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Executive Summary
Airthings ASA (OB:AIRX) reported a challenging second quarter for 2025, with revenues falling 11% year-over-year to $7.7 million, according to the company’s presentation released on August 27, 2025. The indoor air quality monitoring company saw its gross profit decline 19% to $4.4 million, with widening losses prompting management to announce a potential capital raise of approximately NOK 100 million and plans to explore delisting from the Oslo Stock Exchange.
The company’s stock closed at $0.65 on August 26, 2025, down 1.52% for the day and significantly below its 52-week high of $2.95, reflecting ongoing investor concerns about the company’s financial trajectory.
As shown in the following key financial metrics chart, Airthings experienced declines across major revenue and profit indicators:
Quarterly Performance Highlights
Airthings reported a substantial widening of losses for Q2 2025, with EBITDA deteriorating to -$2.95 million compared to -$1.66 million in Q2 2024. The company’s net loss for the period more than tripled to -$6.59 million versus -$2.06 million a year earlier, resulting in basic earnings per share of -$0.03 compared to -$0.01 in the same period last year.
The financial challenges come despite some positive operational metrics. Annual Recurring Revenue (ARR) grew 6% year-over-year to $4.5 million, primarily driven by the Business segment. Additionally, consumer device registrations and business devices in the field showed growth, indicating continued product adoption despite revenue headwinds.
The following chart illustrates the growth in device adoption across segments:
Segment Analysis
The Consumer segment, which represents the majority of Airthings’ revenue, experienced a 15% year-over-year decline to $5.8 million in Q2 2025. This segment’s gross margin also contracted to 48% from 58% a year earlier. Management attributed the revenue decline to a shift toward the lower-priced Corentium Home product and revenue reductions related to upcoming sales events in the US.
The following chart details the Consumer segment’s performance:
Meanwhile, the Business segment reported revenues of $1.3 million, a 7% decrease year-over-year. Despite the revenue decline, this segment showed improved profitability with gross margins expanding to 81% in Q2 2025 from 73% in Q2 2024. The company noted that repeat purchases from large customers in finance, healthcare, and retail contributed to most of the hardware sales in this segment.
Strategic Initiatives
In response to deteriorating financial performance, Airthings has implemented several strategic initiatives. The company completed a downsizing program expected to yield approximately $4 million in annual cost savings. Additionally, management has developed what it describes as a "comprehensive plan to improve profitability."
On the product front, Airthings has begun manufacturing its next-generation radon detector, the Corentium Home 2. The company highlighted positive user feedback for this product, which it hopes will help revitalize the Consumer segment.
Inventory management remains a challenge, with total inventories increasing to $13.2 million, up $1.9 million from the previous quarter. Management attributed this increase to foreign exchange effects and lower sell-in, but expressed expectations for inventory reduction in the second half of 2025 following seasonal patterns.
Capital Raising and Potential Delisting
Perhaps the most significant development from the presentation is Airthings’ announcement of a potential capital raise and delisting from the Oslo Stock Exchange. The company has initiated discussions with a consortium led by Firda, an investment firm controlled by Geir Førre, Chair of Airthings’ Board.
The proposed transaction would involve a capital injection of approximately NOK 100 million structured as a private placement followed by a subsequent offering with pro rata participation rights for existing shareholders. Management aims to complete discussions with Firda and other shareholders by mid-September 2025.
As shown in the following slide, the company cited a "challenging liquidity situation" as a key driver for these strategic decisions:
Forward-Looking Statements
Looking ahead, Airthings faces significant uncertainty as it navigates financial challenges and explores strategic alternatives. The company’s balance sheet has weakened considerably, with total assets declining to $35.92 million as of June 30, 2025, compared to $58.30 million a year earlier. Total equity has similarly decreased to $24.53 million from $45.25 million.
The proposed capital injection, if completed, would provide Airthings with additional financial flexibility. However, the potential delisting from the Oslo Stock Exchange represents a major shift in the company’s capital markets strategy and would significantly impact liquidity for existing shareholders.
While Airthings continues to show growth in device adoption and recurring revenue, the substantial deterioration in profitability metrics suggests the company faces an uphill battle to achieve sustainable financial performance. The success of new products like the Corentium Home 2 and the effectiveness of cost-cutting measures will be critical factors in determining whether Airthings can reverse its current trajectory.
Full presentation:
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