• Revenue from continuing operations up 12% to $10.3M
• Gross profit margin expanded from 46% to 51%
• EBITDA loss narrowed by 96% to $0.1M

Spacetalk Ltd (ASX: SPA) reported its financial results for the half-year ended 31 December 2024 (1H25). Total revenue from continuing operations reached $10.3M, up 12% compared to the prior corresponding period (1H24). This growth was driven by a 54% increase in mobile subscribers, from 26,000 in 1H24 to 40,000 in 1H25. The shift towards higher-margin subscription-based revenue streams, particularly in mobile services, has strengthened the company's financial performance. Gross profit rose 24% to $5.2M, with gross profit margin expanding from 46% in 1H24 to 51% in 1H25. This was driven by improved product mix and operational efficiencies. Operating expenses decreased by 23% to $5.3M, reflecting the benefits of ongoing cost optimization efforts and improved operational efficiency. As a result, Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) improved significantly, narrowing from a loss of $2.7M in 1H24 to a loss of $0.1M in 1H25, an improvement of 96%. The company's shift towards a subscription-led business model has strengthened earnings resilience and is expected to continue driving operating leverage. Cash flow before financing activities improved by $0.9M to -$2.3M, driven by disciplined cost management and lower cash outflows from operations. Spacetalk remains focused on the next phase of growth through disciplined expansion and continued development of its product ecosystem, with a focus on international expansion, the seniors market, and product evolution.

Spacetalk remains committed to executing a strategic, measured approach to growth, ensuring that every initiative aligns with its long-term vision of building a high-margin, subscription-based business. The company is focused on driving sustainable, high-margin recurring revenue while maintaining a capital-light approach to market entry.