• Revenue down 34.2% to $5.3M, driven by US underperformance
• Adjusted EBITDA loss of $522.9K vs prior year profit of $677.6K
• Net loss of $1.04M compared to prior year profit of $177.4K
• Ongoing efforts to address US operations and drive efficiencies

TZ Limited reported a loss of $1,043,142 for the first half of fiscal year 2025, compared to a profit of $177,364 in the prior corresponding period. The company's revenue declined 34.2% to $5,295,062, with the US business missing its revenue target by $2 million. This shortfall was attributed to delayed project commencements leading up to the recent US election, as well as economic caution during that period. However, post-election sentiment has improved, and the company expects customers to prioritize project completion before the fiscal year-end. The company has undertaken a restructure of its US Sales and Service teams and is implementing a major push on Lead Generation, Market Awareness, and Customer Success, which is starting to yield positive results. Additionally, the new US management team has successfully restored profitability by implementing stringent cost controls and margin management. While the US subsidiary underperformed, both the ANZ and Asia regions outperformed expectations, mitigating some of the revenue shortfall. The company is also working to reinvigorate its European sales efforts through a targeted reseller strategy.TZ Limited remains committed to maintaining strict cost controls and governance measures across all subsidiaries, with operating expenditure remaining well below budgeted levels. The company has also announced the acquisition of Keyvision Holdings, a tenant and landlord app provider, which is expected to be highly synergistic and provide a complementary recurring revenue stream.

The company expects both the ANZ and Asia regional businesses to meet or potentially exceed their plan numbers this fiscal year.

The company is confident that its operations continue to align efficiently with the policies and procedures established in 2023, and it remains focused on addressing inefficiencies in the US operations as a critical priority before pursuing new business initiatives.