• Group Revenue for Q3 FY26 was $3.02 million, up 44% on prior year
• Recurring revenue accounted for $2.9 million (96%) of the quarter's total
• Delivered $1.28m positive EBITDA (unaudited) YTD and maintained $2.6 million cash balance

XPON Technologies Group Ltd (ASX:XPN), an AI marketing technology company, released its quarterly activity report and Appendix 4C cash flow statement for the three-month period ended 31 March 2026. The Group reported revenue of $3.02 million for Q3 FY26, representing a 44% increase on the prior corresponding period, despite expected seasonal normalisation following a record Q2. Recurring revenue accounted for $2.9 million (96%) of the quarter's total, annualising to $11.6 million. Gross Profit remained resilient at $2.0 million, with Gross Margins at 66% due to seasonal labor costs. The Group successfully landed 4 new customers and expanded relationships with 1 existing customer while maintaining a robust monthly customer retention rate of 98.8%. The integration of Alpha Digital is progressing positively, with cross-sell deals and new joint Alpha + Wondaris deals in the pipeline. The Group delivered $1.28m positive EBITDA (unaudited) YTD and maintained a solid cash balance of $2.6 million as at 31 March 2026. The Group continues to execute its strategic plan, balancing investment in growth with operational discipline to ensure the business remains positioned to meet its long-term financial objectives.

The Group expects to continue delivering positive EBITDA (unaudited) and improving operating cash flows in FY26 as seasonal spending cycles conclude and cost management strategies are implemented.

The Company has clear priorities for the remainder of FY26, including continuing to optimize the sales strategy towards high-margin recurring revenue growth, maintaining positive EBITDA and cash flow, accelerating AI innovation with Wondaris, and further enhancing shareholder value through M&A.