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Introduction & Market Context
Airthings ASA (OB:AIRX) reported its first quarter 2025 results on May 28, showing mixed performance across its business segments while announcing a significant strategic review that could reshape the company’s future. The indoor air quality monitoring specialist disclosed that it has signed a Letter of Intent for the potential sale of its Business segment assets, with interest from multiple parties as part of a broader strategic review encompassing all business areas.
The company’s stock closed at $1.30 on May 27, up 4% for the session, but remains well below its 52-week high of $3.17 as the company navigates challenging market conditions including US tariff impacts and weaker consumer sentiment.
Quarterly Performance Highlights
Airthings reported Q1 2025 revenues of $9.2 million, representing a 3% decline compared to the same period last year. Gross profit also decreased by 3% to $5.6 million, though gross margins remained stable year-over-year and showed improvement from Q4 2024.
The company’s performance revealed a tale of two segments: Consumer revenues declined 13% year-over-year to $6.7 million, while Business segment revenues surged 56% to $1.8 million. Annual recurring revenue grew 4% to $4.4 million, primarily driven by the Business segment.
As shown in the following financial performance chart:
The consumer segment continues to represent the majority of Airthings’ revenue, with approximately 71,000 consumer devices shipped during the quarter. The company noted continued strong demand for radon products in the US and Canada, though lower average realized prices due to a January radon action campaign impacted overall revenue figures.
The Business segment’s impressive growth was accompanied by a robust 78% gross margin, supported by a high share of subscription revenues. The company reported steady deal flow, low churn rates, and a 15% year-over-year increase in the number of devices in the field.
As illustrated in the Business segment performance:
The company’s EBITDA for Q1 2025 was -$2.07 million, with a net loss of $3.40 million. Operating expenses showed some improvement following a 2024 reorganization, with lower personnel costs and reduced office expenses, though marketing costs increased related to product launches in the United States and promotional events in Canada.
Strategic Initiatives
Airthings continues to position itself as a leader in indoor air quality monitoring, with a particular focus on radon detection. The company’s collaboration with Harvard T.H. Chan School of Public Health on studying the effects of January’s Los Angeles wildfires on indoor air quality demonstrates the potential of its vast data collection capabilities.
The study utilized real-time data from 1,578 Airthings monitors installed in 1,048 homes, providing valuable insights on how wildfire smoke affects indoor air quality. This research collaboration showcases the company’s growing role in environmental health monitoring.
As shown in the wildfire impact study results:
On the product front, Airthings has launched its next-generation radon detector, Corentium Home 2, along with new app features including an improved home screen, smart radon insights with tailored advice, and a referral program. The company reported strong market validation for its radon detection products, with consumer sell-through in the US and Canada increasing 28% year-over-year, while the Corentium Home specifically saw a 45% increase.
The company’s product roadmap illustrates its continued innovation:
Airthings’ data collection scale is becoming a significant strategic asset, with over 1 million devices sold, 571 billion measurement data points collected, and 717 million daily measurements. This proprietary data enables better product development, deeper insights, and increased value for users.
As demonstrated in the market validation data:
Forward-Looking Statements
For Q2 2025, Airthings provided revenue guidance of $7.0-9.0 million, reflecting continued uncertainty related to US tariffs and weaker market sentiment. The company is accelerating efforts to diversify its supply chains to mitigate these challenges.
Management emphasized that the ongoing strategic review process, including the potential Business segment sale, will contribute to strengthening the company’s financial position. With a cash balance of $5.4 million and a $5.0 million revolving credit facility, Airthings appears focused on improving its financial stability while exploring strategic alternatives.
The company’s inventory management shows progress toward its 2024 target of reducing inventory to 250 days, though total inventories increased slightly to $11.3 million, up $0.8 million from the previous quarter. This inventory position supports the manufacturing ramp-up of the new Corentium Home 2 radon detector.
Despite near-term challenges, Airthings continues to emphasize the growing importance of indoor air quality monitoring, particularly for radon detection, with its marketing message that "Every home should measure radon" resonating with consumers in North America.
Full presentation:
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