Cabasse Holds Steady in H1 2025 Despite Economic Headwinds: Key Takeaways

• How Did Cabasse Perform Financially in H1 2025?
• What’s Behind the Supply Chain Challenges?
• How Effective Was the Cost-Cutting Program?
• What’s the Financial Position Looking Like?
• What Can We Expect in H2 2025?
• FAQs About Cabasse’s H1 2025 Performance

Cabasse, the French audio specialist, navigated a turbulent first half of 2025 with mixed results. While revenue dipped by 30% YoY to €2.5M, the company managed to stabilize its gross margin at 50.2% through product mix optimization and cost controls. Supply chain disruptions and weak international demand weighed on performance, but convertible bond financing and a capital increase from parent Veom Group provide liquidity lifelines. Here’s our DEEP dive into the numbers and what they mean for the luxury audio brand.

How Did Cabasse Perform Financially in H1 2025?

The first six months of 2025 saw Cabasse’s consolidated revenue decline to €2.5 million, marking a 30% drop compared to H1 2024. This slump was primarily driven by sluggish international demand and distributor inventory corrections. Interestingly though, gross margin actually improved to 50.2% (up from 49.4% in H1 2024), thanks to the company’s strategic shift toward higher-margin Luxury Wireless Audio products and production cost optimizations. As someone who’s followed the audio industry for years, I’ve rarely seen a company maintain margins while revenue tanks – that’s some impressive product mix gymnastics.

What’s Behind the Supply Chain Challenges?

Cabasse faced significant headwinds from US tariff barriers disrupting Asian suppliers. These bottlenecks delayed deliveries of critical components, creating production headaches. The company’s CFO must be pulling their hair out – imagine having luxury speakers ready to ship but missing that one specialized driver because of customs paperwork. Distributors also sat on elevated inventory levels (up 18% YoY according to industry sources), further complicating the sales pipeline.

How Effective Was the Cost-Cutting Program?

The €0.8 million cost reduction plan initiated in 2024 showed tangible results, cushioning what could have been a disastrous EBITDA performance. H1 2025 EBITDA came in at -€0.4M, only slightly worse than last year’s -€0.33M, despite the revenue plunge. That’s like losing 30% of your paycheck but only trimming 5% from your lifestyle – not bad crisis management. About €0.5M of additional savings are expected to materialize in H2.

What’s the Financial Position Looking Like?

By June 30, Cabasse reported negative equity of -€2.1M (versus -€1.6M at end-2024) but secured breathing room through:

• A €2.5M convertible bond offering (OCA)
• A €0.1M capital increase from Veom Group

What Can We Expect in H2 2025?

The second half performance hinges on two wild cards: consumer spending recovery and distributor inventory policies. The company also faces ongoing supply chain uncertainties from US trade policies. While Cabasse isn’t out of the woods yet, their margin resilience and parent company support suggest they’re playing the long game in the premium audio space.