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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)

Rating:44Neutral
Price Target:
AU$0.00
▼(-100.00%Downside)
SPACETALK Limited's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, persistent losses, and negative cash flows. Technical analysis also reflects a bearish trend, compounded by the stock's negative P/E ratio, indicating valuation concerns. The lack of earnings call data and notable corporate events further underscores the need for strategic measures to improve financial health.

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 primarily through the sale of its wearable devices and associated software services. The company earns money by selling smartwatches directly to consumers via online platforms and retail partnerships. Additionally, SPACETALK offers subscription-based services that provide enhanced features and connectivity for its devices, creating a recurring revenue stream. The company may also engage in strategic partnerships with telecom providers or other technology firms to expand its market reach and offer bundled services, which contribute to its overall earnings.

SPACETALK Limited Financial Statement Overview

Summary
SPACETALK Limited is facing significant financial challenges with declining revenues and persistent losses. The balance sheet is weak with negative equity, and cash flows are negative, raising concerns about sustainability. The company needs strategic changes to improve its financial health.
Income Statement
45
Neutral
The income statement shows declining revenues and profitability. Revenue has decreased from $20.7M in 2022 to $17.5M in 2024, with TTM revenue at $23.4M. Gross profit margin has declined significantly from 60% in 2022 to 34% in the latest TTM period. The company has consistently reported negative EBIT and net income, indicating operational challenges.
Balance Sheet
30
Negative
The balance sheet reveals a weak financial position with negative stockholders' equity of -$2M in the latest TTM period. The debt-to-equity ratio is not meaningful due to negative equity, indicating high financial risk. Total assets have decreased significantly, and the company is highly leveraged.
Cash Flow
40
Negative
Cash flow analysis shows negative operating and free cash flows, indicating cash burn issues. The operating cash flow to net income ratio is negative, reflecting operational inefficiencies. Despite negative cash flow, the company has increased financing activities to support operations.
BreakdownJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue17.50M13.35M20.70M15.11M10.49M
Gross Profit8.64M-757.26K12.42M9.35M7.44M
EBITDA-4.21M-8.42M-925.01K730.40K-2.69M
Net Income-6.24M-14.68M-6.30M-1.78M-4.27M
Balance Sheet
Total Assets7.86M10.97M22.19M16.01M10.74M
Cash, Cash Equivalents and Short-Term Investments1.77M3.03M5.58M4.19M3.17M
Total Debt5.21M5.33M3.19M1.83M135.64K
Total Liabilities11.72M12.08M9.70M6.66M2.43M
Stockholders Equity-3.86M-1.11M12.49M9.35M8.31M
Cash Flow
Free Cash Flow-2.90M-5.12M-8.91M-4.23M-2.21M
Operating Cash Flow-2.87M-3.46M-5.57M-1.18M937.33K
Investing Cash Flow-1.43M-1.67M-3.35M-3.05M-3.14M
Financing Cash Flow3.05M2.50M10.58M5.26M3.74M

SPACETALK Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.15
Price Trends
50DMA
0.16
Negative
100DMA
0.19
Negative
200DMA
0.18
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
40.37
Neutral
STOCH
>-0.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SPA, the sentiment is Negative. The current price of 0.15 is below the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.16, and below the 200-day MA of 0.18, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.37 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SPA.

SPACETALK Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$42.18B-1.51-12.07%2.79%2.09%-71.01%
49
Neutral
AU$15.16M-26.35%5.54%-3.85%
49
Neutral
AU$26.34M
-4.31%73.91%
44
Neutral
€10.97M
42.58%79.00%
€6.37M
43
Neutral
AU$4.60M-34.98%-23.34%-470.00%
42
Neutral
AU$9.43M
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SPA
SPACETALK Limited
0.15
-0.03
-18.48%
DE:M2G
Norwood Systems Ltd
0.01
-0.01
-50.00%
AU:5GG
Pentanet Ltd
0.04
0.00
0.00%
AU:FRX
Flexiroam Ltd
0.01
-0.01
-50.00%
AU:VN8
Vonex Limited
0.04
0.01
33.33%
AU:HFY
Hubify Ltd.
0.01
0.00
0.00%

SPACETALK Limited Corporate Events

Spacetalk Secures Growth Capital Through Note Issuance
Jul 11, 2025

Spacetalk Limited has announced a financial arrangement involving the issuance of 3,000,000 converting notes to Thorney Investment Group and 1,000,000 notes to Pure Asset Management. The company plans to seek shareholder approval to convert these notes into shares to avoid them being classified as debt instruments. This move is part of Spacetalk’s strategy to secure $3 million in growth capital and reduce debt by $1 million, potentially impacting its financial stability and market positioning.

SPACETALK LTD Proposes New Securities Issue
Jul 11, 2025

SPACETALK LTD has announced a proposed issue of securities, specifically 1,000,000 converting notes, with a planned issue date of September 23, 2025. This move is part of a placement or other type of issue, and the company has submitted the necessary information to the ASX for potential quotation of these securities. The announcement could impact SPACETALK’s financial strategy and market positioning by potentially increasing its capital base, thus influencing stakeholders’ perceptions and investment decisions.

SPACETALK Limited Announces Proposed Issue of Securities
Jul 11, 2025

SPACETALK Limited has announced a proposed issue of 3,000,000 converting notes as part of a placement or other type of issue. This move is aimed at raising capital, potentially enhancing the company’s financial position and supporting its operational strategies. The issuance of securities is subject to approval and will be conducted in accordance with ASX Listing Rules, which may impact the company’s market positioning and offer new opportunities for stakeholders.

Spacetalk Secures $3 Million for Expansion and Debt Reduction
Jul 10, 2025

Spacetalk Ltd has secured $3 million in growth capital from its largest shareholder, Thorney Investment Group, and has arranged to convert $1 million of existing debt into equity. This funding will support the company’s international expansion, new product development, and general corporate expenses. The move reflects confidence in Spacetalk’s strategy and aims to protect existing shareholders from immediate dilution while enhancing the company’s market position.

Spacetalk Ltd Announces Director’s Interest Change
May 27, 2025

Spacetalk Ltd has announced a change in the director’s interest, specifically concerning Martin Pretty, who has acquired 100,606 ordinary shares and disposed of 88,245 performance rights. This transaction, which involved no cash consideration, reflects a strategic adjustment in the director’s holdings, potentially impacting investor perceptions and the company’s market positioning.

SPACETALK Limited Announces Quotation of New Securities on ASX
May 26, 2025

SPACETALK Limited has announced the quotation of 100,606 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of May 26, 2025. This move involves the issuance, transfer, or reclassification of securities resulting from options being exercised or other convertible securities being converted, potentially impacting the company’s market presence and shareholder value.

Spacetalk Ltd Releases 3QFY25 Financial Highlights and Strategic Update
May 20, 2025

Spacetalk Ltd, a company listed on the ASX under the ticker SPA, has released its financial performance highlights for the third quarter of the fiscal year 2025. The company has provided an update on its strategy and key growth milestones, which are crucial for stakeholders to understand the company’s future direction and potential impact on its market position.

Spacetalk Ltd Announces Director’s Shareholding Adjustment
Apr 30, 2025

Spacetalk Ltd has announced a change in the director’s interest, specifically involving Georg Johann Chmiel. The change involves an off-market transfer of 368,333 ordinary shares from Mr. Chmiel to Chmiel Super Pty Ltd ATF Chmiel Super Fund, where Mr. Chmiel is the sole beneficiary. This adjustment reflects the company’s recent capital consolidation, which was completed on a one-for-ten basis, impacting the overall securities held by Mr. Chmiel. This move may have implications for the company’s stock structure and could influence investor perception of the company’s financial strategies.

SPACETALK Director Increases Shareholding Amid Capital Consolidation
Apr 30, 2025

SPACETALK Limited has announced a change in the director’s interest notice, specifically regarding Simon Crowther, a director of the company. Mr. Crowther acquired 74,807 ordinary shares through an on-market purchase, increasing his holdings in the company. This change reflects a consolidation of the company’s issued capital, which was completed on November 27, 2024, on a one-for-ten basis. The acquisition of shares by a director may indicate confidence in the company’s future performance, potentially impacting investor sentiment and market perception.

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: Jul 23, 2025