Audeara Ltd. (AUA) AI Stock Analysis

• Market Cap: AU$12.66M
• Dividend Yield: N/A
• Average Volume (3M): 183.49K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 18.86%
• EPS Growth: -14.41%
• Country: AU
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): >-0.01
• Shares Outstanding: 180,889,140
• 10 Day Avg. Volume: 498,101
• 30 Day Avg. Volume: 183,491
• PEG Ratio: 1.17
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -1.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: AU$0.06 ▲(5.00% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held back primarily by weak financial performance (declining revenue, persistent losses, and negative operating/free cash flow). Technicals are mixed with neutral-to-weak near-term momentum despite being above longer-term moving averages, while valuation remains unattractive due to negative earnings and no provided dividend yield.

Positive Factors

Enterprise recurring service model

Audeara’s focus on workplace hearing assessment and digital/remote delivery supports recurring contract revenue from organisations. This business model creates predictable program fees, scalable delivery and lower incremental costs per assessment, underpinning durable revenue potential if contracts are retained or expanded.

Reasonable gross profit margin

A gross margin around 36% gives the company a structural buffer to cover operating expenses and invest in growth. If Audeara can scale enterprise programs, that margin can convert to operating leverage, improving prospects for sustainable profitability over a multi‑month horizon.

Manageable leverage

Debt-to-equity near 0.87 indicates leverage that is not extreme for a growing healthcare/tech services firm. Manageable debt provides financial flexibility to fund program delivery and marketing without acute solvency pressure, supporting operations while pursuing contract growth.

Negative Factors

Declining revenue

A nearly 10% revenue decline undermines scale economics and raises questions about demand or contract retention in core workplace channels. Sustained top‑line contraction limits ability to leverage fixed costs, threatening margin recovery and the company’s path to durable profitability.

Persistent negative profitability

Ongoing negative net profit and EBIT margins indicate operations are not yet self‑funding. Persistent losses reduce retained earnings, weaken ROE, and increase reliance on external capital for investment or working capital, elevating medium‑term financial risk if losses continue.

Negative operating and free cash flow

Negative operating and free cash flows signal cash burn from core operations, constraining reinvestment and growth initiatives. Even with some efficiency metrics noted, persistent negative cash flow shortens runway and increases refinancing or capital‑raise risk over the coming months.

Audeara Ltd. Business Overview & Revenue Model

Company Description

Audeara Limited, a hearing health technology company, engages in the development and sale of personalized listening products in Australia and North America. It provides A–01 and A-02 Bluetooth headphones; A-02 TV bundles; and BT–01 wireless transceivers. The company was incorporated in 2015 and is based in Fortitude Valley, Australia.

How the Company Makes Money

Audeara generates revenue through multiple streams, primarily by selling its flagship products, such as the Audeara A-01 headphones, directly to consumers via their online platform and through retail partnerships. Additionally, the company may explore revenue from collaborations with audiologists and hearing clinics, providing specialized products and services to enhance patient care. Licensing technology for integration into third-party audio devices could also represent a significant revenue source. The company benefits from partnerships with healthcare providers and potential governmental and non-governmental organizations focused on hearing health initiatives, which can lead to increased product adoption and sales.

Audeara Ltd. Financial Statement Overview

Summary

Overall fundamentals are weak: revenue declined (-9.91%), profitability remains negative (net profit and EBIT margins), and operating/free cash flow are negative. Leverage looks manageable (debt-to-equity 0.87), but ongoing losses and cash burn materially raise financial risk.

Income Statement

Audeara Ltd. has experienced declining revenue growth, with a negative growth rate of -9.91% in the most recent year. The company also faces challenges with profitability, as indicated by negative net profit and EBIT margins. Despite a reasonable gross profit margin of 36.05%, the overall financial health is weakened by consistent losses.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.87, indicating manageable leverage. However, the return on equity is significantly negative, reflecting ongoing losses. The equity ratio is not directly provided, but the company's equity position appears weak relative to its assets.

Cash Flow

Cash flow analysis reveals a challenging situation with negative operating and free cash flows. Despite a positive free cash flow to net income ratio, indicating some efficiency in cash management, the overall cash flow position remains concerning due to persistent negative cash flows.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	4.94M	3.79M	3.19M	2.91M	2.07M	1.12M
Gross Profit	452.03K	1.36M	943.12K	1.14M	946.11K	510.33K
EBITDA	-2.24M	-2.90M	-2.75M	-3.80M	-3.07M	-1.08M
Net Income	-1.00M	-1.79M	-1.60M	-3.74M	-2.95M	-1.25M
Balance Sheet
Total Assets	3.75M	4.30M	4.89M	4.73M	5.49M	6.57M
Cash, Cash Equivalents and Short-Term Investments	755.32K	1.42M	1.27M	2.62M	2.87M	5.74M
Total Debt	521.46K	1.12M	112.18K	210.74K	275.11K	67.60K
Total Liabilities	2.88M	3.01M	3.28M	1.57M	1.41M	665.76K
Stockholders Equity	871.52K	1.29M	1.61M	3.17M	4.08M	5.91M
Cash Flow
Free Cash Flow	-1.06M	-1.95M	-1.34M	-2.98M	-3.78M	-1.11M
Operating Cash Flow	-914.91K	-1.81M	-1.33M	-2.97M	-3.58M	-1.08M
Investing Cash Flow	-157.56K	-149.02K	-8.47K	-16.00K	-229.26K	-23.71K
Financing Cash Flow	104.26K	2.08M	-10.88K	2.74M	939.73K	7.10M

Audeara Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:AUA, the sentiment is Neutral. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, below the 50-day MA of 0.07, and above the 200-day MA of 0.04, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 25.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:AUA.

Audeara Ltd. 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%
BCC	50 Neutral	AU$15.99M	0.92	26.81%	―	-21.60%	-657.00%
DWG	48 Neutral	AU$14.94M	-2.01	-432.52%	―	8.64%	33.88%
AUA	44 Neutral	AU$12.66M	-4.70	-92.37%	―	18.86%	-14.41%
X2M	41 Neutral	AU$6.32M	-0.53	209.30%	―	-51.64%	-21.74%

Audeara Ltd. Corporate Events

Audeara lifts revenue and narrows loss but faces going-concern uncertainty

Audeara Limited reported a 63.76% increase in revenue to $2.95 million for the half year to 31 December 2025, while halving its loss from ordinary activities after tax to $593,443 compared with the prior corresponding period. The company’s comprehensive loss likewise narrowed by more than 57%, but net tangible asset backing per share fell to 0.45 cents from 0.81 cents, and no interim dividend was declared.

The accounts were subject to an audit review that included an emphasis of matter highlighting material uncertainty over Audeara’s ability to continue as a going concern, although the half-year report continues to be prepared on a going concern basis. The board, chaired by non-executive chair David Trimboli, noted there were no audit disputes or qualifications, underscoring that while operational performance is improving, financial sustainability and capital strength remain key concerns for stakeholders.

The most recent analyst rating on (AU:AUA) stock is a Hold with a A$0.08 price target. To see the full list of analyst forecasts on Audeara Ltd. stock, see the AU:AUA Stock Forecast page.

Audeara Delivers Strong Q2 Growth as Asia-Pacific Deals Drive Hearing Tech Expansion

Audeara reported Q2 FY26 unaudited group revenue of $1.43 million, flat on the prior quarter but 274% higher than the same period a year earlier, supported by strong wholesale and technology licensing sales. Combined Q1 and Q2 FY26 revenues, together with a secured $560,000 purchase order to be recognised in Q3, now exceed $3.5 million, bringing the company close to its full FY25 revenue of $3.8 million, while the quarter delivered positive net operating cash flow of $356,000, boosted by a $1.22 million R&D tax refund, leaving $0.74 million in cash at bank at 31 December 2025. Operationally, momentum was underpinned by National Medical Products Administration certification in China for a hearing aid product, enabling commercial launch and a maiden licensing order from Eastech, a chip-level AI licensing deal with China-based SoC designer OPTEK Microelectronics, and a distribution agreement with Tokyo-based Eyear System to introduce Auracast-enabled products into Japan, collectively strengthening Audeara’s Asia-Pacific footprint and supporting its push toward recurring global licensing income and more consistent operational cash flow.

The most recent analyst rating on (AU:AUA) stock is a Hold with a A$0.06 price target. To see the full list of analyst forecasts on Audeara Ltd. stock, see the AU:AUA Stock Forecast page.

Audeara Clarifies AI Licensing Deal with Optek

Audeara Limited announced a clarification regarding its recent chip-level AI licensing agreement with Optek Microelectronics Co., Ltd. The agreement involves licensing Audeara’s proprietary AI audio algorithms and other audio technologies, but the company confirmed that no revenue has been generated from this deal to date, nor is its financial impact currently predictable. While the agreement lacks a definitive term, Audeara views it as an opportunity to explore further collaborations with Optek. The development reflects the company’s ongoing commitment to leveraging its audio innovations within the global market.

The most recent analyst rating on (AU:AUA) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on Audeara Ltd. stock, see the AU:AUA Stock Forecast page.

Audeara Secures AI Licensing Deal with Optek Microelectronics

Audeara Ltd. has secured a significant chip-level AI audio licensing agreement with Optek Microelectronics, a leading SoC design company in China. This deal allows Audeara’s proprietary audio processing algorithms to be integrated into Optek’s SoC platforms, expanding Audeara’s market reach by embedding its technology at the silicon level in global product platforms. The agreement is expected to be revenue-generative for Audeara on a fee-per-chip basis, enhancing its industry positioning and supporting its strategy to expand the adoption of its algorithms across global OEM and ODM partners.

The most recent analyst rating on (AU:AUA) stock is a Hold with a A$0.05 price target. To see the full list of analyst forecasts on Audeara Ltd. stock, see the AU:AUA Stock Forecast page.

Audeara Secures Record Order, Boosts Wholesale Revenue

Audeara Ltd. announced a record $560,000 purchase order from a major Australian wholesale customer, marking the largest single order to date for the company. This order boosts the company’s year-to-date Australian wholesale revenues to approximately $1.75 million, a 50% increase over the previous year. The company is also advancing its AUA Technology division, with ongoing negotiations for additional orders from global markets and the commencement of manufacturing hearing aids for the Chinese market. These developments underscore Audeara’s strengthening position in the hearing technology sector and its strategic focus on multi-channel growth through licensing and distribution partnerships.

The most recent analyst rating on (AU:AUA) stock is a Hold with a A$0.03 price target. To see the full list of analyst forecasts on Audeara Ltd. stock, see the AU:AUA Stock Forecast page.