Key Highlights

  • Unaudited statutory revenue rose 11.4% to $4.4m in Q1 FY2027, from $3.9m in the prior corresponding period.
  • Annual Recurring Revenue was $17.6m and Annual Contract Value was $19.3m after the removal of a terminated UAE contract worth about $0.3m.
  • Customer receipts reached $5.0m, up 12% on the H2 FY2026 quarterly average, while operating cash outflow narrowed to $0.3m.
  • Connected sites totalled 1,144, and EPX signed a partnership with Tech Mahindra covering the UK and Europe.

EPX Limited (ASX:EPX) reported unaudited statutory revenue of $4.4 million for the first quarter of FY2027, ended 30 September 2026, an 11.4% increase on the $3.9 million recorded a year earlier. Annual Recurring Revenue reached $17.6 million, customer receipts rose to $5.0 million and the company's operating cash outflow fell to $0.3 million, while a new partnership with Tech Mahindra was signed for the UK and Europe.

Revenue Drivers in the Quarter

EPX attributed the revenue increase mainly to three contributors. The first was the new Great Western Railway agreement, awarded after a tender for a two-year term with a further two-year term, which carries higher revenue per site. The second was the TAFE contract, now fully operational and billed monthly. The third was the continued reactivation of Wattwatchers agreements, including Charter Hall Industrial, which is also now billed monthly. Recurring revenue made up more than 90% of the total.

Annual Recurring Revenue of about $17.6 million compares with $17.5 million at the end of FY26, and with $15.5 million in FY25, $13.6 million in FY24, $11.7 million in FY23 and $9.2 million in FY22. The company said the latest movement reflected contracted value converting into billable revenue as sites were installed. Additional RAFED Healthcare sites were activated, with one of the 10 contracted sites still to be installed, and four of five contracted Brookfield sites in the UK went live, with the last due in Q2 FY2027.

Contract Value, Sites and Efficiency

Annual Contract Value was $19.3 million, down from $19.7 million at FY26 year end. EPX terminated and removed a UAE contract worth approximately $0.3 million following a favourable UAE court decision. New business partly offset the change, including an expansion with Charter Hall Industrial worth $0.1 million in total contract value and an expansion with Great Western Railway covering five more railway stations, also worth $0.1 million. The latter adds to more than 190 sites re-enlivened since the 2025 acquisition of the Coda Cloud business.

Connected sites totalled 1,144 at 30 September 2026. Headcount remained broadly stable at approximately 72 full-time equivalent employees, the same as at 30 June 2026, and ARR per employee stayed at $0.24 million, above the company's $0.2 million target.

Cash Flow and Pipeline

Receipts from customers in the quarter were $4,998 thousand, which the company put at 12% above the H2 FY2026 average quarterly run rate and a compound annual growth rate of 26% since the FY2023 business transformation. Net cash used in operating activities was $335 thousand, a 53% improvement on the H2 FY2026 average. Staff costs were $2,952 thousand and administration and corporate costs were $1,700 thousand. EPX also reported continued improvement in collections from the UAE despite disruption from the ongoing conflict there.

EPX described near-term opportunities of approximately $1 million to $2 million under active development, led mainly by existing customers. These include a possible expansion following FirstGroup's successful tender to operate the London Overground, which has more than 100 above-ground stations, scoping of additional First Bus sites, further reactivation of Wattwatchers customers in Europe, and joint identification of prospects under a five-year master subcontractor agreement with Tech Mahindra.

Where the Quarter Leaves EPX

CEO John Balassis said contract wins from H2 FY2026 are now contributing to revenue growth and that costs continue to be reduced as the Wattwatchers acquisition is integrated. The founder dispute remains before the UAE Labour Court, and the company's earlier disclosures on the matter stand. For the quarter, EPX recorded $4.4 million of revenue, $17.6 million of ARR and 1,144 connected sites.