Calix (CXL) investor relations material

Executive summary

• Achieved strong revenue and gross profit growth in 1H FY26, with magnesia revenue up 48% year-over-year and group product & services revenue up 21% compared to 1H FY25, driven by the magnesia business and initial contributions from sustainable processing.

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

• Significant commercial milestones reached, including a major U.S. magnesia contract, Rio Tinto partnership, and completion of the lithium Mid-Stream Demonstration Plant.

• A $30.2m non-cash impairment was recorded due to the planned sale of the Midstream project stake, resulting in a net loss of $42.8m for the period.

• Net cash used in operating activities decreased to $6.2m, and cash and equivalents were $11.8m at 31 December 2025.

Financial highlights

• Product and services revenue reached AUD 16.3 million (up 21% year-over-year); magnesia revenue AUD 15.8 million (up 48%).

• 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); total CapEx $7.1m, focused on Magnesia and Midstream projects.

• Net loss for the period was $42.8m, driven by a $30.2m impairment related to the Midstream project sale.

Outlook and guidance

• Expecting cash flow neutrality in calendar year 2026, driven by continued revenue and gross profit growth, reduced OpEx, and minimal CapEx, excluding anticipated $11.4m cash payment from PLS.

• Anticipate additional cash inflows from government grants, project milestones, R&D tax incentives, and the sale of the Midstream 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.