• Net loss after tax down 76% to NZ$1.275 million
• Revenue declined 15% to NZ$19.263 million
• Gross margins remained stable at 66.4%
• Significant reduction in operating expenses

Straker Ltd (ASX: STG) has reported its results for the six months ended 30 September 2025, with a significant improvement in the company's financial performance. The Group reported a net loss of NZ$1.275 million, a 76% reduction from the NZ$5.328 million loss recorded in the prior corresponding period. This improvement was primarily driven by the absence of large non-cash charges seen in 2024, coupled with lower operating and finance costs. Revenue declined by 15% to NZ$19.263 million, reflecting softer trading conditions; however, gross margins remained broadly stable at 66.4% (2024: 67.2%). Cost of sales decreased NZ$1.001 million to NZ$6.465 million, consistent with the reduced revenue base. Operating expenses reduced materially, down NZ$5.365 million, driven by the absence of impairment losses, lower general and administrative costs, and reduced selling and distribution expenses due to improved efficiency and tighter discretionary spending controls. The improved result reflects targeted cost initiatives and efficiency gains achieved through increased automation and workflow optimisation, together with the absence of major non-cash charges and a more stable currency environment.

The company has announced the renewal and expansion of its strategic partnership with IBM for a further three years from 1 January 2026, with an option for IBM to extend for one additional year. The agreement, valued at approximately NZ$28 million over the initial term, strengthens Straker's position in AI-powered language technology.