Audinate Group (ASX:AD8) announced its financial results for the first half of fiscal year 2026, centering on a pivotal "return to growth" narrative.
The company reported a revenue increase to US$21.1 million, up from US$18.9 million in the previous year, while successfully nudging its gross margins higher to 82.6%.
The margin expansion is largely attributed to a strategic shift toward high-value software solutions, including the December 2025 launch of Iris, a usage-based subscription service for AI-powered camera control.
Despite the top-line recovery, the transition has come with short-term costs; Audinate posted an underlying EBITDA loss of $2.3 million, a sharp swing from the $0.8 million gain recorded in H1 FY25.
The company has recently completed major organizational changes designed to streamline its cost base, a move expected to yield $5 million in annual savings.
The company’s market dominance remains robust, with 516 OEMs currently shipping Dante-enabled products and another 207 in active development.
By securing 66 new design wins this half, Audinate continues to solidify Dante as the global industry standard for AV-over-IP.
As the company transitions from a "build phase" to a more efficient operational model, it aims to leverage the recurring revenue from Iris to strengthen its foothold in cloud-enabled video production and intelligent AV control.