Atomos Limited has upgraded its FY26 earnings guidance, forecasting significant sales growth and a return to EBITDA profitability driven by strong demand and a revamped sales strategy.
- H1 FY26 sales guidance raised to $23-25 million, up from $18.6 million in H1 FY25
- EBITDA expected to swing from a $5.6 million loss in H1 FY25 to a $1.5-2.0 million profit in H1 FY26
- H2 FY26 sales and EBITDA forecast to meet or exceed H1 results
- Growth fueled by flagship Shinobi and Ninja product lines and omni-channel sales approach
- Stable fixed cost base enables operating leverage as sales increase
Strong Sales Momentum Drives Upward Revision
Atomos Limited (ASX – AMS), the Australian technology company known for its innovative video production hardware, has delivered a robust trading update for the first half of FY26. The company anticipates sales between $23 million and $25 million, a substantial increase from $18.6 million in the same period last year. More notably, Atomos expects to swing from a significant EBITDA loss of $5.6 million in H1 FY25 to a positive EBITDA range of $1.5 million to $2 million in H1 FY26.
Omni-Channel Strategy and Product Strength
This turnaround is attributed to sustained demand for Atomos’ flagship Shinobi and Ninja product ranges, which have garnered positive market feedback and increased customer engagement. The company’s modernized go-to-market approach, incorporating direct-to-consumer (D2C) sales, digital marketing, and retail media, has enhanced product accessibility and customer interaction across key global markets including the USA, UK, Germany, China, and Japan.
Looking Ahead – Confident on H2 and Beyond
Atomos’ management is confident that the second half of FY26 will at least match, if not exceed, the strong performance forecast for H1. This optimism is underpinned by a pipeline of new product launches scheduled for Q3 and Q4, as well as the stabilization of US tariffs that had previously posed a risk to margins. The company also highlights a disciplined approach to cost management, maintaining a fixed cost base of approximately $1.1 million per month, which positions it well to leverage operating earnings as sales grow.
Strategic Implications
CEO Peter Barber emphasized the importance of the omni-channel sales strategy and the role of new digital capabilities in driving growth. The combination of innovative products and enhanced customer engagement channels appears to be resonating well in the competitive consumer electronics space. If Atomos can sustain this momentum and successfully execute upcoming product releases, it could mark a turning point for the company’s profitability trajectory.
Bottom Line?
Atomos’ upgraded guidance signals a promising turnaround, but sustaining growth and managing external risks will be key to maintaining momentum.
Questions in the middle?
- How will upcoming product launches in H2 FY26 impact sales and profitability?
- What risks remain from potential changes in US tariffs or global supply chain disruptions?
- Can Atomos continue to scale its omni-channel strategy effectively across diverse international markets?