• Revenue of $2.5 million, up 2% on pcp
• Cash balance of $3.2 million, on track to meet $16m FY25 revenue guidance
• Executed first DCaaS contract with $3.6 million TCV, potential for additional sites

DXN Ltd, a prefabricated modular data centre specialist, has provided an update on its operations for the quarter ending 31 March 2025 (Q3 FY25). The company reported revenue of $2.5 million for the quarter, an increase of 2% on the previous corresponding period (Q3 FY24). DXN ended the quarter with a strong cash balance of $3.2 million and remains on track to achieve its FY25 revenue targets of $16.0 million. Operating cash flow for the March quarter was negative $1.8 million, an improvement from negative $2.6 million in the previous quarter. During the quarter, DXN finalized the recapitalization of $1.0 million of its $3.0 million loan balance with PURE Asset Management, reducing the loan balance to $2.0 million and improving the company's financial flexibility. DXN also executed the Option Deed and a Binding Contract of Sale to purchase the freehold of the SDC Darwin data centre for $2.1 million. Additionally, the company signed a $0.6 million contract with BNL, a Republic of Kiribati State Owned Enterprise, to improve internet connectivity in Micronesia. Notably, during the quarter, DXN executed its first DCaaS (Data Centre as a Service) contract with a US-based global provider of satellite earth stations. The initial site has a Total Contract Value of approximately $3.6 million, with the potential for additional sites across regional Australia and international locations under a frame agreement. This strategic move highlights DXN's capabilities to execute on its growth objectives by establishing a new business unit focused on a capital-light facilities as a service model, which the company believes can deliver significant recurring revenue.

DXN is on track to achieve its FY25 revenue target of $16 million, with a healthy pipeline of identified projects.

DXN has commenced the final quarter of FY25 strongly with the execution of its first DCaaS contract, which has a Total Contract Value of approximately $3.6 million for the initial site. Under the frame agreement, the company has the potential to secure contracts for multiple additional sites across regional Australia and international locations, providing significant potential for recurring revenue through the facilities as a service offering.