Audinate (ASX:AD8) Recovery Story Gains Momentum as Dante Expansion and AV Growth Take Focus

Aditi Sarkar

27 August 2026 02:22 PM AEST

Audinate (ASX:AD8) Recovery Story Gains Momentum as Dante Expansion and AV Growth Take Focus

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Highlights

Audinate (ASX:AD8) reported FY26 Revenue growth as Demand for Dante digital audio and video networking solutions continued expanding.
Gross margins remained strong, highlighting the underlying strength of the company’s technology platform.
The company is investing in video networking, cloud software and broader AV-over-IP opportunities.
Investors are watching whether increased Investment can translate into improved profitability and sustainable growth.

Audinate (ASX:AD8) is entering a new phase of development as the company works to rebuild momentum following a challenging period impacted by channel inventory adjustments and increased investment requirements.

The developer of Dante digital audio and video networking technology delivered revenue growth during FY26 while continuing to expand its product ecosystem and invest in future growth opportunities. The company’s next challenge is converting these investments into stronger Earnings performance.

FY26 Performance

Audinate reported FY26 revenue growth, supported by continued adoption of its Dante platform across professional audio and broader audiovisual markets.

Revenue in US dollar terms increased to approximately US$46 million, representing growth compared with the previous year. Reported Australian dollar revenue reached approximately $67.8 million.

Gross Margin remained strong at around 82%, highlighting the continued value of Audinate’s technology platform and licensing model.

However, profitability remained under pressure as the company increased investment in product development, software initiatives and expansion into video networking.

The company recorded a wider net loss during FY26, reflecting higher investment levels as Audinate focused on building future growth opportunities.

Dante Ecosystem Growth

Audinate’s core growth opportunity continues to centre around Dante, its digital audio and video networking platform.

The technology is used across professional audio environments, connecting devices and systems through network-based solutions.

The Dante ecosystem continues expanding through partnerships with equipment manufacturers and adoption across professional AV installations.

The company’s strategy is focused on increasing the role of Dante beyond traditional audio applications and into broader networked video and integrated AV environments.

This expansion is expected to create additional opportunities as organisations increasingly adopt connected AV infrastructure.

Video and Software Expansion

A key part of Audinate’s future strategy is expanding beyond its traditional audio market.

The company continues developing AV-over-IP solutions designed to support the transition towards network-based video workflows.

Software and cloud-based tools are also becoming increasingly important within the company’s product strategy.

Solutions such as network management platforms are designed to simplify installation, monitoring and maintenance of complex AV systems.

These products could provide additional Recurring Revenue opportunities while strengthening customer engagement across the Dante ecosystem.

Product Development

Audinate continued expanding its technology offering during FY26 through new product launches and platform improvements.

The company introduced additional Dante management capabilities and expanded its adapter product range to support broader AV applications.

Audinate has also continued promoting interoperability across professional AV markets, targeting applications including broadcast, corporate environments, education and entertainment venues.

The company believes the broader adoption of AV-over-IP technology provides a significant long-term opportunity as customers move away from traditional point-to-point infrastructure.

Growth Drivers

Audinate’s Long-term Growth strategy is supported by several key areas.

The first is continued adoption of Dante across professional audio markets, where the company has established a strong technology position.

The second is expansion into video networking, which represents a larger opportunity beyond the company’s historical audio focus.

The third is software development, including cloud-based tools designed to improve customer experience and create additional value from the installed base.

The gradual recovery of customer ordering patterns following previous inventory adjustments is also expected to support future revenue stability.

Key Focus Areas

Investors will continue monitoring whether Audinate’s increased investment translates into stronger revenue growth and improved profitability.

The pace of adoption across video networking and AV-over-IP markets will be an important measure of future success.

Channel inventory trends will also remain important, given the impact previous inventory adjustments had on customer ordering patterns.

The company’s ability to balance investment with improving earnings performance will remain a key consideration.

Risks

Audinate remains exposed to risks associated with technology adoption cycles, customer inventory management and competitive pressures.

The company’s expansion into video networking involves execution risks as it competes with larger technology providers in adjacent markets.

Higher investment levels have affected profitability, and the timing of a return to stronger earnings remains dependent on revenue growth and operating leverage.

Currency movements may also influence reported financial results due to the company’s global revenue exposure.

As a smaller technology company, Audinate’s share price may remain sensitive to changes in growth expectations and market sentiment.

Future Outlook

Audinate enters FY27 focused on converting its technology investments into broader commercial growth.

The company’s Dante platform remains a key asset, while expansion into video networking and software provides additional growth opportunities.

The FY26 result demonstrates continued revenue momentum and strong technology fundamentals, although improving profitability will remain the next important milestone.

Future performance will depend on successful execution across product expansion, customer adoption and operating efficiency.

With a growing AV-over-IP opportunity and an established ecosystem, Audinate’s next phase will focus on proving that investment-led expansion can translate into sustainable earnings growth.

FAQs

Q: What does Audinate (ASX:AD8) do?

A:Audinate develops Dante digital audio and video networking technology used across professional AV markets.

Q: What is Dante technology?

A:Dante is a networking platform that allows audio and video equipment to communicate over standard IP networks.

Q: How did Audinate perform in FY26?

A:Audinate reported revenue growth while maintaining strong gross margins, although profitability was affected by increased investment.

Q: What are Audinate’s growth opportunities?

A:Key opportunities include AV-over-IP expansion, video networking, software tools and broader Dante adoption.

Q: What are the main risks for Audinate?

A:Key risks include competition, technology adoption timing, inventory cycles and the pace of profitability recovery.

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