Loss Widens at First Graphene Despite Revenue Growth—Can Cash Raise Fuel Turnaround?

Revenue Growth Driven by Diversified Industrial Demand

First Graphene Limited has reported a notable 53% increase in revenue for the half-year ended 31 December 2025, reaching AUD 313,777. This growth was primarily fuelled by expanded orders across a broadening customer base, including sectors such as footwear manufacturing and cement and concrete additives. The company also highlighted sustained demand for its graphene-enhanced swimming pool products, underscoring the material’s growing industrial adoption.

Losses Reflect Non-Cash Finance Costs, But Operational Performance Improves

Despite the revenue uplift, First Graphene recorded a net loss of AUD 3.35 million, an 18% increase compared to the prior corresponding period. This loss includes substantial non-cash finance costs of AUD 1.73 million related to a prior capital raise in 2021, as well as share-based payment expenses. When excluding these accounting charges, the company’s operating loss narrowed by 43% to AUD 1.45 million, indicating improved underlying operational efficiency.

Capital Raise Strengthens Balance Sheet and Supports Growth Strategy

In November 2025, First Graphene successfully completed a $3.5 million placement, significantly bolstering its cash position to nearly AUD 4.9 million by the end of December. This capital injection provides the company with a strong financial footing to pursue its strategic goal of achieving cashflow positive status through organic sales growth, without the need for further equity raises in the near term.

Commercial Milestones Highlight Expanding Market Applications

Operationally, First Graphene has made strides in scaling commercial applications of its PureGRAPH® product range. A landmark achievement was the industrial-scale production of approximately 600 tonnes of graphene-enhanced cement in partnership with Breedon Group plc, which demonstrated up to a 20% reduction in carbon emissions and enhanced material strength. This product has been incorporated into sustainable housing projects and infrastructure works, including collaborations with FP McCann and Morgan Sindall Group plc.

Additionally, the company secured an exclusive global licence to manufacture and market graphene-enhanced carbon paste for perovskite solar cells, opening new avenues in the renewable energy sector. The defence industry has also emerged as a promising market, with recurring orders for aerospace applications such as long-range drones. The workwear sector saw increased uptake, notably with a significant order for graphene-enhanced safety boots used in mining.

Outlook and Strategic Focus

First Graphene anticipates steady activity across its key segments for the remainder of FY2026, with a focus on converting its growing sales pipeline into firm orders. The company’s strategy centres on commercial execution and accelerating growth, leveraging its strengthened balance sheet and expanding product applications. While no dividends were declared, the company’s improved operational metrics and capital position suggest a pathway toward sustainable profitability.