Half Year 2026 Napatech A/S Earnings Call Transcript
Key Points
- Q2 revenue grew 55% year-over-year to $7.4 million, with first-half revenue up 61% to $13.1 million.
- Gross margin remained strong at 67.3% in Q2, within the guided range.
- Core infrastructure business delivered 65% revenue growth in H1 with approximately 70% gross margin, adding 12 new design wins.
- AI infrastructure progressed from design wins to production, including a follow-on production order, signaling commercial traction.
- EBITDA improved significantly to negative DKK6.6 million in Q2 from negative DKK19.6 million a year ago, reflecting better operating leverage.
- AI infrastructure revenue contribution remains small, with early qualification orders at low margins due to limited production quantities.
- Engagement with the Tier 1 OEM has slowed due to customer organizational and management changes, delaying expected ramp-up.
- Full-year 2026 unit guidance was lowered to 7,700-9,700 units due to lower-than-anticipated AI infrastructure unit sales.
- Gross margins are expected to decline in coming quarters due to higher memory component costs and a larger share of lower-margin AI infrastructure revenue.
- Free cash flow was negative DKK41.1 million in H1, driven by working capital buildup for inventory and receivables, though improved year-over-year.
Greetings ladies and gentlemen and welcome to the NAPATEC H1 2026 report call.
Please note that this call is being recorded. All participants are currently in listen-only mode. A question-and-answer session will follow today's prepared remarks. If you'd like to ask a question during that time, please press star followed by one on your telephone keypad.
Thank you. It is now my pleasure to introduce Klaus.
TFO. Please go ahead.
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Good morning. I'm Klaus Korp, CFO of Navatech. I'm pleased to welcome you all to Navatech's presentation for the second quarter and first half year of '26.
Joining me today is our CEO, Karthik Srinivasan.
Our first half year '26 report was released earlier this morning on the Oslo Stock Exchange and is also available on the Investor Relations section of the Navatech website. For your information, a recording of this webcast will be available later today.
There will be a question-and-answer session following
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