HALO Technologies reports $3.54 million in Q2 revenue with rising subscription income, progressing UK expansion pending FCA approval, and a $6.75 million capital raise nearing completion.
- Q2 operating revenue of $3.54 million with subscription growth
- UK expansion progressing; FCA regulatory approval pending
- Managed Funds launch imminent in Australia
- Capital raise of $6.75 million via convertible notes, $5.6 million raised
- Cash runway estimated at 1.79 quarters amid strategic restructuring
Quarterly Financial Performance
HALO Technologies Holdings Limited (ASX – HAL) has reported operating revenue of $3.54 million for the quarter ending June 30, 2025. While this figure is lower than the previous quarter due to expected seasonal fluctuations, the company highlighted a significant increase in subscription revenue, driven primarily by its new Premium News Service. This growth in recurring income streams signals a positive shift in HALO’s business model towards more stable revenue sources.
UK Expansion and Regulatory Progress
HALO’s strategic push into the United Kingdom continues to gain momentum. The company’s UK subsidiary, HALO Invest, launched in December 2023 under the leadership of industry veteran Douglas Boyce, is preparing to roll out its wealth management platform targeting both traditional financial advisers and clients connected to advisers without personal advice. Crucially, the UK Financial Conduct Authority (FCA) has provided verbal confirmation of HALO Invest’s regulatory permissions, with formal attestation still pending. This regulatory milestone is essential for advancing HALO’s Strategic Investor Program and client acquisition efforts in the UK market.
Capital Raising and Cash Position
To support its growth initiatives and working capital needs, HALO is undertaking a $6.75 million capital raise through convertible notes aimed at wholesale and strategic institutional investors. The company has successfully raised $5.6 million to date, reflecting strong investor confidence. Despite this, cash flow remains tight, with the company estimating approximately 1.79 quarters of funding available. HALO has also initiated a rights issue to bolster its cash reserves further, alongside recent strategic restructuring aimed at improving operational efficiency.
Upcoming Product Launch and Outlook
Looking ahead, HALO plans to launch Managed Funds on its Australian platform in the coming quarter. This addition will significantly expand the product offering available to financial planners, complementing the existing suite of over 30,000 global equities and ETFs. The company remains focused on growing its B2B network and subscriber base domestically while investing in the UK business as it moves towards full operational status. HALO’s management expresses confidence in meeting business objectives through these strategic initiatives and seasonal revenue improvements.
Related Party Transactions
The quarterly report also disclosed related party payments totaling $2.49 million, primarily trading costs paid to entities associated with directors Matthew Roberts and George Paxton. These transactions are standard within HALO’s operational framework but warrant ongoing investor attention for governance transparency.
Bottom Line?
HALO’s near-term trajectory hinges on securing formal UK regulatory approval and successfully launching Managed Funds in Australia, setting the stage for its next growth phase.
Questions in the middle?
- When will HALO receive formal FCA attestation to fully unlock its UK growth strategy?
- How will the Managed Funds launch impact subscription and brokerage revenue streams?
- What are the risks if the current capital raise and rights issue do not fully close as planned?