• 58% increase in revenue to $6.6 million
• Positive operating cash flow of $3.1 million
• Significant turnaround with net profit of $0.2 million
• Successful integration of Alpha Digital acquisition

XPON Technologies Group Ltd (ASX:XPN), an AI marketing technology company, has released its Appendix 4D and half yearly report for the six-month period ended 31 December 2025 (H1 FY26). The Group delivered a strong first-half performance, positioning it well to deliver its full-year financial targets. Key highlights include:- Revenue from contracts with customers of $6.6 million, representing a 58% increase from the previous corresponding period, driven by the Alpha Digital acquisition and successful new customer acquisitions.- Positive operating cash flow of $3.1 million, up from $2.0 million in the prior year, supported by the increase in customers' seasonal media spends.- Net profit of $0.2 million, a significant turnaround from the $0.6 million loss recorded as of 31 December 2024.- EBITDA of $1 million, compared with an EBITDA loss of $0.38 million in the prior corresponding period, reflecting a material improvement in operating performance.- Recurring sales revenue accounted for $6.2 million (95%) of the half-year's total, annualising to $12.5 million.- Integration of Alpha Digital has progressed positively, with a growing number of joint Alpha + Wondaris deals in the pipeline.- The Group successfully landed 19 new customers and expanded relationships with 19 existing customers, maintaining a robust customer retention rate of 97.3%.- The Group successfully raised $425k in capital through a new share placement, fully repaid the convertible notes, and repaid the last instalment on the Harvest Lane loan, improving its financial position.

The Company expects to continue operating cash flow and Statutory EBITDA (unaudited) positive on an underlying basis in FY26.

The Company has clear priorities for the remainder of FY26, including continuing to strengthen its balance sheet and financial stability, further enhancing shareholder value through M&A, accelerating AI innovation with Wondaris, and optimizing its sales strategy towards high-margin, long-term recurring revenue growth.