Napatech reports strong Q3 2025 revenue growth, improved profitability

Napatech announced strong financial results for Q3 2025, with revenue reaching DKK 40.1 million, an 18% increase year-over-year. This also represents a 31% sequential increase from Q2 2025. The gross margin remained robust at 70%, consistent with last year. The company saw significant improvement in EBITDA, which was negative DKK 6.1 million, an increase of DKK 11.5 million from Q3 2024, driven by a 23% reduction in staff and external costs.

Net cash flow from operating activities reached break-even for the quarter, a DKK 22.5 million improvement from Q3 2024, with cash and cash equivalents standing at DKK 117.7 million at quarter-end. Strategic progress included advancements with a tier-1 server vendor and an AI inferencing innovator, with deliverables for the D-Matrix JetStream AI NIC on track and expanded cooperation being explored.

Napatech’s full-year 2025 financial guidance remains unchanged, targeting revenue between DKK 150-190 million, a gross margin of 69-71%, and staff expenses and other external costs between DKK 170-180 million. The company is confident in its pipeline expansion and operational discipline to meet these targets.