DXN (DXN) H1 2026 earnings summary

Executive summary

• Revenue for H1 FY26 was $2.7 million, down 65–65.5% year-over-year due to customer-driven project delays, with significant contributions from Modular Division projects for GlobalStar and AP Telecom.

• Project activity has resumed on two of three delayed projects, with revenue expected to strengthen as deferred work is delivered.

• The company maintains a robust backlog of $14.5 million, with 80 projects in the pipeline and 65% of backlog expected to be delivered in 2HFY26.

• Strategic expansion into Southeast Asia includes a JV in Indonesia, new entities in Singapore and Malaysia, and is expected to generate significant revenue over the next three years.

• First recurring revenue from DCaaS was received, establishing a new capital-light revenue stream.

Financial highlights

• Gross profit for H1 FY26 was $491k, with a gross margin of 18%, down from 30% in H1 FY25.

• Underlying EBITDA was negative $2.2 million, compared to positive $211k in H1 FY25.

• Net loss after tax widened to $3.47 million from $1.42 million year-over-year.

• Cash and equivalents at period end were $1.7 million, down from $3.12 million at June 2025.

• Net operating cash outflow was $0.75 million, improved from $2.17 million outflow in H1 FY25.

Outlook and guidance

• FY26 revenue growth is targeted, weighted toward 2HFY26 as deferred projects are delivered and backlog converts.

• $14.5 million in backlog and 80 projects in the pipeline provide revenue visibility into FY26.

• Focus on expanding DCaaS offerings, leveraging Southeast Asia JV, and targeting mission-critical infrastructure, edge computing, AI, and hyperscale applications.

• Management intends to refinance the $5 million iPartners loan facility to extend maturity and strengthen liquidity.