Cycliq’s Q2 Receipts Dip 21% Amid Softer Demand, Black Friday Boosts Revenue
Cycliq Group Ltd reported a 21% decline in customer receipts for Q2 FY2026, offset by a solid net operating cash inflow and a strong Black Friday campaign that generated $1.3 million in gross revenue.
- Customer receipts fell 21% to $1.51 million in Q2 FY2026
- Net operating cash inflow of $659,000 recorded for the quarter
- Black Friday campaign generated $1.3 million gross revenue despite 19% decline year-on-year
- Received $188,264 R&D tax incentive refund
- Non-Executive Director Andrew Cotterill resigned during the quarter
Cycliq Faces Softer Demand but Maintains Cash Flow
Cycliq Group Ltd (ASX – CYQ), the Australian smart cycling safety company, has reported a 21% decline in customer receipts for the quarter ending December 31, 2025, totalling $1.51 million compared to $1.92 million in the same period last year. This drop aligns with broader softness in consumer demand within the cycling sector, reflecting ongoing market challenges.
Despite the revenue dip, Cycliq managed a net operating cash inflow of $659,000, underscoring disciplined cash management and operational efficiency. The company closed the calendar year with $870,000 in cash, providing a buffer as it navigates a competitive landscape.
Black Friday Campaign Drives Revenue Amid Decline
A highlight of the quarter was Cycliq’s Black Friday campaign, which generated $1.3 million in gross revenue from mid-November to early December. Although this figure represents a 19% decrease compared to the previous year’s campaign, the average order value increased by 3% to $558, indicating steady customer engagement with Cycliq’s safety products and accessories.
The campaign benefited from enhancements to the company’s Shopify platform implemented earlier in the year, which likely contributed to smoother customer experiences and higher order values despite the overall revenue contraction.
Strategic Moves and Corporate Changes
During the quarter, Cycliq received a $188,264 cash refund under the Australian Government’s Research & Development Tax Incentive Scheme, providing a welcome boost to its financial position. On the corporate front, Non-Executive Director Andrew Cotterill resigned in October to focus on other business interests, marking a notable change in the company’s board composition.
Strategically, Cycliq is focusing on expanding its product ecosystem through partnerships and new product development. The company strengthened ties with Amy’s Foundation, a leading cycling safety advocacy group, reinforcing its commitment to cyclist safety and awareness. New product initiatives aim to broaden Cycliq’s offering beyond its core camera range, aligning with its vision to deliver a comprehensive suite of safety and performance products for cyclists.
Looking Ahead
While the softer consumer demand presents challenges, Cycliq’s operational cash flow and strategic partnerships provide a foundation for growth. The company’s focus on innovation and ecosystem expansion could position it well to capture emerging opportunities in the cycling safety market.
Bottom Line?
Cycliq’s next steps in product innovation and partnership execution will be critical to reversing revenue declines and sustaining momentum.
Questions in the middle?
- How will Cycliq’s new product developments impact future revenue streams?
- What are the implications of the director resignation on corporate governance and strategy?
- Can Cycliq sustain or grow cash flow amid ongoing softness in cycling consumer demand?
