• Consolidated net loss of $2.4 million after tax, including $1.4 million non-cash impairment
• Underlying net operating loss of $1.1 million, driven by increased legal, compliance and transaction expenses
• Acquired 63.49% stake in The Term Deposit Shop, a cash management platform with over $530 million in funds under management

ARC Funds Limited has reported its financial results for the year ended 30 June 2025. The company recorded a consolidated net loss of $2,396,177 after tax and non-controlling interest, up 222.6% from the previous year. This included a non-cash impairment of goodwill for the investment in The Term Deposit Shop of $1,376,488. The underlying net operating loss was $1,070,352, comprising increased legal, compliance and transaction expenses of around $500,000 related to the company's corporate development activities, as well as normal operational working capital requirements. The net cash operating expense, excluding the higher transaction costs, was $633,102. During the year, ARC made several strategic investments and acquisitions to expand its business. In May 2025, the company acquired a 63.49% stake in The Term Deposit Shop (TTDS) for $2.4 million, funded with cash and debt. TTDS operates an online cash management platform that allows investors to find, compare and invest in term deposits and high-interest savings accounts. At the time of acquisition, TTDS had over $530 million in funds under management and a compound annual growth rate exceeding 30%.Additionally, ARC increased its ownership in Merewether Capital Management from 45.5% to 72% through a debt-to-equity conversion. Merewether Capital has been increasing its funds under management with strong investment performance. In October 2024, ARC acquired a 26% equity interest in ausbiz capital, a new investment distribution platform established to offer financial products and services to the ausbiz Group's subscriber base of over 110,000.The company also raised additional capital during the year, including $692,521 in December 2024 and $600,004 in May 2025. Subsequent to the end of the financial year, ARC raised a further $750,000 in July 2025, including $200,000 from the new Managing Director, Scott Beeton.The Board thanked outgoing director Wayne Massey for his contributions over the past 9 years and welcomed the new Managing Director, Scott Beeton, for his efforts in building the business.