• 28% increase in active mobile subscribers ahead of Spacetalk 2.0 launch
• Recurring revenue now 62% of total revenue
• $5m capital raise to fund international expansion, new hardware, and app development

Spacetalk Ltd (ASX: SPA) delivered strong results in Q1 FY26, with a 20% increase in Annual Recurring Revenue (ARR) to $11.8m and a 28% growth in active mobile subscribers to 51.3k. Revenue increased by 12% to $4.5m, driven by the continued success of the Spacetalk Mobile offering, which now makes up 69% of recurring revenue. The company also reported positive net cash generation from operating activities before inventory investments, reflecting the strengthening of its underlying ability to generate cash from core operations. To support its strategic objectives, Spacetalk raised $5m in capital and secured a further $2.05m, expected in Q2 FY26. The company also negotiated with its lender, Pure Asset Management, to convert $1m of existing secured debt into convertible notes and suspend loan repayments until December 2025. Looking ahead, Spacetalk is focused on expanding its subscription model and transitioning the business to a software-led operating model with the upcoming launch of Spacetalk 2.0, its next-generation app, in Q2 FY26. This transition is expected to drive higher margins, stronger cash flows, and new B2B opportunities to complement the existing B2C model.

Spacetalk expects to deliver continued growth in Annual Recurring Revenue, with the Spacetalk Mobile segment expected to be the primary driver for the full 2026 financial year.

Spacetalk remains committed to delivering value for shareholders through sustainable growth, driven by the expansion of its subscription model and the launch of the Spacetalk 2.0 app, which will transition the business to a software-led operating model.