There are stocks from ASX listed companies which have good business model. Such stocks, invariably have good growth potential. The two top growth stocks are
Audinate Group Limited (ASX: AD8)
Audinate Group Limited stands as a prominent global supplier of professional audio-visual networking solutions. The company has reported its 1H25 results exceeding market guidance and anticipating moderate growth in 2H25. Despite a temporary impact from OEM inventory overstocking which led to a 29% decrease in gross profit to US$16M and a 38% decrease in revenue to US$18.9M, the company remains confident in its fundamental strength. This period saw a significant improvement in gross margin to 82%, up from 72% in 1H24 reflecting a favorable product mix shift towards higher-margin software-based implementations.
Key indicators of underlying growth remain robust. Software revenue increased by 13% demonstrating a strong demand for Dante technology. The company achieved 61 design wins which is a 15% increase from 1H24, laying a solid foundation for future revenue expansion. Audinate maintains a strong balance sheet with $111M in cash at period end providing financial flexibility for continued investment.
Strategic investments in long-term growth opportunities particularly in video and platform software businesses are underway. Dante Director became commercially available in the first half of 2025, and the company is preparing to launch the Dante AVIO Install Series and Dante Virtual Soundcard Pro in the second half of the year. Audinate's Dante IP networking solution is the worldwide leader in the professional AV industry, boasting 12 times the market adoption of its nearest competitor, with 4,372 Dante-enabled products available and over 290,000 professionals trained. The company is actively expanding its video ecosystem, with 60 Dante AV partners and 116 Dante video products launched by customers. Audinate anticipates a return to regular ordering patterns from manufacturing customers in FY26 as the industry transitions from analog to digital networking presenting substantial market opportunities.
Flight Centre Travel Group (ASX: FLT)
Flight Centre Travel Group continues to demonstrate robust performance and strategic growth marking a positive trajectory in its post-pandemic recovery. The company achieved an impressive $11.7B in Total Transaction Value (TTV) for the first half of FY25 giving a 3% increase year-on-year alongside a 7% rise in Underlying Profit Before Tax (UPBT) to $117M. This solid growth is underscored by a strong second-quarter rebound with UPBT increasing by 14%.
Investors will note the declaration of an interim dividend of 11.0 cents per security, representing a 10% increase from the prior year. The company's underlying earnings per share (EPS) also saw an uplift to 36.1 cents. Furthermore, FLT's balance sheet remains strong with cash and cash equivalents at $718M as of 31 December 2024, bolstered by a significant $244M operating cash inflow in January 2025. The net tangible asset backing per ordinary security improved to ($1.01) in December 2024 from ($1.23) in December 2023.
FLT's accomplishments include achieving record corporate TTV with recovery exceeding 140% of pre-COVID levels and robust international ticket volume growth in Australia up by 12%. The company is actively investing in Artificial Intelligence (AI) to enhance customer experience, improve productivity and develop innovative offerings aiming for a 15-20% productivity uplift in its corporate business by FY26. The leisure segment is now more productive, efficient and profitable than pre-COVID showcasing the effectiveness of FLT's strategies for stronger returns from a lower cost base.
(Source: Company Announcements)
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