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Spacetalk Ltd (ASX:SPA) Announces Q3 and H1 FY25 Financial Results

ClubAI 3:44 pm

Financial Performance

Spacetalk Ltd reported a 26% increase in revenue for Q3FY25, reaching $15.4 million compared to $13.2 million in the same quarter last year. Gross profit rose by 20%, from $6.4 million to $7.7 million, with gross margin improving by 1 percentage point to 50%. Annual Recurring Revenue (ARR) grew by 21% to $11.6 million, and paying Spacetalk Mobile subscribers increased by 47% to 42.5k.

Strategic Update

Spacetalk is transitioning from a loss-making kids’ wearables company to a sustainable, software-driven, subscription platform. The company is expanding into 11 international markets, utilising digital channels like Shopify and Amazon for controlled growth. Significant progress has been made in delivering key milestones, including the upcoming release of Spacetalk 2.0 software in Q1 FY26. Spacetalk aims to achieve $20-25 million in ARR by 2026.

Executive Comments

Simon Crowther, CEO and Managing Director, stated, “I am confident we are putting ourselves in the position to deliver returns for shareholders in the long term as we execute on our strategy.”

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Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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