Why RLF AgTech (ASX:RLF) reported a narrower loss on lower revenue in its September 2026 quarter

Sonal Goyal

28 October 2026 04:40 PM AEDT

Why RLF AgTech (ASX:RLF) reported a narrower loss on lower revenue in its September 2026 quarter

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

Revenue fell 18 per cent to A$5.5 million, while gross margin rose from 25.7 per cent to 32.0 per cent and the net loss narrowed to A$1.1 million.
Net operating cash outflow was A$3.6 million, and cash was A$6.4 million with an estimated 1.8 quarters of funding, below the two-quarter threshold.
LiquaForce revenue fell 34 per cent to A$3.4 million, while RLF China revenue rose 32 per cent to A$1.9 million.

RLF AgTech Ltd (ASX:RLF) reported that revenue for the September 2026 quarter fell 18 per cent to A$5.5 million, compared with A$6.7 million a year earlier, while its losses narrowed. The company said gross profit rose to A$1.8 million, with gross margin lifting from 25.7 per cent to 32.0 per cent, largely because of a pricing change at its LiquaForce business that added a margin to raw materials.

Earnings and costs

EBITDA loss narrowed to A$0.8 million from A$1.4 million, and the net loss after tax was A$1.1 million, compared with A$2.0 million in the prior corresponding quarter. Operating expenses fell 20 per cent to A$2.6 million, with corporate costs down 57 per cent. The company attributed the margin improvement to pricing LiquaForce products with a margin on raw materials and corporate costs were cut sharply compared with the prior year. The company provided no earnings guidance and said it will report on costs, margin and cash each quarter.

Cash and funding

Receipts from customers were A$4.2 million, down 21 per cent from A$5.4 million. Net operating cash outflow was A$3.6 million, against A$1.7 million a year earlier. RLF attributed this mainly to tighter supplier credit at LiquaForce, a seasonal build in working capital and about A$0.3 million of accrued liabilities paid.

Cash at 30 September was A$6.4 million, with A$3.6 million held in Australia and A$2.8 million in China. A A$3.9 million capital raising settled on 1 September, made up of A$3.59 million in placement shares and A$0.31 million in convertible notes.

The Appendix 4C shows an estimated 1.8 quarters of funding, below the two-quarter threshold, so the company answered the additional going-concern questions. Drawn facilities total A$3.1 million, with A$108,000 unused. Directors stated the company can continue operating, relying on an expected improvement in operating cash flow as receivables are collected, existing cash, facilities and access to external funding. Debt includes a secured NAB loan of A$1.64 million at 7.36 per cent due in May 2029, several unsecured loans denominated in yuan at 12 per cent, and convertible notes of A$310,000 at 11.5 per cent due in September 2028.

Divisional performance

RLF LiquaForce in Australia saw revenue fall 34 per cent to A$3.4 million, which the company blamed on a late season, low prepayments and high input costs. Gross margin improved from 18 per cent to 21 per cent. The Mackay site reopened, and the company expects the season to end in late November, after which it plans to rightsize manufacturing.

RLF Australia, the agronomy-focused arm, generated revenue of A$0.13 million, up from A$0.10 million. Three agronomists are joining, and a lead-generation pilot is under way.

RLF China reported revenue up 32 per cent to A$1.9 million, which the company said was about 50 per cent ahead of budget, with a gross margin of 46 per cent. Its EBITDA loss narrowed from A$0.4 million to A$0.1 million. In South East Asia, the company is rightsizing, serving Vietnam and Cambodia from Australia and China.

Board changes and next steps

Directors Shen (Mike) Lu and Paul McKenzie stepped down on 30 September. Greg Hunt, Tim Watson and Chris Ramsey joined as non-executive directors on 1 October. Related-party payments in the quarter were A$171,000, all director fees.

For the December quarter the company listed four priorities: collecting cane-season debtors, rightsizing LiquaForce manufacturing, running the RLF China 2027 prepayment campaign and deploying the new agronomists. Collecting seasonal receivables is central to the company's cash outlook. The annual general meeting is scheduled for 26 November 2026.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.