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SPACETALK Limited (AU:SPA)
ASX:SPA
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SPACETALK Limited (SPA) AI Stock Analysis

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AU:SPA

SPACETALK Limited

(Sydney:SPA)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
AU$0.00
▼(-100.00% Downside)
SPACETALK Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative margins, and a weak balance sheet. While technical analysis shows some bullish momentum, the overbought RSI suggests caution. The negative P/E ratio and lack of dividend yield further weigh down the stock's attractiveness.

SPACETALK Limited (SPA) vs. iShares MSCI Australia ETF (EWA)

SPACETALK Limited Business Overview & Revenue Model

Company DescriptionSpacetalk Limited, a technology company, provides wearables and mobile communication solutions in Australia, the United Kingdom, and New Zealand. It offers Spacetalk Kids and Spacetalk Adventurer, which are mobile phone, GPS tracker, and watch all-in-one wearable devices; Meet Spacetalk Life, a wearable safety device; accessories comprising charging cable, dock, and USB type A; and kids and adventurer accessories. The company also provides Spacetalk App for chat, update of location, send messages, share photos, and others. It supplies its smartwatches and applications through retail stores and online sales. The company was formerly known as MGM Wireless Limited and changed its name to Spacetalk Limited in November 2020. The company was incorporated in 2000 and is based in Rose Park, Australia.
How the Company Makes MoneySPACETALK Limited generates revenue through the sale of its smartwatches and related communication services. The company employs a direct-to-consumer model, selling its products through its online platform and retail partnerships. Key revenue streams include hardware sales of the smartwatches, subscription fees for premium services associated with the devices, and potential partnerships with telecommunications providers for bundled service offerings. Additionally, SPACETALK may benefit from recurring revenue from ongoing service subscriptions, enhancing the lifetime value of each customer.

SPACETALK Limited Financial Statement Overview

Summary
SPACETALK Limited is facing significant financial challenges, with declining revenues, negative profitability margins, and a weak balance sheet characterized by high leverage and negative equity. Cash flow issues further exacerbate the company's financial instability, indicating a need for strategic restructuring to improve financial health.
Income Statement
35
Negative
SPACETALK Limited has experienced declining revenue growth with a negative trajectory in recent years. The gross profit margin has decreased significantly, and the company is operating at a net loss, indicating challenges in achieving profitability. The EBIT and EBITDA margins are negative, reflecting operational inefficiencies.
Balance Sheet
40
Negative
The company has a high debt-to-equity ratio due to negative stockholders' equity, which poses a significant financial risk. Return on equity is positive due to negative equity, but this is misleading as it indicates financial distress. The equity ratio is negative, highlighting a weak financial position.
Cash Flow
45
Neutral
Operating cash flow and free cash flow are negative, indicating cash flow challenges. However, there is a slight improvement in free cash flow growth. The ratios of cash flow to net income suggest that cash flow generation is not supporting profitability.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue9.31M19.61M17.50M13.42M14.88M15.11M
Gross Profit4.46M9.70M8.64M-757.26K-1.43M9.35M
EBITDA-3.35M-4.53M-4.21M-8.42M-925.01K730.40K
Net Income-3.51M-4.54M-6.24M-14.68M-6.30M-1.78M
Balance Sheet
Total Assets8.60M8.60M7.86M10.97M22.19M16.01M
Cash, Cash Equivalents and Short-Term Investments1.15M1.15M1.77M3.03M5.58M4.19M
Total Debt4.72M4.72M5.21M5.33M3.19M1.83M
Total Liabilities12.86M12.86M11.72M12.08M9.70M6.66M
Stockholders Equity-4.26M-4.26M-3.86M-1.11M12.49M9.35M
Cash Flow
Free Cash Flow-1.04M-2.71M-2.90M-5.12M-8.91M-4.23M
Operating Cash Flow-1.01M-2.68M-2.87M-3.46M-5.57M-1.18M
Investing Cash Flow-339.06K-1.66M-1.43M-1.67M-3.35M-3.05M
Financing Cash Flow-2.23M3.71M3.05M2.50M10.58M5.26M

SPACETALK Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.16
Price Trends
50DMA
0.14
Positive
100DMA
0.15
Positive
200DMA
0.17
Positive
Market Momentum
MACD
<0.01
Negative
RSI
60.55
Neutral
STOCH
63.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SPA, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.14, and below the 200-day MA of 0.17, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.55 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SPA.

SPACETALK Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
49
Neutral
€13.21M12.24%55.89%
48
Neutral
€11.35M66.48%77.19%
42
Neutral
AU$11.00M-166.02%-11.11%-71.43%
42
Neutral
AU$10.83M-18.92%8.20%37.20%
42
Neutral
AU$4.09M-11.62%-9.44%83.16%
41
Neutral
AU$26.34M-3.77%-7.05%75.68%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SPA
SPACETALK Limited
0.17
-0.04
-21.43%
AU:NOR
Norwood Systems Ltd
0.02
>-0.01
-32.26%
AU:5GG
Pentanet Ltd
0.02
-0.02
-50.00%
AU:FRX
Flexiroam Ltd
0.01
0.00
0.00%
AU:VN8
Vonex Limited
0.04
0.00
0.00%
AU:HFY
Hubify Ltd.
0.01
0.00
0.00%

SPACETALK Limited Corporate Events

SPACETALK Limited Schedules Virtual General Meeting to Discuss Strategic Resolutions
Oct 7, 2025

SPACETALK Limited has announced a virtual general meeting scheduled for November 5, 2025, where shareholders are encouraged to participate electronically. The meeting will address several resolutions, including the ratification of prior share issues and approvals for new share issuances related to Thorney Notes and PAM Notes. The Independent Expert’s Report has deemed the transaction related to Resolution 2 as not fair but reasonable, and the board recommends voting in favor of all resolutions, highlighting the strategic importance of these actions for the company’s growth and shareholder value.

SPACETALK Limited Announces Director’s Shareholding Adjustment
Oct 6, 2025

SPACETALK Limited has announced a change in the interests of its director, Georg Johann Chmiel, involving an off-market transfer of shares. This adjustment in shareholding reflects a strategic realignment of personal and superannuation fund holdings, potentially impacting shareholder perceptions and the company’s governance transparency.

Spacetalk Ltd Releases Corporate Governance Statement for 2025
Sep 30, 2025

Spacetalk Ltd has released its corporate governance statement for the financial year ending June 30, 2025, which is available on their website. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles, highlighting its commitment to transparency and accountability in management and oversight. This announcement reinforces Spacetalk’s dedication to maintaining high governance standards, which could positively impact stakeholder trust and the company’s industry positioning.

SPACETALK Director Adjusts Securities Holdings
Sep 25, 2025

SPACETALK Limited announced a change in the director’s interest, with Simon Crowther exercising 300,000 performance rights into ordinary shares and allowing 700,000 performance rights to lapse. This adjustment in securities holdings reflects a strategic decision by the director, potentially impacting the company’s stock and investor perceptions.

SPACETALK Limited Announces Quotation of New Securities
Sep 24, 2025

SPACETALK Limited has announced the application for quotation of 300,000 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move involves the issuance, transfer, or reclassification of securities as a result of options being exercised or other convertible securities being converted, which may impact the company’s market presence and provide additional liquidity for stakeholders.

Spacetalk Ltd Appoints New Director with No Initial Securities Interest
Sep 15, 2025

Spacetalk Ltd has announced the appointment of John Amos Bird as a director, effective from September 15, 2025. The initial director’s interest notice reveals that Bird currently holds no relevant interests in securities or contracts associated with the company, indicating a fresh start in his role.

SPACETALK LTD Announces Proposed Securities Issue
Sep 15, 2025

SPACETALK LTD has announced a proposed issue of securities, specifically converting notes, with a maximum of 550,000 securities to be issued. The proposed issue date is set for November 25, 2025. This announcement indicates SPACETALK’s strategic move to potentially raise capital through the issuance of new securities, which could impact its financial standing and market positioning.

SPACETALK LTD Announces Proposed Issue of Securities
Sep 15, 2025

SPACETALK LTD has announced a proposed issue of securities, specifically 2,000,000 converting notes, with the issue date set for September 16, 2025. This move is part of a placement or other type of issue, and the company has applied for these securities to be quoted on the ASX, following the necessary regulations and procedures.

SPACETALK LTD Announces Proposed Issue of Securities
Sep 15, 2025

SPACETALK LTD has announced a proposed issue of 13,636,364 ordinary fully paid securities, with the issue date set for October 30, 2025. This move is part of a placement or other type of issue, and the company has applied for the quotation of these securities on the ASX, which could potentially enhance its market presence and provide additional capital for operations.

Spacetalk Ltd Secures $4 Million for Expansion and Appoints New Director
Sep 15, 2025

Spacetalk Ltd has successfully raised A$4.05 million through a combination of placements and converting notes to fund its geographical expansion, app development, and inventory purchases. The capital raise is expected to support the company’s growth initiatives and drive subscriptions, with a focus on achieving $20-25 million in annual recurring revenue by 2026. Additionally, John Bird has been appointed as an Independent Non-Executive Director, which may strengthen the company’s leadership team.

Spacetalk Ltd Unveils Growth Strategy for Family Safety Ecosystem
Aug 29, 2025

Spacetalk Ltd has outlined its growth strategy aimed at building a trusted safety ecosystem that supports families across all life stages. The company’s vision is to provide products that ensure family safety, enabling freedom and peace of mind, which positions it to enhance its market presence and stakeholder value.

Spacetalk Ltd Achieves Transformative Growth in FY25
Aug 29, 2025

Spacetalk Ltd reported a transformative fiscal year 2025, marked by a 25% growth in annual recurring revenue to $12.1 million and a 44% increase in paid mobile subscribers. The company achieved a 12% rise in revenue from continuing operations and improved its adjusted EBITDA by 57%, moving closer to profitability. Spacetalk’s strategic focus on cost optimization and digital channel expansion, particularly through platforms like Shopify and Amazon, has strengthened its balance sheet and positioned it for further international growth. The company restructured its debt, providing a solid foundation for future innovation and expansion, with plans to enhance its mobile app and develop next-generation wearables for kids and seniors.

Spacetalk Limited Reports Revenue Growth Amidst Reduced Losses
Aug 29, 2025

Spacetalk Limited reported a 12.2% increase in revenue to $19.6 million for the fiscal year ending June 2025, driven by recurring mobile subscriptions and device sales. Despite a net loss reduction to $4.5 million due to higher gross profit and operational efficiencies, the company did not declare any dividends, and the audit report highlighted a material uncertainty related to going concern.

Spacetalk Ltd Announces Expiry of Listed Options
Aug 18, 2025

Spacetalk Ltd has announced the expiry of its listed options exercisable at $0.35, which will cease trading on 16 September 2025 and expire on 22 September 2025. This announcement affects option holders by providing them with choices to sell, do nothing, or exercise their options, potentially impacting their investment decisions and the company’s market positioning.

Spacetalk Ltd Reports Strong Subscriber Growth and International Expansion
Jul 29, 2025

Spacetalk Ltd reported significant growth in its quarterly activities, with a 44% increase in paid mobile subscribers and a 25% rise in annual recurring revenue, reflecting the strong performance of its mobile services. The company is strategically expanding internationally and has raised capital to support new product launches, including a next-generation app and hardware, which are expected to enhance its recurring revenue model and global market presence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 14, 2025