Denmark · Delayed Price · Currency is DKK Asetek Earnings Call Transcripts
Fiscal Year 2025
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Revenue and EBITDA declined year-over-year, but gross margin improved and operating expenses fell. A major OEM contract and new product launches set the stage for growth in 2026, despite ongoing tariff and currency headwinds.
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Q2 2025 saw a sequential revenue increase in liquid cooling, but overall revenue declined year-over-year due to lower ASPs and SimSports tariff impacts. Gross margin remained strong at 45%, and guidance for 2025 is unchanged, with growth expected in 2026.
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Q1 2025 saw a 19% revenue decline, mainly from weaker SimSports demand and U.S. tariffs, while Liquid Cooling volumes held steady but at lower prices. Guidance was revised down, with a focus on cost control, new product launches, and a shift to European markets for SimSports.
Fiscal Year 2024
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Q4 2024 saw strong SimSports growth and record liquid cooling revenue, but full year revenue fell 37% year-over-year. 2025 is expected to be flat, with new mass market products and expanded distribution set to drive growth from 2026.
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Guidance for 2024 is maintained with revenue expected at $52–55 million and adjusted EBITDA margin of 1–4%. The rights issue seeks up to DKK 118 million to fund SimSports growth and working capital, with no plans for further dilutive raises. SimSports and liquid cooling both target $50 million in midterm revenue, with new mid-segment products launching next year.
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Q3 revenue fell 40% year-over-year to $12.2 million, with a $22 million net loss driven by $20 million in one-off impairment and tax charges. SimSports showed growth and new partnerships, while liquid cooling faced market headwinds. A rights issue is planned to support future expansion.
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Q2 2024 saw stable gross margins but lower revenue and a net loss, with cost reductions underway and guidance maintained. Liquid cooling faces weak demand and customer issues, while SimSports continues to grow and approach profitability.