Highlights

• Adslot recorded AUD 1.76 million in quarterly customer receipts.

• The company separated AUD 0.72 million of legacy collections from ongoing receipts.

• Underlying net operating cash outflow was AUD 0.30 million after specified adjustments.

• Adslot ended September with AUD 1.28 million in cash.

Adslot (ASX:ADS) operates digital advertising platforms and marketing services, spanning self-service advertising sales, agency workflow software and services for smaller businesses. Its three units had been brought into a streamlined operating structure through merged technology, operations and administration teams. The September 2026 quarterly report, released on 23 October 2026, focused on the distinction between ongoing trading and cash movements associated with the restructuring of a technology subsidiary.

Customer Receipts Include a Legacy Component

Customer receipts reached AUD 1.76 million, up AUD 0.21 million, or 13%, from the June quarter. Of that total, AUD 0.72 million came from legacy debtors covered by the deed of company arrangement.

Receipts relating to continuing operations were AUD 1.04 million. That separation matters because collection of historical balances does not represent the same activity as cash generated by the ongoing businesses.

Reported net operating cash outflow was AUD 0.76 million, compared with AUD 1 million in the June quarter. The September figure included AUD 1.18 million paid to the deed administrator.

Excluding those payments and legacy collections, underlying net operating cash outflow for ongoing activity was AUD 0.30 million.

Cost Changes Reshape the Cash Base

Total salary costs fell to AUD 0.82 million from AUD 1.45 million in the June quarter. The September figure included AUD 0.04 million of separation payments.

Without those payments, salary costs were AUD 0.78 million, compared with AUD 0.90 million in the preceding quarter. The report linked the lower cost base to restructuring initiatives and further redundancies.

Underlying outgoing operating cash payments, excluding publisher payments, separation costs and payments to the deed administrator, were AUD 1.30 million. That was approximately 16% below the June-quarter level of AUD 1.56 million.

These cost figures describe outgoing payments. They should be distinguished from net operating cash flow, which also incorporates customer receipts.

Trading Updates Cover Three Different Models

The self-service media business earns commissions on advertising sold through its platforms. Advertising revenue booked through its principal messaging-platform customer increased substantially from the June quarter, with further promotional initiatives under development.

The digital marketing services division refreshed its team and focused on service delivery, sales-pipeline development and external marketing. The company described prospects for revenue growth and sustained break-even trading during FY27.

The workflow software business renewed its main customer contract on 3 September 2026 for a further fixed 18-month period. Its platform was used across eight territories.

Re-consolidation Affects the Reporting Boundary

Control of the technology subsidiary returned on 10 August 2026, and consolidation resumed from that date. Its cash flows between 18 June and 10 August were therefore excluded from the group's June and September quarterly cash-flow reports.

Cash of AUD 0.48 million held when control returned was recorded as an investing inflow on reacquisition. This accounting boundary limits a simple like-for-like reading of headline quarterly movements.

Quarter-end cash was AUD 1.28 million, with AUD 11,937 still payable to the deed administrator. The company described its underlying businesses as cash-flow positive before corporate costs, while the group's adjusted ongoing operating cash flow remained negative. The deed process was expected to conclude in early 2027.