• Art of Mentoring achieved record new sales of $720k in Total Contract Value (TCV) during the quarter
• 71% of new sales originated from the United States, including flagship accounts across strategic verticals
• Across the Group, quarterly cash receipts from customers increased by 69% QoQ to $1.6m (+8% YoY)

AD1 Holdings Ltd (ASX:AD1) has reported a strong quarterly performance, with its subsidiary Art of Mentoring achieving record new sales of $720k in Total Contract Value (TCV) during the quarter ending 30 December 2024. 71% of these new sales originated from the United States, including flagship accounts across strategic verticals such as banking, retail, and industry associations. The company also successfully launched a new corporate brand and began implementing a new strategy as an active acquirer of SaaS technology companies and innovative workforce transformation services. Across the Group, quarterly cash receipts from customers increased by 69% quarter-on-quarter (QoQ) to $1.6m, representing an 8% year-on-year (YoY) increase. Operational expenses were reduced by 3% QoQ (-6% YoY), resulting in an operating cash flow of -$223k for the quarter, a 76% improvement QoQ (52% YoY). The company received $780k in January 2025 from the ATO's Research and Development (R&D) tax incentive, which has been applied to working capital and to reduce liabilities. The CEO also executed a strategic cost reduction of $1.5m, strengthening AdNeo's cash flow position and setting the business up for future M&A opportunities.

The company is confident that the new strategy has set the business on a path towards cash flow positivity and growth, via disciplined cost management, organic growth, and synergistic M&A deals.