• ARR increased 14% to $1.936m, up 176% YoY
• Secured 2 new customers, 1 customer expansion
• Dispute with buyer of physical security business ongoing

Gathid Ltd has released its quarterly activities and cash flow report for Q4 FY25. The company closed the quarter with a cash balance of $4.72m. Annual Recurring Revenue (ARR) increased 14% in the quarter to $1.936m, up from $1.695m at the end of Q3 FY25. This represents an increase of over 176% since the end of FY24 ($0.7m at 30 June 2024). Gathid secured contracts with an additional two new customers, bringing the total number of implementations to 21. During the quarter, a US-based customer expanded its subscription, and 2 existing customers renewed their annual subscription, maintaining the high renewal rate. New sales opportunities continue to approach the end of the sales cycle, including a number in customer procurement departments. The company's operating activities net cash outflow decreased in Q4 from the previous quarter. Spending on staff in Q4 showed a slight increase following a small number of hires and pay reviews for staff. The company has continued to incur costs related to the divestment of its physical security business, including advice regarding the dispute with Bloom. The dispute over the consideration due for the sale of the physical security businesses has not been resolved, and Bloom has petitioned the Court for resolution. Gathid has filed a defense and counter claim, disputing Bloom's interpretation of the expert's determination. The company is now in communication with ASX on the final requirements for relisting and will update shareholders on progress.

The company remains focused on disciplined cost management while selectively building out its team, particularly with strategic hires in North America across technical and sales functions. The Board is satisfied with the progress being made in the business and expects to continue the growth trajectory in a fiscally responsible way.