Audinate Group (AD8) AI Stock Analysis

• Market Cap: $247.93M
• Dividend Yield: N/A
• Average Volume (3M): 477.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.51
• Revenue Growth: -32.15%
• EPS Growth: -161.25%
• Country: AU
• Employees: 226
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.13
• Shares Outstanding: 84,328,560
• 10 Day Avg. Volume: 315,656
• 30 Day Avg. Volume: 477,323
• PEG Ratio: 0.61
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 10.03
• P/FCF Ratio: 101.67
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 3.58
• Enterprise Value/Gross Profit: 11.88
• Enterprise Value/Ebitda: 2.06K
• 1Y Price Target: $5.53
• Price Target Upside: 88.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): -0.2
• Revenue Forecast (FY): $70.20M

• Rating: 51 Neutral
• Price Target: AU$3.00 ▲(2.04% Upside)
• Action: Reiterated Date: 02/17/26
• Date: Action: Reiterated 02/17/26

The score is held back primarily by weak profitability and revenue decline in the financials, plus a clear technical downtrend with negative momentum. These are partly offset by a strong balance sheet and very high gross margins, and a moderately positive earnings call featuring improving guidance discipline and growth/margin momentum despite near-term cash burn and investment pressure.

Positive Factors

Sustainably high gross margins

Consistently ~82% gross margins reflect durable product economics from software/licensing mix and favorable product mix. High gross margins support long-term cash generation, enable investment in platform initiatives, and provide margin buffer against cyclical revenue swings.

Extensive ecosystem and network effects

A broad installed base and accelerating design wins create durable network effects: OEM adoption drives recurring licensing, strengthens stickiness, and lowers new-customer acquisition. The large ecosystem increases cross-sell potential for software and platform extensions over multiple years.

Prudent balance sheet and cash headroom

Substantial cash post-acquisition provides a multi-quarter runway to invest in product expansion (Iris, Director) and absorb integration costs without urgent refinancing. Low leverage combined with cash flexibility supports long-term strategic execution and selective M&A or R&D spend.

Negative Factors

Revenue decline and negative profitability

Sustained top-line contraction and persistent negative margins indicate underlying demand or monetization gaps that can impair long-term reinvestment. Without durable revenue recovery and return to positive EBIT, funding product strategy relies on cash buffers rather than operating profits.

Rising operating costs and negative free cash flow

Material OpEx growth and negative FCF reduce financial flexibility and lengthen the timeline to self-funded expansion. Continued elevated employment and integration costs risk further cash burn, making execution on platform builds dependent on prudent cost control or external funding.

Hardware shipments softness and product mix shift

A structural move from modules to embedded software disrupts legacy hardware revenue streams and timing of OEM royalties. Transitioning business mix requires retooling commercial and engineering go-to-market efforts and may depress near-term revenue while new software monetization ramps.

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 equipment manufacturers. The company also offers software products, such as Dante Controller, a real-time network monitoring device; Dante Virtual Soundcard that provides access to various audio devices on the network; Dante Via, a software that delivers multi-channel routing of computer-based audio; Dante Studio; and Dante Domain Manager, as well as Dante AVIO adapter. In addition, it provides Dante-enabled products; and various products to develop networked AV products, including chips and modules, IP Core, Dante application library, and reference designs. Audinate Group Limited was founded in 2003 and is headquartered in Surry Hills, Australia.

How the Company Makes Money

Audinate generates revenue primarily through the licensing of its Dante technology to hardware and software manufacturers in the professional audio and video industries. This licensing model allows partners to integrate Dante into their products, which helps promote widespread adoption of the technology. Additionally, the company earns revenue from the sale of its own products, such as Dante-enabled hardware and software solutions. Audinate also engages in partnerships with key players in the industry, which can lead to significant revenue opportunities through collaborative projects and enhanced product offerings. The growing demand for digital audio networking solutions in various sectors, including live events and installations, further bolsters Audinate's revenue potential.

Audinate Group Financial Statement Overview

Summary

Mixed fundamentals: income statement is weak (revenue -15.67% and net margin -10.28% with negative EBIT/EBITDA), offset by very strong gross margin (~82%) and a solid balance sheet with minimal leverage (debt-to-equity 0.016). Cash flow shows improvement (free cash flow growth +36%) but conversion efficiency is only moderate (operating cash flow to net income 0.57).

Income Statement

Audinate Group's income statement reveals a challenging year with a significant revenue decline of 15.67% and negative net profit margin of -10.28% in 2025. The company has struggled with profitability, as indicated by negative EBIT and EBITDA margins. However, the gross profit margin remains strong at 82.33%, suggesting effective cost management despite revenue challenges.

Balance Sheet

The balance sheet shows a stable financial position with a low debt-to-equity ratio of 0.016, indicating minimal leverage. However, the return on equity is negative at -3.86%, reflecting profitability challenges. The equity ratio is strong, suggesting a solid capital structure with equity financing.

Cash Flow

Cash flow analysis indicates a positive free cash flow growth of 36% and a healthy free cash flow to net income ratio of 0.82. However, the operating cash flow to net income ratio of 0.57 suggests some inefficiencies in converting income into cash.

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

• Technical Analysis Sentiment: Negative
• Last Price: 2.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 2.94 is below the 20-day moving average (MA) of 3.66, below the 50-day MA of 4.04, and below the 200-day MA of 5.27, indicating a bearish trend. The MACD of -0.35 indicates Positive momentum. The RSI at 29.16 is Positive, neither overbought nor oversold. The STOCH value of 9.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:AD8.

Audinate Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AD8	51 Neutral	$247.93M	-16.63	-3.69%	―	-32.15%	-161.25%
CAT	51 Neutral	AU$1.06B	-60.86	-10.48%	―	19.66%	38.75%
HYD	44 Neutral	AU$4.64M	-0.87	―	―	-4.86%	64.36%
AKP	37 Underperform	AU$181.10M	-14.84	―	―	-100.00%	44.26%
ZMM	37 Underperform	AU$4.54M	-2.56	-283.40%	―	-74.76%	42.11%

Audinate Group Corporate Events

Audinate Announces Lapse of 1,323 Performance Rights

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 31 December 2025 after the conditions attached to those rights were not met or became incapable of being satisfied, resulting in a small reduction in the company’s potential equity overhang and no new shares being issued from this portion of its long-term incentive program.

The most recent analyst rating on (AU:AD8) stock is a Buy with a A$9.43 price target. To see the full list of analyst forecasts on Audinate Group stock, see the AU:AD8 Stock Forecast page.

Pinnacle Investment Management Ceases Substantial Holding in Audinate Group

Pinnacle Investment Management Group Limited has ceased to be a substantial holder in Audinate Group Ltd as of November 27, 2025. This change in substantial holding could impact Audinate’s shareholder structure and influence in the market, potentially affecting its strategic decisions and stakeholder interests.

The most recent analyst rating on (AU:AD8) stock is a Hold with a A$4.00 price target. To see the full list of analyst forecasts on Audinate Group stock, see the AU:AD8 Stock Forecast page.