Danish network infrastructure company Napatech A/S (NAPA) reported second-quarter 2026 revenue of $7.4 million, a 55% increase from the same period in 2025, while its stock price remained flat at $41.60. In Danish kroner, revenue reached DKK 48.1 million, up 52% year-over-year. For the first half of 2026, revenue totaled $13.1 million, a 61% year-over-year increase, with DKK 84.7 million in local currency, up 53%.
Gross margins remained robust at 67.3% in Q2, with core infrastructure revenue accounting for $12.8 million in the first half, representing a 65% year-over-year increase and gross margins of approximately 70%. The Americas contributed $7.3 million to revenue in H1, up 27%, while the rest of the world generated $5.9 million, a 141% increase. EBITDA improved to a negative DKK 6.6 million in Q2 from negative DKK 19.6 million a year earlier, though operating cash flow remained negative at DKK 32.1 million due to a DKK 26.1 million working capital adjustment.
Napatech’s balance sheet showed DKK 62.7 million in cash and cash equivalents at the end of Q2, alongside DKK 21.6 million in undrawn committed credit facilities, bringing total available liquidity to DKK 84.3 million. The current ratio stood at 6.3, while net working capital increased from DKK 73 million at the end of Q1 to DKK 99 million at the end of Q2.
Full-year 2026 guidance remained unchanged, with revenue expected between DKK 200 million and DKK 240 million (approximately $32 million to $38 million). Gross margin guidance was maintained at 60% to 70%, while staff and external costs were projected at DKK 170 million to DKK 180 million. Capitalized development costs were expected to include DKK 5 million to DKK 8 million in staff costs. EBITDA was projected to remain negative at around DKK 25 million at the midpoint. Unit volume guidance was revised downward to a range of 7,700 to 9,700 units, reflecting a shift toward higher-speed, higher-value products with elevated average selling prices.
Management highlighted the company’s progress in AI infrastructure, noting a transition from engineering engagement to design wins, initial production, and follow-on orders. However, engagement with a tier 1 OEM had slowed due to organizational changes at the customer level. CEO Kartik Srinivasan emphasized the company’s strength in core infrastructure while positioning AI infrastructure as a future growth driver. CFO Klaus Skovrup stated that revenue exceeding $10 million in the second half of 2026 could bring the company close to cash flow neutrality, with a possibility of positive free cash flow in the next two quarters.
