Announcement PDF Atomos Limited Annual Report 2025 Atomos Limited | Annual Report 2025 2 Contents Chair’s Message 3 CEO’s Address 5 Directors’ Report 8 Auditor’s Independence Declaration 22 Remuneration Report 23 Consolidated Financial Statements 35 Notes to the Consolidated Financial Statements 39 Consolidated Entity Disclosure Statement 74 Directors’ Declaration 76 Independent Auditor’s Report 77 ASX Additional Information 81 Company Directory 84 Atomos Limited | Annual Report 2025 3 Chair’s Message Dear Shareholders, It is my privilege, on behalf of the Board, to present Atomos Limited’s FY25 Annual Report, marking a transformative period for the business across multiple operational areas and establishing a growth strategy for the years ahead. Refreshed Foundations and Strengthened Leadership Following our successful recapitalisation and return to ASX trading in late FY24, a significant milestone in the Company’s history, FY25 has been a period of ongoing incremental improvement across every area of the business. Whilst we acknowledge we made some missteps during this period – particularly Ninja Phone and SunDragon product lines – we equally pivoted quickly and believe those learnings have resulted in a more resilient business with a clearer value proposition for customers. A critical part of that pivot has been the evolution of our senior leadership team. In April 2025, Peter Barber moved into the role of CEO, albeit in the months prior Peter had taken on a more active operational and strategic role in shaping the vision for Atomos. As many shareholders would be aware, Peter is a leading video tech entrepreneur, being a co-founder of one of Australia’s great global tech success stories, Blackmagic Design. During the year, Adam Kron was appointed to a newly created role, Chief Digital and Strategy Officer and has been a key driver of our expanded go-to-market strategies. Adam brings over a decade of experience across the e-comm and sales distribution landscape previously working in leadership roles at e-commerce businesses Catch.com and Kogan. To oversee Atomos’ product innovation and development we appointed Daniel Moore as CTO. Daniel was previously the Head of Software Engineering at Blackmagic Design and more recently was CTO at Presien where he focused on the application of AI solutions to improve productivity. We are consistently reviewing the skill sets of the Atomos Board and over time will continue to evolve ensuring we are best positioned to support and complement our leadership team. Product Innovation & Go-to-market Strategy During FY25, the leadership team started implementing a clear product and go-to-market strategy that stays core to Atomos’ innovative DNA whilst meeting the shifting demands and trends of the Atomos customer base. Central to our refreshed product strategy was an update to our core product lines, being the Ninja, Shinobi, Shogun and Sumo monitor and monitor-recorder ranges. Collectively, these products underpin the Atomos brand and serve the breadth of the content creator universe. In supporting our core products, we expanded our ancillary product range – including headphones, PTZ cameras and wireless video transmitters - via several co-development partnerships to create a complementary ecosystem of products meeting more of the needs of our customers. We also launched ATOMOSphere – a cloud storage and workflow collaboration platform. Although early in its commercialisation we see this as an important step in establishing a base of recurring and transactional revenue (e.g. software, cloud, services). Atomos Limited | Annual Report 2025 4 During the year, led by Adam and his team, we modernised our sales and marketing strategies which notably included the launch of a direct-to-consumer (D2C) channel, establishing direct and sticker relationships with our customers. Financial Performance Financially, FY25 was a period of realignment and stability, with the business withstanding several key setbacks whilst also progressively finalising legacy payments and liabilities. Whilst sales were down 9% on PCP, pleasingly we continued to hold market share in our core product ranges, despite negligible sales of our Ninja Phone and SunDragon products. Furthermore, the significant uncertainty around the impact of US tariffs resulted in us pausing US sales for April and May until we better understood the sales landscape, a position we now feel we have clear strategy to execute. We significantly reduced our fixed cost base during the year which stands at approximately $1.1m per month as of July 2025, a material improvement compared to an average of $1.8m per month during 2H’24. To support the business as it continued to execute turnaround strategies during the year, the Company entered a $13.7m debt facility with an entity controlled by CEO Peter Barber (this was further extended to $15.7m post period end) – a significant financial commitment and show of confidence around the strategic plan ahead. Outlook In FY26, we are confident in a return to sales growth driven by the release of several new core products along with incremental contribution from our expanded value-add range. We expect increasing adoption of our D2C sales channels and will continue to highlight the benefits of our cloud workflows to our customers. As of Q1’26, all legacy payment plans and non-recurring items will be finalised which is expected to significantly improve our cashflow position, particularly when combined with stronger sales momentum. I would like to acknowledge our CEO Peter Barber and our entire team’s efforts and resilience throughout the rebuilding year, which I confidently say has Atomos exiting in a much better position than it started. To my Board members, I thank you for your dedication, oversight, and support during the year. To our customers, we extend gratitude for the trust you place in our products. And to our shareholders, we appreciate your continued support and patience as we continue to execute our strategic vision for Atomos. We look forward to updating you on further progress in the year ahead. Yours faithfully, James W Joughin Chair, Atomos Limited Atomos Limited | Annual Report 2025 5 Q&A with Peter Barber, CEO of Atomos What are your thoughts on the turnaround of Atomos? Over the past year we have spent a great deal of time repairing the business. When I first joined, there were significant issues to address, from excess inventory and stock imbalances to legacy contracts and legal matters that had carried over from the past. It took longer than we had hoped and cost slightly more than we initially expected, but it was essential work. In the process we reshaped the company. The organisation is now about half the size it was when we started, and costs have been significantly reduced. At the same time, we kept our eyes firmly on product development, and have been able to bring new technologies and solutions to market. It has not all been smooth, there have been some missteps along the way, but that is to be expected when you are rebuilding a business and working through legacy challenges. What matters is that we have been able to stay dynamic and pivot quickly when needed. Turning a company around requires a willingness to take some risks, to test different approaches, and to learn quickly from the outcomes. If every single initiative has to succeed, you end up paralysed. Our approach has been to experiment, identify what is working, and then put more resources behind those successes while moving past the things that do not deliver. That mindset has enabled us to get Atomos back on track, and while there is still more work to do, we are well on our way to building a stronger, healthier business. Can you comment on the Ninja Phone & SunDragon products? Ninja Phone was launched as the first device of its kind, designed to connect professional, large format cameras directly into social media workflows. By converting HDMI video from cameras into a USB signal for smartphones, it allowed creators to bring broadcast quality images into the social and mobile ecosystem. The first iteration was focused on recording in Apple ProRes, which required higher end devices such as iPhone 15 and 16 Pro models. While the quality was exceptional, it made the solution relatively expensive and limited the addressable audience. Recently, we upgraded Ninja Phone to broaden its compatibility. It now works with all iPhones and iPads running iOS 18 or newer, including models with Lightning connectors. This means even older iPhones can be repurposed as camera monitors, streaming tools, and recording devices. The result has been a significant increase in interest and uptake since the update. SunDragon is a high-quality product, but it is still working to build a following. It represents a different type of lighting solution, and for Atomos, a company not traditionally known for lighting, the initial positioning was always going to be a challenge. In hindsight, moving into lighting may have been a misstep in terms of timing and messaging, but the product itself is exceptional. What makes SunDragon unique is that it is not intended to replace a conventional three-point lighting setup with key, fill, and back lights. Instead, it fills a different role. SunDragon is flexible, shapeable, and waterproof, making it ideal for circumstances where standard lights simply will not fit. It can be hidden inside cars, tucked into tight spaces, used safely in showers, or applied in situations where a traditional rig would be impossible. Early adopters who have tried it recognise its potential, but it is clear that the market needs more education to understand where SunDragon fits into professional workflows. Atomos Limited | Annual Report 2025 6 What new products have you developed and why are you confident customers will want them? This year has been one of the most important for Atomos in terms of new product delivery. We have reinvigorated our core product lines while also expanding into new categories that strengthen the overall ecosystem. On the core product side, we launched the Ninja TX, which takes the proven Ninja platform and adds camera to cloud capabilities for a faster, more connected workflow. Alongside it, the new Shinobi GO and Shinobi 7RX bring wireless video monitoring and camera control to a wider audience, extending our leadership in monitor recorders into areas where mobility and connectivity are critical. We also unveiled the Studio Pro 2710, a reference monitor that represents the start of our move into the mastering grade display market. This product redefines accuracy and opens the door for Atomos to serve the highest levels of professional finishing, grading, and broadcast environments. This monitor range is also designed to address content creation done behind a computer – including Visual effects (VFX) and AI generated content which is a growing part of the content creation process. In parallel, we are broadening our ecosystem with complementary products. The launch of ATOMOSphere, our cloud based production platform, creates an ongoing subscription business that integrates with our hardware. We are also entering adjacent categories such as professional audio with StudioSonic headphones, and live production with the A Eye range of AI enabled PTZ cameras. What makes these products winners is not just their individual features, it is the way they extend and connect the Atomos ecosystem. Each new launch is designed to give creators more choice, more flexibility, and more power to achieve professional results, whether they are on set, in the studio, or in the cloud. This approach not only allows Atomos to participate in more of the spend around the camera, it also strengthens the overall ecosystem. For Atomos, it means a wider product range, deeper engagement with our users, and additional revenue streams. Lastly, we have also modernised our go-to-market sales strategies with a newly formed capability in reaching customers more effectively in the digital age, with a new DTC site, a focus on optimising our presence on platforms such as Amazon, and a targeted digital marketing capability, so we can reach our customers where they are, including new comers to the market. Can you comment further on ATOMOSphere and its value proposition? ATOMOSphere is our cloud ecosystem, and we are building it step by step. It will take time to reach full scale, but the foundation is strong. Every connected Atomos device comes with a free ATOMOSphere account, giving us a large and ready pool of potential subscribers. We are already seeing steady growth in daily sign-ups, which gives us confidence in its long term potential. To encourage adoption, we are bundling cloud access with hardware products and offering loyalty benefits such as discounts in our D2C store. This creates a natural cycle where hardware and cloud reinforce each other, strengthening the overall ecosystem. Over time, it will become a core part of the Atomos ecosystem, providing recurring revenue and keeping us closely connected to our customers. Atomos Limited | Annual Report 2025 7 How have USA tariffs impacted Atomos in the USA? Tariffs have disrupted everyone in the industry, not just Atomos. Earlier this year we took the decision to pause shipments into the United States for a period of around two months while we waited for clarity on how the tariffs would be applied. During that time, we worked through repricing, tightened our logistics, and made the necessary adjustments to ensure that when we resumed shipments, we could do so with a clear plan. The net result is that prices in the United States are now slightly higher than before. However, so far we have not seen a material impact on sales rates. Customers continue to value the solutions we provide, and demand has remained steady. We know tariffs will remain a moving target, and our approach is to stay agile. If adjustments are required, we will make them quickly. Where do you see Atomos in the next few years? Atomos is in a rebuilding phase, and my focus has been on reinvigorating the core product lines while expanding the ecosystem with additional products and solutions. That strategy will continue. We are not just refreshing what Atomos has historically done well, we are also broadening our offering so that creative professionals can benefit from a richer range of tools that fit seamlessly into their workflows. Looking ahead, I see Atomos with a wider and more diverse product range, underpinned by stronger technology and a more resilient engineering culture. We will continue to build on the ecosystems that support our customers, while also deepening our partnerships with the leading camera manufacturers, post-production platforms, and technology companies around the world. In doing so, Atomos will evolve into a stronger, broader business that remains true to its mission of empowering creators with open, flexible, and accessible solutions. Paul Barber Executive Director & CEO Atomos Limited | Annual Report 2025 8 Directors’ Report The directors of Atomos Ltd (‘Atomos’ or ‘the Company’) present their report together with the financial statements of the consolidated entity, being Atomos and its Controlled Entities (‘the Group’) for the year ended 30 June 2025. Directors The names of the directors in office at any time during or since the end of the year are: Mr James Joughin – Non-Executive Chair (effective 31 December 2024) Mr Jeromy Young – Non-Executive Director (effective 3 May 2025), Managing Director (to 3 May 2025) Mr Peter Barber – Executive Director (CEO from 3 May 2025) Mr Paul Greenberg – Non-Executive Chair (to 31 December 2024) The above-named directors held office during and since the end of the financial year unless otherwise stated. Principal activities During the year the principal activities of the Group consisted of:   The design, manufacture and sale of video monitoring & recording equipment; and The development and sale of software applications to enhance its physical products. There have been no significant changes in the nature of these activities during the year. Review of Results and Operations The Group’s revenue declined by $3.1 million in FY25, or 9%, compared to the PCP. However, EBITDA (excluding impairments in the current and PCP), was significantly improved with tighter expense control. Key highlights were as follows:  Revenue of $32.7m, 9% lower than the PCP o Revenue in the second half (H2) of FY25 revenue was $14.1m, 24% lower than the first half (H1) FY25  Gross Profit of $8.5m, $2.7m lower than the PCP. FY25 GP% was 26% compared to 31% for PCP, significantly impacted by $3.2m of inventory obsolescence expense and increasing tariffs in the United States. On an underlying basis (i.e. excluding non-recurring items), FY25 gross profit was $11.3m and GP% was 34%. Margins are expected to improve into FY26 following repricing in the US market  Reported earnings before interest, tax, depreciation, amortisation and impairment (EBITDA) a loss of $11.8m (FY24: 17.3m loss)  Underlying EBITDA a loss of $7.4m (FY24: $11.8m loss) which excludes non-recurring items  FY25 had non-recurring costs of $4.4m, primarily related to a $3.2m provision for inventory obsolescence and $2.7m in employee restructure costs, offset by a $1.7m reversal to onerous contracts provision. FY25 revenue of $32.7 million was $3.1m or 9% lower compared to revenue of $35.7m in the PCP. Revenue was lower in FY25 due to an ageing core product range, a lack of uptake of new Ninja Phone and Sun Dragon products, a temporary pause on US sales due to uncertainty around tariffs and continuing subdued economic conditions. Atomos Limited | Annual Report 2025 9 Revenue was $14.1m in H2 FY25, following revenue of $18.6m in H1 FY25. The US tariffs had a significant impact on H2 FY25 following a conscious decision to pause all sales into the US during April and May with the fluid tariff situation. Forecast increases in revenues from new products, Ninja Phone and Sun Dragon, did not eventuate as each product failed to resonate with customers. Accordingly, obsolescence provisions of $1.5m and $0.5m respectively, were raised during FY25. Gross Profit margin was 26% compared to 31% for PCP, significantly impact by $3.2m of inventory obsolescence expense and increasing tariffs in the United States. On an underlying basis (i.e. excluding non-recurring items), FY25 gross profit margins were consistent with FY24 at 34%. Margins are expected to improve into FY26 following repricing in the US market. Operating expenses were $8.6m or 30% lower in FY25 compared to FY24 on a reported basis. Excluding non-recurring costs, operating costs were $5.6m or 23% lower in FY25 compared to FY24. The Company has finalised its comprehensive cost restructure having already significantly reduced staff costs with headcount now under 55, down from around 90 in December 2024. The restructure is now complete, with the full financial benefit being realised from 1H26. FY25 EBITDA loss of $11.8m was $5.5m or 32% favourable to EBITDA loss of $17.3 in FY24. The FY25 underlying EBITDA loss after adjusting for one-off/non-recurring items was $7.4m which was $4.4m or 37% favourable compared to FY24. Finance costs increased by $0.2m to $1.4m in FY25 primarily due to the drawdown on the new debt facility during the year ended 30 June 2025. Total debt as at 30 June 2025 was $14.389m (including $181k for credit cards) compared to $136k (credit cards) as at 30 June 2024. Depreciation and amortisation decreased by $0.4m in FY25 due to lower fixed asset acquisitions in FY25 as well as the closure of several offices including Melbourne Connect, Germany, US and UK. Income tax expense in FY25 relates tax payments made by non-Australian 100% owned subsidiaries. The consolidated loss of the Group for the financial year after providing for income tax amounted to $14.5 million (2024: loss $22.4 million). Atomos Limited | Annual Report 2025 10 Summary of results for 2025 compared to prior period Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue Cost of sales Gross profit Gross Margin % Operating expenses Other income EBITDA Depreciation and amortisation Impairment of associate Finance costs Loss before income tax Income tax benefit / (expense) Loss for the year 2025 2024 Change $ $'000 32,656 (24,162) 8,494 26% (20,327) 0 (11,833) (1,210) 0 (1,426) (14,469) (112) (14,581) $'000 35,721 (24,517) 11,204 31% (28,889) 349 (17,336) (1,610) (1,798) (1,224) (21,968) (394) (22,362) $'000 (3,065) 355 (2,710) 8,562 (349) 5,503 400 1,798 (202) 7,499 282 7,781 Change % (9%) (1%) (24%) (5%) (30%) (100%) (32%) (25%) N/A 17% (34%) (72%) (35%) Included in the FY25 and FY24 results were certain items which were significant and/or not incurred in the ordinary course of business and are fully detailed in the normalised earnings section on pages 10 and 11. The impact of excluding these items from the Consolidated Statement of Profit or Loss and Other Comprehensive Income is as follows: Normalised Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue Gross profit Gross Margin % Operating expenses Other income Normalised EBITDA 2025 2024 Change $ $'000 32,656 11,261 34% (18,664) 0 (7,403) $'000 35,721 12,041 34% (24,230) 349 (11,840) $'000 (3,065) (780) 5,566 (349) 4,437 Change % (9%) (6%) 1% (23%) (100%) (37%) Revenue, Gross Profit and Gross Margin H2 FY25 compared to H1 FY25 – Underlying basis Revenue, Gross Profit and 2HFY25 1HFY25 Change $ Change % FY25 Total Gross Margin Revenue $'000 14,070 $'000 18,586 $'000 (4,516) (24%) $'000 32,656 Cost of sales (9,878) (11,518) 1,640 (14%) (21,395) Gross profit 4,192 7,068 (2,876) (41%) 11,261 Gross Margin % 30% 38% (8%) 34% Atomos Limited | Annual Report 2025 11 Reconciliation of underlying earnings for 2025 and the prior financial year Earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-IFRS term which the Group uses to measure performance. Additionally, the reported 2025 and 2024 results included a number of items that were significant and/or not considered to be in the ordinary course of business and the tables below quantify these to provide a view of the underlying trading results. $’000 Revenue Cost of sales Gross profit Gross Margin % Operating expenses Other income EBITDA Depreciation and amortisation Finance costs Loss before income tax Income tax expense Loss for the year 2025 Items that were significant and/or not in the ordinary course of business1 Underlying Result 32,656 (24,162) 8,494 26% (20,327) 0 (11,833) (1,210) (1,426) (14,469) (112) (14,581) 2,767 2,767 32,656 (21,395) 11,261 34% (18,664) (7,403) (1,210) (1,426) (10,039) (112) (10,151) 1,663 4,430 4,430 4,430 1 Items that were significant and/or not in the ordinary course of business (2025) Inventory Write-downs, Operating Expenses and Impairment Charges Provision for inventory obsolescence Obsolescence reduction due to stock disposal One off Inventory write-off Employee restructure costs Debt facility legal fees Non-recurring tradeshow marketing expenses Reversal of onerous contract provisions Legal fees relating to historic contractual matters Inventory Write-downs, Operating Expenses and Impairment Charges 3,184 (703) 286 2,663 221 398 (1,714) 96 4,430 Total Items not in the ordinary course of business 4,430 $’000 Atomos Limited | Annual Report 2025 12 2024 $’000 Revenue Cost of sales Gross profit Gross Margin % Operating expenses Other income EBITDA Depreciation and amortisation Impairment charge Finance costs Loss before income tax Income tax expense 35,721 (24,517) 11,204 31% (28,889) 349 (17,336) (1,610) (1,798) (1,224) (21,968) (394) Loss for the year (22,362) 1 Items that were significant and/or not in the ordinary course of business (2024) Inventory Write-downs, Operating Expenses and Impairment Charges Employee restructure costs Ex-CEO separation and legal claim Debt facility novation and legal fees Fees related to strategic review Bad debts related to prior periods Provision for inventory obsolescence Provision for legacy purchase orders for component inventory Impairment of associate Inventory Write-downs, Operating Expenses and Impairment Charges Total Items not in the ordinary course of business Items Underlying that were Result significant and/or not in the ordinary course of business1 837 837 4,659 5,496 1,798 7,294 7,294 35,721 (23,680) 12,041 34% (24,230) 349 (11,840) (1,610) (1,224) (14,674) (394) (15,068) $’000 773 1,145 259 134 291 837 2,057 1,798 7,294 7,294 Atomos Limited | Annual Report 2025 13 Significant changes in the state of affairs There were no significant changes in the state of affairs of the Group during the financial year. Events arising since the end of the reporting period On 9 July 2025, the Company put in place an Employee Incentive Plan (Plan) with immediate effect. The Plan is being offered in recognition of the significant contributions made by staff who have worked tirelessly for several years with negligible salary reviews or bonuses and during what has been an extended challenging period for the business. As part of the Plan, up to 149,500,000 Options may be issued to select employees under the Company’s existing Listing Rules 7.1 Placement capacity, representing approximately 11% of the current issued share capital if all Awards are fully exercised. 50% will vest on 30 June 2026 and balance on 30 June 2027, based solely on maintaining connection to the Company. Key Management Personnel Ben McAlister and Adam Kron have participated in the Plan. Final details are included in the ASX announcement made on 9 July 2025. On 14 July 2025, Atomos acquired Atomos SG Pte Ltd for a consideration of $1. On 23 September 2025, Atomos entered a revised agreement to increase the Monreii Facility limit by a further $2.0m, resulting in a total facility limit of $15.7m. All other terms and conditions associated with the existing Monreii Facility remain the same. There are no further matters or circumstances that have arisen since the end of the year that have significantly affected or may significantly affect either:    the entity’s operations in future financial years the results of those operations in future financial years; or the entity’s state of affairs in future financial years Future developments Atomos will continue to develop the types of products it is known for today to grow the existing business. The Company expects increasing sales momentum in 1H FY26 with the launch of new products including the launch of the Shinobi 7RX and Ninja TX with a significant roadmap of innovative products in development. Further information about likely developments in the operations of the Group and the expected results of those operations in future financial years has not been included in this report because disclosure of the information would be likely to result in unreasonable prejudice to the Group. Environmental legislation The Company’s operations are not subject to any particular or significant environmental regulation under a law of the Commonwealth or of any State or Territory in Australia. Dividends No dividends have been paid or declared during or since the end of the financial year. Atomos Limited | Annual Report 2025 14 Principal Risks Risk Area Risk & Impact Mitigation & Monitoring Launch of new products fail to meet market expectations Atomos always aims to produce products that meet the expectations of customers. Atomos faces a broad range of factors that impact the success of new product launches, including: pricing, changes in customer “user” preferences; competition; our ability to design, develop and deliver products or to support technology changes; effective education of and support from distributors; delays to product launches affecting reputation and customer confidence, as well as the effectiveness of marketing efforts. Atomos is continually innovating and developing its strategy for effectively managing the product life cycle and by ensuring upgrades of new product features and technologies are brought to market in a timely manner. A new series of products are anticipated to be deployed in FY26. A structured product roadmap is maintained which includes the introduction of new products for new segments and customer demands specifically around connectivity and workflow solutions in the highly changing video technology marketplace. Key ecosystem partners in camera manufacturing are rapidly rolling out new innovations and our integrations to support their new products is critical for ensuring Atomos becomes a stronger and more resilient business. Insufficient investment in R&D and failure to rapidly innovate for changing technology Atomos operates in a rapidly changing competitive environment and must ensure continuous efforts are maintained in the improvement of existing products and development of new products. Insufficient attraction of talented development and creative staff and underallocation of resources hinder these efforts. A failure to innovate can damage perception with consumers. Continuous investment is required in the base product range as well as to bring new products and solutions to market for new and existing market segments. Atomos has continually focused on high quality products and adding new products to the range. Development research and investment are key to remaining at the leading edge of providing feature rich, affordable products with high user demand. We constantly monitor market and competitive trends in all parts of the ecosystem, building strong relationships with end user ambassadors and influencers. Supply chain disruptions Atomos sources components globally for the product range and actively manages com