BATM 2025 results: revenue up, strategy sharpened, and a clear tilt to secure networking
BATM Advanced Communications has posted full-year 2025 results that show decent top-line growth, much stronger adjusted profitability, and a decisive clean-up of the portfolio to focus on networking and cybersecurity. The headline numbers benefited from disposal gains, while a write-off of an associate dragged the bottom line into a loss. The direction of travel is clear: become a streamlined provider of secure, software-defined connectivity with embedded cyber.
| Key numbers (US$) | 2025 | 2024 |
|---|---|---|
| Revenue | $123.2m | $117.3m |
| Revenue on comparable basis | $123.2m | $113.1m |
| Gross profit | $40.1m | $36.8m |
| Gross margin | 32.5% | 31.4% |
| Adjusted EBITDA | $18.9m | $8.1m |
| Adjusted operating profit | $14.7m | $3.8m |
| Adjusted profit before tax | $13.6m | $3.0m |
| Reported profit before tax | $12.4m | $(5.4)m |
| Net loss (total) | $(18.9)m | $(22.3)m |
| Cash and short-term investments | $23.4m | $31.6m |
Adjusted figures exclude amortisation, share-based payments and corporate activity costs, but they include capital gains on disposals and a one-off $2.3m expense for a theft of networking inventory.
Why the strategy pivot matters: fewer moving parts, bigger bets on secure networks
Management sold four businesses in 2025 and a fifth after year end, for total consideration of $24.4m, and reclassified diagnostics as Non-core. The portfolio is being rebuilt around two engines – BATM Networks and BATM Cyber – with joint sales and product integration already underway. That matters because the value proposition is stronger when networking and encryption are fused into one software-driven platform, especially as customers prepare for AI-era bandwidth and post-quantum security risks.
- Disposals: Celitron, Zer Laboratories, Progenetics, A.M.S 2000 Trading Impex SRL (AMS), and post year end Laborator A.M.S 2000 SRL.
- Capital gain: $14.1m recognised on the AMS sale (a non-cash share consideration).
- ADOR Diagnostics written off: $18.7m invested over nine years has been written off as BATM will no longer fund the associate. If ADOR secures outside funding later, BATM could recognise a gain, but that is not certain.
Segment deep-dive: where growth is coming from (and where it is not)
BATM Networks – return to growth with a fatter 2026 pipeline
Revenue rose 36% to $11.6m (2024: $8.5m) as Carrier Ethernet and Edgility both contributed. Adjusted operating loss narrowed to $(2.7)m from $(4.0)m. Gross margin slipped to 45.7% from 52.5% due to a write-off of slow-moving older inventory, which management expects to be a one-off. The division has invested in channel partners globally and is seeing average potential order sizes roughly double.
- X-series Carrier Ethernet launched across 1G, 10G and 100G – guided to be a key customer acquisition driver in 2026.
- Edgility wins and activity: selected by Telebras in Brazil with multiple proofs-of-concept in play; ongoing expansion with a US-headquartered emergency connectivity partner (deployments in the Philippines and LatAm).
- US order for 10G ethernet and aggregation solutions from an ISP owned by a major technology conglomerate.
- 100G interest rising – won a national electricity company tender in Asia-Pacific for a phased upgrade, with additional opportunities in North America and APAC.
My take: the right signals are flashing – new product cycle, broader channel, and much larger deal sizes. The near-term watch-outs are execution on the 2026 pipeline and turning Networks profitable as Edgility scales.
BATM Cyber – commercial debut while government work continues
Revenue fell to $8.3m (2024: $13.1m) against a tough prior year that included exceptional orders, but gross margin improved to 51.1% from 41.0% thanks to manufacturing efficiencies. Adjusted operating profit was $0.7m (2024: $3.1m). The key milestone was shipping the first units of a customised encryption platform for the commercial market via a strategic partner, which has now launched the product post year end.
- Ongoing development projects with a long-standing government customer – including ultra-high-speed and tactical encryption – expected to transition to procurement over time.
- Selected, post year end, as a cybersecurity partner by FPT Israel, part of FPT Corporation.
My take: 2025 reset the revenue base, but commercial traction is finally showing up. If development projects convert as before, the product set widens and should support multi-year growth.
Diagnostics – turned around but now classified as Non-core
Diagnostics delivered revenue of $47.5m (2024: $38.6m), gross margin of 30.0% (2024: 28.0%) and adjusted operating profit of $17.1m (2024: $1.3m) – largely driven by the $14.1m AMS disposal gain. Excluding AMS, proprietary diagnostics grew revenue 71% to $7.7m with gross margin of 42.0% and edged into adjusted operating profit at $0.1m (2024: $1.8m loss). BATM prioritised reagent sales – a consumable, higher-margin stream – often bundling instruments via lease or lower-margin sale with reagent agreements.
Even so, diagnostics moves to Non-core alongside the pharmaceutical distribution business in Moldova and the environmental monitoring business in Hungary. The Board would consider selling Non-core activities if the price is right.
Profit bridge: disposal gains up, ADOR write-off down
BATM posted reported profit before tax of $12.4m (2024: $5.4m loss), and adjusted profit before tax of $13.6m (2024: $3.0m). However, the write-off related to ADOR – booked within the share of loss of joint venture and associates and related balances at $18.9m – took the Group to a net loss from continuing operations of $12.8m. Discontinued operations (mainly Celitron) added a further $6.2m loss, producing a total loss of $18.9m and basic loss per share of 4.20¢.
Two non-operational items stand out: the $14.1m capital gain on the AMS sale, and the $2.3m expense for a theft of networking inventory in December 2025. Management is hopeful of recovery or compensation, but nothing is booked beyond the expense.
Cash, balance sheet and working capital
Cash and short-term investments stood at $23.4m at year end (2024: $31.6m), with net cash used in continuing operations of $1.9m, mainly from working capital movements. Since year end, BATM has received $3.7m of cash previously held by AMS, with $0.3m still to come. Short-term bank credit increased to $8.5m (2024: $4.3m). The balance sheet also reflects the reclassification and sale of assets tied to disposals.
My take: liquidity looks adequate for the current plan, but continued discipline on working capital will matter as larger 2026 orders land.
Outlook for 2026: bigger pipeline, doubled order sizes, and integration upside
Management expects “significant growth” in 2026 for BATM Networks and BATM Cyber based on orders received and the largest pipeline in recent years, with average order size more than doubling. Non-core is expected to be stable. The strategy is to reinvest disposal proceeds into accelerating growth and the integration of networking and cybersecurity – notably weaving Edgility with the encryption platform.
Josh’s verdict: cautiously positive, with execution the key swing factor
- Positives: clear portfolio focus, stronger adjusted profitability, Networks back to growth, Cyber enters commercial markets, diagnostics fixed and ring-fenced as Non-core, and a materially larger pipeline heading into 2026.
- Negatives: the year ends in a statutory loss due to the ADOR write-off, cash reduced on working capital, Networks still loss-making, and Cyber revenue reset from 2024’s exceptional level. Adjusted figures include disposal gains, so underlying run-rate still needs to build.
What to watch next: conversion of the enlarged pipeline to revenue in 2026, margin recovery in Networks as the inventory clean-up passes and Edgility scales, commercial cyber orders beyond the first partner, and any monetisation of Non-core. If management executes, BATM’s focused bet on secure, software-defined networking could start compounding nicely.
Glossary quick hits
- Gross margin – gross profit as a percentage of revenue; a measure of pricing power and cost efficiency.
- Adjusted EBITDA – earnings before interest, tax, depreciation and amortisation, adjusted to strip out specified non-cash or exceptional items.
- Comparable revenue – prior period revenue restated to remove businesses sold, to show like-for-like growth.
- Proof-of-concept – a small-scale customer trial to validate performance before a full contract.
