$5.34 Million Notes Lift HALO Cash to $3.07 Million

Brokerage weakness drives quarterly revenue decline

HALO Technologies Holdings Ltd (ASX:HAL) saw operating revenue fall 21% to $2.93 million in the September quarter, down from $3.71 million in June. The company attributed the decline primarily to lower brokerage revenue after trading activity in its Macrovue business eased.

Subscription revenue provided the counterweight, increasing to $1.02 million from $0.86 million. HALO said the rise was supported by continued expansion of its domestic business-to-business adviser base, although the quarter’s higher subscription contribution was not enough to offset weaker transaction revenue.

Convertible notes rebuild cash after operating outflow

Cash generation remains the more immediate financial pressure. HALO recorded a net operating cash outflow of $1.465 million for the quarter, compared with $0.9 million in June, while investing activities absorbed a further $0.304 million, largely through payments for intangible assets.

The balance sheet was bolstered by $5.341 million raised through the company’s 2026 convertible note offer, an issue covered in the earlier convertible notes offer. The unquoted notes run for 36 months and carry interest of 12.5% a year, payable quarterly in arrears. HALO also repaid its $0.601 million secured short-term loan in July, leaving $3.071 million in cash at quarter-end and an estimated 2.09 quarters of funding based on the reported operating cash burn.

B2B expansion has yet to reach reported revenue

HALO is positioning itself as a capital-light wealth technology provider, following work to restructure its UK business and a strategic shift towards partnerships with financial institutions, dealer groups and wealth managers. The company said it remains in discussions with selected Asia-Pacific partners, while expanding its Australian sales and customer service team to convert registered but inactive subscribers.

That conversion effort has not yet appeared in revenue numbers. Management said it expects adviser activation and account funding initiatives to support meaningful funds under management inflows and increased account activity in coming quarters, but those outcomes remain forward-looking rather than reported results.

New portfolio models precede planned HIN custody product

During the quarter, HALO introduced Defensive, Balanced and Growth strategic asset allocation models. The company said the models are intended to broaden its core investment offering alongside its existing thematic research and global equity selection products.

HALO is also targeting an optional HIN-based custody solution for ASX-listed securities in 2027. The proposed structure would allow Australian equities to be held under a broker HIN while clients retain a single HALO account for global equities and managed funds. The next test is whether these product and distribution initiatives can translate into measurable subscription growth, trading activity and lower reliance on fresh funding.