Audinate : 2026 Half Year Results Report

About this update from Audinate Group Ltd.

Company details Name of entity: Audinate Group Limited ABN: 56 618 616 916 Reporting period: For the half-year ended 31 December 2025 Previous period: For the half-year ended 31 December 2024 Results for announcement to the market $'000 Revenues from ordinary activities Up 12.1% to 32,201 Underlying Earnings Before Interest, Tax, Depreciation and Amortisation ('EBITDA') Down (368.9)% to (2,264) Loss before income tax expense Up 227.0% to (13,983) Loss from ordinary activities after tax expense attributable to the owners of Audinate Group Limited Up 379.4% to (10,580) Loss for the year attributable to the owners of Audinate Group Limited Up 379.4% to (10,580) Dividends No dividends paid, recommended or declared during the current financial period. Review of operations Refer to the 'Review of operations' section of the Directors' report accompanying this Appendix 4D for further commentary. Net tangible assets 31 Dec 2025 30 June 2025 Cents Cents Net tangible assets per ordinary security 105.21 151.99 Net tangible assets is calculated as net assets excluding intangibles as per the statement of financial position. Control gained over entities Name of entities (or group of entities) Iris Studio Inc. (Iris) Date control gained 21 July 2025 From the acquisition date of 21 July 2025 to 31 December 2025, the acquired business contributed revenue of A$0.1 million and loss after tax of A$2.0 million to the Group. Dividend reinvestment plans Not applicable. Audit qualification or review Details of audit/review dispute or qualification (if any): The financial statements were subject to a review by the auditors and the review report is attached as part of the Interim Report. Attachments Details of attachments (if any): The Interim Report of Audinate Group Limited for the half-year ended 31 December 2025 is attached. Signed Authorised by the Board of Directors. Signed Date: 16 February 2026 Alison Ledger Chair Sydney Audinate Group Limited ABN 56 618 616 916 Interim Report - 31 December 2025 Corporate directory 2 Directors' report 3 Auditor's independence declaration 7 Consolidated statement of profit or loss and other comprehensive income 8 Consolidated statement of financial position 9 Consolidated statement of changes in equity 10 Consolidated statement of cash flows 11 Notes to the consolidated financial statements 12 Directors' declaration 22 Independent auditor's review report to the members of Audinate Group Limited 23 Directors Alison Ledger (appointed as chair on 18 August 2025) Aidan Williams John Dyson Roger Price Tim Finlayson Amrita Blickstead David Krall (resigned on 18 August 2025) Company secretary Chris Rollinson Registered office Level 7 64 Kippax Street Surry Hills NSW 2010 Tel: 02 8280 7100 Share register MUFG Corporate Markets (AU) Limited Liberty Place Level 41 161 Castlereagh Street Sydney NSW 2000 Auditor Ernst & Young 200 George Street Sydney NSW 2000 Solicitors Maddocks Level 27 123 Pitt Street Sydney NSW 2000 Stock exchange listing Audinate Group Limited shares are listed on the Australian Securities Exchange (ASX code: AD8) Website https://www.audinate.com The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Audinate Group Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2025. Directors The following persons were directors of Audinate Group Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated: Alison Ledger (appointed as chair on 18 August 2025) Aidan Williams John Dyson Roger Price Tim Finlayson Amrita Blickstead David Krall (resigned on 18 August 2025) Principal activities Audinate Group Limited is a global leader in digital Audio Visual ('AV') networking solutions. The Group's principal activity is the development and sale of AV-over-IP solutions that enable the distribution of high-quality audio and video signals over standard computer networks. At the core of the Group's offering is Dante, a proprietary technology platform that comprises a suite of software, chips, and modules. These components are sold to Original Equipment Manufacturer ('OEM') customers and integrated into a wide range of professional AV products. Dante has become the industry standard for networked audio, enabling interoperability between thousands of devices across hundreds of brands. In addition to supporting OEM partners, Audinate provides a growing portfolio of products and services for AV professionals. This includes hardware such as Dante AVIO adapters, as well as software for network management, device control, and system configuration. The Group's technology is deployed globally across diverse market verticals, including live sound, broadcast, education, corporate, and government. By replacing traditional point-to-point AV connections with scalable, IP-based networking infrastructure, Audinate delivers significant advantages in flexibility, efficiency, and system integration. Dividends No dividends were paid, recommended or declared during the current or previous financial half-year. Review of operations Audinate delivered a first-half performance marked by a return to revenue growth while maintaining strong gross profit margins. During the period, the Group successfully launched Iris's SaaS-based subscription offering, extending the Dante ecosystem into intelligent camera control and cloud-enabled production workflows. Audinate continues to execute its strategy to drive long-term growth across audio, video and control through the ongoing expansion of the Dante platform. Revenue and gross profit - US dollars This section presents an analysis of revenue and gross profit in US dollars, consistent with the currency in which the Group's sales transactions are denominated. Consolidated 31 Dec 2025 31 Dec 2024 Key financial metrics US dollar denominated $'000 $'000 Revenue 21,084 18,873 Gross profit 17,415 15,522 Gross margin% 82.6% 82.2% Audinate delivered revenue of US$21.1 million, representing growth of 12% over the prior corresponding period. Audinate delivered a gross margin of 82.6%, up from 82.2% in the prior corresponding period, reflecting a favourable shift in product mix towards higher margin software-based solutions. Income statement The analysis is presented in Australia dollars, the Group's presentation currency. Consolidated 31 Dec 2025 31 Dec 2024 Income statement $'000 $'000 Revenue 32,201 28,722 Gross profit 26,560 23,685 Gross profit margin 82.5% 82.5% Employment expenses (24,547) (16,611) Sales and marketing expenses (2,736) (2,587) Administration and other operating expenses (4,641) (3,945) Net foreign exchange (loss)/gain (184) 300 Operating costs* (32,108) (22,843) EBITDA (5,548) 842 Restructure costs 769 - Iris - acquisition related payments 2,515 - Underlying EBITDA (2,264) 842 * Operating costs include foreign exchange gains and losses; exclude depreciation and amortisation. Operating costs - continued investment to support long-term growth The Group has continued to invest in core capabilities and product innovation, to ensure that Audinate is well positioned to capture future growth and deliver on our strategic roadmap. Operating costs increased to $32.1 million for the half-year ended 31 December 2025. After adjusting for one off restructuring costs ($0.8 million) and Iris acquisition related expenses ($2.5 million) that are not reflective of underlying performance, underlying operating costs were $28.8 million, compared to $22.8 million for the prior corresponding period, an increase of 26%. Employment expenses increased to $24.5 million for the half-year ended 31 December 2025. After adjusting for Iris acquisition related costs ($2.3 million) and restructuring costs ($0.8 million), employment expenses were $21.5 million, compared to $16.6 million in the prior corresponding period, representing an increase of 29%. 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. During the period, Audinate implemented a number of organisational changes to better align our cost base with our strategic Dante platform objectives. These 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. Sales and marketing expenses rose to $2.7 million, a 6% increase over the prior corresponding period, reflecting higher investment in advertising to support the Iris product launch, and continued investment in a presence at trade shows across key regions. Administration and other expenses rose to $4.6 million, a 18% increase over the prior corresponding period, driven by greater spend on software subscriptions for ISO 27001 certification as well as $0.2 million in acquisition related expenses. Restructure Costs - represent costs incurred to implement organisational changes to better align our cost base with our strategic Dante platform objectives. The benefits of the restructure will be delivered in the second half of the year. Iris acquisition related payments - this cost comprises $2.3 million related to Audinate shares issued at completion and an at-risk earn-out payable subject to defined revenue targets together with $0.2 million in merger and acquisition costs (legal, accounting and tax advice). As payment of the earn-out is contingent on continued employment, these amounts are accounted for as remuneration, reflecting their substance as compensation for future services rather than consideration for the acquired business. EBITDA The directors consider Earnings Before Interest, Tax, Depreciation and Amortisation ('EBITDA') to reflect the core earnings of the Group. EBITDA is a financial measure which is not prescribed by Australian Accounting Standards ('AAS') and represents the profit under AAS adjusted for non-cash and significant items. Underlying EBITDA excludes one off restructuring and acquisition related expenses. The Group's reconciliation of its statutory net profit after tax for the current and previous year to EBITDA is as follows: Consolidated 31 Dec 2025 31 Dec 2024 Income statement $'000 $'000 Loss after income tax benefit for the half-year (10,580) (2,207) Interest income (1,345) (2,407) Interest expense 109 110 Income tax benefit (3,403) (2,069) Depreciation and amortisation 9,671 7,415 EBITDA (5,548) 842 Add: restructure costs and Iris - acquisition related payments 3,284 - Underlying EBITDA (2,264) 842 Underlying EBITDA loss was $2.3 million for the half-year ended 31 December 2025, compared to a gain of $0.8 million in the prior corresponding period. Depreciation and amortisation expenses were $9.7 million, compared to $7.4 million in the prior corresponding period, reflecting increased investment in product development and subsequent amortisation of capitalised development costs. Audinate recognised an income tax benefit of $3.4 million for the half-year ended 31 December 2025, primarily related to the recognition of tax losses, compared to an income tax benefit of $2.1 million in the prior corresponding period. As a result of these movements, the net loss after tax for the half-year ended 31 December 2025 was $10.6 million, compared to a net loss after tax of $2.2 million in the prior corresponding period. Balance sheet and cash flow movements The following table highlights key balances in Audinate's consolidated statement of financial position. The balances are presented in Australian dollars. Consolidated 31 Dec 2025 30 Jun 2025 $'000 $'000 Cash and term deposits 70,879 109,899 Inventories 2,887 4,087 Total current assets 83,542 123,699 Total non-current assets 91,515 58,704 Total assets 175,057 182,403 Total current liabilities 12,279 13,135 Total non-current liabilities 6,238 3,959 Total liabilities 18,517 17,094 Total equity 156,540 165,309 Cash and term deposits - retaining robust cash position Audinate held $70.9 million in cash and term deposits as at half-year ended 31 December 2025, compared to $109.9 million as at 30 June 2025. A key driver for the change in the cash position was the acquisition of 100% of the issued share capital of Iris Studio Inc. (Iris), a US based SaaS remote video production platform on 21 July 2025.Total cash consideration on completion was US$21.2 million (A$32.7 million) less cash received as part of the acquisition of US$1.2 million (A$1.7 million). Significant changes in the state of affairs There were no significant changes in the state of affairs of the Group during the financial half-year other than those disclosed in this interim report. Matters subsequent to the end of the financial half-year No matter or circumstance has arisen since 31 December 2025 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. Rounding of amounts The Company is of a kind referred to in ASIC Corporations Instrument 2016/191, relating to 'rounding-off' of amounts. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar. Auditor's independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out following the Directors' Report. This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the directors Alison Ledger Chair 16 February 2026 Sydney Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au Auditor's independence declaration to the directors of Audinate Group Limited As lead auditor for the review of the half-year financial report of Audinate Group Limited for the half-year ended 31 December 2025, I declare to the best of my knowledge and belief, there have been: No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; No contraventions of any applicable code of professional conduct in relation to the review; and No non-audit services provided that contravene any applicable code of professional conduct in relation to the review. This declaration is in respect of Audinate Group Limited and the entities it controlled during the financial period. Ernst & Young Rachel Rudman Partner 16 February 2026 A member firm of Ernst & Young Global Limited Revenue Sales 4 32,201 28,722 Cost of goods sold (5,641) (5,037) Gross profit 26,560 23,685 Expenses Employee expenses (24,547) (16,611) Sales and marketing expenses (2,736) (2,587) Administration and other operating expenses (4,641) (3,945) Depreciation and amortisation (9,671) (7,415) Total expenses (41,595) (30,558) Operating loss (15,035) (6,873) Net foreign exchange (loss)/gain (184) 300 Finance costs (109) (110) Other income 5 1,345 2,407 Loss before income tax benefit (13,983) (4,276) Income tax benefit 6 3,403 2,069 Loss after income tax benefit for the half-year (10,580) (2,207) Other comprehensive (loss)/income Items that may be reclassified subsequently to profit or loss Foreign currency translation (604) 560 Other comprehensive (loss)/income for the half-year, net of tax (604) 560 Total comprehensive loss for the half-year (11,184) (1,647) Cents Cents Basic loss per share 7 (12.68) (2.65) Diluted loss per share 7 (12.68) (2.65) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes Assets Current assets Cash and cash equivalents 8 12,927 62,099 Term deposits 9 57,952 47,800 Trade and other receivables 10 6,356 6,939 Income tax receivables 82 25 Inventories 2,887 4,087 Other assets 3,338 2,749 Total current assets 83,542 123,699 Non-current assets Property, plant and equipment 1,862 2,223 Right-of-use assets 1,690 2,296 Intangibles 11 68,732 38,609 Deferred tax 6 18,746 15,113 Other assets 485 463 Total non-current assets 91,515 58,704 Total assets 175,057 182,403 Liabilities Current liabilities Trade and other payables 2,589 3,451 Contract liabilities 13 3,737 3,749 Lease liability 984 1,266 Income tax payable 67 43 Employee benefits 4,627 4,354 Other liabilities 12 275 272 Total current liabilities 12,279 13,135 Non-current liabilities Contract liabilities 13 1,920 1,794 Lease liability 1,068 1,428 Deferred tax 6 1,706 37 Employee benefits 1,249 408 Other liabilities 12 295 292 Total non-current liabilities 6,238 3,959 Total liabilities 18,517 17,094 Net assets 156,540 165,309 Equity Contributed capital 14 203,178 202,211 Reserves 15 4,251 3,407 Accumulated losses (50,889) (40,309) Total equity 156,540 165,309 The above consolidated statement of financial position should be read in conjunction with the accompanying notes Contributed capital Reserves Accumulated losses Total equity Consolidated $'000 $'000 $'000 $'000 Balance at 1 July 2024 199,764 4,653 (33,931) 170,486 Loss after income tax benefit for the half-year - - (2,207) (2,207) Other comprehensive income for the half-year, net of tax - 560 - 560 Total comprehensive income/(loss) for the half-year - 560 (2,207) (1,647) Transactions with owners in their capacity as owners: Share-based payments - (152) - (152) Issue of shares - under long term incentive plan 2,241 (2,241) - - Tax credit recognised directly in equity - (627) - (627) Balance at 31 December 2024 202,005 2,193 (36,138) 168,060 Contributed capital Reserves Accumulated losses Total equity Consolidated $'000 $'000 $'000 $'000 Balance at 1 July 2025 202,211 3,407 (40,309) 165,309 Loss after income tax benefit for the half-year - - (10,580) (10,580) Other comprehensive loss for the half-year, net of tax - (604) - (604) Total comprehensive loss for the half-year - (604) (10,580) (11,184) Transactions with owners in their capacity as owners: Share-based payments - 2,423 - 2,423 Issue of shares - under long term incentive plan 967 (967) - - Tax credit recognised directly in equity - (8) - (8) Balance at 31 December 2025 203,178 4,251 (50,889) 156,540 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes Consolidated Note 31 Dec 2025 31 Dec 2024 $'000 $'000 Cash flows from operating activities Receipts from customers (inclusive of GST) 32,630 33,911 Payments to suppliers and employees (inclusive of GST) (34,276) (34,787) Interest received 1,538 2,383 Interest and other finance costs paid (80) (110) Income taxes paid (275) (219) Net cash (used in)/from operating activities (463) 1,178 Cash flows from investing activities Payment for purchase of business, net of cash acquired 18 (30,974) - Payments for property, plant and equipment (333) (1,009) Payments for intangibles (6,356) (5,731) Proceeds from term deposits 38,395 46,349 Investment in term deposits (48,547) (17,781) Net cash (used in)/from investing activities (47,815) 21,828 Cash flows from financing activities Repayment of lease liability (622) (525) Net cash used in financing activities (622) (525) Net (decrease)/increase in cash and cash equivalents (48,900) 22,481 Cash and cash equivalents at the beginning of the financial half-year 62,099 47,842 Effects of exchange rate changes on cash and cash equivalents (272) 329 Cash and cash equivalents at the end of the financial half-year 12,927 70,652 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes Note 1. General information The financial statements cover Audinate Group Limited (the 'Company' or 'parent entity') as a consolidated entity consisting of Audinate Group Limited and the entities it controlled (collectively referred to as the 'Group') at the end of, or during, the financial half-year. The financial statements are presented in Australian dollars, which is Audinate Group Limited's functional and presentation currency. Audinate Group Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Level 7 64 Kippax Street Surry Hills NSW 2010 A description of the nature of the Group's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors, on 12 February 2026. The directors have the power to amend and reissue the financial statements. Note 2. Material accounting policy information These general purpose financial statements for the interim half-year reporting period ended 31 December 2025 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'. These general purpose financial statements are condensed financial statements that do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2025 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The Group has adopted all of the new and amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Group during the financial half-year ended 31 December 2025 and are not expected to have a significant impact for the full financial year ending 30 June 2026. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Note 3. Operating segments Identification of reportable operating segments The Group operates in one segment, based on the internal reports that are reviewed and used by the Chief Executive Officer (who is identified as the Chief Operating Decision Maker) in assessing performance and in determining the allocation of resources. As a result, the operating segment information is as disclosed in the financial statements and notes to the financial statements throughout the report. ‌Note 4. Revenue Consolidated 31 Dec 2025 31 Dec 2024 $'000 $'000 Sales 32,201 28,722 Disaggregation of revenue The disaggregation of revenue from contracts with customers is as follows: Consolidated 31 Dec 2025 31 Dec 2024 $'000 $'000 Chips, cards and modules - units 16,886 15,099 Chips, cards and modules - subscriptions and maintenance 374 291 Software 12,459 11,381 Software - subscriptions and maintenance 2,079 1,353 Other 403 598 32,201 28,722 Timing of revenue recognition Revenue from subscriptions and providing support and maintenance is recognised over the period of time in which the services are provided. All other revenue is recognised when the service or software is provided or the goods are dispatched from the warehouse. ‌Note 5. Other income Consolidated 31 Dec 2025 31 Dec 2024 $'000 $'000 Interest income 1,344 2,407 Other income 1 - 1,345 2,407 ‌Note 6. Income tax The Group incurs an income tax expense in its overseas subsidiaries relating to the net taxable profit generated on services provided to the Group. Consolidated 31 Dec 2025 31 Dec 2024 $'000 $'000 Income tax benefit Current tax 253 269 Deferred tax - origination and reversal of temporary differences (3,706) (2,388) Under provision prior year 50 50 Aggregate income tax benefit (3,403) (2,069) Numerical reconciliation of income tax benefit and tax at the statutory rate Loss before income tax benefit (13,983) (4,276) Tax at the statutory tax rate of 30% (4,195) (1,283) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Research and development incentive benefit (724) (713) Income from controlled foreign companies 109 147 Share-based payments 208 44 Tax deductible amounts in a foreign subsidiary (247) (299) Acquisition related employment expenses 692 - Unrecognised deferred tax on tax losses in acquired foreign subsidiary 263 - Non-deductible expenses 556 89 (3,338) (2,015) Under provision prior year 50 50 Other (115) (104) Income tax benefit (3,403) (2,069) Consolidated statement of profit and loss Consolidated statement of financial position 31 Dec 2025 31 Dec 2024 31 Dec 2025 30 June 2025 $'000 $'000 $'000 $'000 Deferred tax asset (net) is made up of: Carried forward tax losses 2,399 2,502 16,132 13,750 Provisions 107 (1,046) 1,194 1,113 Share-based payments (34) (715) 297 340 Lease liabilities (165) (149) 495 669 Capital blackhole expenditure (73) (89) 379 451 Unearned revenue 66 298 1,495 1,430 Trade and other payables (127) 17 72 200 Intangible assets 1,243 1,231 (2,257) (1,833) Right-of-use assets 156 160 (412) (576) Property, plant and equipment 41 94 (108) (142) Unrealised foreign exchange losses 24 (203) 84 60 Trade and other receivables 58 199 (445) (504) Other 11 89 114 118 3,706 2,388 17,040 15,076 Note 6. Income tax (continued) Consolidated 31 Dec 2025 30 Jun 2025 $'000 $'000 Deferred tax asset 18,746 15,113 Deferred tax liability (1,706) (37) Net deferred tax asset 17,040 15,076 Consolidated 31 Dec 2025 31 Dec 2024 $'000 $'000 Loss after income tax (10,580) (2,207) Note 7. Earnings per share ‌Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 83,427,048 83,279,589 Weighted average number of ordinary shares used in calculating diluted earnings per share 83,427,048 83,279,589 Cents Cents Basic loss per share (12.68) (2.65) Diluted loss per share (12.68) (2.65) Performance rights over ordinary shares were excluded from the calculation of the weighted average number of ordinary shares used in calculating diluted earnings per share due to being anti-dilutive, as the Group reported a loss for both periods. ‌Note 8. Cash and cash equivalents Consolidated 31 Dec 2025 30 Jun 2025 $'000 $'000 Current assets Cash at bank 12,927 17,497 Cash on deposit - 44,602 12,927 62,099 ‌Note 9. Term deposits Consolidated 31 Dec 2025 30 Jun 2025 $'000 $'000 Current assets Term deposits 57,952 47,800 57,952 47,800 Current term deposits represent term deposits with a maturity date of between three months and one year from the date of acquisition. ‌Note 10. Trade and other receivables Consolidated 31 Dec 2025 30 Jun 2025 $'000 $'000 Current assets Trade receivables 4,018 4,099 Less: Allowance for expected credit losses (7) (10) 4,011 4,089 Other receivables 2,345 2,850 6,356 6,939 Allowance for expected credit losses The Group has recognised a reversal of $3,000 (31 December 2024: expense of $16,000) in the income statement in respect of the expected credit losses for the half-year ended 31 December 2025. ‌Note 11. Intangibles Consolidated 31 Dec 2025 30 Jun 2025 $'000 $'000 Non-current assets Goodwill - at cost 34,753 10,131 Development costs 72,879 67,193 Less: Accumulated amortisation (47,526) (40,360) 25,353 26,833 Iris platform - at cost 8,404 - Less: Accumulated amortisation (1,164) - 7,240 - Intellectual property 942 879 Less: Accumulated amortisation (785) (737) 157 142 Customer contracts - at cost 780 780 Less: Accumulated amortisation (692) (604) 88 176 Software - at cost 1,761 2,448 Less: Accumulated amortisation (620) (1,121) 1,141 1,327 68,732 38,609 Note 11. Intangibles (continued) Reconciliations Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below: Develop- ment Iris Intellectual Customer Goodwill costs platform property contracts Software Total Consolidated $'000 $'000 $'000 $'000 $'000 $'000 $'000 Balance at 1 July 2025 10,131 26,833 - 142 176 1,327 38,609 Additions - 5,688 707 63 - 33 6,491 Additions through business combinations (note 18) 24,700 - 7,922 - - - 32,622 Foreign exchange differences (78) - (225) - - - (303) Amortisation expense - (7,168) (1,164) (48) (88) (219) (8,687) Balance at 31 December 2025 34,753 25,353 7,240 157 88 1,141 68,732 Iris platform costs Iris platform costs are capitalised when it is probable that the project will be a success considering its commercial and technical feasibility; the Group is able to use or sell the asset; the Group has sufficient resources and intent to complete the development; and its costs can be measured reliably. Iris platform costs are amortised, commencing from the time the asset's development reaches the condition necessary for it to be capable of operating in the manner intended by management. Amortisation is calculated on a straight-line basis over the period of the expected benefit, being the finite useful life of 3 years. ‌Note 12. Other liabilities Consolidated 31 Dec 2025 30 Jun 2025 $'000 $'000 Current liabilities Liabilities at amortised cost 275 272 Non-current liabilities Liabilities at amortised cost 295 292 570 564 Note 13. Contract liabilities ‌Consolidated 31 Dec 2025 30 Jun 2025 $'000 $'000 Current liabilities Contract liabilities - customer prepayments 672 778 Contract liabilities - deferred revenue 3,065 2,971 3,737 3,749 Non-current liabilities Contract liabilities - deferred revenue 1,920 1,794 5,657 5,543 ‌Note 14. Contributed capital Fully paid ordinary shares Consolidated 31 Dec 2025 30 Jun 2025 31 Dec 2025 30 Jun 2025 Shares Shares $'000 $'000 Ordinary shares - fully paid 83,459,371 83,362,982 203,178 202,211 Ordinary shares Ordinary shares entitle the holder to participate in any dividends declared and any proceeds attributable to shareholders should the Company be wound up, in proportions that consider both the number of shares held and the extent to which those shares are paid up. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital. Every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. On 21 July 2025, the Group issued 869,167 shares in connection with the Iris acquisition. These shares are held in escrow and vest in three equal annual tranches in 2026, 2027 and 2028, subject to the continued service of the key employees. Further information is provided in note 18. Share buy-back There is no current on-market share buy-back. Movements in ordinary share capital Details Date Shares Price $'000 Balance 1 July 2025 83,362,982 202,211 Issue of shares - vesting of performance rights 29 August 2025 23,281 $13.95 325 Issue of shares - vesting of performance rights 29 August 2025 42,818 $9.81 420 Issue of shares - vesting of performance rights 29 August 2025 15,818 $9.64 152 Issue of shares - vesting of performance rights 16 September 2025 14,472 $4.81 70 Balance 31 December 2025 83,459,371 203,178 The price for performance rights disclosed in the table above represents fair value of the right at grant date. Note 15. Reserves ‌Consolidated 31 Dec 2025 30 Jun 2025 $'000 $'000 Foreign currency reserve 304 908 Share-based payments reserve 3,947 2,499 4,251 3,407 Foreign currency reserve The reserve is used to recognise exchange differences arising from the translation of the financial statements of foreign operations to Australian dollars. Share-based payments reserve The reserve is used to recognise the value of equity benefits provided to employees as part of their remuneration, and other parties as part of their compensation for services. Note 15. Reserves (continued) Movements in reserves Movements in each class of reserve during the current financial half-year are set out below: Foreign Share-based currency payments Total Consolidated $'000 $'000 $'000 Balance at 1 July 2025 908 2,499 3,407 Foreign currency translation (604) - (604) Share-based payments - 2,423 2,423 Issue of shares on vesting of performance rights - (967) (967) Tax credit recognised directly in equity - (8) (8) Balance at 31 December 2025 304 3,947 4,251 Note 16. Dividends There were no dividends paid, recommended or declared during the current or previous financial half-year. Note 17. Contingent liabilities Other than the deferred contingent payment referred to in note 18, the Group has no contingent liabilities at 31 December 2025 and 30 June 2025. ‌Note 18. Business combinations On 21 July 2025, Audinate acquired 100% of the issued share capital of Iris Studio Inc. (Iris), a US based SaaS remote video production platform. The acquisition expands the Group's video capabilities and supports its strategy of interoperable audiovisual control and management. The provisional fair values of the identifiable assets and liabilities of Iris as at the date of acquisition were: Provisional fair value recognised on acquisition $'000 Cash and cash equivalents 1,699 Other receivables 27 Plant and equipment 12 Intangible assets 7,922 Trade payables (17) Deferred tax liability (1,670) Total identifiable net assets acquired 7,973 Goodwill 24,700 Purchase consideration transferred 32,673 Cash used to acquire business, net of cash acquired: Cash consideration paid 32,673 Less: cash and cash equivalents (1,699) Net cash used 30,974 Note 18. Business combinations (continued) Contingently issued shares Audinate agreed to issue shares in Audinate Group Limited with a fair value of US$4.0 million (A$6.1 million) to certain Iris employee vendors ("key employees"), subject to a service condition. The shares vest in three equal tranches contingent on the key employees' continued service, with vesting occurring annually in 2026, 2027 and 2028. As the arrangement is contingent on continued employment, it has been accounted for as a share-based payment in accordance with AASB 2 - 'Share-based Payment'. The expense is recognised over the relevant service period, with a corresponding increase in equity, and is excluded from the consideration transferred and goodwill under AASB 3 - 'Business Combinations'. For the half-year ended 31 December 2025, an expense of A$1.42 million has been recognised in the statement of profit or loss. Deferred contingent payment In addition, Audinate agreed to pay deferred cash amounts to the vendors comprising the key employee group in 2028. The arrangement includes a base retention payment of US$1.3 million, payable if Iris achieves cumulative revenues of US$10.0 million, plus an additional payment equal to 0.54 cents per dollar of incremental revenue above US$10.0 million, capped at a maximum total payment of US$4.0 million. Payment is subject to the key employees remaining in continuous service until 2028. As the deferred payment is conditional on continued employment, it has been accounted for as a long-term employee benefit in accordance with AASB 119 - 'Employee Benefits'. The liability is recognised over the relevant service period and is excluded from the consideration transferred and goodwill under AASB 3. The liability is included in the employee benefits (non-current) in the statement of financial position. The probability-weighted estimate of the obligation is reassessed at each reporting date, with changes recognised in profit or loss. The amount recognised is measured based on management's assessment of the probability that Iris will achieve the estimated cumulative revenue targets, using board-approved budgets as the primary input. The expected payment is discounted over the remaining service period using a cost of debt of 5.8% per annum. For the half-year ended 31 December 2025, an expense of A$0.9 million has been recognised in the statement of profit or loss. There are no changes in assumptions between the acquisition date and 31 December 2025, as a result no re-measurement adjustments were recognised in the statement of profit or loss on 31 December 2025. Goodwill Goodwill recognised on acquisition primarily relates to the skills, experience and continued employment of key management personnel, including the value of the assembled workforce, established distribution and referral arrangements with OEMs, resellers and a white-label partner, and expected future sales from Iris's customer base following the acquisition. Goodwill is not deductible for tax purposes. Revenue and profit contribution From the acquisition date of 21 July 2025 to 31 December 2025, the acquired business contributed revenue of A$0.1 million and loss after tax of A$2.0 million to the Group. Acquisition related costs Acquisition-related costs of A$0.2 million, which were not directly attributable to the issue of shares, have been recognised within administrative and other operating expenses in the statement of profit or loss for the half-year ended 31 December 2025 and are included within operating cash flows in the statement of cash flows. Note 19. Interests in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2: Ownership interest Principal place of business / 31 Dec 2025 30 Jun 2025 Name Country of incorporation % % Audinate Holdings Limited Australia 100.00% 100.00% Audinate Pty Limited Australia 100.00% 100.00% Audinate, Inc. United States of America 100.00% 100.00% Audinate Limited United Kingdom 100.00% 100.00% Audinate Limited Hong Kong 100.00% 100.00% Audinate Belgium SRL Belgium 100.00% 100.00% Audinate Group Limited Employee Share Plan Trust Australia 100.00% 100.00% Iris Studio Inc. (Iris)* United States of America 100.00% - * Acquired on 21 July 2025. Refer to note 18 for further details. Note 20. Events after the reporting period No matter or circumstance has arisen since 31 December 2025 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. In the directors' opinion: ● the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements; ● the attached financial statements and notes give a true and fair view of the Group's financial position as at 31 December 2025 and of its performance for the financial half-year ended on that date; and ● there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001. On behalf of the directors Alison Ledger Chair 16 February 2026 Sydney Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001 Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au Independent auditor's review report to the members of Audinate Group Limited Conclusion We have reviewed the accompanying half-year financial report of Audinate Group Limited (the Company) and its subsidiaries (collectively the Group), which comprises the consolidated statement of financial position as at 31 December 2025, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, explanatory notes and the directors' declaration. Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of the Group does not comply with the Corporations Act 2001 , including: Giving a true and fair view of the consolidated financial position of the Group as at 31 December 2025 and of its consolidated financial performance for the half-year ended on that date; and Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . Basis for conclusion We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the Auditor's responsibilities for the review of the half-year financial report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants ( including Independence Standards) (the Code) that are relevant to review of the half-year financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. Directors' responsibilities for the half-year financial report The directors of the Company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor's responsibilities for the review of the half-year financial report Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group's financial position as at 31 December 2025 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Ernst & Young Rachel Rudman Partner Sydney 16 February 2026

View stock analysis, news, and events for Audinate Group Ltd.