HALO Technologies reports a strategic pivot towards APAC growth and a UK business model overhaul, alongside a 16% revenue decline and increased net loss in FY25.
- Strategic refocus on Australian and APAC markets under new CEO
- UK operations transitioned to a capital-light B2B technology model
- Revenue declined 16% to $16 million, net loss increased to $17.41 million
- Launch of Managed Funds in Australia expands product offering
- Asset impairments of $4.77 million reflect UK strategy realignment
Strategic Shift Under New Leadership
HALO Technologies Holdings Limited (ASX: HAL) unveiled its full-year results for 2025, marking a significant strategic realignment following the appointment of CEO Peter Oxlade in October 2025. The company has sharpened its focus on growth opportunities within Australia and the broader Asia-Pacific region, while simultaneously restructuring its UK operations to adopt a more capital-efficient business model.
This pivot reflects HALO’s response to challenging market conditions and evolving client demands, aiming to position the company for sustainable growth in key markets.
UK Business Model Transition
HALO’s UK operations have undergone a transformation from a capital-intensive setup to a capital-light, technology-driven B2B model. This shift has delivered immediate financial benefits, including $4.2 million in direct UK cost savings and $1.8 million in indirect savings in Australia. Additionally, the UK business received a $1.3 million capital injection during the year to support this new model.
By reducing operating costs and capital requirements, HALO aims to enhance scalability and focus on building robust B2B partnerships, a move that aligns with broader industry trends favouring technology-enabled financial services.
Financial Performance and Market Challenges
Despite these strategic initiatives, HALO reported a 16% decline in operating revenue to $16 million, down from $19.04 million in the previous year. The net loss after tax widened by 16% to $17.41 million, reflecting ongoing market volatility, softer brokerage activity, and fluctuations in advisor numbers among B2B clients.
Notably, subscription revenue, which typically carries higher margins, remained stable, underscoring resilience in HALO’s recurring income streams amid broader market headwinds influenced by geopolitical tensions and US trade policies.
Product Expansion with Managed Funds
In a bid to broaden its appeal within the financial planning sector, HALO launched Managed Funds in Australia in November 2025. This new offering grants financial planners access to an extensive range of Australian managed funds, complementing the platform’s existing catalogue of over 30,000 global equities and ETFs.
This product expansion not only enhances HALO’s value proposition but also increases its addressable market, positioning the company to capture greater share within the competitive financial technology landscape.
Asset Impairments and Balance Sheet Prudence
Reflecting the strategic repositioning of its UK operations, HALO recognised asset impairments totaling $4.77 million during the year. This included a full write-off of the UK licence asset valued at $1 million and capitalised software worth $3.76 million.
These impairments signal a more conservative approach to the balance sheet, aligning asset values with the company’s revised operational focus and risk profile.
Outlook and Growth Prospects
Looking ahead, HALO is committed to expanding its B2B network across Australia, Asia Pacific, and the UAE, growing its subscriber base, and leveraging its Managed Funds capability to attract traditional financial planners. The company is actively engaged in partnership discussions with both local and international financial institutions, with further updates expected upon the execution of definitive agreements.
While funds under management declined from $434.4 million to $384.9 million due to market conditions, HALO’s strategic initiatives and product diversification efforts aim to reverse this trend and drive future growth.
Bottom Line?
HALO’s strategic refocus and UK overhaul set the stage for growth, but execution of partnerships will be critical to reversing recent financial setbacks.
Questions in the middle?
- How quickly will HALO’s new APAC-focused strategy translate into revenue growth?
- What impact will the UK capital-light model have on long-term profitability?
- Can the Managed Funds launch significantly expand HALO’s market share in financial planning?