Napatech (NAPA) Q4 2025 earnings summary

Executive summary

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

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

• 2025 marked by significant design wins, new product launches, and deepened ecosystem partnerships, especially with d-Matrix and Altera.

• Achieved strong revenue growth in Q4 2025, up 48% year-over-year to $7.9m, and FY2025 revenue up 33% to $22.4m.

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 was negative DKK 3.8 million, improving by DKK 13 million year-over-year; full-year EBITDA was DKK -58.6 million.

• Staff and external costs declined by 10% in Q4 and 3% for the year.

• Net cash flow in Q4 was positive DKK 10 million; year-end cash position was DKK 127 million.

Outlook and guidance

• 2026 revenue guidance: DKK 200–240 million, implying ~50% growth at midpoint; 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 for 2026 guided at DKK -25 million at midpoint.

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