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 LimitedAs 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 LimitedConclusion
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