Napatech (NAPA) Q4 2025 earnings summary

Executive summary

• Leadership transition completed with new CEO and CFO, strengthening the executive team and operational discipline.

• Achieved strong financial improvement in 2025, with revenue growth, improved margins, and operational efficiency gains.

• Strategic focus on programmable networking and AI infrastructure, with expanding market opportunities and improved execution.

• Secured 27 new design wins in 2025, expanding the pipeline and ecosystem partnerships.

• Expanded product portfolio with new SmartNICs and DPUs, deepening ecosystem partnerships.

Financial highlights

• Q4 2025 revenue reached $7.9 million, up 48% year-over-year and 26% sequentially; full-year revenue was $22.4 million, up 33% year-over-year.

• Gross margin in Q4 was 70%, up 5 points year-over-year; full-year gross margin was 69%, up 1 point.

• Q4 EBITDA improved to DKK -3.8 million from DKK -17.0 million YoY; full-year EBITDA improved to DKK -58.6 million from DKK -86.3 million.

• Net working capital at year-end was DKK 83.2 million, down from DKK 98.6 million in 2024.

• Positive free cash flow of DKK 10 million in Q4; year-end cash position was DKK 127 million.

Outlook and guidance

• 2026 revenue guidance: DKK 200–240 million, with gross margin expected between 60–70%.

• 2026 unit sales guidance: 8,700–10,700 units, split equally between core and AI infrastructure.

• Staff and external costs planned at DKK 170–180 million, with no significant workforce expansion.

• EBITDA guidance for 2026: DKK -25 million at the midpoint.

• First AI infrastructure orders anticipated in H2 2026, with lower gross margins for these products.