• Continued operational momentum and disciplined cost control
• Third quarter of net paid subscriber growth
• Gross margins steady at ~87%
• Investment in product development for iOS in-app Photo Store

Tinybeans Group Limited (ASX: TNY) provided an update on its business activities for the quarter ended 30 September 2025 (Q1 FY26). The company maintained recurring subscription revenue while delivering significant improvements in cash-burn, EBITDA and OPEX versus the prior comparative period. The company saw its third quarter of net Paid Subscriber growth, driven by subscription renewals and improving conversion from free to paid plans. Gross margins remained steady at ~87%, underscoring the scalability of the subscription-based model. Tinybeans invested in product development for a major upcoming release of an iOS in-app Photo Store to diversify revenue and expand monetisation of free and paid subscribers. The company also received national media exposure and reinforced its position as the trusted voice in children's privacy and digital parenting. Tinybeans continues to evolve into a complete privacy-first family memory platform and transition into the intersection of family technology and personalised goods/gifting. The company ended the quarter with a cash balance of US$975k, maintaining balance sheet flexibility.

The company expects operating and overall cash outflows to reduce again in subsequent quarters due to revenue associated with high volume of annual subscription renewals in Q2.

Q2 FY26 is a key quarter for Tinybeans, with a high volume of annual Tinybeans+ subscription renewals scheduled. The company is focused on maintaining strong renewal rates and driving continued subscriber engagement through product enhancements and targeted retention campaigns but does expect a small net subscriber decline due to the high volume of plans up for renewal. Tinybeans will continue to prioritise capital efficiency and disciplined investment in growth initiatives, while evaluating strategic acquisition opportunities that align with its privacy-first mission and enhance shareholder value.