HALO Technologies Posts 20% Revenue Growth and Launches $5M Convertible Notes Offer

Quarterly Revenue Rebounds on Strong Brokerage Activity

HALO Technologies Holdings Ltd (ASX:HAL) clawed back momentum in the June quarter, posting operating revenue of $3.71 million, a 20% rise from the $3.10 million recorded in March. The primary driver was a material rebound in brokerage revenue, which recovered sharply from April after the equity market volatility that dampened activity late in the previous quarter. Subscription revenue also contributed to growth, buoyed by an expanding domestic B2B adviser base.

Improved Cash Flow and Funding Position

Reflecting the revenue recovery and ongoing cost discipline, HALO narrowed its net operating cash outflow to $0.9 million from $1.5 million in the prior quarter. Cash reserves strengthened to $2.66 million at 30 June, providing an estimated 2.25 quarters of runway. This financial footing was further supported by a post-quarter announcement of a $5 million convertible notes offer, carrying 12.5% annual interest over three years. The offer aims to fund working capital, platform enhancements, product development, and the company’s partnership-led growth strategy.

Strategic Shift Towards Australian and Asia-Pacific Growth

Under new executive leadership, HALO has sharpened its strategic focus on expanding its Australian business offerings and accelerating growth across its B2B client base. The company is actively engaging with domestic and international financial institutions to support this pivot. Initial discussions with select Asia-Pacific partners remain ongoing, signalling HALO’s intent to deepen its regional footprint.

Domestic B2B Adviser Expansion and Managed Funds Launch

HALO’s domestic growth strategy is gaining traction, with new advice groups and advisers onboarded during the quarter. Early client account activations and sustained engagement from senior staff in these businesses point to potential increases in client accounts and Funds Under Management (FUM). The company has bolstered its domestic sales and customer service teams to nurture a growing prospect database, focusing on converting subscription clients who have yet to activate and fund their accounts. This targeted outreach is expected to drive meaningful FUM inflows in the coming months.

Additionally, HALO is preparing to launch Managed Funds in Australia, a move that broadens its product offering and enhances appeal to traditional financial planners. This initiative aligns with the company’s broader platform development strategy and aims to support sustained subscriber growth across Australasia, the United Kingdom, and the UAE.

Cost Structure and Related Party Transactions

The company continues to manage costs tightly, particularly following its UK transition to a capital-light, B2B-only model. Intercompany costs of $2.447 million in the quarter, encompassing trading costs linked to subscription and brokerage revenues, were paid to related entities including Australian Stock Report Pty Ltd and IPW Advisory Pty Ltd, reflecting ongoing operational arrangements.