• Revenues of $2.1 million, up 25% on the previous corresponding period
• Gross profit of $0.9 million, up 10% on the previous corresponding period
• Enterprise/government customers increased to 86, up 13% on the previous corresponding period

X2M Connect Limited (ASX:X2M) reported its quarterly activity report and Appendix 4C for the period ended 30 September 2025 (1Q FY26). The company achieved revenues of $2.1 million, up 25% on the previous corresponding period (pcp), and a gross profit of $0.9 million, up 10% on the pcp. Operating costs were $1.7 million, up 3% on the pcp, and the adjusted EBITDA loss of $0.6 million was an improvement of 7% on the pcp. The company's enterprise and government customers increased to 86, up 13% on the pcp. Net cash outflows from operating activities for the quarter were $1.67 million, and total cash as at 30 September 2025 was $1.8 million. Net debt was reduced from $5.5 million at 30 June 2025 to $0.7 million by 30 September 2025. The company completed a capital raise of $5.4 million during the quarter, which substantially strengthened its balance sheet and positioned it for further growth.

Of the contracts secured to date, $4 million is yet to be recognised, with circa $2.5 million expected to be recognised in the second quarter and some flow over into the following quarter.

The company expects to see continued momentum into the second quarter as it deploys contracts already secured and with a significant pipeline of new prospects.