Global Invacom Group (QS9) H1 2025 earnings summary

Executive summary

• 1H FY2025 revenue from continuing operations fell 28.2% YoY to US$11.34m; continuing-operations loss was US$4.53m, versus US$4.16m a year earlier.

• Total period loss narrowed to US$4.53m from US$7.45m in 1H FY2024, which included US$3.30m loss from discontinued operations.

Financial highlights

• Gross profit decreased 19.3% to US$4.66m; gross margin was 36.5% versus 41.1%, with the change attributed to product mix.

• Administrative and R&D expenses combined fell 11.8% to US$8.3m; lower costs reflected the non-recurrence of prior-year professional and restructuring fees.

• Loss before tax was US$4.16m, versus US$4.13m in 1H FY2024; finance costs declined to US$188k from US$301k, mainly after repayment of a US$3m loan in December 2024.

• Operating cash outflow before working-capital changes was US$3.40m; working capital provided a US$1.8m net inflow, and net cash used in operations was US$1.3m.

Outlook and guidance

• A US$3.8m XRJ Transceiver contract with a new Middle East customer remains under confirmation; deliveries are expected from Q3 FY2025, barring unforeseen circumstances.

• Product development is focused on evolving satellite-market needs across orbits; the outlook is for continued challenging conditions, with medium- to long-term opportunity subject to unforeseen circumstances.