EPX Reports 19% ARR Growth and $18.6m ACV in H1 FY26

Strong Growth in Contracted Revenue

EPX Limited (ASX: EPX), a leader in building energy efficiency platforms, has delivered encouraging results for the six months ended 31 December 2025. The company reported a 10.4% increase in Annual Contract Value (ACV) to $18.6 million, reflecting the growing demand for its EDGE platform and services. More notably, Annual Recurring Revenue (ARR) surged 19.3% to $16.7 million, underscoring the successful conversion of contracted deals into billable revenue streams.

This growth was driven by several key contract wins, including a renewed tender with Great Western Railway in the UK, which doubled its ACV contribution to $0.8 million, and expansion into the UAE healthcare sector with 10 hospitals adding approximately $0.7 million in ACV. EPX also secured new retail portfolio contracts in Australia, further diversifying its customer base.

Investment and Transformation Impact EBITDA

Despite the revenue growth, EPX recorded an underlying EBITDA loss of $0.4 million. This reflects the company’s ongoing investment in growth initiatives, including rebranding, integrating newly acquired technology, and expanding its sales and product teams. Notably, EPX hired a UK Chief Sales Officer and senior sales executives to strengthen its market presence.

Operating expenses rose 7% to $7.7 million, driven by increased commissions, wages, and restructuring costs related to aligning resources with growth priorities. The company is shifting towards a performance-based remuneration model to incentivise sales success and operational efficiency.

Cash Flow Timing Delays and Legal Recoveries

EPX’s operating cash flow was negative $1.1 million, primarily due to timing delays in revenue collection. Approximately $0.7 million of receipts were deferred, including invoices from a major global facility manager and customer renewals, all expected to be collected in the second half of FY2026. Additionally, $0.2 million is anticipated from a favourable UAE court judgement related to outstanding receivables, highlighting EPX’s proactive management of credit risks in challenging markets.

Strategic Acquisition of Wattwatchers

In December 2025, EPX completed the acquisition of Wattwatchers Pty Limited, an Australian company specialising in real-time energy monitoring solutions. The $1 million deal, partly settled in cash and partly in shares, brings an estimated $2-3 million in ARR from commercial and wholesale customers, complementing EPX’s existing offerings and expanding its addressable market.

EPX’s CFO Patrick Harsas emphasised that the acquisition enhances the company’s product breadth and opens new revenue streams, while operational efficiencies are expected to reduce time to cash. The integration of Wattwatchers’ technology with EPX’s EDGE platform positions the company well for sustained growth.

Looking Ahead

EPX is focused on accelerating ARR conversion and achieving EBITDA positivity in the near term. The company’s recent contract wins and expanded capabilities through acquisition underpin a confident outlook. A webinar to discuss the H1 FY26 results is scheduled for 19 March 2026, where management will provide further insights into growth strategies and financial performance.