Qoria Upsizes US$100m Placement to Fuel AI Growth Ahead of Aura Merger

Insider-Backed US$100m Placement Upsizes Capital Raise

Qoria Limited (ASX:QOR) has boosted its planned equity placement from US$75 million to US$100 million ahead of its merger with Aura Consolidated Group. The additional US$25 million is fully committed by Aura founder and CEO Hari Ravichandran and WndrCo Holdings LLC, signalling strong insider conviction in the combined entity’s growth prospects. The placement price is set at an implied A$0.40 per Qoria share, representing a 32.4% premium to the 30-day volume weighted average price as of April 23, 2026.

This capital injection is designed to provide the merged group, to be known as AXQ, with a robust balance sheet at Day 1, enabling aggressive investment in AI capabilities, growth initiatives, and integration efforts. The placement aligns existing long-term shareholders with the company’s strategic direction amid a global SaaS sector de-rating.

Strong ARR Growth Highlights Operational Momentum

Qoria reported a record $7.6 million in annual recurring revenue (ARR) added during the March quarter, a 49% increase on the prior corresponding period, with net ARR additions of $6.0 million, up 62%. Qustodio, Qoria’s consumer-facing digital safety platform, continues to accelerate, growing at an annualised rate of 34% and adding $2.7 million in net ARR this quarter. The platform’s unit economics remain attractive, with customer acquisition costs under US$70 and average order value rising 9% to US$125.

On a pro forma basis, combining Qoria and Aura’s results, the group achieved US$31 million in ARR added in the quarter, lifting exit ARR to US$345 million, a 28% year-on-year increase. The subscriber base has expanded to 1.75 million, also up 28% year-on-year. These figures underscore the scale and growth trajectory of the merged entity, which continues to benefit from strong cross-selling opportunities and product innovation.

Qoria reiterated its FY2026 guidance of over AUD145 million in revenue, 20% ARR growth, and an adjusted EBITDA margin around 20%. The group expects to be free cash flow positive from the merger closing through to the end of calendar 2026, despite ongoing foreign exchange headwinds impacting reported results.

Leadership and Governance Aligned for Scale and Innovation

The combined group’s leadership structure has been optimised to leverage the strengths of both companies. Hari Ravichandran will continue as CEO, driving global strategy and AI investment, while Sujay Jaswa remains Chairman of Aura. Brian DeCenzo retains his CFO role, supported by newly appointed Australian CFO Ben Jenkins. Qoria’s managing director Tim Levy will join the AXQ board and lead Aura Alpha, a new strategic division focused on growth platforms, partnerships, and regulatory engagement.

This governance blend aims to accelerate execution capability and innovation across global markets, positioning AXQ to navigate the rapidly evolving digital safety landscape. The merger is targeted for completion in July 2026, with the timetable recently adjusted and supported by a $10 million unsecured working capital facility from Aura to Qoria, as detailed in a prior update on the merger’s progress merger timeline update.

Financial Discipline Amid FX Volatility and Seasonal Cash Flows

Qoria’s March quarter cash collections hit a record AUD23 million despite adverse foreign exchange movements, with the company maintaining tight cost control. Marketing spend increased moderately to support Qustodio’s growth, while staff costs declined slightly year-on-year following cost reduction initiatives. The company eliminated over AUD5 million in fixed costs this financial year and continues to invest in its Sri Lankan engineering team.

Net debt stands at AUD44.7 million, with available funding of AUD19 million including the post-quarter $10 million working capital facility. The company expects cash flow to improve in the June quarter, aligned with the northern hemisphere school year sales cycle. FX sensitivity remains a material factor, with fluctuations in AUD/USD and AUD/GBP exchange rates impacting ARR, EBITDA, and cash flow.