• Annual recurring revenue (ARR) increased 9% to $12.0M
• Active mobile subscribers increased 26% to 57.6k
• Revenue from continuing operations decreased 6% to $9.3M
• Gross margin increased to 50% from 49%
• Operating expenses increased 64% to $8.7M

Spacetalk Ltd (ASX: SPA) has reported its half-year results for the six months ended 31 December 2025 (1H26). The key performance highlights include: Annual recurring revenue (ARR) increased 9% on the prior corresponding period (pcp) to $12.0M, reflecting continued growth in subscription services; Active mobile subscribers increased 26% on pcp to 57.6k, supporting scalable and capital-efficient growth; Revenue from continuing operations decreased 6% on pcp to $9.3M, primarily due to timing-related impacts from retailer ordering patterns, which resulted in lower device sales during the period; Gross margin increased slightly to 50% compared to 49% in pcp; Operating expenses increased 64% on pcp to $8.7M, as the business commenced targeted reinvestment to support the Company's strategic transition to a software-led business model and build a pipeline of Domestic and International Telco software sales opportunities. The announcement of an MOU with TPG Vodafone to distribute Spacetalk's software to millions of Vodafone customers is a significant step for the business, and the company expects to announce additional Telco deals in due course. The investment in the Spacetalk platform is key to enabling the full potential of the IP the company exclusively licensed from NeuRA, and strategic telco partnerships and continued platform innovation are expected to accelerate subscriber growth, deepen ecosystem engagement, and support sustainable, long-term value creation.

Strategic telco partnerships and continued platform innovation are expected to accelerate subscriber growth, deepen ecosystem engagement through the deployment of AI-powered customer value management activity, and support sustainable, long-term value creation.