tiprankstipranks
Trending News
More News >
SPACETALK Limited (AU:SPA)
ASX:SPA

SPACETALK Limited (SPA) AI Stock Analysis

Compare
13 Followers

Top Page

AU:SPA

SPACETALK Limited

(Sydney:SPA)

Select Model
Select Model
Select Model
Neutral 44 (OpenAI - 4o)
Rating:44Neutral
Price Target:
AU$0.12
▲(0.83% Upside)
SPACETALK Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative profitability margins. Technical analysis provides a slightly better outlook with neutral RSI, but the bearish trend persists. Valuation metrics are weak due to a negative P/E ratio and lack of dividend yield, further lowering the stock's attractiveness.
Positive Factors
Innovative Product Offering
The focus on innovative connected devices for children positions SPACETALK as a niche player in the growing market for safety and communication solutions, potentially driving long-term customer engagement and revenue growth.
Recurring Revenue Model
The subscription-based model enhances customer lifetime value and provides a stable revenue stream, supporting long-term financial stability and growth potential.
Direct-to-Consumer Model
This model allows SPACETALK to maintain control over the customer experience and margins, potentially leading to higher profitability and stronger brand loyalty over time.
Negative Factors
Declining Revenue Growth
The declining revenue trend indicates challenges in market penetration and product adoption, which could hinder long-term growth and competitive positioning.
Negative Profitability Margins
Negative margins reflect operational inefficiencies and difficulty in achieving profitability, which may impact the company's ability to invest in growth and innovation.
Weak Balance Sheet
A weak balance sheet with high leverage poses financial risks, limiting the company's ability to raise capital and invest in strategic initiatives for long-term growth.

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
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 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
Negative
Last Price0.12
Price Trends
50DMA
0.13
Negative
100DMA
0.14
Negative
200DMA
0.16
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
42.10
Neutral
STOCH
66.67
Neutral
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 0.12 is above the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.10 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, 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 (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%
44
Neutral
AU$11.51M-1.7112.24%55.89%
44
Neutral
AU$31.85M-8.75-166.02%-11.11%-71.43%
43
Neutral
AU$8.66M-1.94-18.92%8.20%37.20%
42
Neutral
AU$3.58M-6.25-11.62%-9.44%83.16%
42
Neutral
AU$7.92M-10.7766.48%77.19%
41
Neutral
AU$26.34M-38.89-3.77%-7.05%75.68%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SPA
SPACETALK Limited
0.11
-0.05
-29.03%
AU:NOR
Norwood Systems Ltd
0.01
-0.02
-57.58%
AU:5GG
Pentanet Ltd
0.02
>-0.01
-33.33%
AU:FRX
Flexiroam Ltd
0.02
0.01
100.00%
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 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.

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.

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.

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.

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.

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: Dec 19, 2025