Earnings call transcript: Audinate jumps 13% after FY 2026 return to growth

Audinate's FY 2026 financial results reflected a return to growth after a challenging prior year, according to the company's earnings call transcript. Revenue increased 9% in Australian dollar terms to AUD 68 million, or approximately $46 million, while gross profit growth accelerated in the second half as inventory destocking eased.

The company's Dante audio networking platform remained the foundation of its business, described as a de facto industry standard, while growth also came from embedded components, installed products, and software and services. Management highlighted that the second half of FY 2026 outperformed the first half, due to the end of inventory destocking among OEM customers.

Revenue in FY 2026 rose 9% in AUD terms and 15% in USD terms, with gross profit growth of 15%, and gross margin at 81.9%, slightly down from 82.3% in FY 2025. Underlying EBITDA reported a loss of AUD 3.6 million, compared to a profit of AUD 0.7 million in FY 2025. Operating cash flow was AUD 1.2 million, down from AUD 7.4 million in FY 2025.

The company expects FY 2027 to bring flat operating costs, better operating leverage, and improved cash flow, with most growth expected from the core business, particularly embedded components, rather than new revenue lines.