Energy Action Accelerates AI Platform with 22.7% Revenue Growth in Q3 FY25

Quarterly Financial Performance

Energy Action Ltd (ASX: EAX) has delivered a strong financial performance in the third quarter of fiscal year 2025, posting a 22.7% increase in revenue to $2.7 million compared to the same period last year. This growth reflects the company’s solid foothold in the Australian energy management software sector, driven by its core services in energy procurement, carbon emissions management, and solar PV contract reporting.

Alongside revenue growth, Energy Action reported positive operating cash flow of $0.059 million for the quarter, marking the third consecutive quarter of positive cash generation. The company ended March 2025 with a stable cash balance of $1.61 million, up from $1.48 million at the end of the previous quarter, underscoring a sound liquidity position.

Strategic Investment in AI-Driven Platform

Energy Action continues to invest strategically in its proprietary Utilibox platform, dedicating $0.17 million in the quarter to product development. This AI-powered platform is central to the company’s long-term growth strategy, enhancing energy and emissions management capabilities for its customers. The platform’s ongoing enhancements include advanced AI-driven invoice parsing, dynamic carbon reporting, and scenario analysis tools designed to improve operational efficiency and customer experience.

CTO Clint Irving highlighted the company’s vision to seamlessly integrate AI with expert human consultants, aiming to emulate human interaction and deliver high-quality, innovative energy management solutions. Recent developments focus on automating utility invoice handling and expanding the platform’s reach across more Australian utilities, enhancing accuracy and efficiency.

Financial and Operational Stability

Energy Action’s financing facilities remain stable, with a fully drawn $2.75 million credit limit from Commonwealth Bank of Australia. The company also secured an additional $0.08 million in a term deposit, strengthening its financial position. Scheduled repayments and lease payments for its Parramatta office continue as planned, reflecting disciplined financial management.

Payments to related parties, including directors, amounted to $0.23 million for the quarter, consistent with prior disclosures. CEO Derek Myers emphasized the company’s robust business model and customer-focused service delivery, noting strong client renewals, returning former clients, and new customer acquisitions as evidence of the platform’s growing market impact.

Outlook and Market Positioning

Energy Action’s Q3 results reinforce its competitive position in the energy management software market, particularly as it leverages AI to meet evolving customer needs around energy procurement and carbon emissions reporting. The company’s focus on innovation through Utilibox positions it well to capitalize on increasing demand for sophisticated energy and sustainability solutions in Australia.

While the report does not provide explicit forward guidance, the sustained investment in AI capabilities and positive cash flow trajectory suggest a company confident in its growth prospects. Market watchers will be keen to see how Energy Action translates these technological advances into expanded market share and revenue streams in coming quarters.