Daily Roundup

SEQ.ASX PRO.ASX WTL.ASX NEU.ASX XRG.ASX

Strong Second Half for Sequoia Financial Group

Sequoia Financial Group Ltd (ASX: SEQ) has reported a strong financial performance in the second half of FY25. The company achieved revenue growth to $124.0 million and a consolidated group EBITDA of $9.9 million, with an improved margin of just below 8%. The Legal Documents division continued its growth trajectory, performing strongly at a margin above 40%, while the Licensee Services margin expanded from 5.0% to 8.4%. The investment portfolio also contributed positively to the overall performance.

Sequoia has strengthened its governance framework through the establishment of a dedicated AFSL Governance Committee and is in the final stages of appointing additional directors with relevant expertise. The company has also responded to an ASX market query regarding a change in the price and trading volume of its securities, and a substantial shareholder has since lodged a notice of ceasing to be a substantial holder.

Prophecy and Complexica to Create ASX-Listed 'AI Pure Play'

Prophecy International Holdings Ltd (ASX: PRO) has announced a transformational merger with Complexica Pty Ltd to create an ASX-listed 'AI pure play' software company. The combination is underpinned by compelling strategic and commercial rationale, including a powerful business repositioning, optimised product offering, accelerated organic growth opportunities, and enhanced scale.

Under the terms of the merger, Prophecy will issue shares and options to Complexica shareholders, with Complexica shareholders holding 38.0% of the merged entity. The merged company, to be named Complexica Group Limited, is expected to record $12.5 million in revenue (58.0% recurring) and $2.0 million in EBITDA in the calendar year 2024, with a revenue CAGR of around 18.0% from 2021 to 2024.

WT Financial Group Expands Joint Venture with Merchant Wealth Partners

WT Financial Group Limited (ASX: WTL) has provided an update on the investment activity of its 50/50 joint venture with Merchant Wealth Partners Pty Ltd. The joint venture's first 'Hubco', Titan Advice Group Pty Ltd, has now been incorporated and has executed a Heads of Agreement to acquire 100% of Queensland-based financial advice firm Rushby Financial Pty Ltd.

Investco, the joint venture, has also executed a Heads of Agreement to establish its second Hubco, with Select Advice Group Pty Ltd and Newleaf Tailored Financial Solutions to be 100% acquired as foundation practices. These partnerships represent landmark steps for Investco, underscoring WTL's position at the centre of a high-growth investment platform.

Neuren Pharmaceuticals Reports Strong Q2 2025 Results for DAYBUE

Neuren Pharmaceuticals (ASX: NEU) has reported highlights from the Q2 2025 financial results of its partner Acadia Pharmaceuticals (Nasdaq: ACAD). Acadia announced Q2 2025 net sales of DAYBUE (trofinetide) of US$96.1 million, up 14% on Q2 2024 and 14% on Q1 2025, primarily due to the growth in unit sales shipped to more unique patients. The number of unique patients receiving a DAYBUE shipment reached a record high of 987.

Acadia has also completed the planned expansion of its DAYBUE field force by ~30% to accelerate future growth through penetration in the community outside the Rett syndrome centres of excellence. Acadia reiterated its full year 2025 guidance for DAYBUE US net sales of US$380 - 405 million, implying full year 2025 US royalty income for Neuren of A$62 - 67 million.

Operator XR Secures Largest Contract to Date with Texas Department of Public Safety

xReality Group Limited (ASX: XRG) has announced that its wholly owned US Subsidiary Operator XR LLC has been awarded a contract up to the value of $5.7 million to supply Operator XR's OP-2 training systems to the Texas Department of Public Safety (Texas DPS). The contract consists of a $4.3 million initial order for OP-2 software licenses, VR training systems, implementation, and two years of support services, as well as a $1.4 million option for additional support services.

In addition, XRG has been awarded a $2.1 million grant as part of the Australian Government's Industry Growth Program to accelerate the AI product roadmap for its Operator XR platform, increase manufacturing capacity, and achieve global certifications to target large defence and government contracts.