AoFrio (AOF) H2 2025 earnings summary

Executive summary

• FY 2025 revenue reached NZD 83.2 million (or $83.2 million), up 4.4% year-over-year, setting a new record.

• EBITDA improved by 40% to NZD 3.5 million, aligning with guidance.

• IoT business revenue grew 8.9% to NZD 47.1 million with a 42.5% gross margin; Motors revenue was steady at NZD 36.1 million with a 17.7% margin.

• Launched new SaaS and IoT solutions, including the iQ platform and SCS 800 cellular controller.

• Net Promoter Score increased to 62, reflecting strong customer satisfaction.

Financial highlights

• Gross margin increased to 31.7% year-over-year, driven by a favorable shift toward IoT products.

• Recurring revenue invoiced at $4.8 million, with $3.2 million recognized; recurring revenue rose to 3.8% of total revenue.

• Deferred software revenue on the balance sheet increased to NZD 17.8 million.

• Cash at year-end was $1.3 million; net debt increased to $8.2 million due to working capital pressures.

• Inventory reduced by $2.0 million; trade receivables increased slightly.

Outlook and guidance

• Revenue guidance for FY 2026 is to exceed FY 2025, though specific numbers are not provided due to market uncertainties.

• Two growth paths: self-funded 10% CAGR or capital-backed 25% CAGR, targeting $300 million revenue by FY30.

• Growth expected from new product launches, including SCS 800 controller and AoFrio iQ SaaS platform, with commercial release and availability planned in FY26.

• Cautious outlook due to U.S. tariffs, currency fluctuations, and introduction of new product lines.

• FY26 expected to see revenue and EBITDA improvement, but guidance range is challenging due to trade and currency volatility.