How Did Cycliq Turn a Profit Despite a 27% Revenue Drop?

Cycliq’s Transitional Half-Year

The half-year ended 31 December 2025 marked a period of significant transition for Cycliq Group Limited, as the company focused on upgrading its digital sales platform and preparing for the critical peak retail season. Despite a challenging market environment characterised by softer consumer demand in the cycling industry, Cycliq managed to steer back into profitability, reporting a modest net profit of $33,245 compared to a loss in the previous corresponding period.

Revenue and Market Dynamics

Revenue for the period declined by 27% to $2.17 million, reflecting the broader softness in cycling product demand. This drop was most pronounced in key markets such as the USA and UK, where segment revenues fell notably. However, customer engagement with Cycliq’s safety-focused products and accessories remained steady, underpinning the company’s ability to generate positive cash flow despite the revenue contraction.

Strategic Platform Deployment

A highlight of the period was the successful launch of a new Shopify e-commerce platform in August 2025. This modernised system replaced the legacy platform and introduced a multi-store architecture tailored to the US/global, Australian, and UK markets. The upgrade enhanced mobile functionality, localised content, and regional payment options, positioning Cycliq to better capture market opportunities and improve customer experience across its key geographies.

Product Innovation and Government Support

Cycliq also expanded its product ecosystem with the introduction of CycliqPlus Garmin Edge integration, enabling seamless connectivity between Cycliq cameras and Garmin cycling computers. This innovation aims to deepen user engagement and differentiate Cycliq’s offerings in a competitive market. Additionally, the company received a $188,264 cash refund under the Australian Government’s Research & Development Tax Incentive Scheme, providing a timely boost to its financial position.

Governance and Financial Position

During the period, non-executive director Andrew Cotterill resigned to focus on other interests, marking a governance change. Financially, Cycliq’s net liabilities improved slightly from $107,024 at mid-year to $78,755 at December 2025. However, the company remains in a net liability position, and the auditor highlighted a material uncertainty regarding going concern. The board expressed confidence in ongoing cash flow forecasts and market opportunities, emphasising management’s belief in the company’s ability to meet obligations and continue operations.

Looking Ahead

While no material events have occurred since the reporting date, Cycliq’s future hinges on its ability to capitalise on the upgraded platform, sustain revenue growth, and resolve ongoing legal disputes related to joint ventures. The company’s cautious optimism is tempered by the need to monitor market conditions and maintain financial discipline in a competitive sector.