• Strong Q1 FY26 results, positive operating cash flow and EBITDA
• Alpha Digital integration progressing well with cross-sell deals
• Group sales revenue increased 17.5% QoQ, 94% recurring revenue
• Successful capital raise and loan agreement to support future growth

XPON Technologies Group Ltd (ASX:XPN), an AI marketing technology company, released its quarterly activity report and Appendix 4C for the three-month period ended 30 September 2025. The Group delivered a strong result for the quarter, with a positive operating cashflow of $0.99 million and a positive EBITDA (unaudited) of $0.12 million. Group sales revenue increased 17.5% quarter-on-quarter to $3.2 million, primarily driven by the acquisition of Alpha Digital. Recurring sales revenue accounted for $2.98 million (94%) of the quarter's total, annualising to $11.9 million. The company maintained a robust monthly customer retention rate of 97.5% and successfully landed 12 new customers while expanding relationships with 16 existing customers. The integration of Alpha Digital is progressing very positively, with cross-sell deals and a number of new joint Alpha + Wondaris + XPON deals in the pipeline. XPON also successfully raised $0.45 million in capital through a new share placement, secured a loan agreement with Harvest Lane to borrow $0.4 million at 10% interest over six months, and fully repaid the convertible notes, providing the Group with a strong foundation for future growth.

The company expects to continue operating cash flow and EBITDA (unaudited) positive on an underlying basis in FY26.

XPON has clear priorities for FY26, including continuing to monitor and optimise the recalibration of the sales strategy towards high margin long-term recurring revenue growth, capitalising on its leading market position by accelerating AI innovation with Wondaris, simplifying its product-led sales motion with key vertical industry offerings, continuing momentum on its M&A strategy, strengthening its balance sheet and financial stability, and ensuring it sustains a strong corporate culture and maintains high employee engagement and motivation.