Earnings call transcript: Huddly’s Q3 2025 revenue surges, strategic growth in focus

Huddly, a leading provider of AI-driven video conferencing solutions, reported a significant increase in revenue for the third quarter of 2025, with a 75% year-over-year rise to NOK 45 million. The company also highlighted improved gross margins and a strengthened cash position. Despite a challenging market environment, Huddly’s strategic partnerships and innovation in AI technology are expected to drive future growth. The stock remained unchanged in recent trading sessions, closing at NOK 11, within its 52-week range.

Key Takeaways

• Revenue increased by 75% year-over-year in Q3 2025.
• Gross margin improved to 45% from the previous quarter.
• Cash balance rose significantly due to a successful private placement.
• North America accounted for 57% of revenue despite market uncertainties.
• Strategic partnerships and AI innovations are key growth drivers.

Company Performance

Huddly demonstrated robust performance in Q3 2025, with revenue reaching NOK 45 million, marking a substantial 75% increase compared to the same period last year. The company’s focus on AI-driven innovations and strategic partnerships has positioned it well in the competitive video conferencing market. Despite uncertainties in the North American market, Huddly has maintained strong revenue growth, with North America contributing 57% to its total revenue.

Financial Highlights

• Revenue: NOK 45 million, up 75% year-over-year.
• Year-to-date revenue: NOK 147 million, a 50% increase from the previous year.
• Gross margin: 45% in Q3, up from 43% in the previous quarter.
• Cash balance: NOK 85 million, increased from NOK 52 million.
• Raised NOK 61 million through a private placement in Q3.

Outlook & Guidance

Huddly is optimistic about its future, expecting continued growth through its strategic partnerships and AI innovations. The company aims to achieve a cash flow positive position by 2026 and has no plans for additional capital raises. Expansion in the Asia-Pacific market is a key focus, given its significant potential in the global video conferencing industry.

Executive Commentary

Rósa Stensen, a key executive at Huddly, emphasized the importance of the Huddly Crew product, stating, "Huddly Crew has become our flagship product." Abhijit Banik highlighted the company’s forward-looking strategy, saying, "We are investing for the future in this company." Stensen also remarked on Huddly’s technological edge: "Our architecture is built from scratch with AI in mind."

Risks and Challenges

• Market uncertainty in North America due to potential government shutdowns.
• Challenging investment sentiment in certain sectors could impact growth.
• The need for continuous innovation to maintain a competitive edge.
• Potential supply chain disruptions affecting product delivery.
• Economic fluctuations in key markets impacting revenue streams.

Q&A

During the earnings call, analysts inquired about the Jabra partnership, which is seen as more than just a sales channel. The board expressed confidence in the current cash position, and there was an expectation of market normalization in the U.S. Analysts also showed interest in the company’s strategic focus on gradually increasing market share in the Asia-Pacific region.

Full transcript - Huddly AS (HDLY) Q3 2025:

Rósa Stensen, CEO or Executive Presenter, Huddly: Hello and welcome to Huddly’s Q3 presentation. My name is Rósa Stensen, and with me is Abhijit Banik, our CFO. We report a revenue of NOK 45 million for the quarter, NOK 147 million year-to-date. This is reflecting a 50% growth year-on-year. The gross margin in the quarter is 45%. In the quarter, we continued to deliver on our key strategic goal, increasing the strategic partner revenue stream, and we proudly announced a new partnership with our Danish friends in Jabra. Huddly C1, our next-gen AI-driven video bar, started to ship to end customers this quarter. When it comes to the market outlook, despite the strong growth year-to-date, we do see increased market uncertainty, mainly in North America, and this is impacting our channel business. In the quarter, we continued to deliver on our business plan.

On the strategic partner side, we both increased revenue and signed Jabra as a new strategic partner. On the product side, we started shipping Huddly C1, our next-gen AI-driven video bar. We continue as well to work with strict cost controls. As we mentioned in our Q2 presentation, we are actively working to increase the strategic partner revenue for Huddly. As part of that, we are very proud of the new partnership with Jabra. Jabra is part of GN Store Nord, a listed company on the Danish stock exchange, and has a strong global presence. The partnership will have a key focus on enabling the strengths of both companies. While Huddly has very strong technical capabilities in large rooms, Jabra enables Huddly products on the Android ecosystem. Further, with Jabra’s strong global presence, Jabra is well-positioned to support Huddly to expand its footprint, particularly in the APAC region.

Our current growth rate is driven by our strategic partner revenue. With our new partners coming on stream, as well as more new partnerships in the pipeline, we expect the growth momentum to continue. As part of our second priority in our business plan, we continue to deliver on our product roadmap, latest with the shipment of our Huddly C1 video bar, as well as this week’s announcement of the spatial awareness for Crew. We continuously improve our products with software updates. We do this by utilizing the same hardware. For C1, in addition to the improvements already received, this means that as of early 2026, it will become part of the Huddly Crew platform, allowing our customers to extend the video bar with additional Crew multi-camera functionality. In the quarter, we continued the Huddly C1 and Huddly Crew go-to-market roadshow, this together with Lenovo and Microsoft.

In the quarter, we went to multiple locations in the U.S. In Q4, we will continue the efforts, here demonstrated with some of the planned cities in Europe. Nothing makes me more happy than our happy customers. One of those is British Telecom. British Telecom is a company with 85,000 employees worldwide. They have been part of our customer early field trials and have ordered and installed a large amount of Huddly C1 and Huddly Crew. If you want to see the full user story, go to our webpage at huddly.com. Asia-Pacific represents approximately 30% of the worldwide market in video conferencing, and Huddly has started to gradually increase its market presence in that region. In Q3 and early Q4, we signed two new distribution agreements for our channel business. We were also present with Barco, both at Infocom India and GuideTex in Dubai.

We also believe that together with Shure and Jabra, we will increase further our presence in that market. Whereas Huddly in Q3 continues to deliver on its business plan and showing significant growth, there are uncertainties in the market that are out of our control. Year-to-date, 57% of our revenue comes from North America, which faces a general uncertainty that is impacting our channel business. This is partly a result of negatively affected investment sentiment in certain sectors, this amplified by the government shutdown. This results in delays, for example, in federal purchasing. A similar situation is seen in Canada, a market Huddly has had a good presence in. Canada, as well as the U.S., have not approved the federal budgets. When it comes to the U.S. tariffs specifically, Huddly continues to manage these, and the risk profile remains the same as outlined in the Q2 presentation.

North America has historically been a very important market for Huddly, and we are well-positioned to continue our expansion there when the market stabilizes. With that, I will give the word over to Abhijit, who will take you through the financial part of this presentation. Here you go.

Abhijit Banik, CFO, Huddly: Thank you very much, Rósa. I will now, in this part of the presentation, go further down into the financial details of the Q3 2025 presentation. Let me first start off with revenue. Revenue in Q3 was NOK 45 million, which is a 75% increase versus the same quarter last year. This is mainly driven by strong growth in strategic partner sales, as has been already explained in this presentation. We expect that to continue to grow in the coming quarters, as we expect a gradual ramp-up of revenue and volumes from both new and existing partners, and we have additional partners in pipeline. Sales to channel in Q3 2025 increased by 8% compared to Q3 2024, while year-to-date growth showed a strong 40% year-on-year increase.

If you look at the graph, you can see that there’s a decline between Q2 and Q3 2025, and the main reason for that is, number one, due to increased uncertainty in the U.S. market. Number two, we did a stock-up of goods to U.S. distributors worth approximately NOK 8 million in Q2. Finally, there is a general seasonality in our business, where typically the third quarter of the year generally has a relative softness during the year. Let me move on to gross margin. Gross margin for the third quarter was 45%, which is up from 43% from the previous quarter. On a year-to-date basis, the gross margin was 47%. This is within the business plan range of 45%-50%, and we expect that to continue going forward in the next few quarters.

Looking at the summarized P&L, I already discussed the revenue, which then translates into increased gross profit as well. Gross profit on a year-to-date basis increased by 65% in 2025 versus the same period 2024. If you look at the operating expenses, you can see that this is, as per our business priorities in the business, to have a strict cost control. We have reduced OpEx in Q3. You can see that in this table, there is a slight increase on a year-to-date basis. However, that is related to non-cash items, which was affected in the first quarter of the year. If you take out those effects, it was also a reduction on a year-to-date basis. This is as a result of the cost-saving program that we implemented in the first half of 2025, and we are seeing the results from that.

Consequently, both in Q3 and on a year-to-date basis, there is a significant reduction in losses, and we are improving our results. Capitalized R&D in 2023 Q3 was approximately NOK 20 million, which is consistent with historical levels. We are really investing for the future in this company, and our roadmap, which we are investing in, is what is going to support future revenue growth. We have 56 engineers in the company; approximately 45 of them work with AI, machine learning, and software, and this is a very important part of our differentiation strategy. Previous investments in the company have enabled tangible results, such as the shipment of the Huddly C1 video bar in August, in addition to the software upgrades and updates that were made to the existing product range.

We expect investments to continue going forward, as we are investing into defending our leading technological position in the market. I’d like now to wrap up this part of the presentation with the cash flow statement. Cash end of September 2025 was approximately NOK 85 million, which is an increase from NOK 52 million at the start of the quarter. Operational cash flow was positive, which is a significant improvement from previous quarters. That is mainly due to increased gross profit, but also change in working capital, which you can see more in detail in the cash flow statement in the report. Investments, that was what we discussed in the previous slide, was approximately NOK 20 million in the quarter. If we move into the financing part, we did equity raise in Q3. We raised NOK 61 million in gross proceeds through a private placement.

We did additional subsequent offering after Q3, which will then be recognized in the Q4 cash flow statement. That is representing approximately NOK 7.7 million in additional cash. That wraps up the financial part of the presentation and the overall presentation for this Q3 2025 quarterly announcement, and we will now open up for questions from the audience.

Rósa Stensen, CEO or Executive Presenter, Huddly: Hello, and welcome to the Q&A session. Now, together with us is Yuna Event. Thank you for joining us. I see we have already received some questions, so we will just dive right into it. First question, how does your alliance with Jabra contribute to sales? That’s a good question. First of all, Jabra is a Danish company, and with kind of the combined Nordic heritage, we feel like Jabra is more than a sales machine for Huddly. It is a partnership with very strong roots in kind of the Nordic heritage, both when it comes to the culture, but also the design language of our products, and et cetera. Jabra’s relationship with Huddly is a direct distribution, so Huddly will supply Jabra directly with the products that Jabra will take to the market through their go-to-market channels.

We couldn’t be more happy than having Jabra as one of our partners, as they are very strong globally and are leading in our industry. There is a question. Your cash burn is still high. Do you expect another capital raise going forward? I think this one is, Yuna Event, then. Aimed to you.

Abhijit Banik, CFO, Huddly: We see that both the revenue and profitability of the company is improving quarter on quarter, and the board doesn’t plan for any new capital raise.

Rósa Stensen, CEO or Executive Presenter, Huddly: There is another question that basically asks the same. I will read the question. You can either complement or stay with the same answer. It is, given the year-to-date burn of approximately the cash burn of NOK 91 million, excluding financing, and free cash balance of NOK 70.3 million. Is it likely the company will require additional financing before reaching its projected cash flow positive position in 2026, especially in light of the 21% revenue decline versus last quarter and ongoing market uncertainty in the North American market?

Abhijit Banik, CFO, Huddly: It is true that we see fluctuating revenue from quarter to quarter, and there are also reasons for that. Some of them are part of the natural cycle. Some is related to government shutdown and not having the budget approved in Canada. We still maintain the target that we have set out in the business plan, and the board does not plan for a new capital raise.

Rósa Stensen, CEO or Executive Presenter, Huddly: There is a question based on the shutdown in the U.S. How will this affect the Q4 expectations? This is back to Yuna Event, a bit the same as you answered just now with regards to. We see there is a market uncertainty in the U.S. However, as Yuna Event said, the board maintains its previous communication with regards to those expectations. Anything to add to that?

Abhijit Banik, CFO, Huddly: No, except from that it is very difficult to predict how the political solution is going to be in the U.S. market, but we are certain that at some stage the government situation in the U.S. will normalize.

Rósa Stensen, CEO or Executive Presenter, Huddly: There is a question about, can you explain how you plan to increase market share in the Asia-Pacific region? I will take this one. If we go to the second last page of the presentation, in the operational part of the presentation, we explain that we have in the quarter Q3, but also early Q4, signed two new distribution agreements in the region. One particularly in India, where Huddly has not had a direct distribution to before, and the other one in Australia, where Huddly has some presence. In addition to that, we are going together with our partners such as Shure, Barco, and Jabra, who have a strong presence in that market. We believe that going together with our partners, but also strengthening our channel in that region, will start to gradually increase our market presence there. There is a question.

Good to see your increase in sales strategic channel. However, NOK 90 million is small, and progress is slow. Please expand on how you will reach a number that is meaningful for the company. This goes back to the kind of the main pillars of our business plan, as outlined in page two in the presentation. The key strategic priority for Huddly on increasing the revenue is to attract and sign and activate new strategic partners. As you see also in the presentation, we have now signed, in a 12-month period, Shure for direct distribution, Barco with a go-to-market agreement, and then Jabra, latest in September, for direct distribution. We believe, also with historical numbers from Huddly, that going together with these partners will allow us to increase the revenue and accelerate that increase compared to what we will see normally in the channel business.

Is Google and Crestron still strategic partners? I can happily say yes, we still work with Google and Crestron. Which products are gaining traction? How is Huddly Crew sales going? This is actually, I’m very happy to say that Huddly Crew has become our flagship product, not only when it comes to its unique in the market and latest now bringing the spatial awareness. Usually, most people don’t know exactly what that means, but that means that our cameras now can understand the relation to each other, but also can map the room in 3D, which gives us a lot of information to expand its functionality, but also accuracy in how it works. This is something that the market also has understood, and Huddly Crew is now representing a very meaningful portion of our total balance and absolutely can say is our definite flagship product.

Why is the ramp so slow? Any visibility on how to accelerate before you run out of cash again? As presented previously, we are working actively to increase our strategic partner revenue for Huddly, and throughout the year, that has been ramping up gradually, and we do expect that ramp up and momentum to continue. There is a question about what are your technological competitive advantages compared to other players such as Cisco? Not to go into any other specific competitors, but Huddly Crew has a unique position in the market based on the fact that the architecture of Huddly Crew is built from scratch with AI in mind. It is an AI-enabled architecture, and the same goes with C1. That means that we can provide experiences and solutions at a completely different price point because we utilize way less hardware, for example.

This also gives a lot of flexibility in the installation and makes the installation much quicker and therefore more affordable. Allowing the multi-camera to grow into a mainstream market and not being only reserved for the specific few boardrooms. We do believe that we have quite a technological competitive advantage still with Crew, and the market is giving us that feedback as well. There is a question about what do you expect from the sales and strategic channel in six months, six to twelve months per quarter? Abhijit, this is one for you.

Abhijit Banik, CFO, Huddly: Yes. We have already communicated our business plan, with expectations in this year and next year. We do not provide a specific number and breakdown, but we can say that we are keeping that communication as we have communicated before.

Rósa Stensen, CEO or Executive Presenter, Huddly: I think let’s see if there are coming any more questions. Yeah, then there’s one last question here. Can you explain your product roadmap from 2026 and onwards? In 2024, we entered the market with Huddly Crew, and now in 2025, we have started shipping Huddly’s first audio-video combined product. Further, we have been enhancing Huddly Crew. As of last this week, we announced the spatial awareness of Huddly Crew. Those two products together will, as of start of 2026, become part of the same platform. You can mix and match Huddly Crew and C1, and they will work together seamlessly, allowing people having a full audio-video multi-camera solution from Huddly. Going forward, we will work towards enabling the audio and video experience into more scenarios and more rooms.

Obviously, everything done on AI and with the new technology of machine learning and how we do that. Okay. I thank you guys for all joining us today. If you have any further questions, you can always reach us at ir@huddly.com. Thank you.

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