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Introduction & Market Context
Huddly AS (HDLY) presented its third quarter 2025 results on November 6, revealing a 75% year-over-year revenue increase amid continued expansion of strategic partnerships and product innovation. The AI-driven video conferencing solutions provider reported NOK 45 million in revenue for the quarter, maintaining its growth trajectory despite market uncertainties in North America, which represents 57% of the company's revenue base.
The company's stock closed at NOK 11 on the presentation day, and has since declined 8.64% to NOK 10.05, still within its 52-week range of NOK 10.05 to NOK 53.80. The presentation highlighted Huddly's strategic focus on partner-driven growth, product innovation, and geographic expansion.
Quarterly Performance Highlights
Huddly reported robust financial performance in Q3 2025, with revenue reaching NOK 45 million, representing a 75% increase compared to the same period last year. Year-to-date revenue stood at NOK 147 million, marking a 50% year-over-year growth. The company maintained a healthy gross margin of 45% in Q3 and 47% year-to-date, supporting a gross profit of NOK 69 million for the first nine months of 2025, a 65% increase from the previous year.
As shown in the following financial overview, Huddly has demonstrated consistent revenue growth with improving margins:
Operational efficiency improved significantly, with operating expenses decreasing due to cost reductions and streamlined operations. This contributed to a substantial year-over-year reduction in losses for both the quarter and year-to-date periods. Operational cash flow turned positive at NOK 1 million in Q3 2025, a marked improvement from the negative NOK 18 million in the previous quarter.
The company's financial position was further strengthened by a successful private placement in August 2025, raising NOK 61 million in gross proceeds, with an additional NOK 7.7 million secured through a repair offering in October.
Strategic Partnerships & Product Innovation
A key driver of Huddly's growth has been its expanding network of strategic partnerships. The company announced Jabra as its newest strategic partner in September 2025, joining existing partners Shure, Lenovo, Barco, and Microsoft. This partnership is expected to enhance Huddly's large room market penetration and accelerate go-to-market through Jabra's global reach.
The company's strategic partner revenue increased by 48% compared to Q2 2025, marking the strongest performance since Q3 2023. Year-to-date growth from strategic partners reached an impressive 85% year-over-year.
As illustrated in the following chart, strategic partner revenue has shown consistent growth as new partnerships have been established:
Product innovation remains central to Huddly's strategy, with the successful launch of the Huddly C1 videobar in August 2025. The C1 continues to evolve with software upgrades enhancing audio performance, flexible video experiences, and future extendibility to the Crew platform.
The company's product roadmap outlines a clear vision for future development, focusing on multi-camera solutions and complete audio-video offerings for various room sizes:
Huddly's commitment to innovation is supported by substantial R&D investments, with NOK 20.5 million capitalized in Q3 2025. The company employs 56 engineers, including approximately 45 with expertise in AI, machine learning, and software development, positioning Huddly to maintain its technological leadership in the competitive video conferencing market.
Strategic Customer Wins & Market Expansion
A significant customer win highlighted in the presentation was British Telecom's decision to equip 450 meeting rooms with Huddly's video conferencing solutions over the next 12 months. Following successful early field trials, BT has purchased a substantial number of C1 videobar units and Crew kits.
Danny Ward, Design and Strategy Lead for AV at BT, emphasized the impact of Huddly's technology: "The step change is magnitudes. It's a huge leap forward in every sense. You can really tell the difference when you move from a room with a legacy bar to one with the C1. Everything seems brighter, clearer, and the audio is great."
The company is also executing a global launch of the C1 with partners including Lenovo and Microsoft, with roadshows across EMEA, the United States, and continued expansion in the Asia-Pacific region:
While North America represents 57% of Huddly's revenue, the company is strategically expanding its presence in the Asia-Pacific region, which accounts for approximately 30% of the worldwide video conferencing market with an estimated value of USD 1.2 billion. This expansion includes new channel distributors in India and Australia, joint marketing with Barco, and accelerated go-to-market with strategic partners.
Market Challenges & Financial Outlook
Despite the strong performance, Huddly acknowledged challenges in its largest geographic market, North America, where general uncertainty is impacting the Channel business. The U.S. government shutdown has negatively affected investment sentiment in certain sectors, causing delays in federal purchasing and decision-making processes. Similar slowdowns are observed in Canada due to delays in federal budget approval.
The company's Channel sales increased by 8% compared to Q3 2024, with year-to-date growth of 40%. However, there was a decline compared to Q2 2025, attributed to market uncertainty in North America, a one-time stocking by U.S. distributors in Q2, and seasonal fluctuations.
Huddly's gross margin is expected to remain within the business plan range of 45-50%, with variations primarily driven by changes in customer and product mix. The company's summarized profit and loss statement demonstrates improved operational efficiency:
With secured funding and improving operational cash flow, Huddly appears well-positioned to continue executing its growth strategy focused on strategic partnerships, product innovation, and geographic expansion, despite market uncertainties in North America.
The company's business priorities remain centered on growing Strategic Partner and Channel revenue, maintaining healthy gross margins by monetizing AI-enabled products, and exercising disciplined investments with strict cost control:
As Huddly continues to expand its partner ecosystem and product portfolio, while navigating market challenges, investors will be watching closely to see if the company can maintain its growth momentum and progress toward sustained profitability.
Full presentation:
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