Halo Technologies Faces $17.4M Loss Amid UK Strategy Overhaul and Capital Raise

Financial Performance Highlights

Halo Technologies Holdings Ltd has revealed a challenging 2025 financial year, reporting a net loss after tax of $17.4 million, a 20% increase from the $14.5 million loss recorded in 2024. Revenue from ordinary activities declined by 16% to just under $16 million, primarily driven by reduced brokerage income amid market volatility and fluctuating advisor participation in the first half of the year.

Despite these headwinds, the company’s underlying EBITDA loss remained relatively stable at $10.9 million, a slight increase from $10.7 million the previous year. This suggests that while the top line contracted, core operational losses were contained within a narrow range.

Capital Raise and Balance Sheet Position

To bolster its financial position, Halo Technologies successfully completed a renounceable rights issue during the year, raising $3.9 million before costs. This capital injection is intended to support ongoing operations and fund growth initiatives, particularly as the company navigates a strategic repositioning in its international markets.

However, the balance sheet reflects ongoing pressures with a net liabilities position of $9.6 million as at 31 December 2025. The company also holds convertible notes amounting to $5.6 million, with further issuance expected in 2026, underscoring the reliance on capital markets to sustain operations.

Strategic Repositioning in the UK

A significant development during the year was Halo’s strategic shift in its UK operations. The company has moved away from direct-to-consumer activities, opting instead for a capital-light, technology-only model focused exclusively on business-to-business (B2B) clients. This pivot led to the full impairment of the UK licence asset, valued at approximately $1 million, and a broader intangible asset impairment charge of $4.8 million related to platform development.

This repositioning aligns with the company’s focus on leveraging its technology platforms, Halo Technologies and Macrovue, to serve institutional and advisory clients rather than retail consumers in the UK market. The move also involves handing back regulatory permissions previously held under the UK Financial Conduct Authority.

Operational and Market Outlook

Halo Technologies continues to invest in platform development and client engagement, with a stable Funds Under Management (FUM) base during 2025. The company aims to grow its B2B network across Australia, Asia Pacific, and the UAE in the coming years, while maintaining cost discipline aligned with activity levels.

The directors have prepared the financial statements on a going concern basis but acknowledge material uncertainty due to the company’s losses and net liabilities. The ability to raise further capital and stabilise revenue streams will be critical to the company’s future viability.

Governance and Leadership Changes

In governance updates, Philippa Lewis was appointed Non-Executive Chair in January 2026, succeeding Ivan Oshry who resigned as Chairman and Director. Executive remuneration saw the issuance of 35 million performance rights to CEO Peter Oxlade, linked to share price targets and retention, reflecting a focus on aligning management incentives with shareholder value creation.