• Strong revenue and gross profit growth
• Focused and streamlined execution
• Significantly reduced capex requirements

Calix Limited (ASX: CXL) reported its 1H FY26 results, highlighting strong revenue and gross profit growth, as well as a focused and streamlined execution. The company's revenue increased by 21% to $16.3 million, driven by a 48% increase in Magnesia product and services revenue to $15.8 million. Gross profit grew by 37% to $6.7 million, with a gross margin of 40%. Calix also demonstrated cost discipline, reducing operating expenses by 30% to $15.6 million and limiting capital expenditure to $0.6 million. The company expects to be cash flow neutral in the 2026 calendar year, excluding a $11.4 million cash payment from the PLS restructure, which would further strengthen its financial position. Key commercialization milestones were achieved across the business, including a $35 million joint development agreement with Rio Tinto and a $44.9 million grant from ARENA for the Zesty Demo Plant, subject to matched funding and milestones. The company also made progress on the Leilac and Lithium Mid-Stream projects, as well as securing a new $10 million per annum contract with a U.S. customer for its Magnesia business.

Calix expects to be cash flow neutral in the 2026 calendar year, excluding the anticipated $11.4 million cash payment from the PLS restructure. The company's focus will be on continued Magnesia revenue and gross profit growth, progress on the Zesty project towards FID, successful testing and Pre-FEED for the ZEAL project, as well as advancing the Leilac Frontier and ZETA projects.