Locate Faces Transition Risks as It Moves Bitcoin Treasury Focus to NZX
Locate Technologies reported steady Q1 FY26 revenue with a strategic pivot to the NZX to better support its Bitcoin treasury ambitions. The company’s Locate2u unit showed promising growth, while Zoom2u faced challenges amid softer consumer spending.
- Q1 FY26 group revenue steady at A$1.48 million
- Locate2u revenue up 19%, Zoom2u down 20% year-on-year
- Normalised EBITDA nearly breakeven after transition costs
- Holding 12.3 BTC valued at A$2.17 million
- Proposed NZX listing pending Scheme of Arrangement approval
Steady Revenue Amid Operational Shifts
Locate Technologies has reported a flat group revenue of approximately A$1.48 million for the first quarter of fiscal year 2026, maintaining parity with the prior corresponding period. This stability masks a mixed performance within its operating divisions, Locate2u, the company’s delivery software platform, achieved a robust 19% revenue increase, while Zoom2u, its established delivery service, experienced a 20% decline, reflecting ongoing consumer spending pressures.
EBITDA and Cash Flow Dynamics
Despite the revenue steadiness, Locate Technologies posted a reported EBITDA loss of A$189,000 for the quarter. However, when excluding one-off costs related to the company’s transition to the New Zealand Exchange (NZX) and employee share option expenses, the normalised EBITDA was close to breakeven, at a modest loss of A$3,000. Cash flow from operating activities showed an outflow of A$314,000, influenced by non-recurring ASX engagement costs, increased enterprise debtors, and weaker trading in Zoom2u.
Strategic Shift to NZX and Bitcoin Treasury Focus
A pivotal development is Locate Technologies’ planned listing on the NZX, New Zealand’s primary stock exchange, subject to shareholder approval of a Scheme of Arrangement. This move is driven by ASX regulations limiting asset holdings in Bitcoin, which conflict with Locate’s strategy as a Bitcoin Treasury Company. Currently holding 12.3 Bitcoins valued at approximately A$2.17 million, Locate aims to leverage the NZX’s more flexible regulatory environment to expand its Bitcoin treasury holdings and capitalise on the growing institutional adoption of Bitcoin as a treasury asset.
Business Outlook and Market Positioning
Locate2u’s first positive EBITDA quarter signals operational progress and potential for growth, supported by new enterprise contracts expected to contribute meaningfully to revenue. Conversely, Zoom2u’s revenue decline highlights the challenges of a softer consumer market and cost-of-living pressures. The company’s cash position remains solid at A$1.2 million as of September 2025, bolstered by a recent A$0.56 million raise through an ATM facility. Looking ahead, Locate Technologies is focused on cost minimisation, revenue growth, and systematic Bitcoin acquisition aligned with its treasury management policy.
Navigating Regulatory and Market Uncertainties
The transition from ASX to NZX introduces regulatory and execution risks, including the need for shareholder approval and potential market reaction to the delisting. Bitcoin’s price volatility also adds an element of uncertainty to the company’s asset valuation and treasury strategy. Nonetheless, Locate’s positioning as New Zealand’s first listed Bitcoin Treasury Company offers a unique value proposition in a niche yet expanding market segment.
Bottom Line?
Locate Technologies’ NZX listing and Bitcoin treasury strategy mark a bold new chapter, but execution risks and market headwinds remain.
Questions in the middle?
- Will the Scheme of Arrangement secure shareholder and regulatory approval without delays?
- How will Zoom2u address its revenue decline amid ongoing consumer spending challenges?
- What is the company’s plan to manage Bitcoin price volatility impacting its treasury valuation?
