Sportshero Ltd Reports AUD 390K Operating Cash Outflow in Q2 2025
Sportshero Ltd’s latest quarterly cash flow report reveals ongoing operational cash outflows balanced by financing activities, leaving the company with just over two quarters of funding runway.
- Net cash used in operating activities of AUD 390,000 for the quarter
- Investing activities consumed AUD 1.365 million, reflecting ongoing capital deployment
- Financing activities provided AUD 360,000, partially offsetting cash burn
- Cash and cash equivalents at quarter end stood at AUD 118,000
- Unused financing facilities of AUD 680,000 extend funding runway to approximately 2.05 quarters
Quarterly Cash Flow Overview
Sportshero Ltd has released its cash flow report for the quarter ending 30 June 2025, highlighting a challenging liquidity position amid continued investment and operational expenses. The company recorded a net cash outflow from operating activities of AUD 390,000, underscoring ongoing costs associated with its technology and digital media operations.
Investing activities further drained cash resources by AUD 1.365 million during the quarter, indicating sustained capital expenditure likely aimed at product development or platform enhancements. This level of investment reflects Sportshero’s commitment to growth but also places pressure on its cash reserves.
Financing and Liquidity Position
On the financing front, Sportshero secured AUD 360,000 in net cash inflows, which helped to partially offset the operational and investing cash outflows. The company ended the quarter with cash and cash equivalents of AUD 118,000, a modest buffer given its current burn rate.
Importantly, Sportshero has access to unused financing facilities totaling AUD 680,000, which, combined with its cash on hand, provides an estimated 2.05 quarters of funding availability. This runway is critical as the company navigates its next phase of development and operational scaling.
Related Party Payments and Loan Facilities
The report also discloses payments of AUD 117,000 to related parties, a detail that investors will watch closely for governance implications. Additionally, Sportshero maintains unsecured loan facilities amounting to AUD 1.6 million from various lenders, including individuals such as Colin Jee Fai Low and Christopher Woonings, with differing interest rates and maturity dates extending into 2026.
Outlook and Considerations
While the company confirms compliance with accounting standards and the report was authorized by the Board, the limited cash reserves and relatively short funding runway raise questions about the sustainability of current operations without additional capital. The absence of explicit forward guidance on funding strategies leaves investors anticipating further updates on how Sportshero plans to secure its financial footing.
Bottom Line?
Sportshero’s cash flow dynamics underscore a critical juncture where securing additional funding or improving operational cash flow will be essential to sustain growth ambitions.
Questions in the middle?
- What specific initiatives are driving the high investing cash outflows, and when might they yield returns?
- How does Sportshero plan to extend its funding runway beyond the current 2.05 quarters?
- What are the implications of related party payments on corporate governance and investor confidence?
