Audinate has reported a 12% increase in revenue for the first half of FY26, driven by strong bookings and a surge in adaptor product sales. The company also launched its cloud-first Iris video production platform, signalling a strategic push into software-driven AV solutions.
- 12% revenue growth in 1H FY26 compared to 1H FY25
- Launch of Iris cloud-first video production platform in December 2025
- Strong gross profit margin maintained at 82.6%
- Robust balance sheet with A$70.9 million cash post-Iris acquisition
- 207 OEM brands developing new Dante-enabled products, expanding ecosystem
Return to Revenue Growth
Audinate has marked a return to growth in the first half of FY26, posting a 12% increase in revenue compared to the same period last year. This growth was underpinned by strong bookings and a notable 51% surge in adaptor product sales, particularly driven by the launch of the 'Dante AVIOs for Installation' range targeting professional installers. The company’s gross profit margin remained robust at 82.6%, reflecting a favourable product mix skewed towards higher-margin software offerings.
Strategic Expansion with Iris Platform
December 2025 saw the commercial launch of Audinate’s Iris platform, a cloud-first video production and AV control solution. This move extends Audinate’s reach beyond audio networking into video workflows, positioning the company to capture emerging opportunities in broadcast, education, and enterprise production sectors. While Iris currently contributes minimally to group revenue, the company is investing heavily in go-to-market efforts and product development to scale adoption and integrate Iris more deeply with the existing Dante ecosystem.
Strengthening Market Position and Ecosystem
The Dante platform continues to dominate the professional AV networking space, with 516 OEM brands shipping Dante-enabled products and 207 more developing new devices. This expanding ecosystem, now comprising nearly 5,000 Dante-enabled products, provides a strong foundation for future revenue growth. Audinate’s strategy focuses on accelerating growth through ecosystem expansion, integrated solutions, and evolving platform software such as Dante Director and Dante Domain Manager.
Financial Health and Operational Efficiency
Audinate ended the half with a solid cash position of A$70.9 million, down from A$109.9 million at the previous financial year-end due to the Iris acquisition. The company has implemented organisational changes to align its cost base with strategic priorities, resulting in a more efficient structure. Operating expenses are expected to grow by 20% over FY25, slightly below prior guidance, reflecting disciplined investment in key growth initiatives while maintaining financial stability.
Outlook and Growth Trajectory
Looking ahead, Audinate projects full-year revenue growth of 13–15% over FY25, with gross margins expected to remain stable. The company anticipates negative free cash flow for FY26 due to ongoing strategic investments, including further development and market penetration of Iris. These investments are designed to position Audinate for meaningful software revenue contributions in the coming years, reinforcing its leadership in the shift towards IP-based, software-driven AV solutions.
Bottom Line?
Audinate’s strategic investments and expanding ecosystem set the stage for sustained growth, but investors will watch closely how Iris scales and impacts profitability.
Questions in the middle?
- How quickly will Iris gain traction and contribute materially to revenue?
- Can Audinate maintain its strong gross margins amid increased software focus?
- What impact will ongoing investments have on near-term profitability and cash flow?