DXN (DXN) Q1 2025 earnings summary

Executive summary

• Secured new modular data centre contracts in Q1 2025, including a $974k cable landing station and a $249k mining module, with additional sales totaling approximately $1.5m.

• Renewed a key Master Supply Agreement for the Hobart data centre, ensuring continued anchor customer engagement.

• Appointed Laila Green as CFO & COO effective 1 November 2024, strengthening the executive team.

Financial highlights

• Q1 2025 revenue reached $3.0m, with modular revenue at $2.4m and data centre operations contributing $622k.

• Negative net operating cash flow of $130k, primarily due to increased build costs for upcoming deliveries.

• Cash balance at 30 September 2024 was $2.76m, down from $2.98m at the end of the previous quarter.

• Product manufacturing and operating costs rose to $2m from $1.46m in the prior quarter.

• Staff costs were $768k, administration and corporate costs $422k, and leased asset payments $318k.

Outlook and guidance

• Completed a $6.5m capital raise in October 2024 at $0.07 per share, with the placement oversubscribed.

• Positioned for growth with a focus on new geographical markets and advanced modular solutions for high-density AI workloads.

• Recent restructuring led to the first-ever positive EBITDA in FY24.