• Revenue up 45% to $4.9 million
• Gross profit up 35% to $2.1 million
• Adjusted EBITDA loss reduced by 10% to $1.2 million

X2M Connect Limited (ASX:X2M) has announced its unaudited financial results for the half year ended 31 December 2025. The company delivered solid growth, with revenue increasing 45% year-on-year to $4.9 million, reflecting continued expansion across core utility markets, higher-margin software and maintenance services, and new product sales. Gross profit increased by 35% to $2.1 million, while adjusted EBITDA loss improved by 10% to $1.2 million, demonstrating the company's progress in driving financial outcomes. The number of enterprise and government customers grew to 88, up 10% from the prior corresponding period. Key highlights include securing multiple new and repeat municipal water digitisation contracts in South Korea, commencing deployment of 30,000 HelpMe public safety devices, and entering the Japanese water digitisation market through a partnership with Azbil Kimmon. The company also continued to roll out its remote gas monitoring platform in the Middle East. Based on contracted work, pipeline visibility, and current operating conditions, X2M expects continued revenue growth and a substantial reduction in FY26 adjusted EBITDA losses relative to FY25.

X2M expects to deliver a substantial reduction in FY26 adjusted EBITDA losses relative to FY25.

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. Momentum is expected to continue with approximately $4 million in contracted revenues yet to be recognized.