Napatech A/S: Q2 & H1 2025 Financial Results

(Copenhagen, 26 August 2025) Napatech A/S (“Napatech”, OSE: NAPA) reported revenues of DKK 31.6 million in the second quarter of 2025. Gross margins for the quarter were in line with expectations at 67%. The company’s EBITDA came in at negative DKK 19.6m for the quarter. Staff costs in Q2’25 were down 16% compared to Q1’25

“We’ve made significant progress executing against key milestones in our strategic roadmap, reinforcing our position as an early leader in the emerging mass market for Network Interface Cards (NICs). Over the past year, we’ve strengthened our core business and advanced toward critical design wins that support our goal of scaling to 60,000–80,000 units annually at peak production. These developments are tracking to plan, and compared to this time last year, our position is markedly stronger. Together, these gains enhance our visibility into the timing and magnitude of our transformation—while simultaneously reducing risk across our growth trajectory, “said Lars Boilesen, CEO of Napatech

In support of the significant steps forward with our current customers and expanding design-win pipeline, Napatech successfully completed a private placement capital raise of 210M NOK. The Placement attracted interest from high-quality investors, including dedicated support from existing shareholders. The proceeds will be used to finance the growth opportunity arising from the announced partnerships, pipeline, and design wins. 

We are inspired by the success we have had in building a pipeline for our new products and solutions. Our partnership with Intel-Altera continues to play a critical role in our strategy by helping to contribute to valuable, high-volume opportunities to our pipeline from leading high-growth applications and use cases. In recent updates, we had noted our expectation of growth from our base business, and we are pleased to report definitive results in that area, along with improved visibility to additional improvements in the second half of 2025. An important part of that strengthening was the increase in sales to our top customers, along with forecasts and commitments from those top customers for increased unit demand over the next 4 quarters. The improving base business, plus a constantly expanding pipeline of opportunities and early success in new design wins, provides great optimism towards realizing our growth ambitions

Last year, we announced a design win with Intel-Altera and a tier-1 server OEM to build next-generation solutions to their specification for high-volume use cases, as well as the general market. I am glad to report that we consistently met the hardware mileposts ahead of plan and exceeded their expectations. We are intimately involved in the next stage of their process, which includes the development and integration of key software to meet their deployment requirements. We are excited that our efforts to date have resulted in expanding our cooperation to additional use cases and opportunities, all of which represent potentially transformational unit volumes to Napatech. 

We are equally excited today to share more information about our latest high-volume design win in Artificial Intelligence inferencing for hyperscale cloud, next-wave cloud, and enterprise datacenters. Our Intel-Altra programmable NIC delivers efficient ultra-low latency distributed inferencing across many AI servers. Customers get the benefit of deploying an industry-standard ethernet-based scale-out solution to take advantage of blazing fast inference speeds, all at massive scale. We are on track with our initial design win and are actively replicating this design by pursuing others in need of AI infrastructure. 

For more information, please see the attached report for the second quarter and first half of 2025. 

Napatech will host a webcast presentation and a conference call of its 2025 Half-Year Report today at 09:00 (CET). The presentation will be given by Lars Boilesen (CEO) and Heine Thorsgaard (CFO).

The presentation will be delivered by webcast on:

https://events.q4inc.com/attendee/495658565

Dial-in details for the conference call are: 

DK: +45 89 87 50 45
UK: +44 20 3936 2999
US: +1 646 233 4753
All other locations: +44 20 3936 2999

Access Code: 120993

*EBITDA and other alternative performance measures (APMs) are defined on page 3 in the attached report for the second quarter and first half of 2025.

For additional information, please contact:

Heine Thorsgaard, Chief Financial Officer
Phone: +45 4596 1500
E-mail: htg@napatech.com

About Napatech 

Napatech is a leading supplier of programmable FPGA-based SmartNIC solutions used in telecom, cloud, enterprise, cybersecurity, and financial applications worldwide. Through commercial-grade software suites integrated with robust, high-performance hardware, Napatech accelerates telecom, networking, and security workloads to deliver best-in-class system-level performance while maximizing the availability of server compute resources for running applications and services.

www.napatech.com

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to sections 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Heine Thorsgaard, CFO, Napatech A/S, on 26 August 2025 at 08:00 CET.