Napatech reported a 55% year-over-year increase in second-quarter revenue to $7.4 million, driven by robust demand for its core infrastructure products, while AI-related revenue remained subdued.
The Oslo-listed company, which specializes in high-performance networking solutions, posted Q2 revenue of $7.4 million compared with $4.8 million in the same period a year earlier. Gross margin held steady at 67.3%, while EBITDA losses narrowed to negative DKK 6.6 million, a 66% improvement from negative DKK 19.6 million in Q2 2025. Operating and free cash flows remained negative at DKK 32.1 million and DKK 35.3 million, respectively, reflecting ongoing investment in development and working capital adjustments.
For the first half of 2026, revenue totaled $13.1 million, up 61% from $8.1 million in H1 2025, with unit shipments rising 20% to 2,671. Core infrastructure products, including link-capture solutions for enterprise, telecom and cybersecurity, generated $12.8 million in H1 revenue, a 65% increase, supported by gross margins of approximately 70% and 12 new design wins. In contrast, AI infrastructure revenue declined to $0.3 million from $0.4 million in the prior-year period, with the segment still largely in engineering and early production stages.
Geographically, the Americas contributed $7.3 million in H1 revenue, up 27% year-over-year, while other regions generated $5.9 million, a 141% increase. The company maintained its full-year 2026 guidance, projecting revenue of DKK 200–240 million ($32–38 million) and gross margins of 60–70%. Unit volume guidance was revised downward to 7,700–9,700 units from the prior range of 8,700–10,700, reflecting a shift toward higher-speed, higher-average-selling-price products.
Napatech expects staff expenses and external costs to remain in the DKK 170–180 million range, with DKK 5–8 million of staff costs capitalized as development expenses. EBITDA is projected to be negative around DKK 25 million for the full year. The company remains on track to deliver its first commercial AI infrastructure orders in H2 2026, with more meaningful growth anticipated in 2027.
