High Debt Costs Persist as Atomos Cuts Debt but Faces Interest Challenges
Atomos Limited has exercised 259.8 million options, raising $7.8 million to reduce its debt and boost confidence in hitting $23–25 million sales and positive EBITDA in the first half of 2026.
- 259.8 million ASX-listed options exercised, raising $7.8 million
- Debt reduced from $17.5 million to approximately $9.7 million
- H1 2026 sales guidance of $23 million to $25 million
- EBITDA forecast between $1.5 million and $2.0 million for H1 2026
- Debt facility terms unchanged with 16% interest rate, maturity in February 2027
Options Exercise Strengthens Balance Sheet
Atomos Limited, a global innovator in video technology, has successfully exercised approximately 259.8 million of its ASX-listed options, injecting $7.8 million in fresh capital. This strategic move significantly reduces the company’s outstanding debt from $17.5 million to around $9.7 million, marking a pivotal step in Atomos’ financial restructuring efforts.
Debt Reduction as a Corporate Priority
CEO Peter Barber highlighted the importance of this debt reduction, noting it as a key corporate initiative aimed at rebuilding the Atomos brand and enhancing shareholder value. The company’s focus on lowering its debt burden is expected to ease interest expenses, which currently stand at a steep 16% under the Monreii Facility, with a maturity date set for February 2027.
Confident Outlook for H1 2026
Following encouraging trading results in November, Atomos has set a confident sales target of $23 million to $25 million for the first half of 2026. Alongside this, the company anticipates delivering EBITDA in the range of $1.5 million to $2.0 million. These projections suggest a positive trajectory toward profitability, with management aiming for net profit in future periods.
Maintaining Facility Terms Amidst Change
Despite the debt reduction, the terms of the Monreii Facility remain unchanged, including the 16% interest rate and a 4% line fee. Interest continues to be capitalised, which will impact future cash flows. The company’s ability to manage this high-cost debt while driving sales growth will be critical to its financial health moving forward.
Looking Ahead
Atomos’ recent capital raise and debt repayment underscore a strategic effort to stabilize its financial footing and build momentum. As the company navigates the competitive video technology landscape, investors will be watching closely to see if these measures translate into sustained operational and financial improvements.
Bottom Line?
Atomos’ debt reduction and upbeat guidance set the stage for a potentially stronger financial performance in 2026.
Questions in the middle?
- Will Atomos sustain its sales growth momentum beyond H1 2026?
- How will the high interest rate on remaining debt affect future profitability?
- What strategic initiatives will Atomos pursue to accelerate net profit achievement?
