Audeara’s Hearing Health Push Hits High Notes in Asia and Australia

ASX-listed hearing tech specialist Audeara (ASX: AUA) is striking all the right chords as it rounds out the first half of FY26, with surging revenues, fresh licensing deals, and a growing global footprint that has the company closing in on last year’s full-year sales haul in just six months.

Group revenue for Q2 FY26 came in at $1.43 million – flat quarter-on-quarter, but up a resounding 274% on the prior corresponding period. For the first half of the financial year, combined with a chunky $560k wholesale purchase order to be recognised in Q3, the company is already within spitting distance of its FY25 revenue of $3.8 million.

And while some small caps dream of operational cash flow breakeven, Audeara posted a $356,000 positive operating cash result for the quarter, buoyed by a $1.22 million R&D tax refund.

A ‘Hear’ and Now Opportunity in China

Arguably the most ear-catching news came out of China, where the company received its maiden licensing order from Eastech Co. Ltd, and more critically, cleared the last regulatory hurdle with certification from China’s National Medical Products Administration (NMPA). This opens the door to full commercial launch of its hearing aid technology into the vast Chinese market, via a local partner and under an established third-party brand.

This is no small beer. With manufacturing already underway and the product set to be distributed through China's dominant online health and retail platforms, the model is low capital intensity and high scalability – precisely what investors want to hear.

Australia Holding Its Own

Photo supplied by Audeara

\Back on home turf, the Australian wholesale business continues to hum along nicely. In fact, Audeara secured its largest ever local order in late November – a $560,000 commitment from a major customer. Once delivered in February and booked in Q3, that single deal will take FY26 wholesale revenue to $1.83 million – matching the entirety of FY25 and representing a 58% increase on the prior year half.

Licensing in Stereo: Japan, Taiwan, and Beyond

The company’s ambitions are firmly tuned to global markets. In Japan, a distribution agreement was inked with Eyear System Inc., setting the stage for its Auracast™-enabled products to enter one of Asia’s most advanced audiology markets. The two parties also showcased their wares at the Makuhari Messe event in Chiba – Japan’s healthcare tech mecca.

Photo supplied by Audeara

Meanwhile in Taiwan, Audeara’s partnership with Clinico Inc. bore fruit, with the jointly developed CS1 hearing buds snagging the SNQ National Quality Mark – a key stamp of approval as the product rolls out into retail channels.

Embedded Tech: AI on Chip

On the tech front, a licensing deal with Optek Microelectronics could prove to be a sleeper hit. The agreement allows Audeara’s AI-powered audio algorithms to be embedded at the chip level in Optek’s systems – think fee-per-chip royalties across major electronics brands. While not yet revenue generating, this agreement has the potential to open the floodgates, given Optek’s impressive client list (Sharp, Panasonic, Philips, Toshiba et al).

Crunching the Numbers

Aside from the standout revenue growth, the numbers tell a story of cautious momentum: operating cash receipts were $732k for the quarter, with $960k in receivables and pending orders due to land shortly. Cash at bank was $737k, down from $1.2m, primarily due to loan repayments following the R&D rebate. Related party payments were a steady $133k, with minimal capex outlay and modest financing costs.

For a company that began life selling headphones tailored for audiology, Audeara is now amplifying its presence on the global hearing stage. With a tech stack that’s resonating across continents and a revenue profile that’s becoming more balanced and resilient, it’s safe to say investors will be watching – and listening – closely as the second half of FY26 plays out.

Outlook: Sounding Off on the Second Half

CEO Dr James Fielding summed it up well: “The business is demonstrating tangible scale and consistency across both our wholesale and technology licensing channels. This momentum positions Audeara strongly as we move into the second half of FY26”.

The company’s to-do list for H2 includes converting development partnerships into recurring revenue, ramping China sales post-certification, and expanding Auracast distribution – all while keeping the cost base under control. If the first half of FY26 is anything to go by, the company is certainly not tone-deaf to the opportunities ahead.