Audeara Posts 274% Revenue Growth, Secures China Regulatory Nod and New Deals
Audeara Ltd reported a strong Q2 FY26 with revenues up 274% year-on-year, securing key regulatory approval in China and expanding its global licensing footprint.
- Group revenues steady at $1.43m, up 274% on prior year
- NMPA certification enables full commercial launch in China
- Maiden licensing order from Eastech Co. Ltd in China
- AI chip-level licensing deal with OPTEK Microelectronics
- Positive operating cash flow of $356k and $0.74m cash at bank
Strong Revenue Momentum
Audeara Ltd (ASX, AUA) has delivered a robust performance in the second quarter of FY26, reporting group revenues of $1.43 million. This figure is consistent with the previous quarter and represents a remarkable 274% increase compared to the same period last year. Combined with a secured $560,000 purchase order to be recognised in Q3, the company’s half-year revenues are approaching $3.5 million, nearly matching the total revenue for FY25.
China Market Breakthrough
A pivotal highlight for Audeara this quarter was securing National Medical Products Administration (NMPA) certification for its hearing aid product in China. This regulatory milestone clears the way for full commercial launch in one of the world’s largest hearing health markets. The company’s manufacturing partner, Eastech Co. Ltd, has already received the maiden licensing purchase order for 1,000 hearing aid technology licence keys, marking a significant transition from development to revenue-generating commercialisation.
Expanding Global Licensing and Distribution
Audeara also expanded its technology licensing footprint with a chip-level AI audio licensing agreement with OPTEK Microelectronics, a major China-based system-on-chip designer. This deal enables Audeara’s proprietary AI algorithms to be embedded directly into OPTEK’s platforms, opening royalty-style revenue streams across global electronics brands. Additionally, a distribution agreement with Tokyo-based Eyear System Inc. will introduce Audeara’s Auracast™-enabled products into the Japanese market, further broadening its Asia-Pacific presence.
Financial Health and Operational Strength
The company reported positive net operating cash flow of $356,000 for the quarter, supported by a $1.22 million R&D tax refund. Cash at bank stood at $0.74 million as of 31 December 2025. Audeara’s Australian wholesale channel remains strong, with a record $560,000 purchase order secured from a major customer, expected to be recognised in the March quarter. This order alone could bring FY26 Australian wholesale revenue to approximately $1.83 million, a 58% increase on the prior year.
Looking Ahead
CEO Dr James Fielding emphasised the company’s focus on consolidating Australian wholesale sales while converting commercial partnerships into recurring licensing income globally. With regulatory approvals in place and manufacturing underway in China, alongside expanding licensing and distribution agreements, Audeara is well-positioned for growth. The company aims to maintain positive cash flow quarters and progress towards sustainable profitability in FY26.
Bottom Line?
Audeara’s strategic moves in Asia-Pacific and solid cash flow set the stage for a transformative second half of FY26.
Questions in the middle?
- How quickly will recurring licensing revenues from new partnerships materialise?
- What is the expected timeline and scale for China market penetration post-NMPA approval?
- Can Audeara sustain positive operating cash flow as it scales production and expands globally?
