Underlying growth in the consumer market up 25 % in the fourth quarter

(Oslo, Norway, 6 February 2025) — Airthings (AIRX) revenues reached USD 10.3 million in the fourth quarter of 2024, on par with the same quarter the year before. Adjusted for a negative one-off effect of a previously disclosed inventory buyback, revenues were up 8 percent, driven by a 25-percent underlying growth in the Consumer segment.

“In 2024, we updated our strategy to capitalize on evolving market dynamics and consumer priorities. People’s awareness of indoor air quality (IAQ) increased rapidly, driven by personal health focus, safety concerns related to radon and wildfires, as well as by a general consumer interest in easy-to use devices. Strong underlying consumer demand at times exceeded our capacity to deliver,” says CEO Emma Tryti of Airthings, a global leader in indoor air quality monitoring solutions.

All-time high for Consumer

The Consumer segment reached all-time-high revenues of USD 7.9 million in the fourth quarter, corresponding to a 12-percent growth year-on year. Adjusted for the inventory buyback, revenues were USD 8.7 million, corresponding to a 25-percent growth year-on-year. Increased awareness of indoor air quality continued to drive strong underlying demand. As a result, Airthings shipped more than 100,000 devices in the fourth quarter 2024, a growth of 60 percent compared to the same quarter in 2023.

Sales in the Business segment were USD 2.0 million, down 31 percent from Q4 23, which had benefited from a single large deal worth USD 1.4 million. Sales in the Business segment have been growing quarter-on-quarter for three consecutive quarters during 2024, backed by a healthy underlying run-rate, steady deal flow and increased share of repeat sales.

Margins under pressure

Airthings’ gross profit was USD 4.6 million in the fourth quarter 2024, down 29 percent from USD 6.5 million in the same quarter the year before. The gross profit margin was 45 percent in the fourth quarter, compared to 63 percent in the fourth quarter in 2023. In addition to one-off items of USD 1.2 million related to the inventory buyback and inventory write-down, the margin was impacted by a larger share of total revenues coming from Consumer sales, as well as product and channel mix. Due to rapidly increasing demand, the number of products sold at pre-planned high velocity events such as Fall Prime Day and Black Friday Week grew sharply in certain channels, negatively impacting the overall gross margin.

“Despite positive trends for awareness and demand, margins came under significant pressure. High volumes were sold at pre-planned high velocity events, leading to pressure on average sales prices in certain channels. A combination of one-off effects, channel mix effects and promotions affected margins negatively. We effectively adjusted our operating model and organization and entered 2025 with a reduced cost base. Improved margins will be a main priority as we reiterate our target of positive EBITDA in the second half of 2025 and for the full year 2026,” Tryti comments.

New retail distribution agreement

Airthings has recently entered into a distribution agreement with Target Corp., a leading US retailer, covering select stores in the US. Target will distribute Airthings’ most popular products, including View Plus, Wave Enhance and the recently announced next generation radon detector Corentium Home 2. Airthings’ products will also be available through target.com. We are pleased to announce the launch of this partnership with Target which will strengthen our retail distribution footprint across the US. As this relationship develops, we look forward to the opportunities it will create in the years ahead.

The first quarter is seasonally a strong period for radon equipment with reorders from key distribution partners following large sales events and the January radon awareness month in the United States and Canada. Airthings expect the underlying positive momentum in the Business segment to continue with year-on-year growth for Q1 25 and stable development in Pro. In total, Airthings expect revenues to be in the range of USD 9.0-11.0 million, compared to USD 9.5 million in Q1 24. The gross margin is expected to normalize in Q1 25 and Airthings aim to be EBITDA positive for the second half of 2025, and for the full year 2026.

“Consumer health awareness, increased knowledge about the effects of indoor air quality, as well as stricter government relations will continue to drive demand. Looking ahead, we therefore see substantial opportunities across both the Consumer and Business segments," Tryti says.

The interim report and presentation are attached to this release and available on www.airthings.com/investors.

Practical arrangements:

The results for Q4 2024 will be presented by CEO Emma Tryti and CFO Helge Øien today at 08:00 (CET) at Danske Bank’s offices, Aker Brygge, Oslo. The presentation is open to the public and can also be followed via the following link:

https://events.webcast.no/airthings/presentations/4q-2024-presentation

Airthings is a leading global technology company specializing in award-winning radon detectors and indoor air quality (IAQ) monitors for homes, workplaces, and schools. With a mission to empower people worldwide to understand and improve the air they breathe, Airthings offers accessible, accurate, and user-friendly solutions designed to enhance health and well-being through simple and affordable technology.

Airthings has sold over 1 million devices worldwide. The company and its products have earned several accolades, including the TIME Best Inventions Award and CES Innovation Award Honor. Headquartered in Oslo, Norway, with additional offices in the United States, Airthings continues to innovate and educate on the importance of continuous indoor air quality monitoring. For more information on Airthings’ comprehensive range of IAQ solutions and the benefits of healthy indoor air, please visit airthings.com.