Calix (CXL) investor relations material

Executive summary

• Achieved strong revenue and gross profit growth in the first half of FY 2026, with magnesia revenue up 48% year-over-year and group product & services revenue up 21%, driven by the magnesia business and initial contributions from sustainable processing.

• Operating expenses reduced by 30% year-over-year, with disciplined cost management, a capital-light business model, and focused business delivery.

• Significant commercial milestones reached, including major new contracts in magnesia, a partnership with Rio Tinto, and completion of the lithium Mid-Stream Demonstration Plant.

• A $30.2m non-cash impairment was recorded due to the sale of the Mid-Stream UJV share, impacting net results.

• Net loss for the period was $42.8m, compared to a $12.7m loss in the prior year.

Financial highlights

• Revenue reached AUD 15.8 million (up 48% year-over-year) and total products and services revenue was AUD 16.3 million (up 21%).

• Gross profit increased 37% to AUD 6.7 million, with gross margin rising to 40% from 37% year-over-year.

• Operating expenditure down 30% to AUD 15.6 million; net cash used in operating activities down 65% to AUD 6.2 million.

• CapEx spend reduced to AUD 600,000 (excluding Mid-Stream Project share), with most recognized CapEx related to the Mid-Stream Project.

• Net loss: $42.8m (vs. $12.7m loss prior year), driven by a $30.2m impairment.

Outlook and guidance

• Expecting cash flow neutrality in calendar year 2026, driven by continued revenue and gross profit growth, reduced OpEx, and minimal CapEx.

• Anticipate additional cash inflows from government grants, project milestones, R&D tax incentives, and the $11.4m sale of the Mid-Stream project stake.

• Major new magnesia contract to begin contributing in the second half, with ramp-up expected over several months.

• Focus on progressing ZESTY to final investment decision and advancing key projects in alumina and lime.

• Directors consider the group a going concern based on current forecasts and cost controls.