Epx Achieves Four Quarters of Positive Cash Flow Amid 26% Revenue Growth

Sustained Cash Flow Momentum

Epx Limited (ASX – EPX), a leader in building efficiency technology, has reported its June 2025 quarterly activity and Appendix 4C, marking a significant milestone with four consecutive quarters of positive operating cash inflows. The company generated $0.4 million in net operating cash inflow during the quarter, contributing to a rolling 12-month operating cash inflow of $1.4 million, a $1.5 million improvement compared to the previous year.

This steady cash flow performance underscores the effectiveness of Epx’s strategic focus on core value drivers such as improved revenue generation, timely cash collection, and disciplined working capital management. The company’s ability to convert incremental revenue into net operating cash has been pivotal in reversing prior cash outflows and establishing a sustainable financial footing.

Revenue Growth and Cost Control

For the quarter ended 30 June 2025, Epx recorded $5.0 million in cash receipts from customers, representing a 26% increase over the same period last year. This growth reflects the company’s expanding footprint across more than 700 sites globally, leveraging its proprietary EDGE Intelligent System to deliver energy efficiency and cost savings in building operations.

Despite the revenue growth, Epx has maintained a disciplined approach to cost management. The operating cash receipts to staff costs ratio remains above 1.5 times, indicating efficient use of human resources relative to cash inflows. This balance between growth and cost control positions the company well for continued operational improvements.

Investing in Future Growth

Epx invested $0.4 million in property, plant, and equipment during the quarter, primarily for hardware and installation costs associated with new customer projects. These investments are critical to driving future Annual Recurring Revenue (ARR) growth, as the installed technology begins generating cash inflows in subsequent quarters.

The company is approaching a key financial milestone – the ability to fund new ARR growth from internally generated free cash flow. While this capability fluctuates quarter to quarter, the trend is positive and aligns with management’s goal since 2023 to achieve self-sustaining growth without reliance on external funding.

Looking Ahead

With $1.3 million in cash on hand and a manageable loan facility with HSBC, Epx’s financial position is stable. CFO Patrick Harsas expressed confidence in the company’s trajectory, highlighting a robust pipeline of revenue opportunities and the potential to further invest in sales and shareholder value creation. The company plans to seek ASX approval to discontinue the requirement to submit further Appendix 4C reports, signaling confidence in its ongoing cash flow sustainability.

As Epx continues to navigate a competitive landscape where many peers have yet to achieve similar operational stability, its progress offers a compelling narrative of transformation and resilience in the building efficiency sector.