Spacetalk Posts 12% Revenue Growth, Cuts Net Loss by Over 27% in FY25

Revenue Growth and Profitability Progress

Spacetalk Limited, a leader in family safety and connected wearables, has reported a solid 12.2% increase in revenue for the financial year ended 30 June 2025, reaching $19.6 million. This growth was primarily driven by recurring mobile subscriptions and device sales, reflecting the company’s strategic focus on building sustainable revenue streams.

Despite continuing to invest in product development and international expansion, Spacetalk managed to reduce its statutory net loss after tax attributable to shareholders by 27.1%, from $6.2 million in FY24 to $4.5 million in FY25. The improvement was supported by higher gross profit margins, which edged up slightly to 50%, and operational efficiencies that lowered overall expenses.

Strategic Focus on Recurring Revenue and International Expansion

The company’s annual recurring revenue (ARR) grew 25% year-on-year to $12.1 million, underscoring the success of its subscription-based business model. Spacetalk’s mobile virtual network operator (MVNO) subscriptions, bundled with its proprietary app, have enhanced customer retention and lifetime value, contributing to 57% of total revenue in FY25, up from 53% the previous year.

Spacetalk is actively expanding its footprint in North America and Europe through digital channels and partnerships, aiming to leverage its integrated ecosystem of hardware and software. The launch of new products like the Adventurer 3 smartwatch and the upcoming App 2.0 are expected to further drive customer engagement and revenue growth.

Financial Position and Going Concern Uncertainty

While operational progress is evident, the company’s balance sheet reflects ongoing challenges. As of 30 June 2025, Spacetalk reported net liabilities of $4.3 million and net current liabilities of $3.7 million, with cash outflows from operating and investing activities totaling $4.3 million for the year. The independent auditor’s report highlighted a material uncertainty related to the company’s ability to continue as a going concern.

To address these concerns, Spacetalk secured a $3 million capital injection post-year-end from Thorney Investment Group via unsecured notes accruing 10% interest, subject to shareholder approval. Additionally, Pure Asset Management converted $1 million of secured debt into converting notes and agreed to suspend capital repayments for the remainder of 2025, extending the loan maturity to June 2027. These measures aim to strengthen the company’s liquidity and support its growth strategy.

Governance and Remuneration Transparency

The company disclosed detailed remuneration information for its directors and key management personnel, reflecting a mix of fixed salaries, superannuation, and performance-based incentives including share-based payments. No loans or related-party transactions outside normal remuneration frameworks were reported, underscoring governance standards.

Spacetalk’s board, led by Chair Georg Chmiel and CEO Simon Crowther, continues to oversee the company’s transformation towards profitability while navigating competitive and macroeconomic challenges in the connected wearables sector.