Huddly Q3 2025 slides: revenue surges 75% YoY as strategic partnerships expand

Huddly AS (HDLY) reported robust Q3 2025 results, with revenue surging 75% year-over-year to NOK 45 million and year-to-date revenue up 50% to NOK 147 million, driven by expanding strategic partnerships, including Jabra, and product innovation like the Huddly C1 videobar. The AI-driven video conferencing provider achieved a 45% gross margin and positive operational cash flow of NOK 1 million in Q3, supported by recent capital raises and a significant customer win with British Telecom. Despite strong performance and global expansion, Huddly acknowledges ongoing market uncertainties in North America, its largest revenue base, which are impacting channel sales, yet remains focused on partner-driven growth and disciplined investments.

Analysis

Huddly AS (HDLY) reported robust Q3 2025 results, with revenue surging 75% year-over-year to NOK 45 million, contributing to a 50% year-to-date revenue growth of NOK 147 million. The company maintained a healthy 45% gross margin in Q3 and achieved positive operational cash flow of NOK 1 million, a significant improvement from negative NOK 18 million previously. This financial strengthening was supported by a successful private placement raising NOK 61 million.

Growth was primarily driven by expanding strategic partnerships, notably with Jabra, which contributed to an 85% year-to-date increase in strategic partner revenue. Product innovation, exemplified by the August 2025 launch of the Huddly C1 videobar, and a significant customer win with British Telecom for 450 meeting rooms, underscore the company's market penetration. Huddly capitalized NOK 20.5 million in R&D in Q3, leveraging its 45 AI-focused engineers.

Despite strong operational performance, Huddly faces headwinds in North America, its largest market (57% of revenue), due to economic jitters and government-related delays impacting channel sales. While channel sales grew 8% YoY, they declined QoQ, attributed to these uncertainties and a one-time Q2 stocking. The company projects gross margins to remain within 45-50% and focuses on disciplined investments and cost control while expanding into regions like APAC.

Key Decisions for Investors

• Monitor Huddly's continued expansion in strategic partnerships and product innovation, particularly the global rollout of the C1 videobar and its impact on revenue diversification beyond North America.
• Evaluate the company's ability to mitigate market uncertainties in North America, observing trends in channel sales and the impact of government-related delays on future guidance.
• Assess the sustainability of Huddly's improving operational cash flow and gross margins (45-50% target) as key indicators of its path to sustained profitability.