Highlights

  • Spacetalk grew active mobile subscribers 20% to 61,400 at 30 September 2026, while mobile ARR rose 4% to A$8.1 million.
  • September quarter Revenue fell 32% to A$3.08 million as component shortages pushed device orders into the December quarter.
  • Cash rose to A$5.22 million at 30 September 2026 from A$0.88 million, helped by an A$10.0 million placement.
  • Management is implementing about A$3.5 million in annualised cost savings across FY27, alongside a planned schools Business exit.

Spacetalk Ltd (ASX:SPA) has reported a split September 2026 quarter, with its mobile business adding subscribers while shortages of circuit boards and components delayed device orders and cut overall revenue. The kids smartwatch and family safety company strengthened its Balance Sheet with an A$10.0 million Placement and is pursuing cost savings, a network migration to TPG Telecom and new device launches through FY27.

Mobile Growth Offsets Weaker Device Sales

Revenue for the quarter, the first of FY27, fell 32% to A$3.08 million from A$4.51 million a year earlier, and gross Margin eased to 47% from 50%. Devices revenue dropped 62% to A$648,000, mainly because PCB and component shortages pushed orders into the December quarter. Apps revenue declined 43% and schools revenue fell 68%.

Spacetalk Mobile, the company's mobile virtual network operator, lifted revenue 4% to A$2.03 million at a gross margin of about 50%. Active mobile subscribers rose 20% to 61,400. Recurring Revenue made up 79% of the quarter's total, while total annual recurring revenue fell 15% to A$9.7 million, with mobile accounting for A$8.1 million.

Placement Rebuilds the Cash Balance

Customer receipts were A$3.40 million and the net operating cash outflow widened to A$3.76 million from A$3.0 million a year earlier. A further A$1.07 million was spent on capitalised development. Financing inflows of A$9.19 million, mainly from the A$10.0 million placement and an A$500,000 convertible note, lifted cash to A$5.22 million at 30 September 2026.

Spacetalk's A$3.6 million Loan Facility is fully drawn at 9.50% and matures on 30 June 2027, with covenants including an A$750,000 minimum cash balance and quarterly EBITDA targets. The Appendix 4C estimated 1.4 quarters of funding at the quarter's operating outflow rate.

Telco Partnerships Reshape the Mobile Platform

On 6 July 2026, Spacetalk signed two agreements with TPG Telecom covering a co-branded Vodafone Australia family safety app and the migration of its mobile service to TPG's network. The Vodafone arrangement includes contracted minimum recurring software fees from the first year, subject to commencement terms. Spacetalk has also signed a non-binding memorandum of understanding with a UK telco to explore deploying its app and platform, with commercial discussions continuing.

FY27 Plans Focus on Costs and New Devices

Management is implementing about A$3.5 million in annualised cost savings across FY27, only partly reflected in the September quarter, and expects net operating outflows to fall in the short term, though timing depends on implementation, launches and customer adoption. No formal financial guidance has been issued.

Three new device variants are planned under a supplier agreement, the first expected in the December quarter and others in the March and June 2027 quarters, with device gross margins expected to improve by about 10 percentage points or more depending on mix. A pilot of Sibyl, a predictive health and fall detection product, is scheduled for the second half of FY27, and the schools business is set to be exited during the December quarter. Shares were priced at A$0.075 on 2 November 2026, down 3.85% on the day.