• Group revenue down 43% to $6.5 million due to softer market in South Korea
• Gross margin improved to 47%, up 5 percentage points
• Adjusted EBITDA loss increased by 19% to $3.6 million
• $4.9 million non-cash impairment charge on capitalised development costs
• Operations in China discontinued

X2M Connect Limited's revenue for the period ended 30 June 2025 was $6.5 million, down 43% on the prior comparative period, primarily reflecting a softer market in South Korea. However, the revenue delivered an improved gross margin of 47% (up from 42% in the prior period). Operating expenses reduced by 14% to $6.9 million, driven by strong cost control, exit of hardware-only sales, lower product remediation costs, and general operational efficiencies. Adjusted EBITDA loss increased by 19% to $3.6 million. The company recognised a non-cash impairment charge of $4.9 million on capitalised development costs, largely reflecting the FY25 results with forecast growth now coming from a lower base. The company also reviewed its China operations and determined to exit that market, with the China operations treated as discontinued in the financial statements. Overall, the loss for the Group after income tax expense amounted to $12.1 million, up 86% from the prior period.