EPX Limited reported a 56% increase in half-year losses to $2.63 million despite a 4.3% rise in revenue, driven by operational restructuring and the acquisition of Wattwatchers Pty Limited.
- Loss after tax increased 56.3% to $2.63 million
- Revenue grew 4.3% to $7.86 million with recurring revenue up 10%
- Underlying EBITDA loss widened to $380,735 from $20,196
- Completed acquisition of Wattwatchers Pty Limited for $987,500
- Raised $4.47 million in equity and completed 10:1 share consolidation
Financial Performance Overview
EPX Limited has released its half-year results for the period ending 31 December 2025, revealing a mixed financial picture. The company recorded a loss after tax of $2.63 million, a significant 56.3% increase compared to the prior corresponding period. This widening loss contrasts with a modest 4.3% increase in total revenue to $7.86 million, underpinned by a 10% rise in recurring contracted revenue to $7.33 million.
Underlying EBITDA, a key measure of operational performance excluding one-off and non-cash items, deteriorated sharply to a loss of $380,735 from a near break-even position the previous year. The increase in losses reflects a combination of restructuring costs, acquisition expenses, and investments in technology platforms.
Strategic Acquisition and Capital Raising
During the period, EPX completed the acquisition of Wattwatchers Pty Limited, an energy data and monitoring solutions provider, for a total consideration of $987,500. This acquisition, finalized on 18 December 2025, adds proprietary enterprise-grade monitoring hardware and software to EPX’s portfolio, expanding its footprint in real-time energy management across commercial and residential sectors.
To support growth initiatives and the acquisition, EPX undertook significant capital raising activities, issuing new shares that raised approximately $4.47 million in equity. This included a private placement and a share consolidation at a 10:1 ratio approved by shareholders in November 2025, which reduced the number of shares on issue to 85.2 million.
Operational Developments and Cash Flow
EPX’s operational metrics showed encouraging signs, with annualised contract value increasing by 10.4% to $18.6 million and annualised recurring revenue rising 19.3% to $16.7 million. The company added 36 new contracted sites, bringing the total to 741, reflecting ongoing customer demand for its energy management solutions.
However, cash flow from operations was negative at $1.17 million, impacted by deferred customer payments amounting to $0.6 million and one-off restructuring costs related to the departure of the founder and former CTO. Management highlighted that these deferred payments are expected to be received in the March 2026 quarter, and the cash outflow excluding these items was a targeted $0.17 million invested in growth activities such as recruitment and technology development.
Restructuring and Future Outlook
The company undertook departmental restructuring aimed at improving operational efficiency and aligning resources with strategic priorities. This included the exit of key personnel and associated redundancy costs. While these changes have contributed to the increased loss in the short term, they are positioned to streamline operations and support scalability.
EPX continues to invest in its technology platform, including the integration of Coda Cloud technology acquired in the prior year, positioning itself for future revenue growth. The directors remain confident in the company’s going concern status, supported by improved liquidity and ongoing capital support.
Bottom Line?
EPX’s widened loss underscores short-term challenges amid strategic investments and acquisitions that could shape its growth trajectory.
Questions in the middle?
- How quickly will deferred customer payments materialise and impact cash flow?
- What are the integration plans and expected synergies from the Wattwatchers acquisition?
- How will the recent restructuring affect operational efficiency and future profitability?