Pointerra’s Going Concern Doubts Shadow Growth Despite Contract Wins

Financial Performance Overview

Pointerra Limited has reported a net loss after tax of $2.14 million for the half-year ended 31 December 2025, a sharp reversal from a $636,507 profit in the prior corresponding period. Revenue halved to $3.42 million, reflecting a 51% decline, while customer receipts stood at $4.6 million. Despite the loss, the company maintained a healthy cash balance of $2.0 million and deferred revenue of $2.1 million, providing a buffer for future income recognition.

Operational Progress and Strategic Contracts

Pointerra’s operational narrative is marked by the delayed but eventual commencement of the US Department of Energy (DOE) GRACI program, valued at US$2 million (approximately A$3 million). This contract, secured with Georgia Power Company, a subsidiary of Southern Company, and in partnership with consulting firm Baringa, is expected to deliver significant invoicing milestones in the second half of FY26. The program’s late start impacted first-half revenue and cash flow but sets a foundation for growth moving forward.

Alongside this, Pointerra has advanced its Pointerra3D digital twin platform with enhancements in AI and machine learning, improving automation and analytics capabilities. The company is also developing a consumption-based pricing model to offer customers greater flexibility and encourage platform adoption.

Sales and Market Expansion

Pointerra has bolstered its sales and business development teams in both Australia and the US, focusing on shortening sales cycles and increasing enterprise customer spend. The deployment of AI-enabled sales tools has improved lead quality and conversion rates, supporting a growing pipeline of enterprise contracts and paid pilot programs across sectors such as natural resources, transport, and energy utilities.

Notably, the company is progressing paid pilots with major clients, including Amazon’s extended yard mapping project, which is poised for enterprise-wide deployment. These initiatives underpin a growing annual recurring revenue (ARR) base and a strong backlog of contracted revenue, positioning Pointerra for improved financial performance in the second half.

Financial Health and Going Concern

While Pointerra’s underlying EBITDA showed a loss of $2.1 million, operational cash flow was positive at $163,000 for the half-year. The company’s working capital deficit widened to $3.46 million, largely due to deferred revenue and employee provisions. The auditor’s report highlighted a material uncertainty regarding the company’s ability to continue as a going concern, citing the loss and working capital position. However, the directors remain confident, citing strategies to grow revenue, control discretionary spending, and expected R&D tax incentives.

Looking Ahead

Pointerra enters the second half of FY26 with momentum from its expanding ARR, strategic contract wins, and enhanced platform capabilities. The company anticipates realising deferred revenue and achieving stronger cash flow as the DOE GRACI program ramps up. Operational efficiencies and a high-margin business model underpin expectations for sustainable earnings growth. Investors will be watching closely to see if these initiatives translate into a financial turnaround and improved market positioning.