Highlights

  • Annual Recurring Revenue grew 13% to A$17.5 million in FY26, while annual contract value reached A$19.7 million.
  • Statutory EBITDA loss widened to A$3.1 million, with underlying EBITDA loss at A$1.4 million for FY26.
  • The building performance platform covered 1,142 sites at year end after the Wattwatchers Acquisition completed in December 2025.
  • Cash stood at A$1.6 million at 30 June 2026, supported by a A$3.0 million Debt Facility signed in June.

EPX Ltd (ASX:EPX) has made converting its growing book of contracted recurring revenue into reported sales its main priority for FY27, after a year in which annual recurring revenue rose faster than revenue itself. For FY26 to 30 June 2026, ARR climbed 13% to A$17.5 million, while total revenue edged up 2% to A$16.1 million.

The company sells the EDGE and EDGE Industrial cloud platforms, which draw on building management system, metering and operational data to cut energy use, costs and emissions across office, retail, healthcare, industrial and transport properties.

Recurring Revenue Grows as Margins and Earnings Slip

Operating revenue rose 7% to A$15.8 million in FY26, including recurring revenue of A$15.0 million, up 3%, and project revenue of A$0.8 million. Annual contract value, a predictive measure, increased 12% to A$19.7 million.

Gross profit was A$14.5 million, although gross Margin eased to 90% from 93%. The underlying EBITDA loss widened to A$1.4 million from A$1.1 million, and the statutory EBITDA loss grew to A$3.1 million from A$2.0 million.

Wattwatchers and New Contracts Widen the Footprint

EPX acquired Wattwatchers, whose technology tracks energy use in near real time, out of administration under a deed of company arrangement, completing the deal in December 2025. The Business contributed A$1.5 million in revenue, A$1.1 million of it recurring. EPX switched off more than 20% of the acquired devices because they did not fit its strategy.

Sites on the platform reached 1,142 across more than 25 countries. FY26 wins included a 157-site TAFE NSW contract, a Great Western Railway contract uplift, five initial Brookfield sites in the UK and the renewal of a three-year master services agreement with DWS.

Cash Outflows Ease in the Second Half

Operating cash outflow totalled A$2.6 million for the year, although second-half Operating Cash Flow improved 40% on the first half. EPX raised A$4.2 million in Equity during FY26 and, in June 2026, signed a A$3.0 million secured revolving Loan note facility, with net borrowings of A$1.5 million for the year. Cash was A$1.6 million at 30 June 2026. UAE debtors paid A$0.3 million by 30 June and another A$0.3 million in July.

FY27 Plans Centre on Conversion and Cost Control

EPX has not issued formal FY27 guidance. Management expects about A$1.8 million of new contracts signed in H2 FY26 to add to FY27 revenue, alongside further Wattwatchers ARR growth and continued improvement in operating cash flow. Wattwatchers is targeting a revenue run rate of A$2 million to A$3 million, a gross margin of about 55% and a positive EBITDA run rate during FY27.

The company has expanded its EU and UK sales team from 1.5 to four full-time roles and plans to consolidate three platforms to lower cloud hosting costs. Further UAE collections are expected in H1 FY27, including about A$0.2 million linked to a favourable judgement. Shares were unchanged at A$0.16 on 2 November 2026, valuing the company at about A$13.84 million, and were down 54.29% over 12 months.