adoption, product launches and design wins.

Audinate (ASX:AD8) is the technology company behind Dante, a widely adopted platform that enables professional audio, and increasingly video and control, to operate through computer networks. The technology is integrated into products from hundreds of manufacturers, creating a broad ecosystem and Recurring Revenue opportunities.

The company’s embedded position within the professional AV industry has supported a high-margin Business model, with investors assessing whether renewed growth momentum can strengthen its long-term technology growth profile.

Recent Development

For FY26, Audinate (ASX:AD8) reported revenue of US$46.0 million, increasing 14.9% as adoption of the Dante platform expanded across audio, video and control applications.

The company maintained gross margins of approximately 82% while continuing to broaden its product ecosystem through a record number of product launches during the year.

The result represented a recovery in growth following a period where channel inventory conditions affected performance. Audinate also continued expanding Dante beyond its traditional audio market into wider professional AV applications.

Financial Performance

Audinate’s (ASX:AD8) FY26 performance highlighted the strength of its technology-led business model, where Dante-enabled products generate revenue through chips, licensing and embedded solutions.

Revenue growth combined with maintained gross margins demonstrates the scalability of the platform and the value of its established ecosystem among manufacturers.

The expansion into video and control applications represents a significant opportunity by increasing the addressable market beyond traditional networked audio.

Because Audinate’s technology is integrated into partner products rather than sold directly to end users, revenue performance can be influenced by manufacturer demand, product cycles and inventory levels. Continued design wins and new product launches therefore remain important indicators of future growth.

What Could Drive the Shares Next?

The key drivers for Audinate (ASX:AD8) include continued revenue growth, further adoption of Dante Video and control solutions, new manufacturer partnerships and ongoing product launches.

Expansion of the Dante ecosystem across professional AV markets could support longer-term growth by increasing the number of connected products using the platform.

Maintaining strong margins while scaling the business would further strengthen the company’s growth profile.

A broader recovery in technology-sector sentiment could also support investor interest in companies with established software and platform characteristics.

Key Risks

Audinate (ASX:AD8) remains exposed to fluctuations in manufacturer inventory levels and product cycles, which can influence short-term revenue performance.

The company reports in United States dollars, creating currency considerations for Australian investors.

Although Dante has a strong market position, the company continues investing in platform development and faces competition across parts of the professional AV technology market.

Investor Outlook

Audinate (ASX:AD8) delivered FY26 revenue growth while maintaining its strong Margin profile and expanding the Dante platform into additional professional AV applications.

The company’s future performance will depend on continued ecosystem expansion, manufacturer adoption and successful growth across video and control markets.

Future updates on revenue trends, product launches, design wins and margin performance will be important indicators of whether Audinate can continue building its technology growth story.

FAQs

Q: What does Audinate do?

A:Audinate develops Dante, a technology platform used for professional audio and AV networking.

Q: What is Dante technology?

A:Dante enables audio, and increasingly video and control signals, to be transmitted over computer networks.

Q: How does Audinate generate revenue?

A:The company generates revenue through embedded technology solutions, chips and licensing arrangements.

Q: What are the key growth drivers for Audinate?

A:Dante adoption, product launches, manufacturer partnerships and expansion into video applications are key drivers.

Q: What are the main risks for Audinate?

A:Key risks include inventory cycles, competition, currency movements and technology execution.

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