Highlights

  • EPX (ASX:EPX) continues to build a predominantly recurring-revenue Business across commercial and industrial customers.
  • Annualised recurring Revenue and annual contract value increased despite a wider half-year loss.
  • The Wattwatchers Acquisition broadens EPX's exposure to commercial energy monitoring.
  • Profitability, acquisition integration and conversion of contracted revenue into Cash Flow remain key areas to monitor.

EPX Limited (ASX:EPX), the building-efficiency technology group formerly known as EP&T Global, delivered a mixed half-year result in early March 2026 — Recurring Revenue and contracted sales metrics both moving in the right direction, even as statutory losses widened. The company, which rebranded from EP&T Global to EPX in June 2025, sells a data-as-a-service platform that helps commercial landlords and industrial operators cut energy and water waste across more than 700 buildings globally.

With annualised recurring revenue up close to 20% and new contract wins spanning UK rail infrastructure and Middle Eastern hospitals, EPX's underlying growth metrics look more encouraging than its bottom line. The question is whether the company's push into new verticals — including its December 2025 acquisition of energy-monitoring business Wattwatchers — can convert growing contracted revenue into a path to profitability.

What Has Happened?

EPX reported its results for the half year ended 31 December 2025 on 5 March 2026, followed by a Shareholder webinar on 19 March 2026 hosted by chief executive John Balassis and chief financial officer Patrick Harsas.

Total statutory revenue rose 4.3% to $7.9 million, with recurring revenue climbing a stronger 10.0% to $7.7 million and now representing 97% of the group's total revenue — evidence of a business increasingly built on subscription-style contracts rather than one-off project work.

The period's most significant corporate action was the 18 December 2025 acquisition of Wattwatchers Pty Limited for $1.0 million, a business the company expects to contribute $2–3 million in annual revenue from commercial energy-monitoring customers.

EPX also disclosed new contract wins during the half, including deployments across Great Western Railway's UK stations and hospitals in the United Arab Emirates, extending its footprint beyond its traditional Commercial Real Estate base.

Understanding the Business

EPX (ASX:EPX) describes itself as a building-efficiency platform provider offering data-as-a-service solutions targeting energy and cost inefficiency in commercial real estate, offices, hotels, shopping centres and industrial sites across more than 25 countries.

Its core EDGE platform is a cloud-based system that aggregates data from building management systems, meters and other operational sources across more than 700 buildings covering upward of 7.5 million square metres of floor space, with a specialised EDGE Industrial variant for Manufacturing and industrial sites.

The platform reportedly processes more than 5.6 billion data points annually, applying proprietary algorithms and Machine Learning to flag inefficiencies and sustainability opportunities, with the company citing an average 21% reduction in energy consumption for clients.

That data-driven, subscription-based model underpins the group's push toward recurring revenue, which now dominates its top line.

Financial and Operational Picture

For the half year to 31 December 2025, EPX's net loss after tax widened to $2.6 million from $1.7 million a year earlier, while underlying EBITDA moved to a $0.4 million loss from a near-breakeven $0.02 million loss in the prior corresponding period.

Operating expenses grew 7% to $7.7 million, partly reflecting higher sales commissions tied to new contract wins and restructuring costs incurred during the half.

Operating cash flow was an outflow of $1.1 million, which the company attributed largely to timing delays in customer receipts of around $0.7 million and restructuring costs of around $0.4 million rather than weaker underlying demand.

Forward-looking metrics were more positive. Annual contract value reached $18.6 million, up 10.4% year-on-year, while annualised recurring revenue rose 19.3% to $16.7 million.

Both measures suggest the contracted revenue base is expanding faster than the reported half-year revenue figure alone implies.

Why This Matters

The divergence between EPX's improving recurring-revenue metrics and its widening statutory loss is the central tension in the business.

Annualised recurring revenue growing at close to 20% while annual contract value moves toward $19 million suggests a genuine, if still sub-scale, base of subscription customers.

Whether that translates into profitability depends on the company controlling its cost base, including integration costs from Wattwatchers, while continuing to invest in sales and delivery capacity.

For a company of EPX's size, landing enterprise customers such as Great Western Railway and UAE hospital operators is also a meaningful credibility marker, demonstrating that the platform can operate across regulated and infrastructure-heavy environments beyond its original real estate niche.

Industry Opportunity

Building energy management sits within a large global market supported by rising energy costs, tighter emissions-disclosure requirements and corporate sustainability commitments across commercial real estate, transport infrastructure and industrial sectors.

Landlords and operators face growing pressure to demonstrate measurable efficiency improvements, which supports Demand for data-as-a-service platforms capable of layering analytics onto existing building infrastructure without requiring costly system replacements.

The Wattwatchers acquisition extends EPX's addressable market into smaller commercial energy-monitoring customers, a complementary but distinct segment from its core large-building EDGE platform.

That creates an opportunity to broaden the customer funnel and potentially cross-sell additional services over time.

Potential Catalysts

The clearest near-term catalyst is evidence that Wattwatchers is tracking toward its flagged $2–3 million annual revenue contribution.

Continued growth in annual contract value and annualised recurring revenue in future results will also show whether the current growth rate can be sustained.

Additional large-scale contract wins similar to the Great Western Railway and UAE hospital deployments — particularly outside the company's traditional commercial real estate base — would further validate EPX's ability to expand across sectors and geographies.

A narrowing of underlying EBITDA losses while recurring revenue continues to rise would be an important indication that the operating model is gaining leverage.

Risks Investors Should Consider

EPX's widening net loss and negative Operating Cash Flow indicate that the company is still working toward sustainable profitability.

Further restructuring or integration costs related to Wattwatchers could delay that path.

The heavy reliance on recurring revenue is generally a positive feature, but non-renewal of even a small number of material contracts could have an outsized impact given the relatively modest overall revenue base.

The strategy of entering new verticals and integrating bolt-on acquisitions also introduces execution risk, particularly if sales growth requires a larger operating cost base than anticipated.

What to Watch Next

Investors should watch updates on Wattwatchers' revenue contribution and integration progress, further contract announcements in transport, healthcare and other newer verticals, and the trajectory of annual contract value and recurring revenue.

Future cash-flow performance will be important in determining whether growth in contracted sales is translating into improved operating economics.

A narrowing of the underlying EBITDA loss alongside continued double-digit recurring-revenue growth would provide clearer evidence that EPX's Investment phase is beginning to produce operating leverage.