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SPACETALK Limited (AU:SPA)
ASX:SPA

SPACETALK Limited (SPA) AI Stock Analysis

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AU:SPA

SPACETALK Limited

(Sydney:SPA)

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Neutral 41 (OpenAI - 5.2)
Rating:41Neutral
Price Target:
AU$0.10
▼(-20.00% Downside)
The score is primarily driven by weak financial performance—losses, deteriorating margins, negative cash flow, and negative equity. Technicals also lean bearish with the stock below major moving averages and negative MACD. Valuation is constrained by negative earnings and no dividend support.
Positive Factors
Recurring revenue potential
The company's model includes subscription fees and telco partnerships in addition to device sales. Recurring service revenue can stabilize cash flows, increase customer lifetime value and create predictable unit economics if attachment rates and retention improve.
Niche product focus and safety differentiation
A clear focus on child-safety wearables and a companion app creates a specialized value proposition that addresses ongoing parental safety demand. This niche positioning supports brand differentiation, potential higher switching costs and durable customer retention if product and support remain strong.
Top-line growth trend
Reported revenue growth of about 12% reflects expanding sales and product adoption. Sustained top-line growth provides runway to leverage fixed costs and invest in product improvement, supporting scale potential if management converts revenue into improved margins and cash generation.
Negative Factors
Negative equity and high leverage
Negative shareholders' equity signals capital structure stress and reduces financial flexibility. High leverage raises refinancing and covenant risk, constrains strategic investments, and can limit ability to raise non-dilutive capital, undermining long-term stability unless equity is restored.
Negative operating and free cash flow
Persistent negative operating and free cash flow limit internal funding for operations and growth. Over the medium term the company will need external financing, increasing dilution or leverage, and heightening solvency risk if cash conversion does not materially improve.
Shrinking margins and sustained losses
Decreasing gross margins and ongoing net losses with negative EBIT/EBITDA indicate structural profitability issues. Without durable margin recovery or significant cost optimization, scaling revenue may widen losses rather than produce sustainable profits, pressuring long-term viability.

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

SPACETALK Limited Business Overview & Revenue Model

Company DescriptionSPACETALK Limited (SPA) is an innovative Australian technology company specializing in connected devices, particularly focusing on children's smartwatches and safety communication solutions. The company operates primarily in the consumer electronics and telecommunications sectors, offering products designed to enhance the safety, connectivity, and engagement of young users with their families. SPACETALK's core products include smartwatches equipped with GPS tracking, two-way communication capabilities, and a companion mobile app that allows parents to monitor and communicate with their children, ensuring peace of mind and safety.
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
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
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
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 Revenue19.61M19.61M17.50M13.42M14.88M15.11M
Gross Profit9.70M9.70M8.64M-757.26K-1.43M9.35M
EBITDA-4.46M-4.53M-4.21M-8.42M-925.01K730.40K
Net Income-4.54M-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-2.71M-2.71M-2.90M-5.12M-8.91M-4.23M
Operating Cash Flow-2.68M-2.68M-2.87M-3.46M-5.57M-1.18M
Investing Cash Flow-1.66M-1.66M-1.43M-1.67M-3.35M-3.05M
Financing Cash Flow3.71M3.71M3.05M2.50M10.58M5.26M

SPACETALK Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.12
Price Trends
50DMA
0.12
Negative
100DMA
0.13
Negative
200DMA
0.15
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
50.81
Neutral
STOCH
85.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SPA, the sentiment is Neutral. The current price of 0.12 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.12, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.81 is Neutral, neither overbought nor oversold. The STOCH value of 85.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
48
Neutral
AU$11.26M-2.52-18.92%8.20%37.20%
44
Neutral
AU$7.36M-10.0066.48%77.19%
44
Neutral
AU$34.88M-9.58-166.02%-11.11%-71.43%
42
Neutral
AU$4.09M-6.25-11.62%-9.44%83.16%
41
Neutral
AU$12.04M-1.7912.24%55.89%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SPA
SPACETALK Limited
0.12
-0.04
-25.81%
AU:NOR
Norwood Systems Ltd
0.01
-0.02
-58.06%
AU:5GG
Pentanet Ltd
0.03
>-0.01
-13.33%
AU:FRX
Flexiroam Ltd
0.02
0.01
109.09%
AU:HFY
Hubify Ltd.
0.01
0.00
0.00%

SPACETALK Limited Corporate Events

Spacetalk Incentive Rights Lapse, Trimming Potential Equity Dilution
Jan 9, 2026

Spacetalk Ltd has announced the cessation of 113,216 incentive rights (SPAAR), which have lapsed because the conditions attached to these conditional rights were not met or could no longer be satisfied as of 22 January 2026. The lapse of these incentive rights slightly reduces the company’s pool of potential equity-based remuneration and may marginally lessen prospective dilution for existing shareholders, but it does not affect currently issued shares or indicate any change to the company’s core operations.

The most recent analyst rating on (AU:SPA) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on SPACETALK Limited stock, see the AU:SPA Stock Forecast page.

Spacetalk Seeks ASX Quotation for Additional Ordinary Shares
Dec 24, 2025

SPACETALK Ltd has applied to the ASX for quotation of 96,989 new fully paid ordinary shares under its existing SPA ticker. The modest increase in quoted securities, issued on 22 December 2025 following the exercise or conversion of options or other convertible instruments, marginally expands the company’s free float and may provide additional liquidity for shareholders without materially altering its capital structure.

The most recent analyst rating on (AU:SPA) stock is a Hold with a A$0.12 price target. To see the full list of analyst forecasts on SPACETALK Limited stock, see the AU:SPA Stock Forecast page.

SPACETALK Director Increases Stake with New Converting Notes
Dec 9, 2025

SPACETALK Limited announced a change in the director’s interest, with Hon Michael David Rann acquiring 20,000 converting notes valued at $20,000. This transaction reflects a subscription to converting notes, indicating a potential strategic financial move by the director, which may influence the company’s financial structure and investor confidence.

The most recent analyst rating on (AU:SPA) stock is a Sell with a A$0.10 price target. To see the full list of analyst forecasts on SPACETALK Limited stock, see the AU:SPA Stock Forecast page.

SPACETALK Director Increases Stake with Notable Investment
Dec 9, 2025

SPACETALK Limited announced a change in the director’s interest, with Director John Bird acquiring 20,000 converting notes valued at $20,000, which are set to convert on July 31, 2026. This acquisition reflects a personal investment in the company, potentially indicating confidence in its future performance and stability, which could positively impact stakeholder perception and market positioning.

The most recent analyst rating on (AU:SPA) stock is a Sell with a A$0.10 price target. To see the full list of analyst forecasts on SPACETALK Limited stock, see the AU:SPA Stock Forecast page.

SPACETALK Director Acquires Converting Notes, Signaling Growth Confidence
Dec 9, 2025

SPACETALK Limited announced a change in the director’s interest, with Simon Crowther acquiring 170,000 converting notes valued at $170,000, which will convert on July 31, 2026. This acquisition reflects a strategic financial move for the company, potentially impacting its market positioning and signaling confidence in its future growth prospects.

The most recent analyst rating on (AU:SPA) stock is a Sell with a A$0.10 price target. To see the full list of analyst forecasts on SPACETALK Limited stock, see the AU:SPA Stock Forecast page.

SPACETALK Director Increases Stake with Strategic Share Acquisition
Dec 9, 2025

SPACETALK Limited announced a change in the director’s interest, with Georg Johann Chmiel acquiring additional ordinary shares and converting notes while exercising performance rights. This adjustment in the director’s holdings reflects a strategic move that could influence investor confidence and impact the company’s market perception.

The most recent analyst rating on (AU:SPA) stock is a Sell with a A$0.10 price target. To see the full list of analyst forecasts on SPACETALK Limited stock, see the AU:SPA Stock Forecast page.

SPACETALK Limited Announces New Securities Issuance
Dec 8, 2025

SPACETALK Limited has announced a new issuance of 652,230 ordinary fully paid securities, which will be quoted on the Australian Securities Exchange (ASX) under the code SPA. This move is part of the company’s strategic financial operations, potentially impacting its market positioning and offering new opportunities for stakeholders.

The most recent analyst rating on (AU:SPA) stock is a Sell with a A$0.10 price target. To see the full list of analyst forecasts on SPACETALK Limited stock, see the AU:SPA Stock Forecast page.

SPACETALK Issues Unquoted Convertible Notes
Dec 4, 2025

SPACETALK Limited has announced the issuance of 550,000 unquoted convertible notes as part of a transaction previously disclosed to the market. This move signifies a strategic financial decision by SPACETALK to potentially enhance its capital structure, which may impact its financial flexibility and stakeholder interests.

The most recent analyst rating on (AU:SPA) stock is a Hold with a A$0.12 price target. To see the full list of analyst forecasts on SPACETALK Limited stock, see the AU:SPA Stock Forecast page.

SPACETALK Director Acquires New Performance Rights
Nov 28, 2025

SPACETALK Limited announced a change in the director’s interest, with Georg Johann Chmiel acquiring 169,730 performance rights, as approved at the 2025 Annual General Meeting. This change reflects a strategic move to align the director’s interests with the company’s performance, potentially impacting stakeholder confidence and the company’s market positioning.

The most recent analyst rating on (AU:SPA) stock is a Hold with a A$0.12 price target. To see the full list of analyst forecasts on SPACETALK Limited stock, see the AU:SPA Stock Forecast page.

SPACETALK Limited Announces Director’s Increased Performance Rights
Nov 28, 2025

SPACETALK Limited announced a change in the director’s interest, with Michael Rann acquiring an additional 96,989 performance rights, bringing his total to 185,233 performance rights. This change, approved at the 2025 Annual General Meeting, reflects the company’s commitment to aligning leadership incentives with its strategic goals, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (AU:SPA) stock is a Hold with a A$0.12 price target. To see the full list of analyst forecasts on SPACETALK Limited stock, see the AU:SPA Stock Forecast page.

Spacetalk Ltd Successfully Passes All Resolutions at 2025 AGM
Nov 20, 2025

Spacetalk Ltd announced that all resolutions at their 2025 Annual General Meeting were passed via a poll, reflecting strong shareholder support. This outcome is likely to positively influence the company’s operational stability and stakeholder confidence, reinforcing its position in the safety-focused technology market.

Spacetalk Limited’s Strategic Shift to Software-Led Growth
Nov 20, 2025

Spacetalk Limited’s recent Annual General Meeting highlighted a significant strategic transformation in the past financial year, shifting from a hardware-led to a software-led business model. This change has resulted in stronger recurring revenue and a scalable, resilient business model. The company is focused on expanding its market position and technology advantage in FY26, with opportunities in global safety solutions and data-enabled services.

Spacetalk Ltd Launches Subscription-Based Family Safety Platform
Nov 17, 2025

Spacetalk Ltd has launched the Spacetalk Freedom Platform, a subscription-based app designed to expand its market beyond watches and support its goal of achieving $20-25 million in annual recurring revenue by 2026. This strategic move aims to broaden Spacetalk’s customer base by offering a scalable solution that connects family members across generations, addressing the needs of the growing ‘sandwich generation’ who care for both children and aging parents. The platform’s features, such as secure communication and location tracking, are designed to simplify family safety and communication, positioning Spacetalk to capture a larger share of the family-safety technology market.

Spacetalk Limited Issues Over 30 Million New Shares
Nov 13, 2025

Spacetalk Limited announced the issuance of over 30 million fully paid ordinary shares, including shares from a previously announced placement and conversion of notes. This move, compliant with relevant corporate regulations, signifies a strategic financial maneuver to potentially enhance the company’s capital structure and market positioning.

SPACETALK Limited Announces New Securities Quotation
Nov 13, 2025

SPACETALK Limited has announced a new issuance of 18,884,456 fully paid ordinary securities to be quoted on the Australian Securities Exchange (ASX) as of November 13, 2025. This move is part of the company’s strategy to enhance its market presence and potentially increase its capital base, which may have implications for its stakeholders and market positioning.

SPACETALK Limited Announces Quotation of New Securities
Nov 13, 2025

SPACETALK Limited has announced the quotation of 11,682,050 fully paid ordinary securities on the ASX, effective November 13, 2025. This move is part of previously announced transactions and could enhance the company’s market presence and liquidity, potentially impacting stakeholders positively by increasing the company’s visibility and investor interest.

Spacetalk Ltd Boosts R&D Efforts with Increased Tax Refund
Nov 12, 2025

Spacetalk Ltd has received an R&D tax incentive cash refund of $877k, marking a 104% increase from the previous year. This refund underscores the company’s shift from a hardware-centric to a family-centric software business, with a new app set to launch in the second quarter of FY26. The refund will support inventory purchases and working capital, aiding Spacetalk’s strategy to enhance its recurring revenue model, which saw a 20% growth in annual recurring revenue in the first quarter of FY26.

SPACETALK Limited Issues Unquoted Converting Notes
Nov 10, 2025

SPACETALK Limited announced the issuance of 2,000,000 unquoted converting notes set to expire on July 31, 2026. This move is part of previously announced transactions, and the securities will not be quoted on the ASX, indicating a strategic financial maneuver to potentially enhance liquidity or fund operations.

SPACETALK Limited Issues Unquoted Converting Notes
Nov 10, 2025

SPACETALK Limited has announced the issuance of 1,000,000 unquoted converting notes set to expire on July 31, 2026. This issuance is part of a previously announced transaction, and the securities will not be quoted on the ASX, potentially impacting the company’s financial strategy and stakeholder interests.

SPACETALK Limited Issues 3 Million Unquoted Converting Notes
Nov 10, 2025

SPACETALK Limited has announced the issuance of 3,000,000 unquoted converting notes set to expire on July 31, 2026. This issuance is part of a previously announced transaction and is not intended to be quoted on the ASX, indicating a strategic financial maneuver that could impact the company’s capital structure and stakeholder interests.

Spacetalk Reports Strong Growth and Expands Internationally
Oct 29, 2025

Spacetalk Limited reported a 28% increase in active mobile subscribers and a 20% growth in annual recurring revenue for the quarter ending September 2025, driven by the success of its Spacetalk Mobile service. The company raised $5 million in capital to support its strategic objectives, including international expansion and the development of new technology, such as the Spacetalk 2.0 app. This expansion strategy has significantly increased the company’s addressable market and laid the groundwork for a comprehensive product ecosystem.

SPACETALK Limited Announces Annual General Meeting and Key Resolutions
Oct 24, 2025

SPACETALK Limited has announced its upcoming Annual General Meeting to be held on November 20, 2025, in Sydney. The meeting will address several key resolutions, including the adoption of the remuneration report, election and re-election of directors, and the approval of performance rights for certain executives. These resolutions are significant for the company’s governance and strategic direction, impacting shareholder interests and potentially influencing the company’s market position.

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: Jan 08, 2026