• Revenue down 17% to $9.66M
• Loss before tax up 241% to $5.65M
• Snare revenue up, emite revenue down
• Targeting breakeven cash flow by end of FY26

Prophecy International is a pure play business-to-business (B2B) and business-to-government (B2G) software and SaaS company servicing large enterprise and government customers globally. For the six months to 31 December 2025, the company posted a loss before tax of $5.65 million, compared to a loss of $1.66 million in the same period last year. Revenues for the half-year were $9.66 million, down 17% from $11.60 million in the prior corresponding period. The Snare business continued to transition to a primarily subscription-based model, with revenue increasing to $3.71 million, while the emite business recorded lower revenue of $5.98 million. The company closed the half-year with a cash balance of $2.6 million and no debt. Prophecy has introduced a new AI Studio software module that has been well received by customers and is expected to enhance growth in calendar year 2026. The company's key focus areas for the second half of FY26 include expanding sales and marketing, increasing emite and Snare sales, delivering product innovations, and continuing the transition of Snare to a subscription-based model.

Prophecy is targeting breakeven cash flow by the end of FY26, noting that cash flow is seasonal with the majority of annual expenses falling in H1 and the majority of larger receivables in H2.

Prophecy's key focus areas for H2 FY26 include continuing to expand sales and marketing, increasing emite and Snare sales, delivering product innovations, and continuing the transition of Snare to a subscription-based model. The growth of Prophecy's business in Calendar 26 is expected to be enhanced by the adoption of the new AI Studio software module.