• Customer numbers stable
• ARR $1.68m following customer mix changes, positioning for resumed growth
• Operational cash outflow $154,000 for the quarter

Gathid Ltd released its Appendix 4C and Quarterly Activities Report for the first quarter of the 2026 financial year. The company closed the period with a cash & cash equivalents balance of $4.56m. Annual Recurring Revenue (ARR) was $1.679m, down from $1.936m at the end of Q4 FY25, due to three customer non-renewals. However, this still represents an increase of over 140% since the end of FY24. The company secured contracts with an additional three new customers and successfully renewed an existing subscription during the quarter. Sales revenue in Q1 was $428k, a slight reduction from the previous quarter. The company's operating activities net cash outflow decreased in Q1 from the previous quarter. The Board is satisfied with the progress being made and is confident growth will resume given the continued focus on disciplined sales execution and cost management.

The Board continues to be confident that Gathid's SaaS platform is delivering clear value to customers and steadily gaining traction in the market. The company has realigned its cost base, removing or deferring non-essential expenditure to better align with current revenue levels. Additional headcount increases are planned within the approved budget, with timing to be carefully aligned to the sales-close cycle and upcoming customer renewals.