Audinate Group Ltd. (AU:AD8)
ASX:AD8
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Audinate Group
(Sydney:AD8)
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Rating:51Neutral
Price Target:
AU$2.50
▼(-2.34% Downside)
Action:ReiteratedDate:03/25/26
The score is held back primarily by weak financial profitability (revenue decline and losses) and bearish technicals (price below key moving averages with negative MACD). Offsetting these, the earnings call points to improving growth momentum and tighter cost guidance, while valuation remains constrained by negative earnings and no dividend yield data.
Positive Factors
High Gross Margin
Sustained ~82% gross margins, driven by a software-heavy mix, provide durable operating leverage. High margins protect profitability as revenue scales, support reinvestment in product and platform development, and increase the potential for converting incremental sales to long-term cash generation.
Negative Factors
Revenue Decline & Negative Net Margin
A material revenue decline combined with negative net margins indicates structural pressure on top-line demand and insufficient operating profitability. Unless revenue recovery stabilizes, persistent losses could erode equity returns and constrain reinvestment capacity over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margin
Sustained ~82% gross margins, driven by a software-heavy mix, provide durable operating leverage. High margins protect profitability as revenue scales, support reinvestment in product and platform development, and increase the potential for converting incremental sales to long-term cash generation.
Read all positive factors
Audinate Group (AD8) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$215.88M
Dividend YieldN/A
Average Volume (3M)477.32K
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue Growth-32.15%
EPS Growth-161.25%
CountryAU
Employees226
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.13
Shares Outstanding84,328,560
10 Day Avg. Volume315,656
30 Day Avg. Volume477,323
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)3.77
Price to Sales (P/S)10.03
P/FCF Ratio101.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$5.23Price Target Upside104.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.2
Revenue Forecast (FY)AU$67.91M
Audinate Group Business Overview & Revenue Model
Company Description
Audinate Group Limited develops and sells digital audio visual (AV) networking solutions in Australia and internationally. It provides Dante, a technology platform that distributes digital audio and video signals over computer networks to original...
How the Company Makes Money
Audinate primarily makes money by licensing its Dante networking technology to AV equipment manufacturers (OEMs) and selling Dante-enabled solutions that are incorporated into third-party hardware and software ecosystems. Key revenue streams inclu...
Audinate Group Earnings Call Summary
Earnings Call Date:Feb 15, 2026
(Q2-2026)
| Next Earnings Date:Aug 24, 2026
Earnings Call Sentiment Positive
The call presents solid commercial momentum: double-digit revenue growth (+12%), very high gross margins (~82.5%), expanding design wins and a growing product ecosystem and installed base. Management is actively executing a platform strategy (Iris acquisition, Dante Director) and has revised FY26 OpEx guidance downward to reflect cost actions. Offsetting these positives are meaningful near-term cost and cash impacts: operating expenses and employment costs rose sharply, underlying EBIT swung to a loss, free cash flow is negative and Iris currently contributes minimal revenue while absorbing investment. Given the company’s strong revenue/margin performance, strategic positioning and forward bookings together with visible cost management steps, the highlights modestly outweigh the lowlights.Positive Updates
Revenue Growth and Strong Gross Margin
Revenue for H1 was USD 21.1m (AUD 32.2m), up 12% year-over-year. Gross margin remained high at ~82.5–82.6%, driven by a favorable mix shift toward higher-margin software products.
Negative Updates
Operating Expenses and Employment Costs Increased Significantly
Operating expenses rose 26% to AUD 28.8m in H1; employment expenses increased 29% to AUD 21.5m (from AUD 16.6m) driven by Iris acquisition, higher variable incentives and headcount, contributing to higher burn.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth and Strong Gross Margin
Revenue for H1 was USD 21.1m (AUD 32.2m), up 12% year-over-year. Gross margin remained high at ~82.5–82.6%, driven by a favorable mix shift toward higher-margin software products.
Read all positive updates
Company Guidance
Audinate guided to continued profitable growth while tightening investment: U.S. dollar gross profit is expected to grow 13–15% in FY26 (about 2–3x industry), operating costs are now guided to increase ~20% over FY25 (previously 25%), and capitalized intangibles for the full year are expected to be roughly AUD 13–14m. Management pointed to strong H1 momentum (H1 revenue +12% to USD 21.1m / AUD 32.2m, gross margin ~82.6%), healthy bookings and ~3–4 months of pipeline visibility, and balance sheet headroom of ~AUD 70.9m post‑Iris. H1 operating expense was AUD 28.8m (up 26%), employment costs AUD 21.5m (up 29%), underlying EBIT was a loss of AUD 2.3m, free cash flow was negative AUD 8.1m (operating cash outflow AUD 0.4m), Iris contributed USD 0.1m revenue and ~AUD 0.8–0.9m costs in H1 with headcount expected to rise from 10 to ~15, and key operating KPIs remain strong (66 design wins, +8%; 344 new Dante products in H1 bringing the total to ~4,947; 723 manufacturers signed; 516 shipping; ~4,000 trainees/month; >300,000 certified).Audinate Group Financial Statement Overview
Summary
Income Statement
45
Neutral
Balance Sheet
60
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 65.55M | 62.07M | 91.48M | 69.70M | 46.29M | 33.37M |
| Gross Profit | 19.76M | 51.10M | 67.96M | 10.20M | 2.04M | 1.16M |
| EBITDA | 114.00K | -299.00K | 24.41M | 12.21M | 4.45M | 3.55M |
| Net Income | -14.75M | -6.38M | 10.24M | 10.64M | -4.46M | -3.44M |
Balance Sheet | ||||||
| Total Assets | 175.06M | 182.40M | 189.47M | 106.60M | 90.44M | 89.81M |
| Cash, Cash Equivalents and Short-Term Investments | 70.88M | 111.30M | 118.06M | 40.03M | 44.47M | 65.43M |
| Total Debt | 3.12M | 2.69M | 3.52M | 2.60M | 1.97M | 2.09M |
| Total Liabilities | 18.52M | 17.09M | 18.99M | 16.41M | 15.15M | 10.95M |
| Stockholders Equity | 156.54M | 165.31M | 170.49M | 90.20M | 75.28M | 78.86M |
Cash Flow | ||||||
| Free Cash Flow | 5.16M | 6.13M | 10.48M | -2.94M | -11.08M | -1.29M |
| Operating Cash Flow | 5.83M | 7.47M | 25.38M | 12.42M | 981.00K | 6.74M |
| Investing Cash Flow | -61.58M | 8.06M | -68.09M | -5.21M | -21.16M | -35.03M |
| Financing Cash Flow | -1.48M | -1.38M | 66.91M | -949.00K | -738.00K | 38.14M |
Audinate Group Technical Analysis
Negative
2.56
Price Trends
3.38
Negative
3.82
Negative
4.78
Negative
Market Momentum
-0.22
Negative
37.92
Neutral
31.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AD8, the sentiment is Negative. The current price of 2.56 is below the 20-day moving average (MA) of 2.69, below the 50-day MA of 3.38, and below the 200-day MA of 4.78, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 31.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AD8.
Audinate Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | AU$1.20B | 52.40 | ― | ― | 191.25% | 19.43% | |
62 Neutral | AU$1.54B | 26.24 | 5.01% | ― | 1.75% | 0.42% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | AU$215.88M | -8.00 | -3.69% | ― | -32.15% | -161.25% | |
46 Neutral | AU$35.12M | -2.96 | -203.17% | ― | 9.14% | 65.30% | |
45 Neutral | AU$30.59M | -17.78 | -64.64% | 4.99% | -38.38% | -275.50% | |
41 Neutral | AU$22.24M | 54.58 | 109.60% | ― | -7.11% | 51.02% |
* Technology Sector Average
AU:AD8
Audinate Group
2.56
-3.76
-59.49%
AU:AMS
Atomos
0.02
<0.01
25.00%
AU:SEN
Senetas Corporation Limited
1.85
-0.26
-12.14%
AU:ELS
Elsight Ltd.
5.44
5.10
1500.00%
AU:MAQ
Macquarie Telecom Group Limited
59.63
-5.12
-7.91%
AU:DUB
Dubber Corporation Limited
0.01
-0.02
-60.61%
Audinate Group Corporate Events
S&P Dow Jones Indices Sets March 2026 Rebalance for S&P/ASX Benchmarks
Mar 6, 2026
SP Dow Jones Indices has announced its March 2026 quarterly rebalance of the SP/ASX equity indices, with changes effective before trading on 23 March. The reshuffle adjusts constituents across the SP/ASX 20, 50, 100, 200 and 300, reflecting shifts...
Audinate Announces Lapse of 1,323 Performance Rights
Jan 12, 2026
Audinate Group Limited has notified the market that a tranche of performance rights on issue under its equity incentive arrangements has lapsed. The company informed investors that 1,323 performance rights, quoted under ASX code AD8AD, ceased on 3...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.