Kudelski Group is doubling down on digital security and launching Kudelski Labs to tackle new connectivity threats, even as revenues dropped nearly 9% in the first half of 2025.
The move comes as the company reported first-half 2025 revenues of $174.5 million, down 8.9% year-over-year, with operating losses narrowing slightly to $24.8 million. Stripping out $6.4 million in restructuring costs, operating losses stood at $18.4 million.
Core security holds the line
Kudelski’s Core Digital Security business, anchored by its Nagravision unit, posted revenues of $103.9 million, down 7% but marking its slowest rate of decline in four years.
Despite the drop, Nagravision expanded long-standing relationships as One Hungary extended its OpenTV ENTera platform to integrate services like Netflix, and Canal+ deepened its OTT collaboration with Kudelski.
Streaming security continues to be a bright spot, with fresh deals inked with DAZN, BeIN SPORTS, and the English Football League, as piracy prevention remains a critical issue for live sports. Kudelski also reported 30% year-over-year growth in consumers on its OpenTV OTT platform.
Cybersecurity bets on AI and MDR
Kudelski Security unit, which focuses on enterprise cybersecurity, saw revenues dip 4.8% to $49.5 million. The Americas dragged the numbers, down 14.5%, as the group deliberately pulled back from low-margin tech resale. Europe was flat, up 0.4%.
Still, Kudelski is plowing resources into Managed Detection and Response (MDR) services, building out a Counter Adversary Unit and leaning on AI-powered threat detection.
New partnerships include tighter integrations with CrowdStrike and major cloud providers. Aerospace and critical infrastructure remain key verticals, where Kudelski’s OT security expertise is gaining traction.
IoT pushes into insurance and auto channels
Kudelski’s IoT unit generated $19.3 million, down 10.6%. But the company is doubling down on distribution partnerships — striking a strategic deal with Zurich Insurance North America to bundle its asset-tracking services with financing, leasing, and insurance offerings.
The segment also launched RecovR ID Check, an identity verification tool now deployed across dealerships of The Niello Company, while partnering with April Marine Insurance in Canada to expand into boats and trailers.
