• Reported positive net operating cashflow for Q1 FY26 (excluding exceptional cash outflows)
• Group is well capitalised with $14.5m in total available funds
• UK property leases exited, generating ~$2.0m in annualised savings

Dubber Corporation Ltd reported positive net operating cashflow for Q1 FY26 (excluding exceptional cash outflows) for the first time in the company's history. The group is well capitalised with total available funds of $14.5 million as of 30 September 2025, comprising a cash balance of $9.5 million and a $5 million undrawn committed loan facility. The company exited UK property leases at the end of the quarter, which is expected to generate annualised savings of approximately $2.0 million from Q2 FY26 onwards, with a one-off cost of $0.3 million paid in the quarter. Underlying recurring revenue in Q1 FY26 was $8.2 million, consistent with Q4 FY25 (excluding VMO2 impact). The group has signed a new partnership agreement with Crexendo Inc and integrated with their Netsapiens platform, and the number of Communications Service Provider (CSP) partners increased to 245+ at 30 September 2025, up from 240+ at 30 June 2025. The company continues to target achieving underlying operating cashflow run-rate breakeven during FY26.

The company expects to offset the loss of gross margin from the non-renewal of the VMO2 contract through additional cost savings being delivered in FY26 and revenue growth.

The company is targeting underlying run-rate operating cashflow breakeven in FY26, focusing on uplifting customers to AI products, growing sales, business automation/cost reductions, product evolution, deploying a new recorder across the customer base, and deeper penetration into chosen industry verticals.