Huddly (HDLY) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 37% year-over-year to NOK 45.3 million, driven by a 55% increase in channel sales and growth in strategic business.

• Gross margin improved to 53% from 48% in Q1 last year, reflecting favorable product and customer mix and strong demand for AI-enabled products.

• Key launches included the global rollout of Huddly Crew at Microsoft, Shure's Huddly-powered room kits, and the upcoming C1 AI-driven videobar with Lenovo and Microsoft.

• Strategic review process ended due to increased market uncertainty and closed M&A window, but relationships with global players were strengthened.

• Cost savings of NOK 12 million annually implemented, with full effect from May 2025.

Financial highlights

• Revenue: NOK 45.3 million in Q1 2025, up 37% year-over-year, but down 11% sequentially from Q4 2024.

• Gross profit: NOK 23.8 million, up 50% year-over-year; gross margin 53%.

• EBITDA loss: NOK 32.4 million; EBIT loss: NOK 47.5 million; net loss before tax: NOK 54.0 million.

• Operational cash flow negative NOK 21 million, improved from previous quarters; cash balance at NOK 93 million as of March 31, 2025.

• NOK 25 million raised from an oversubscribed subsequent repair offering.

Outlook and guidance

• Business plan targets cash flow positivity by end of 2025, full-year positive in 2026, and strong cash generation by 2027.

• Focus on increasing channel and strategic revenue, monetizing AI, and maintaining strict cost control.

• Market volatility and tariff changes introduce uncertainty, with ongoing monitoring and readiness for mitigative actions.

• C1 product expected to start contributing to revenue in Q3 2025.