• Revenue grew 12% to $10.3M, driven by mobile growth with paying subscribers up 54% to 40k
• Gross profit increased 24% to $5.2M, supported by higher-margin mobile revenue
• EBITDA loss narrowed 96% to $0.1M, reflecting higher recurring revenue and cost efficiencies

Spacetalk Ltd (ASX:SPA) reported its 1H25 results, demonstrating continued progress in its transformation to a sustainably profitable business. Revenue from continuing operations grew 12% to $10.3M, driven by a 62% increase in mobile revenue to $3.0M as paying mobile subscribers rose 54% to 40k. Gross profit increased 24% to $5.2M, supported by the higher-margin mobile revenue, with mobile gross profit rising 41% to $1.6M. The company's focus on cost optimisation and process improvements resulted in a 23% reduction in net operating expenses to $5.4M, leading to a 96% improvement in EBITDA, which narrowed to a loss of $0.1M. Losses from discontinued operations also fell 92% to $0.1M, allowing the company to focus fully on its core, profitable mobile services. The company's cash position remained healthy, with $2.4M in cash at the end of the period. Spacetalk also successfully renegotiated its $5M loan facility, reducing near-term repayment obligations and freeing up $0.75M in the next 12 months to support growth initiatives. The company is now executing its FY25 growth strategy, which includes scaling its core business through capital-light geographical expansion and developing new products for existing markets, underpinned by a new technology infrastructure and Spacetalk App v2.0.

Spacetalk is on track to deliver $20M-$25M in annual recurring revenue (ARR) in 2026, excluding device sales. This guidance is based on the company's continued growth in mobile subscribers and revenue, as well as the development of new products and software capabilities.

Spacetalk is focused on international scaling and product development, with plans to expand into 11 countries by the end of FY25. The company is also developing new hardware for kids and seniors, as well as an entirely new software experience with Spacetalk App 2.0. Additionally, Spacetalk is working on a predictive analytics product for seniors' welfare, which is expected to drive market development and future global growth in a valuable new sector.