Xamble Group delivered its strongest quarter since its 2025 turnaround, with revenue up 34% year-on-year and underlying business EBITDA swinging to a profit of A$0.24 million.
- Q2 revenue rises 34% to A$2.00 million
- Underlying business EBITDA turns positive at A$0.24 million
- Three new commercial contracts worth A$1.17 million now generating revenue
- YouthsToday integration expands influencer base and targets A$700,000 annual cost savings
- Platform transactions surge 528% year-on-year to 160,196
Revenue and Profitability Gains Mark Breakout Quarter
Xamble Group Limited (ASX:XGL) has posted a standout Q2 2026, with revenue climbing 34% year-on-year to A$2.00 million; its best quarterly result since the 2025 turnaround plan. Underlying business EBITDA swung from a loss of A$0.17 million a year ago to a profit of A$0.24 million, reflecting a sharp operational improvement as gross profit rose 35% to A$0.75 million and margins improved to roughly 38%.
The Group’s overall EBITDA deficit narrowed by more than a third to A$0.51 million, down 36% from the prior corresponding period and 30% quarter-on-quarter, driven by better gross margins, lower technology spending, and stable corporate costs.
New Commercial Contracts Fuel Revenue Growth
Three new commercial contracts secured last quarter, spanning technology, education, and automotive sectors, are now contributing revenues. Collectively, these contracts are expected to generate approximately A$1.17 million over their terms, underpinning a growing base of contracted income for Xamble. This momentum was supported by increased direct brand engagements and rising platform activity.
YouthsToday Integration Scales and Delivers Cost Synergies
The integration of YouthsToday, acquired with a 55.6% stake in April 2026, remains on track. The combined influencer community has expanded to nearly 22,000 across seven Southeast Asian markets, more than a fivefold increase from a year ago. The integration is expected to deliver annual cost savings of around A$700,000, driven by operational synergies and AI-led efficiencies.
Platform Growth Accelerates with Transaction Volumes Surging
Platform engagement metrics highlight robust growth: app downloads rose 50% to 13,571, and transactions facilitated on the platform surged 528% year-on-year to 160,196. This surge in transactions underscores accelerating demand and provides a strong foundation for scaling the expanded YouthsToday platform.
Financial Position Strengthened by Placement and Credit Facility
Cash on hand increased to A$1.05 million, bolstered by a A$0.67 million placement completed in May 2026, which was aimed at supporting the YouthsToday integration and AI cost-saving initiatives. The Group also maintains a revolving credit facility of approximately A$363,000 from Malaysian Debt Ventures Berhad, with about A$288,000 drawn as at quarter-end.
Despite operating cash outflows of A$610,000 for the quarter, Xamble expects these to reduce as collections from new contracts materialise and integration efficiencies are realised. The company continues to evaluate capital management options, including potential equity funding, to support ongoing growth and working capital needs.
CEO Highlights Clear Path to Sustained Growth
Interim CEO Adrian Tan described the quarter as a "breakout" period, attributing the turnaround to a simpler business model and smarter automation. He emphasised the growing pipeline of enterprise work and the scaling YouthsToday platform as key drivers of momentum toward profitability.
Bottom Line?
Xamble’s Q2 performance signals a tangible step forward in its turnaround, but sustaining growth and converting contracted revenue into cash flow will be critical in the coming quarters.
Questions in the middle?
- Can Xamble maintain its underlying EBITDA profitability as it scales the YouthsToday platform?
- How quickly will the new commercial contracts translate into consistent cash flow?
- What additional capital management strategies might the Board pursue to support growth?