• Successfully closed the acquisition of Alpha Digital, boosting recurring revenue and cash
• Integration of Alpha Digital progressing positively with new joint deals in pipeline
• Won Australian 2024 AI Award for 'AI Innovation - Media & Communication Services'

XPON Technologies Group Ltd (ASX:XPN), an AI marketing technology company, has released its Appendix 4E and full year Annual Report (audited) for the year ended 30 June 2025. The key highlights include the successful closure of the acquisition of Alpha Digital on May 7 2025, which immediately boosted recurring revenue by $4m and added c$1m in cash. The integration of Alpha Digital is progressing very positively, with first cross-sell deals already closed and a number of new joint Alpha + Wondaris + XPON deals in the pipeline. XPON was also recognized for its leadership in AI Marketing, winning the prestigious Australian 2024 AI Award in the category of 'AI Innovation - Media & Communication Services'. Recurring sales revenue accounted for $2.5 million (95%) of Q4's total, annualising to $10.1 million. The company maintained a gross margin of 72%, down 2ppts from FY24, attributed to the lower margin managed services revenue stream from Alpha Digital. XPON successfully landed 13 new customers and expanded relationships with 20 existing customers, while maintaining a cash position of $2.7m as of 30 June 2025. The company also took actions to align its cost structure with the future product-led revenue mix, removing c$560k in additional annualised costs in early July 2025. XPON's Wondaris Composable Customer Data Platform (CDP) is now available on the Google Cloud Marketplace, simplifying its procurement and deployment process for customers. The company is further optimizing its Wondaris product-led sales motion, developing key vertical offerings focused on banking & financial services, retail, education, and publishing industries.

The company expects to continue driving AI innovation with Wondaris to accelerate sales cycles and enhance value realization for customers, focus on sustainable profitability by leveraging its relationship with Google for pipeline generation and growing its recurring customer base, explore strategic partnering and M&A opportunities, ensure a strong corporate culture and high employee engagement, and continue to optimize its balance sheet to strengthen financial stability.