Audinate : 2026 Half Year Results Presentation

About this update from Audinate Group Ltd.

‌Audinate 1H FY26 Investor Presentation Aidan Williams, Co-Founder and Chief Executive Officer Nick Peace, Chief Strategy Officer Chris Rollinson, Chief Financial Officer Approved by the Board of Audinate Group Limited Audinate 1H26 Investor Presentation 16 February 2026 1 ‌Audinate 1H26 Highlights Aidan Williams, CEO Audinate 1H26 Investor Presentation 16 February 2026 2 ‌Return to Revenue Growth in 1H FY26; Extends market leading position 1H FY26 Return to Growth Continued growth in Dante platform Commercial launch of Iris video production platform 12% growth v PCP 1H25 Strong bookings in the first half, supporting the achievement of FY26 full year outlook Growth in Adaptor products driven by release of 'AVIO for installation' products Maintained strong Gross Profit Margin of 82.6%, driven by a favourable product mix between hardware and high margin software products 66 Design wins, an increase of 8% compared to PCP 1H25- strengthening the foundation for future revenue expansion 516 AV products in market, with OEMs launching 207 OEMs currently developing new products, driving further adoption Over 4,000 AV professionals trained globally each month Iris is a cloud-first video platform launched publicly in early December 2025 In FY26, we will invest in go-to-market and product development to drive adoption and scale ‌Executing against the Strategy Organisational changes Robust balance sheet Dante's strategic evolution Audinate implemented a number of organisational changes to better align our cost base with our strategic Dante platform objectives The actions reflect the natural progression of the Company's investment cycle, with several major initiatives now complete. The transition from the build phase supports a more efficient cost structure and enables a disciplined reinvestment into targeted growth opportunities, while preserving long-term platform capability A$70.9 million in cash and term deposit at period end post-Iris acquisition, providing strong financial capacity and strategic flexibility Ongoing investment to support product development and future growth Robust balance sheet enables continued investment without compromising financial stability Strengthened internal capability through senior product and engineering hires with deep professional AV industry experience Ongoing evolution of Dante platform ‌1H26 Highlights - Key financial metrics 1H26 - 12% revenue growth versus 1H25 Key US$ Metrics 1H25 1H26 Variance vs 1H25 US$ M US$ M US$ Revenue 18.9 21.1 12% US$ Gross Profit 15.5 17.4 12% US$ Gross Margin % 82.2% 82.6% 0.4pp Key Financial Metrics 1H25 1H26 Variance vs 1H25 A$ M A$ M Revenue 28.7 32.2 12% Gross Profit 23.7 26.6 12% Underlying EBITDA 0.8 (2.3) Cash & Term Deposits 111.3 70.9 US$m Gross Profit and Gross Margin% $22.7 $21.8 $14.5 $18.9 $15.5 $17.4 $17.4 70.4% 72.3% 71.5% 82.2% 82.0% 82.6% 76.9% 1H23 2H23 1H24 2H24 1H25 2H25 1H26 Gross Margin $ Gross Margin % ‌Product Portfolio Performance Growth achieved across all product categories Revenue by Product US$M 1H25 1H26 Variance vs 1H25 CCM Adaptors 2.9 4.3 51% CCM Embedded CCM 7.2 7.0 (4%) Software Embedded Software 6.0 6.9 17% Total Embedded Components 13.2 13.9 5% Software Platform Software 2.4 2.6 9% Other Other 0.4 0.3 - Total 18.9 21.1 12% Adaptors revenue increased 51%, supported by the launch of 'Dante AVIOs for Installation' - a next-gen, Pro S1-based adaptor targeting the professional installer market Embedded Chips, Cards & Modules (CCM) revenue reduced 4% driven by lower demand for Brooklyn & Ultimo driven by the continued transition to embedded software implementations Embedded Software revenue grew 17%, underpinned by increased OEM adoption of Dante IP Core. Delivered on-demand, this embedded software reduces lead times and provides resilience against channel inventory cycles Platform Software grew 9%, supported by growing uptake of DVS Pro and early customer wins for Dante Director, our cloud-based AV management tool. Iris contribution of $0.1 million in the first half Design Wins 1H23 2H23 1H24 2H24 1H25 2H25 1H26 53 61 61 64 66 68 78 ‌OEM Design Wins through Product Launch OEM Brands shipping & developing Dante-enabled Products Developing product Shipping product 723 649 684 583 621 520 538 490 516 460 476 391 400 430 129 138 153 161 173 194 207 1H23 2H23 1H24 2H24 1H25 2H25 1H26 516 OEM brands have announced products in the market 207 OEM brands currently developing new Dante-enabled products In total 723 OEM brands have licensed Dante (includes OEMs shipping & and developing products, ODMs and parent brands) Dante-enabled Products Ecosystem 1H23 2H23 1H24 2H24 1H25 2H25 1H26 Product ecosystem includes 4,947 Dante-enabled products and growing, with OEMs launching 344 new products during the half year, driving further adoption 3,688 3,853 4,008 4,176 4,372 4,603 4,947 ‌Audinate 1H26 Financial Performance Chris Rollinson, CFO Audinate FY25 Investor Presentation 16 February 2026 9 (A$'000) 1H25 1H26 Change (%) Revenue 28,722 32,201 12% Gross profit 23,685 26,560 12% Gross margin % 82.5% 82.5% Employee expenses (16,611) (21,483) (29%) Sales & marketing expenses (2,587) (2,736) (6%) Other operating expenses (3,645) (4,605) (26%) Operating expenses * (22,843) (28,824) (26%) Underlying EBITDA 842 (2,264) (369%) Restructuring costs - (769) - Iris - Acquisition related payments - (2,515) - Reported EBITDA 842 (5,548) (758%) Depreciation & amortisation (7,415) (9,671) (30%) EBIT (6,573) (15,219) (132%) Net Interest income 2,297 1,236 (46%) (Loss) / profit before tax (4,276) (13,983) (227%) Income tax benefit 2,069 3,403 64% (Loss) / profit after tax (2,207) (10,580) (380%) ‌Income Statement Operating Expenses * Operating costs include foreign exchange gains and losses; exclude depreciation and amortisation, one off restructuring and acquisition related expenses that are not reflective of underlying performance. Revenue increased 12% to U$21.1 million, translated to A$ revenue increasing 12% to A$32.2 million Employee expenses The increase in underlying employment expenses primarily reflects the acquisition of Iris ($0.5 million); higher variable, performance-related incentive costs ($2.7 million); and the remaining increase driven by increases in headcount during the second half of FY25, to support the continued expansion of the Dante ecosystem. Sales & marketing expenses continued investment in a presence at trade shows across key regions Other operating expenses reflect increased software subscriptions to support ISO 27001 certification Net capitalised development costs - operating expenses are shown net of internal costs capitalised in relation to the development of future revenue-generating products. Capitalised development expenditure for 1H FY26 was $6.0 million, including $0.7 million relating to Iris (1H FY25: $4.7 million). Iris - Acquisition related payments Iris - this cost comprises Audinate shares issued at completion and an at-risk earn-out payable subject to defined revenue targets Depreciation and amortisation reflect increased investment in product development and subsequent amortisation of capitalised development costs. Iris impact of $1.2 million in 1H26. Net interest income reflecting reduced cash balances driven the payment for the Iris acquisition in July 2025. ‌Balance Sheet (A$'000s) 30-Jun-25 31 -Dec-25 Cash 62,099 12,927 Term deposits 47,800 57,952 Trade and other receivables 6,939 6,356 Inventories 4,087 2,887 Other assets 2,749 3,338 Income tax receivable 25 82 Property, plant and equipment 2,223 1,862 Right-of-use assets 2,296 1,690 Intangibles 38,609 68,732 Deferred tax asset 15,113 18,746 Other current & non-current assets 463 485 Total assets 182,403 175,057 Trade and other payables 3,451 2,589 Contract liabilities 5,543 5,657 Income tax payable 43 67 Employee benefits & other provisions 4,762 5,876 Other liabilities 564 570 Deferred tax liability 37 1,706 Lease liabilities 2,694 2,053 Total liabilities 17,094 18,517 Net assets 165,309 156,540 Contributed capital 202,211 203,178 Reserves 3,407 4,251 Accumulated losses (40,309) (50,889) Total equity 165,309 156,540 Cash & Term deposits of $70.9 million at half year end, compared to $109.9 million at 30 June 2025. Reduction of $39.0 million driven by acquisition payment for Iris in July 2025. Inventory levels reduced, reflecting inventory management. Intangible assets primarily comprise capitalised development costs ($32.6 million) and increased goodwill ($34.8 million), driven by the Iris acquisition. Deferred tax asset includes $18.6 million in Australian tax losses, carried forward in accordance with applicable tax legislation. Trade and other payables reduced due to lower contract manufacturing purchases Employee benefits & other provisions reflect standard accruals for employee entitlements and related obligations. Other liabilities include earnout liability relating to the Iris acquisition Accumulated Losses includes the $18.5 million accounting impact from fair value treatment of preference shares at IPO, and the 1H26 net loss of ($10.6 million). ‌Cash-flow Statement 1H26 Operating Cashflow to EBITDA Bridge Reported EBITDA ($5.5m) Reverse non-cash Share-based payments $2.4m Reverse non-cash acquisition employment cost $0.9m Interest received $1.5m Investment in working capital/other $0.2m Cash from operating activities ($0.5m) (A$'000) 1H25 1H26 Receipts from Customers * 33,911 32,630 Payments to suppliers and employees * (34,787) (34,276) Interest received 2,383 1,538 Interest paid (110) (80) Income Tax Paid (219) (275) Operating activities 1,178 (463) Payments for property, plant and equipment * (1,009) (333) Payment for intangible assets * (5,731) (6,356) Payment for acquisition of business - (30,974) Investment in Term Deposits 28,568 (10,152) Investing activities 21,828 (47,815) Principal elements of lease payments * (525) (622) Financing activities (525) (622) Effects of exchange rate changes on cash and cash equivalent 329 (272) Net increase / (decrease) in cash 22,481 (48,900) Free Cash Flow (sum of * ) (8,141) (8,957) Payments for intangible assets primarily represent Development Costs of $6.4 million in 1HFY26 ($5.7 million: 1HFY25) Payments for acquisition of Iris business Investment in term deposits with greater than 3 months maturity moved to short term cash deposit accounts Free cash outflow of ($9.0 million) in 1H26 compared to ($8.1 million) in 1H25. ‌Audinate 1H26 Strategy & Outlook Aidan Williams, CEO Audinate FY25 Investor Presentation 16 February 2026 13 ‌World-leading technology supplier to Pro-AV Audinate is the company behind the Dante media networking solution used in the professional AV industry 14x Market adoption of closest competitor Professionals >316k trained on Dante 723 Total OEM brands licensing Dante products Dante-enabled products Dante is in millions of devices and can be found in a diverse range of installations and applications across industries, including: 4,937 Universities Conference Rooms Broadcast Studios Corporate Campuses Houses of Worship Arenas and Stadiums Recording Studios Conference Centres Transportation Amusement Parks 8 Languages supported 13 Locations 220 Employees Zoos Theatres Audinate 1H26 Investor Presentation 16 February 2026 14 ‌Iris Studio Inc. US-based SaaS Platform for Remote Video Production and AV Control 1 2 3 4 STRATEGIC ROLE PRODUCT PROGRESS COMMERCIAL TRACTION FY26 FOCUS Extending Audinate into cloud-based video workflows Iris brings cloud-native video control and production functionality that complements Dante audio networking Expands Audinate's relevance across video led use cases including broadcast, education, enterprise production and live production From early platform to production-ready SaaS Browser-based, manufacturer-agnostic platform enabling remote monitoring and control of AV devices Commercial platform live with advanced camera control and cloud production capabilities AI-enabled features deployed including auto-tracking, colour correction, and intelligent video workflows Platform stability, scalability and security materially enhanced since acquisition Early customers validating product- market fit White-label deployments live with select partners; commercial SaaS offering in market Early adoption across multiple customer segments SaaS delivering recurring revenue model Go to market leverages Audinate's existing OEM and channel relationships Iris remains immaterial to group revenue today but demonstrates clear scale potential Disciplined execution and scalable growth Build out Go to Market capability and drive customer adoption Expand partner led deployments and repeatable use cases Continue product iteration driven by customer feedback and real-world deployments Deepen integration between Iris and the Dante ecosystem Maintain disciplined investment while positioning Iris for long term contribution to software growth Audinate 1H26 Investor Presentation 16 February 2026 15 ‌FY26 Priorities: Return to Growth 1 Ecosystem Expansion: Accelerate growth in Dante-enabled devices to scale network effects and extend platform reach 2 Integrated Solutions: Deliver seamless experiences for key use cases to deepen customer engagement and drive adoption 3 Iris Market Launch: Support the successful market entry of Iris through coordinated go-to-market strategies and continued product development 4 Dante Director Evolution: Advance Dante Director functionality and commercial focus, with a targeted push into enterprise network management ‌FY26 Outlook: Executing Growth Strategy Long-term strategic thesis for Audinate remains strong Gross Profit Growth : Audinate's FY26 full-year outlook is for US-dollar gross profit growth of 13-15% over FY25, underpinned by strong forward orders secured in 1H FY26 Stable Gross Margins : Gross margin percentage expected to remain broadly in line with FY25, supported by a shift toward high-margin software revenue Iris Platform Launch: Launched Iris platform in 1H FY26; with continued investment in go-to-market and development to drive platform adoption and scale planned for 2H FY26 Investment in Strategic Opportunities: Operating costs for FY26 were previously indicated to increase by 25% over FY25, reflecting continued investment in strategic initiatives including Iris, Dante Director and the broader Dante platform. Following organisational changes made in the first half, operating cost growth is now expected to be 20% over FY25 Strong Balance Sheet : FY26 free cash flow expected to be negative, reflecting the purchase of Iris and planned strategic investments. Audinate's strong balance sheet provides flexibility to fund these strategic initiatives Future Growth Foundation: These investments are expected to enable meaningful revenue contribution in future years and reinforce Audinate's leadership position in AV-over-IP " " ‌Audinate is positioned at the forefront of the global AV industry's shift from proprietary hardware to IP-based, software-driven solutions, and is well placed to drive the next phase of industry transformation. Aidan Williams, Co-founder and CEO. ‌Audinate Pty Ltd ABN 41 120 828 006 Level 7, 64 Kippax Street Surry Hills NSW 2010 +61 2 8090 1000 https://www.audinate.com ‌Important Notice and Disclaimer Disclaimer To the maximum extent permitted by law, none of the Audinate Group Limited or its subsidiaries or their directors, employees or agents accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied, is given as to the accuracy, completeness or correctness, likelihood of achievement of reasonableness of any forecasts, prospects, statements or returns contained in this presentation. Such forecasts, prospects, statements or returns are by their nature subject to significant uncertainties and contingencies. Actual future events may vary from those included in this presentation. Summary information This presentation is for information purposes only is not a recommendation or advice in relation to Audinate or any product or service offered by Audinate or any of its subsidiaries. The information in the presentation is of a general nature only and is not intended to be relied upon as advice to investors or potential investors. Currency All amounts in this presentation are in Australian dollars unless otherwise stated. Past performance Past performance information, including past share price information, given in this presentation is given for illustrative purposes only and should not be relied upon as an indication of future performance. Future performance Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Financial information Certain financial data included in this presentation is 'non IFRS financial information.' These measures are used internally by management to assess the performance of the business and make decisions on the allocation of resources and are included in this presentation to provide greater understanding of the underlying financial performance of the Group's operations. When reviewing business performance, this non-IFRS information should be used in addition to, and not as a replacement of, measures prepared in accordance with IFRS. Readers are cautioned not to place undue reliance on any non-IFRS financial information and ratios included in this presentation. The non-IFRS information has not been subject to audit or review by Audinate's external auditor. The non-IFRS measures do not have any standard definition under IFRS and may be calculated differently by other companies. Market share information All market share information in this presentation is based on management estimates and internally available information, unless otherwise indicated. No offer of securities Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell Audinate securities in any jurisdiction. Reliance on third party information The views expressed in this presentation contain information that has been derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This presentation should not be relied upon as a recommendation or forecast by Audinate. ‌1H26 Highlights - Return to revenue growth Both CCM & Software growing in 1H26 compared to 1H25 45% US$ M Revenue by Product 1H25 1H26 Variance vs 1H25 CCM 10.1 11.3 12% Software 8.3 9.5 14% Other 0.4 0.3 (39%) US$ Revenue 18.9 21.1 12% Revenue Mix by Product - 1H25 v 1H26 44% 54% 54% 1H25 1H26 CCM Software Other ‌R&D Costs Driver of future revenue growth Capitalised development costs deliver new products and enhancements to existing products to drive sustained revenue growth. Development costs are built up form a combination of internal resources and external resources Increase in development costs driven by Iris acquisition in July 2025. Development Costs (A$'000) 1H25 1H26 Change (%) Development Costs (capitalised) 5,763 6,395 11% Research Costs (expensed) 1,500 2,255 50% Total R&D Costs 7,263 8,650 19% % of Revenue 25% 27% ‌Evolving Product Mix Transition from CCM-based revenue to higher-margin software offerings Revenue (US$'M) $26.2 $30.4 $29.6 Dante Units Shipped ('000s) 744 646 230 683 549 546 $20.6 $6.9 $7.3 $8.0 $18.9 $21.2 $21.1 418 290 321 484 $4.7 $19.0 $22.7 $21.1 $8.8 $9.5 $8.3 180 514 301 306 341 $15.6 $10.1 $12.0 $11.3 238 357 362 183 243 205 1H23 2H23 1H24 2H24 1H25 2H25 1H26 CCM Software Other 1H23 2H23 1H24 2H24 1H25 2H25 1H26 CCM Software CCM includes Brooklyn 3, Ultimo, Broadway, Dante AV Ultra, Viper & AVIO Network Adaptors Software includes Dante Domain Manager (DDM), Dante Cloud, AV software tools (Dante Studio, Dante Virtual Soundcard, Via), Dante Embedded Platform (DEP), Dante Application Library, Dante Ready, IP Core and Dante AV-H, Reference designs ‌Product Portfolio Performance The change in product classification better reflects the revenue drivers of the business Category Description Audinate Products Sales Channel Revenue Model Adaptors Hardware product converting existing analogue CCM device into a Dante enabled device AVIO, Dante AVIOs for Installation Distribution Partner Unit Price Embedded - CCM Hardware products embedded into AV devices to enable transport of AV signals Brooklyn, Ultimo, Broadway, Pro S1 OEM Unit Price, Subscription Embedded -Software Software based products embedded into AV IP Core, DEP, DAV OEM devices to enable transport of AV signals Unit Price (Royality), Subscription Software Platform Software Software applications that integrate Dante products into other systems and for monitoring, configuration, and control. A centralised platform for managing networked AV devices Iris, DVS, Dante Studio, Dante Connector, Dante Director, Dante Domain Manager Direct, Distribution Partner, Enterprise, Integrator Direct Term License, Subscription Other Other Revenue Training, certification and consulting services Training and consulting OEM Unit price ‌OEM Design Wins Drive Future Revenue Growth Pre-sales Design wins are a key step in the OEM sales cycle DESIGN WIN Customer commits to use Dante in new products OEM Product Design From design win to product release takes 18-24 months Buy Prototype Dante Units Release New Product OEM Manufactures more AV products OEM buys more Dante R R E e P p E ea A t T R R E e V v E e N nu U e E OEM sells Dante-enabled AV products OEM buys more Dante Once a new Dante-enabled product is released the OEM keeps buying more Dante units as long as they keep selling their product units M M O o D de E l L units Dante units may be in the form of chips, cards, modules or software OEM sells more Dante-enabled AV products OEM Manufactures more AV products 16 February 2026

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