Halo Technologies reports a strategic pivot under new CEO Peter Oxlade, adopting a capital-light B2B model in the UK and expanding its Australian managed funds offering, while maintaining stable subscription revenue despite seasonal headwinds.
- New CEO refines UK strategy to capital-light, technology-only B2B model
- Launch of Managed Funds in Australia broadens product suite for Financial Planners
- Operating revenue slightly down to $3.84 million due to seasonal brokerage impacts
- Subscription revenue steady at $1.12 million quarter-on-quarter
- Ongoing negotiations with B2B partners in Australia and Asia Pacific
Strategic Shift Under New Leadership
Halo Technologies Holdings Limited (ASX, HAL) has unveiled a notable strategic realignment under the stewardship of its new CEO, Peter Oxlade. The company is transitioning its UK operations towards a capital-light, technology-only model focused exclusively on business-to-business (B2B) clients. This pivot aims to reduce capital intensity and operating costs, positioning Halo to better leverage its technology platform in a competitive market.
Alongside this, Halo is intensifying efforts to grow its B2B client base across Australia, Asia Pacific, and the UAE, with ongoing discussions with local and international financial institutions. This regional expansion reflects a deliberate shift to diversify revenue streams and capitalize on emerging fintech opportunities beyond the UK.
Australian Managed Funds Launch Enhances Offering
In November 2025, Halo launched Managed Funds in Australia, a significant addition that grants Financial Planners access to a near-complete universe of Australian managed funds. This complements the platform’s existing offering of over 30,000 global equities and ETFs available for direct investment. The move is expected to substantially broaden Halo’s addressable market and bolster revenue potential by appealing to a wider segment of traditional financial advisory channels.
Financial Performance and Cash Flow
For the quarter ended 31 December 2025, Halo reported operating revenue of $3.84 million, a modest decline from $4.15 million in the previous quarter. This decrease is attributed primarily to seasonal factors affecting brokerage revenue during the December holiday period. Subscription revenue remained stable at $1.12 million, indicating steady demand for Halo’s platform services.
Cash flow from operating activities was negative $1.784 million for the quarter, reflecting ongoing investment in growth initiatives and operational costs. The company closed the quarter with $3.664 million in cash and cash equivalents, providing a buffer as it executes its strategic plans.
Related Party Transactions and Governance
The filing disclosed intercompany costs of $2.779 million related to trading costs paid to entities associated with directors Matthew Roberts and George Paxton. Transparency around these related party transactions is crucial for investor confidence, especially as Halo navigates its strategic transformation.
Outlook and Market Positioning
Halo remains focused on expanding its B2B network and subscriber base across Australasia and the UAE. The company’s enhanced product suite, particularly the Managed Funds launch, positions it well to capture growth in the financial planning sector. However, the success of ongoing partnership negotiations in Australia and Asia Pacific will be pivotal in determining the pace and scale of future revenue growth.
Investors will be watching closely for updates on these partnerships and the company’s ability to sustain its subscription revenue momentum amid broader market fluctuations.
Bottom Line?
Halo’s strategic pivot and product expansion set the stage for growth, but execution on partnerships will be key to unlocking value.
Questions in the middle?
- How will the new capital-light UK model impact Halo’s long-term profitability?
- What are the terms and expected timelines for the B2B partnership agreements underway?
- How will related party transactions influence investor perceptions and governance standards?