Company Interview / AI driving next phase at Audinate

Key Points:

Audinate (ASX:AD8) reports EBITDA drop and 33% revenue decline amid industry transition Gross margins expand to 82% as company pivots toward higher margin software solutions Steady demand for Dante technology and resumption of component orders signal recovery AI integration accelerated by acquisition of Iris Studios, driving innovation and productivity

Audinate (ASX:AD8) has experienced a challenging transition year, with EBITDA falling sharply to $700,000 from $20.3 million the previous year, and revenues slipping by 33% to $40 million USD. Operating expenses climbed 6% to $50.5 million USD, reflecting ongoing investments in core capabilities and new product innovation. Aidan Williams highlights an expansion in gross margins to 82%, attributing this shift to a growing focus on higher-margin software solutions over traditional hardware.

Williams points to signs of recovery in the second half of FY25, with customers beginning to reorder components and strong, consistent demand for Audinate’s core Dante technology. The company shipped another million Dante devices last year and continues to train thousands of AV professionals monthly, which Williams sees as positive leading indicators. Growth in the software side remained steady at 15%, and Williams does not see a sudden loss in demand, instead citing inventory overhang and broader industry softness possibly linked to tariff uncertainties.

Artificial intelligence also plays an increasingly central role following the acquisition of US-based Iris Studios. Williams notes AI applications are boosting productivity internally and enhancing user experiences for live event video production. Looking ahead, Williams foresees gross profit growth of 13–15% in FY26 and sees significant opportunity as the audio-visual industry transitions towards software-based network solutions.