How Will HALO’s Managed Funds Launch Transform Its Growth Trajectory?

Strong Quarterly Performance

HALO Technologies Holdings Limited (ASX, HAL) has delivered a solid financial update for the quarter ended 30 September 2025, reporting a 17% increase in operating revenue to $4.15 million. This growth was primarily driven by a 22% jump in brokerage revenue, which rose to $3.3 million, reflecting both an increase in funds under management and seasonal factors linked to key reporting months.

Funds under management (FUM) grew by 5% to $418 million, underscoring steady client engagement and asset inflows. This momentum is a positive sign for HALO’s core business, which centres on providing global equities research and trade execution platforms tailored for both hands-on and low-touch investors.

Strategic Expansion with Managed Funds Launch

In a notable development, HALO launched Managed Funds in Australia during October 2025. This initiative significantly broadens the company’s product suite, granting financial planners access to a near-complete universe of Australian managed funds alongside the existing offering of over 30,000 global equities and ETFs. This expansion positions HALO to better serve traditional financial planners and diversify its revenue streams.

The launch aligns with HALO’s strategic pivot under new executive leadership, led by CEO Peter Oxlade, who has emphasized accelerating growth in the Australian market and expanding the B2B client base. Ongoing discussions with local and international financial institutions suggest a concerted effort to deepen market penetration and forge new partnerships.

Capital Raise Fuels Growth Ambitions

Supporting these growth initiatives, HALO successfully completed a rights issue in late September 2025, raising $3.92 million through the issuance of over 163 million shares at 2.4 cents each. The capital injection is earmarked for working capital and to fund the company’s expansion plans, providing a financial runway to support product development and market outreach.

The quarterly cash flow report reveals positive net cash inflows from both operating and financing activities, with cash and cash equivalents increasing to $5.7 million by quarter-end. Related party transactions, primarily trading costs paid to entities associated with directors, were disclosed transparently, though investors will likely monitor these for any potential conflicts or cost implications.

Outlook and Market Positioning

Looking ahead, HALO remains optimistic about sustaining growth in funds under management and brokerage revenue. The company’s strategic focus on expanding its B2B network and subscriber base in Australasia, combined with the enhanced product offering from the Managed Funds launch, positions it well to capture a larger share of the financial planning market.

While the company has shifted short-term priorities away from overseas markets to concentrate on domestic growth, the success of these initiatives will be critical to watch in upcoming quarters. The evolving fintech landscape and competitive pressures will test HALO’s ability to convert its expanded platform capabilities into sustained revenue gains.