Xamble Group’s revenue held near its record quarter in Q3 CY2026, while gross margin improved and net operating cash outflow fell to A$0.05 million. The turnaround remains incomplete: underlying business EBITDA was still negative and the quarter benefited from A$0.15 million in grant income.
- Q3 revenue rose 16% year-on-year to A$1.92 million
- Gross margin increased to approximately 44% from 38%
- Net operating cash outflow fell 91% to A$0.05 million
- Underlying business EBITDA remained negative at A$0.03 million
- Influencer community expanded to 22,961 after YouthsToday integration
Revenue Holds Near Record While Margins Improve
Xamble Group Limited (ASX:XGL) has moved closer to operating cash-flow breakeven, but its latest quarter still contains an important qualification: the underlying business has not yet reached profitability. Revenue for the three months to 30 September 2026 rose 16% year-on-year to A$1.92 million, broadly holding against the record A$2.00 million recorded in the June quarter.
Gross profit climbed 12% from the previous quarter to A$0.84 million, lifting gross margin to approximately 44% from 38% in Q2 and 35% in Q1. It was the second consecutive quarterly improvement in margin, while nine-month revenue reached A$5.57 million, also 16% above the same period in 2025.
Grant Income Masks a Still-Negative Underlying Result
Reported Group EBITDA improved materially, with the deficit narrowing 33% from Q2 to A$0.34 million and 45% from the same quarter last year. The result included A$0.15 million of Malaysian Digital Acceleration Grant income recognised in September. Excluding that grant, the EBITDA deficit was only 5% lower than in June.
The cleaner measure for the operating business was less flattering. Underlying business EBITDA, which excludes technology investment net of grants, corporate costs, integration costs and option expenses, was a loss of A$0.03 million, compared with a A$0.24 million profit in Q2. Business expenses rose 11% from the June quarter to A$1.96 million, while revenue was broadly unchanged. The company’s earlier Q2 EBITDA improvement therefore has not yet translated into a second consecutive quarter of underlying EBITDA profit.
Cash Burn Falls as Platform Scale Expands
Cash flow provided the quarter’s clearest positive signal. Receipts from customers increased 42% from Q2 to A$2.15 million, while net operating cash outflow dropped 91% to A$0.05 million. Cash and cash equivalents rose to A$1.15 million at quarter-end, compared with A$1.05 million at 30 June, although the quarter also included A$88,000 of new borrowings and A$99,000 in advances from a director.
Xamble’s platform metrics continued to benefit from the YouthsToday integration, which had earlier tripled its influencer base. Total community influencers reached 22,961 at 30 September, up 474% year-on-year, including 14,277 creators integrated from YouthsToday. Cumulative transactions rose 146% to 77,439 and app downloads increased 37% to 14,464. Those figures demonstrate a larger addressable network, but the filing does not quantify how much revenue or margin the enlarged community generated during the quarter.
Debt Repayments Add a Near-Term Test
The balance sheet remains manageable on the company’s reported figures, with total available funding of A$1.16 million and a mechanical estimate of 21.4 quarters of funding based on the latest operating cash outflow. That estimate should be treated cautiously because it relies on a single quarter in which cash burn came close to breakeven, rather than a demonstrated period of sustained positive operating cash flow.
At 30 September, approximately A$345,000 had been drawn under the Malaysian Debt Ventures revolving facility, leaving only about A$7,000 available. Expected repayments of A$81,000 in October, A$81,000 in November, A$86,000 in December and A$97,000 in January are to be met from operating cash flows and, if required, further facility utilisation. The next quarter will show whether improved collections and margins can carry that repayment burden without renewed reliance on debt or related-party funding.
Bottom Line?
The trajectory is improving, but the decisive test is whether Xamble can sustain positive underlying EBITDA and operating cash flow without grant income or further funding support.
Questions in the middle?
- Can the 44% gross margin be maintained as the enlarged YouthsToday influencer network contributes more work?
- Will operating cash flow remain near breakeven while the company repays A$345,000 of drawn debt through January?
- Can revenue growth convert into sustained underlying EBITDA profit after grant income is excluded?