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Audinate Group Ltd. (AU:AD8)
:AD8

Audinate Group (AD8) AI Stock Analysis

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AU:AD8

Audinate Group

(OTC:AD8)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
AU$4.00
▼(-11.70% Downside)
Audinate Group's overall stock score is primarily impacted by its financial performance challenges, including declining revenues and negative profitability. Technical analysis indicates bearish momentum, and valuation metrics are weak due to a negative P/E ratio. The absence of earnings call data and corporate events means these factors do not influence the score.
Positive Factors
Strong Gross Profit Margin
A strong gross profit margin indicates effective cost management, which can help sustain profitability even when revenue declines.
Solid Balance Sheet
A solid balance sheet with low leverage provides financial stability and flexibility, allowing the company to navigate economic challenges.
Positive Free Cash Flow Growth
Positive free cash flow growth enhances the company's ability to invest in growth opportunities and weather financial downturns.
Negative Factors
Declining Revenue
Declining revenue can impact long-term growth prospects and market competitiveness, posing a challenge to sustaining business operations.
Profitability Challenges
Profitability challenges, as indicated by negative margins, can strain financial resources and limit the company's ability to reinvest in growth.
Negative Return on Equity
Negative return on equity suggests inefficiencies in generating returns from shareholders' investments, impacting investor confidence.

Audinate Group (AD8) vs. iShares MSCI Australia ETF (EWA)

Audinate Group Business Overview & Revenue Model

Company DescriptionAudinate Group (AD8) is an Australian technology company specializing in digital media networking solutions. It is best known for its Dante technology, which enables the transmission of high-quality audio over standard IP networks. Audinate operates primarily in the professional audio and video sectors, serving markets such as live sound, broadcast, and installations. The company provides a range of products, including hardware and software solutions, that facilitate audio networking and enhance the interoperability of devices across various platforms.
How the Company Makes MoneyAudinate 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 Earnings Call Summary

Earnings Call Date:Aug 18, 2024
(Q4-2024)
|
Next Earnings Date:Feb 16, 2026
Earnings Call Sentiment Neutral
FY '24 was an outstanding year for Audinate, with record revenue and strong market adoption. However, the outlook for FY '25 is challenging, with expected revenue declines and inventory issues. The successful launch of Dante Director presents a positive future revenue stream, but the transition from hardware to software presents both opportunities and challenges.
Q4-2024 Updates
Positive Updates
Record Revenue and Growth
Audinate achieved a record $60 million in revenue for FY '24, an increase of 28.4% from FY '23, with gross profit dollars growing 33.2% to $44.5 million.
Strong Market Adoption
During FY '24, 1.4 million units were shipped, and the number of Dante-enabled products increased by 323, signaling strong market adoption.
Dante Video Ecosystem Growth
The number of video manufacturers licensing Dante products increased by 59%, and launched products grew 75% year-on-year.
Successful Launch of Dante Director
The launch of the cloud-based SaaS product, Dante Director, has converted nearly 50 customers to paying subscribers, indicating a new revenue stream.
Increase in Operating Cash Flow
Operating cash flows increased to AUD25.4 million, with over 100% cash conversion during the year.
Negative Updates
Revenue Decline Expected in FY '25
Audinate expects a revenue decline in FY '25 due to headwinds such as overstocking by customers and end-of-life products like Viper.
Challenges with Inventory and Ordering Patterns
Many manufacturing customers have over-ordered, leading to a soft FY '25 revenue outlook and less predictable order patterns.
Transition from Hardware to Software
The transition to software-based products is expected to decrease per-unit revenue and gross profit dollars in FY '25.
No M&A Closures
Despite efforts, two significant M&A opportunities were not closed, affecting strategic expansion plans.
Company Guidance
During the Q4 2024 earnings call for Audinate, executives provided guidance that included several key metrics and projections. Audinate anticipates a revenue decline in FY '25 following a record $60 million in revenue for FY '24, which marked a 28.4% increase from the previous year. Gross profit is expected to be slightly lower than in FY '24, with a gross margin percentage potentially reaching around 80%, influenced by a shift toward software-based data implementations. The company shipped a record 1.4 million units in FY '24 and launched 323 new Dante-enabled products, bringing the total to 4,176. Despite the anticipated short-term revenue challenges, Audinate aims to leverage its strong position with 6 million Dante devices in the field and expand its SaaS offerings, including the recently launched Dante Director. Operating expenses are projected to grow between 7% to 9% in FY '25, focusing on sales and marketing to drive revenue and maintain long-term strategic growth.

Audinate Group Financial Statement Overview

Summary
Audinate Group faces profitability challenges with declining revenues and negative net income. Despite these issues, the company maintains a strong gross profit margin and a solid balance sheet with low leverage. Cash flow generation shows improvement, but operational efficiency needs attention.
Income Statement
45
Neutral
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
60
Neutral
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
55
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue62.07M62.07M91.48M69.70M46.29M33.37M
Gross Profit51.10M51.10M67.96M10.20M2.04M1.16M
EBITDA-299.00K-299.00K24.41M12.21M4.45M3.55M
Net Income-6.38M-6.38M10.24M10.64M-4.46M-3.44M
Balance Sheet
Total Assets182.40M182.40M189.47M106.60M90.44M89.81M
Cash, Cash Equivalents and Short-Term Investments111.30M111.30M118.06M40.03M44.47M65.43M
Total Debt2.69M2.69M3.52M2.60M1.97M2.09M
Total Liabilities17.09M17.09M18.99M16.41M15.15M10.95M
Stockholders Equity165.31M165.31M170.49M90.20M75.28M78.86M
Cash Flow
Free Cash Flow6.13M6.13M10.48M-2.94M-11.08M-1.29M
Operating Cash Flow7.47M7.47M25.38M12.42M981.00K6.74M
Investing Cash Flow8.06M8.06M-68.09M-5.21M-21.16M-35.03M
Financing Cash Flow-1.38M-1.38M66.91M-949.00K-738.00K38.14M

Audinate Group Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.53
Price Trends
50DMA
4.74
Negative
100DMA
4.95
Negative
200DMA
5.79
Negative
Market Momentum
MACD
-0.04
Negative
RSI
47.47
Neutral
STOCH
40.00
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 4.53 is above the 20-day moving average (MA) of 4.33, below the 50-day MA of 4.74, and below the 200-day MA of 5.79, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
55
Neutral
AU$1.10B387.50<0.01%-29.99%-66.84%
48
Neutral
AU$1.26B-72.59-10.48%19.66%38.75%
46
Neutral
AU$365.14M-56.60-3.69%-32.15%-161.25%
40
Underperform
AU$3.27M-0.90-4.86%64.36%
37
Underperform
AU$181.10M-22.17-100.00%44.26%
37
Underperform
AU$5.29M-0.76-283.40%-74.76%42.11%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:AD8
Audinate Group
4.33
-3.09
-41.64%
AU:CAT
Catapult Group International
4.21
0.80
23.46%
AU:HYD
Hydrix Limited
0.01
0.00
0.00%
AU:AKP
Audio Pixels Holdings Limited
6.20
0.00
0.00%
AU:ZMM
ZIMI Ltd
0.01
0.00
0.00%
AU:RUL
RPMGlobal Holdings Ltd
4.96
1.94
64.24%

Audinate Group Corporate Events

Pinnacle Investment Management Ceases Substantial Holding in Audinate Group
Dec 2, 2025

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.

Hyperion Asset Management Ceases Substantial Holding in Audinate Group
Dec 1, 2025

Hyperion Asset Management Limited has ceased to be a substantial holder in Audinate Group Ltd as of November 27, 2025. This change in substantial holding may impact Audinate Group’s shareholder structure and influence in voting securities, reflecting a shift in investment strategy or portfolio management by Hyperion Asset Management.

Audinate Group Corrects Share Issue Details for Iris Studio Acquisition
Nov 27, 2025

Audinate Group Limited announced a correction to a previous release regarding the issue of shares for the acquisition of Iris Studio, Inc. The correction pertains to a typographical error in the disclosure of voluntary escrow dates for shares issued as part of the acquisition. These shares will be released in three equal tranches on specified dates in 2026, 2027, and 2028. This announcement clarifies the timeline for stakeholders and ensures accurate information is available for market participants.

Audinate Group Updates Director’s Interest with New Performance Rights
Oct 31, 2025

Audinate Group Limited announced a change in the director’s interest notice, specifically involving Aidan Williams. The company issued 261,019 unlisted performance rights to Williams under its Long-Term Incentive Plan, following approval at the Annual General Meeting. This change reflects the company’s commitment to aligning executive incentives with long-term performance goals, potentially impacting the company’s strategic direction and stakeholder interests.

Audinate Group Expands Market Presence with New Securities Quotation
Oct 31, 2025

Audinate Group Limited announced the application for quotation of 14,472 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of an employee incentive scheme and reflects the company’s ongoing efforts to enhance its market presence and operational capabilities.

Audinate Group Issues Unquoted Securities to Employees
Oct 31, 2025

Audinate Group Limited has announced the issuance of unquoted securities under an employee incentive scheme, with a total of 275,491 performance rights being issued. This move is likely aimed at motivating and retaining talent within the company, potentially enhancing its operational capabilities and market position.

Audinate Group’s AGM Resolutions Passed, Strengthening Strategic Initiatives
Oct 21, 2025

Audinate Group Limited announced the results of its Annual General Meeting held on October 21, 2025, where all proposed resolutions were passed. Key resolutions included the re-election of a director, adoption of the remuneration report, issuance of performance rights to the CEO, ratification of the Iris Studio placement, and renewal of proportional takeover provisions. These decisions reflect the company’s ongoing strategic initiatives and governance practices, potentially impacting its operational and market positioning positively.

Audinate Group Sees Change in Substantial Shareholder
Oct 15, 2025

Audinate Group Limited, a company involved in the technology sector, has seen a change in its substantial shareholders. Fisher Funds Management Limited has ceased to be a substantial holder of Audinate Group Limited as of October 14, 2025. This change in shareholding could impact the company’s market dynamics and shareholder structure, potentially influencing its strategic decisions and operations.

Audinate Group Issues Performance Rights to Employees
Oct 14, 2025

Audinate Group Limited has announced the issuance of 715,452 performance rights as part of an employee incentive scheme. These securities are unquoted and subject to transfer restrictions, reflecting the company’s strategy to incentivize and retain talent, potentially impacting its operational efficiency and market competitiveness.

Audinate Group Expands Market Presence with New Security Quotation
Oct 14, 2025

Audinate Group Limited announced the quotation of 81,917 ordinary fully paid securities on the ASX, issued under an employee incentive scheme. This move is part of the company’s ongoing efforts to enhance its market presence and incentivize its workforce, potentially impacting its operational dynamics and stakeholder interests.

Audinate Group Announces Cessation of Performance Rights
Oct 14, 2025

Audinate Group Limited announced the cessation of 222,842 performance rights due to the conditions for these rights not being satisfied or becoming incapable of being satisfied. This cessation may impact the company’s capital structure and could have implications for stakeholders, particularly in terms of employee incentives and overall market perception.

JPMorgan Chase & Co. Ceases Substantial Holding in Audinate Group
Sep 24, 2025

JPMorgan Chase & Co. and its affiliates, including J.P. Morgan Securities Australia Limited, J.P. Morgan Securities PLC, and JPMorgan Chase Bank, N.A., have ceased to be substantial holders in Audinate Group Ltd as of September 22, 2025. This change reflects a reduction in their voting securities, with a total of 419,451 ordinary shares affected. The announcement indicates a shift in JPMorgan’s investment strategy concerning Audinate Group, potentially impacting the company’s market perception and stakeholder confidence.

Audinate Group Releases 2025 Corporate Governance Statement
Sep 19, 2025

Audinate Group Limited has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement confirms the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, highlighting their commitment to transparency and accountability. This disclosure is part of their compliance with ASX listing rules, ensuring stakeholders are informed about the governance practices and any deviations from recommended guidelines.

Audinate Group Releases 2025 Annual Report
Sep 19, 2025

Audinate Group has released its Annual Report for 2025, detailing its financial performance and strategic direction. The report includes letters from the Chair and CEO, financial statements, and various disclosures. This comprehensive document provides stakeholders with insights into the company’s operations and future outlook, although specific forward-looking statements have been omitted.

Audinate Group Announces 2025 Annual General Meeting
Sep 19, 2025

Audinate Group Limited has announced its 2025 Annual General Meeting (AGM) scheduled for October 21, 2025, at Rydges Sydney Central. Shareholders are encouraged to participate in person or via proxy, with all resolutions to be decided by poll. The meeting will include the consideration of financial reports and the re-election of Director Roger Price. The AGM will also provide an opportunity for shareholders to engage with the company’s management and external auditor, Ernst & Young, to discuss the company’s operations and financial practices.

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.Date of analysis: Nov 28, 2025