Atomos Powers Ahead with 44% Revenue Surge and Second Consecutive EBITDA Gain
Atomos Limited has reported a robust Q2 FY26 with a 44% jump in revenue and its second straight EBITDA-positive quarter, signaling a promising turnaround. The company’s strategic product launches and debt reduction efforts underpin an optimistic outlook for the second half of the fiscal year.
- Q2 FY26 revenue up 44% to $13.4 million
- Second consecutive EBITDA-positive quarter with $1.65 million
- Debt reduced to $9.9 million following $7.8 million from option exercises
- Launch of Ninja TX GO and firmware updates boost product ecosystem
- H2 FY26 expected to deliver higher revenue, EBITDA, and positive cash flow
Strong Financial Momentum
Atomos Limited (ASX – AMS) has delivered a standout performance in the second quarter of fiscal 2026, posting revenue of $13.4 million, a 44% increase compared to the same period last year. This marks the company’s highest quarterly sales in three years and reflects a significant acceleration in demand for its video technology products.
More notably, Atomos recorded an EBITDA of $1.65 million in Q2, marking its second consecutive quarter of positive earnings before interest, tax, depreciation, and amortisation after a prolonged stretch of fourteen quarters in the red. This financial turnaround is a key milestone, suggesting the company’s operational improvements and cost discipline are bearing fruit.
Operational Advances and Product Innovation
Driving this momentum is Atomos’ flagship Ninja and Shinobi product ranges, which continue to resonate strongly with content creators worldwide. The recent launch of the Ninja TX GO, a more affordable, feature-rich monitor-recorder with advanced HDR capabilities and Wi-Fi connectivity, has expanded Atomos’ market reach, particularly among HDMI camera users.
Alongside new hardware, Atomos has rolled out multiple firmware updates enhancing camera control and ProRes RAW support, reinforcing its commitment to improving workflow efficiency for professional and aspiring filmmakers alike. These developments not only strengthen the company’s product ecosystem but also position it well against competitors in an evolving video technology landscape.
Balance Sheet and Cash Flow Dynamics
Financially, Atomos has taken decisive steps to reduce leverage. The expiry and exercise of ASX-listed options generated $7.8 million, which was promptly used to repay outstanding debt, bringing proforma debt down to $9.9 million as of 31 December 2025. While the company reported a net operating cash outflow of $0.6 million for the quarter, this was an improvement driven by higher cash receipts and strategic inventory investments to support upcoming product launches.
With $1.3 million in cash reserves and ongoing discussions for an unsecured working capital facility, Atomos appears well-positioned to manage short-term liquidity needs as it executes its growth strategy.
Looking Ahead – Confident on Growth and Expansion
Management’s outlook for the second half of FY26 is optimistic, forecasting revenue and EBITDA to surpass first-half results, alongside a return to positive operating cash flows. The pipeline includes several new product launches slated for Q3 and Q4, which are expected to sustain sales momentum.
Additionally, Atomos is exploring white label partnerships and potential acquisitions to broaden its product and technology ecosystem, a move that could accelerate growth and diversify revenue streams. This strategic focus on innovation and market expansion underscores the company’s ambition to solidify its position in the competitive video technology sector.
Bottom Line?
Atomos’ recent financial and operational strides set the stage for a potentially transformative second half, but execution on new product launches and strategic partnerships will be critical to sustaining this positive trajectory.
Questions in the middle?
- Will the new product launches in H2 FY26 meet market expectations and drive sustained revenue growth?
- How will Atomos balance inventory investment with cash flow management amid ongoing product rollouts?
- What impact could potential acquisitions or partnerships have on Atomos’ competitive positioning and financial health?
