• Q3 revenue of $2.3 million, up 67% on prior corresponding period
• Gross profit of $0.9 million, up 41% on prior corresponding period
• Enterprise/government customers increased to 89, up 9% on the prior corresponding period

X2M Connect Limited (ASX:X2M) provides its quarterly activity report and Appendix 4C for the period ended 31 March 2026 (3Q FY26). The quarter saw strong growth as X2M accelerated its position as a leader in data aggregation for utilities, smart communities and next generation infrastructure. Revenue grew 67% on the prior corresponding period while operating expenses increased just 2%, demonstrating the Company's ability to deliver significant revenue growth without proportional increases in overhead. Furthermore, a pipeline of approximately 5,800 smart homes with Resi Ventures and Riverstown announced post quarter end, represents an estimated $11.8 million revenue opportunity if all home buyers take up the X2M offer on top of the existing customer addressable market of more than $500 million in South Korea. Additionally, 57,324 of 100,000 personal safety devices have now been delivered to Seoul, with Seoul planning to scale to one million devices, alongside repeat orders from municipalities, demonstrating strong demand for X2M's products. The Company has strengthened its balance sheet, with $1.48 million approved by shareholders via tranche 2 of the placement announced on 27 February 2026. Funds will be directed toward entry into the Japanese water market, Australian market expansion, platform enhancements, working capital, and repayment of approximately $0.8 million in existing convertible loans (with a proportion expected to convert to equity) alongside an expected R&D rebate of approximately $1.3 million by year's end.

X2M expects to deliver a substantial reduction in full year FY26 adjusted EBITDA losses relative to FY25.

The last three quarters have shown good momentum in X2M revenue, with revenue growth versus the prior corresponding period over the last three quarters of 25%, 65% and 67% respectively. The adjusted EBITDA also improved by 7%, 36% and 23% respectively. X2M remains focused on delivering value for its customers and shareholders as it expands into new territories and verticals.