Huddly Q2 2025 slides: 45% revenue growth amid continued cash burn

Published 21/08/2025, 06:06
Huddly Q2 2025 slides: 45% revenue growth amid continued cash burn

Introduction & Market Context

Huddly AS (EURONEXT:HDLY) reported strong revenue growth in its Q2 2025 presentation delivered on August 21, 2025, though the company continues to operate at a loss while pursuing strategic partnerships to drive future growth. The Norwegian video conferencing technology provider saw its stock rise 4% to NOK 13.50 on August 20, still significantly below its 52-week high of NOK 80.

The company’s presentation, delivered by CEO Rósa Stensen and CFO Abhijit Banik, highlighted Huddly’s progress in expanding its strategic partnerships and channel sales, while acknowledging ongoing challenges in achieving profitability.

Quarterly Performance Highlights

Huddly reported Q2 2025 revenue of NOK 57 million, representing a 45% increase compared to NOK 39 million in Q2 2024 and a 25% sequential increase from Q1 2025. This marks the third consecutive quarter of year-over-year growth for the company.

As shown in the following chart of quarterly revenue and gross margin trends:

The company’s gross margin stood at 43% in Q2 2025, down from 53% in Q1 2025 and below the 47% achieved in the first half of 2025. Management attributed this decline to "a change in product mix and one-off impact from scrapping and concluding sales of a maturing, lower-margin product," noting that the gross margin would have been 45% excluding these effects.

Channel sales were particularly strong, increasing 56% year-over-year and 28% sequentially from Q1 2025. Strategic partner revenue also grew by 17% compared to Q2 2024 and 18% versus Q1 2025.

The following chart illustrates the consistent growth in channel revenue over the past three quarters:

Strategic Partnerships and Product Development

Huddly’s growth strategy centers on expanding strategic partnerships with established industry players. The company reported "growing momentum" in its partnership with Shure, which launched in February 2025, with first customer shipments beginning in May 2025.

Additionally, Huddly announced a Memorandum of Understanding with Barco (EBR:BAR) to deliver AI-driven solutions for meeting spaces of various sizes. The partnership will integrate Huddly’s camera technology with Barco’s ClickShare Hub products, targeting Microsoft (NASDAQ:MSFT) Teams certification.

The company also revealed it has "entered into final negotiations with a leading and well recognized global provider of professional audio and video collaboration solutions," with an expected value between NOK 20-40 million per annum over an initial 24-month term.

On the product front, Huddly is preparing for the September 2025 launch of its C1 videobar, developed in collaboration with Lenovo and Barco. Management described the product as having "20x more AI processing power" than previous offerings and expects it to be "a strong and important revenue driver from Q4 2025."

The company’s product roadmap shows its evolution from a multi-camera solution provider to a complete video and audio solution player:

Financial Analysis

Despite revenue growth, Huddly continues to operate at a loss, though financial metrics show year-over-year improvement. The company reported an EBITDA of NOK -11.0 million in Q2 2025, compared to NOK -34.2 million in Q2 2024.

Operating expenses decreased year-over-year, which the company attributed to a cost-saving program delivering annual savings of NOK 12 million, along with lower costs from the employee share incentive program.

The summarized P&L statement shows significant improvement in year-over-year losses:

R&D investments increased to NOK 14 million in Q2 2025 from NOK 9 million in Q2 2024, reflecting what the company described as "a higher share of maintenance vs. development in Q2 2024" and a return to "normal level" in the current quarter. Huddly employs 57 engineers, including approximately 45 with expertise in AI, machine learning, and software development.

Cash flow remains negative but showed improvement at NOK -18 million, compared to NOK -21 million in Q1 2025 and NOK -33 million in Q4 2024. The company’s cash balance stood at NOK 52 million as of June 30, 2025, a significant decrease from the NOK 93 million reported at the end of Q1 2025.

Forward-Looking Statements

Huddly is planning a private placement of NOK 50-75 million, of which NOK 50 million is guaranteed, to "bridge the company to cash flow positive in 2026." This represents a shift from the Q1 2025 earnings call, where management had aimed to achieve cash flow positivity by the end of 2025.

The company is targeting 2025 revenue between NOK 240-280 million and expects the upcoming C1 videobar to be a significant revenue driver starting in Q4 2025.

Regarding external factors, Huddly noted that U.S. tariffs have increased costs for distribution partners, prompting the company to raise prices for U.S. end-customers while maintaining its margins. Management believes Huddly "currently benefits from a favorable relative cost position, as many competitors manufacturing in Asia face higher tariffs than products exported from Europe."

As Huddly continues its pursuit of strategic partnerships and product innovation, the company faces the dual challenge of growing revenue while managing cash burn on its path toward profitability in 2026.

Full presentation:

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