• Statutory loss of $1.01m, but $0.48m in non-cash and non-recurring items
• Term Deposit Shop investment platform performing well, FUA exceeds $530m
• Acquired additional 10.99% stake in Term Deposit Shop, now 74.48% owned
• Sold Ausbiz convertible notes for $500k, strengthening balance sheet

ARC Funds Limited has reported its financial results for the half-year ended 31 December 2025. The company reported a statutory loss of $1,014,823, which included significant non-cash and non-recurring items totalling $479,368, such as impairment on investments and share-based payments. Adjusting for these items, the underlying half-year loss was in line with the company's operating cash outflow of approximately $600,000, meeting expectations. The Term Deposit Shop (TTDS) investment platform remains the core business of ARC Funds and continues to perform well, with Funds Under Administration (FUA) on the platform exceeding $530 million. The company was pleased to announce the acquisition of a further 10.99% stake in TTDS, increasing its ownership to 74.48%. This transaction was completed in February 2026 through the issue of new ARC shares.In November 2025, ARC Funds announced the acquisition of convertible notes in Ausbiz Pty Ltd with a face value of $2.15 million. In January 2026, the company announced the sale of these notes for $500,000 cash, with the completion scheduled for 23 March 2026. The proceeds from this transaction will further strengthen ARC Funds' balance sheet and provide flexibility to pursue future growth opportunities.The company remains focused on executing its growth strategy, acquiring and investing in growth-oriented, cash flow positive businesses that enhance its broader investment ecosystem. ARC Funds has maintained a healthy cash position and a well-managed cost base, providing sufficient runway and capacity for future acquisitions.

The company reported Funds Under Administration (FUA) on the Term Deposit Shop (TTDS) platform exceeding $530 million, with the business delivering ongoing profitable operations.

ARC Funds remains firmly focused on executing its growth strategy -- acquiring and investing in growth-oriented, cash flow positive businesses that enhance its broader investment in the financial services and products ecosystem. The company remains disciplined, opportunistic, and committed to long-term value creation for shareholders.