Axtec Reports $354K Cash, Advances AI Platform and Strategic Partnerships

Real Flow Partnership Settlement Marks Strategic Shift

Axtec Limited (ASX:AXI) has completed the settlement of its strategic partnership with Real Flow Holdings, signaling a decisive move away from direct lending. The transaction, finalised on 30 April 2026, involved the sale of PaySure Retail Finance’s consumer credit loan book to Real Flow, which now manages and services the loans. Axtec has transitioned to a capital-light distribution model under a long-term agreement, earning the full $360,000 equity consideration in Real Flow shares, including the $260,000 performance-linked component.

This shift is expected to materially reduce Axtec’s operating cash outflows from Q1 FY27 onwards, as the company sheds funding and servicing costs associated with loan origination. The new distribution partnership also includes client and partner referral arrangements anticipated to generate recurring revenue in the near term.

Funding Boost from Major Shareholder Supports Transition

During the quarter, Axtec received a $1 million short-term loan facility from major shareholder Oriental University City Holdings (H.K.) Limited (OUC). This funding is slated for conversion into a five-year convertible note, pending shareholder approval at the upcoming AGM in November 2026. The loan carries a 10% annual interest rate payable quarterly and is unsecured, providing vital liquidity as Axtec navigates its business model transformation.

The company’s cash and cash equivalents stood at $354,000 at quarter end, down from $614,000 in March. Despite positive net operating cash flow of $1.746 million for the quarter, financing activities resulted in a net cash outflow of $1.557 million. Axtec also maintains $800,000 in unused financing facilities, bringing total available funding to $1.154 million, or roughly 1.5 quarters of runway based on current operating cash flows.

Advancing AI Platform and Expanding Commercial Partnerships

Axtec continued to develop its AI-enabled automation capabilities and broaden its commercial pipeline during the quarter. The Securexchange deposit payments gateway, launched under a soft-launch program, processed its first transactions, with ongoing discussions to expand the partnership with InfoTrack and enhance the range of financial products offered.

Subsequent to the quarter, Axtec signed a Master Partnership Agreement with MRI Software Australia, integrating its product suite; including PaySure; into MRI’s property management platform, Property Tree, under a three-year term starting August 2026. This deal opens a significant distribution channel across MRI’s extensive real estate network, potentially accelerating adoption of Axtec’s PropTech solutions.

Pipeline Growth and Cost Discipline

The company is actively engaging with large real estate networks and multi-office agencies to negotiate network-wide rollouts of its products. Licensing talks are also underway with industry technology platforms and ecosystem partners such as data providers, banks, and mortgage brokers. While no binding agreements have yet been signed, these discussions reflect a growing market interest in Axtec’s AI-driven platform.

Axtec continues to manage its corporate cost base prudently, with annualised cost reductions achieved earlier in FY26 fully flowing through into the new financial year. This cost discipline, combined with the transition to a capital-light model and anticipated recurring distribution revenues, underpins the company’s expectation of improved cash flow dynamics moving forward.