Key Highlights

  • Axtec reported a loss after tax of A$7.79 million for the year to 30 June 2026, with nil revenue from contracts with customers.
  • The company has signed distribution partnerships with Real Flow, MRI Software and InfoTrack as it moves away from direct lending and property development.
  • Cash at bank was A$0.26 million at 30 June 2026 according to the annual report, and the accounts carry a going-concern material uncertainty.

Axtec (ASX:AXI), formerly Axiom Properties Limited, describes itself as a real estate-focused, AI-enabled property technology and payments company. Its business model has changed markedly: the company has stepped back from direct lending and property development in favour of a capital-light distribution approach. The annual report for the year to 30 June 2026 shows the cost of that transition so far, with a loss after tax of A$7.79 million, nil revenue from contracts with customers and a going-concern material uncertainty.

Business model and partnerships

Axtec provides payments and lending products under the PaySure brand. In April 2026 it entered a partnership with Real Flow, under which Real Flow funds loans originated through Axtec's platform. In return, Axtec receives distribution revenue, an equity stake of at least A$100,000 and a performance incentive. The June quarter report, released at the end of July 2026, stated that the PaySure loan book was sold with settlement on 30 April 2026, that Axtec had earned the full A$360,000 in Real Flow shares and that about A$425,000 more is expected over twelve months. The company expects distribution revenue to begin in the first quarter of FY27.

A second channel is a three-year Master Partnership Agreement with MRI Software, announced on 24 July 2026 and effective from 1 August 2026, beginning with PaySure inside MRI's Property Tree platform. Axtec also holds a three-year InfoTrack agreement, announced on 23 October 2025, covering deposit processing on SecureExchange, where the first deposits have been processed. Licensing negotiations were continuing, although no binding agreements had been executed. Partnership agreements do not constitute recognised revenue.

Financial position

The annual report records a net operating cash outflow of A$3.96 million for FY26. Net assets fell to A$2.30 million from A$8.09 million, and cash at bank was A$0.26 million, compared with A$3.13 million a year earlier. Write-downs included reducing the Realty Assist investment to nil, a fair value loss of about A$1.75 million and the deconsolidation of Fletch Capital after it entered administration in December 2025.

The June quarter report gave cash of A$354,000, down from A$614,000 at 31 March. Operating cash flow was a positive A$1.746 million for the quarter, assisted by other inflows of A$3.27 million that the report did not explain, and management said it did not expect that level to continue. The report states a funding runway of 1.5 quarters, although simple arithmetic on its stated inputs implies roughly two-thirds of a quarter. The year-end cash figure also differs between the quarterly report and the annual report.

Funding and dilution

Axtec has leaned on related parties for funding. Oriental University City Holdings advanced a further A$1.0 million by short-term loan, which is intended to convert into a five-year convertible note subject to shareholder approval at the November 2026 AGM. A cleansing notice dated 29 June 2026 covered A$1.275 million of convertible notes carrying 10 per cent interest, convertible at a 20 per cent discount to a 30-day VWAP with a floor of 3.0 cents and a ceiling of 4.5 cents. On the notice's figures, full conversion at the floor would issue up to 42.5 million shares against 545.6 million existing shares, or about 7.2 per cent dilution, with 19.99 per cent ownership caps applying.

What to Watch

The main risks are the going-concern uncertainty, reliance on a small number of shareholders for funding, interest-bearing debt and the untested revenue potential of the new distribution model. The company has said it expects to raise further funds if required. Key milestones include the first distribution revenue from Real Flow in FY27, progress under the MRI Software agreement and the shareholder vote on the convertible note at the November 2026 AGM.