• Revenues up 65% to $2.8 million
• Gross profit up 63% to $1.2 million
• Adjusted EBITDA loss improved 12% to $0.6 million

X2M Connect Limited (ASX:X2M), an Australian IoT technology company, delivered a strong performance in the second quarter of FY26. The company reported revenues of $2.8 million, up 65% on the previous corresponding period (pcp), and gross profit of $1.2 million, up 63% on the pcp. Adjusted EBITDA loss improved by 12% to $0.6 million. The company secured new and repeat water digitisation contracts in South Korea, covering over 5,000 households, and advanced delivery of remote water monitoring in Seoul, the capital city. In Japan, X2M entered the water digitisation market through a new software development agreement with Azbil Kimmon, extending an existing gas monitoring partnership. The company also commenced delivery of its HelpMe public safety devices to the City of Seoul. Net cash generated from operating activities for the quarter was $1.7 million, and the company had total cash of $1.9 million and net debt of $0.2 million as of 31 December 2025. X2M's enterprise and government customer base increased by 10% to 88 customers. Based on the performance in Q2 FY26, the company expects to deliver a substantial improvement in adjusted EBITDA losses for FY26 relative to FY25 and is working towards being EBITDA positive in the near term.

X2M expects to deliver a substantial improvement in adjusted EBITDA losses for FY26 relative to FY25 and, subject to operating performance and timing of revenue recognition, is working towards being EBITDA positive in the near term.

Based on performance to date in FY26 contracted work, pipeline visibility and current operating conditions, X2M expects continued revenue growth in the second half of FY26, driven by delivery of municipal water digitisation contracts in South Korea, ongoing deployments with major metropolitan customers and revenues from its entry into the Japanese water market.