Sparc Technologies Ltd (SPN) AI Stock Analysis

• Market Cap: AU$19.50M
• Dividend Yield: N/A
• Average Volume (3M): 82.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: N/A
• EPS Growth: 52.66%
• Country: AU
• Employees: 6
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.00
• Shares Outstanding: 118,175,980
• 10 Day Avg. Volume: 64,836
• 30 Day Avg. Volume: 82,349
• PEG Ratio: 0.12
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 6.86
• P/FCF Ratio: -7.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: AU$0.16 ▼(-14.74% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is primarily held back by weak profitability and negative operating cash flow, despite strong revenue growth and low balance-sheet leverage. Technical signals add further pressure with the stock below key moving averages and negative momentum. Valuation is also constrained because the company is loss-making and no dividend yield is provided.

Positive Factors

High revenue growth

Sustained +92.9% revenue growth indicates strong market traction for Sparc's graphene and electrochemical products. Over 2-6 months this top-line momentum supports scale advantages, broadening customer adoption and provides a base to improve operational leverage and margin recovery.

Low leverage

A very low debt-to-equity ratio gives the company financial flexibility to invest in R&D, scale manufacturing or weather cyclical weakness without heavy interest burden. Low leverage reduces solvency risk and supports durable strategic optionality for partnerships or capex.

Improving free cash flow

Large improvement in free cash flow signals better cash conversion and operational efficiency despite losses. Durable FCF gains can fund product commercialization and reduce external financing needs, improving runway and enabling reinvestment into high-return projects.

Negative Factors

Negative profitability

Persistent negative EBIT and net margins indicate the business has not yet translated revenue into sustainable profits. Without clear margin improvement, continued losses can erode equity, limit reinvestment capacity and require recurring financing over the medium term.

Negative operating cash flow

Ongoing negative operating cash flow points to core cash burn from operations despite FCF improvements. Structurally negative OCF increases reliance on financing or equity raises and constrains the firm’s ability to self-fund growth initiatives over the next several quarters.

Limited operational scale

A very small headcount suggests limited in-house capacity for scaling manufacturing, sales and customer support. For industrial technology commercialization, constrained human resources raise execution risk, extend time-to-market and increase dependence on partners or outsourcers.

Sparc Technologies Ltd Business Overview & Revenue Model

Company Description

Sparc Technologies Limited manufactures and sells graphene-based technologies in Australia. The company develops graphene-based additives for marine and protective coating markets. It also engages in the renewable energy and construction material businesses. The company was incorporated in 1984 and is headquartered in Kent Town, Australia.

How the Company Makes Money

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Sparc Technologies Ltd Financial Statement Overview

Summary

Revenue growth is very strong (+92.9%), and the balance sheet carries low leverage (debt-to-equity 0.017). Offsetting this, profitability is weak with deeply negative net profit and EBIT margins, and cash generation remains a concern due to negative operating cash flow despite improved free cash flow growth.

Income Statement

Sparc Technologies Ltd has shown significant revenue growth with a 92.9% increase in the latest year, indicating strong top-line expansion. However, the company is struggling with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains high at 100%, but the net profit margin is deeply negative, reflecting substantial losses.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.017, suggesting limited leverage and financial risk. However, the return on equity is negative, indicating that the company is not generating profits from shareholders' equity. The equity ratio is healthy, showing a strong equity base relative to total assets.

Cash Flow

The cash flow statement reveals a positive trend in free cash flow growth, which increased by 193.42%. However, the operating cash flow remains negative, and the operating cash flow to net income ratio is unfavorable, indicating challenges in converting income into cash. The free cash flow to net income ratio is slightly above 1, suggesting some efficiency in cash generation relative to net losses.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	1.04M	2.15M	1.42M	947.37K	604.52K	64.06K
Gross Profit	933.42K	2.15M	1.42M	615.97K	432.13K	-42.85K
EBITDA	-2.79M	-1.70M	-3.74M	-4.88M	-14.61M	-5.58M
Net Income	-3.33M	-2.28M	-4.27M	-4.49M	-14.20M	-5.63M
Balance Sheet
Total Assets	3.40M	5.33M	3.46M	4.40M	4.48M	4.03M
Cash, Cash Equivalents and Short-Term Investments	1.94M	3.29M	2.71M	2.96M	2.14M	2.93M
Total Debt	707.02K	70.94K	202.97K	315.86K	399.02K	490.99K
Total Liabilities	747.42K	1.13M	529.13K	899.13K	832.22K	635.23K
Stockholders Equity	2.65M	4.20M	2.93M	3.51M	3.65M	3.39M
Cash Flow
Free Cash Flow	-2.23M	-2.04M	-2.24M	-2.63M	-4.92M	-2.68M
Operating Cash Flow	-2.14M	-2.02M	-2.22M	-2.47M	-4.61M	-2.35M
Investing Cash Flow	-706.55K	-1.05M	-19.04K	-159.01K	309.10K	1.53M
Financing Cash Flow	3.05M	3.66M	1.99M	3.45M	3.50M	3.71M

Sparc Technologies Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SPN, the sentiment is Negative. The current price of 0.19 is above the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.20, and above the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.29 is Neutral, neither overbought nor oversold. The STOCH value of 13.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SPN.

Sparc Technologies Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CG1	55 Neutral	AU$35.10M	-2.92	-82.31%	―	7.08%	33.70%
SPN	46 Neutral	AU$19.50M	-2.95	-97.12%	―	―	52.66%
SDV	45 Neutral	AU$44.67M	-10.44	-6.05%	―	-5.37%	-140.00%
CXL	45 Neutral	AU$138.06M	-1.24	-22.28%	―	16.47%	29.53%
DTZ	43 Neutral	AU$20.10M	-1.69	483.00%	―	340.27%	19.44%
AJX	37 Underperform	AU$21.89M	-0.76	223.49%	―	-32.85%	28.00%

Sparc Technologies Ltd Corporate Events

Sparc Technologies Options Lapse, Simplifying Capital Structure

Sparc Technologies Ltd has announced the cessation of 1,000,000 SPNAM options, which were scheduled to expire on 28 February 2026 with an exercise price of $1.20. The options lapsed unexercised, resulting in a reduction of the company’s outstanding convertible securities and a modest simplification of its capital structure, with no new capital raised from this tranche.

The cessation reflects normal option expiry dynamics and may slightly alter the potential future dilution profile for existing shareholders. While the announcement is largely administrative, it provides investors with updated information on Sparc Technologies’ issued capital base and the status of its listed options.

The most recent analyst rating on (AU:SPN) stock is a Hold with a A$0.21 price target. To see the full list of analyst forecasts on Sparc Technologies Ltd stock, see the AU:SPN Stock Forecast page.

Sparc Technologies posts wider interim loss as non-cash charges weigh on results

Sparc Technologies Limited reported a net loss after tax of A$1.86 million for the half year ended 31 December 2025, compared with the prior corresponding period, reflecting higher non-cash charges and its share of losses from associate Sparc Hydrogen Pty Ltd. Operating cash outflows were A$525,630, with the loss including A$128,176 in share-based payment expenses, A$105,536 in depreciation and amortisation, and a A$46,422 non-cash loss from the associate’s result.

Net tangible assets per security declined to 2.46 cents from 3.00 cents a year earlier, underscoring balance sheet dilution over the period. The company again declared no interim or final dividend, signalling an ongoing emphasis on preserving cash for operations and development activities rather than near-term shareholder distributions.

The interim financial statements were reviewed by the company’s auditors, providing external oversight of the reported figures. This reviewed result highlights the cost structure and investment profile of Sparc Technologies’ growth strategy, with stakeholders facing continued losses but with a significant component driven by non-cash items and early-stage associate exposure.

The most recent analyst rating on (AU:SPN) stock is a Hold with a A$0.19 price target. To see the full list of analyst forecasts on Sparc Technologies Ltd stock, see the AU:SPN Stock Forecast page.

Sparc Teams with AIML on AI Software to Modernise Corrosion Testing

Sparc Technologies has partnered with the Australian Institute for Machine Learning at the University of Adelaide to co-develop AI-driven software that modernises the assessment of protective coatings, replacing long-standing manual corrosion evaluation methods with advanced computer vision and machine learning. A successful pilot under ISO 12944 corrosion boundary testing, strong industry feedback, and letters of support from multiple coatings sector participants suggest commercial potential for the tool, which targets an estimated addressable market of around 850 laboratories and promises higher accuracy, greater consistency, faster throughput, and richer data in a market where corrosion carries multi-trillion-dollar economic costs globally.

The most recent analyst rating on (AU:SPN) stock is a Hold with a A$0.23 price target. To see the full list of analyst forecasts on Sparc Technologies Ltd stock, see the AU:SPN Stock Forecast page.

Sparc Technologies Publishes Investor Webinar Presentation Slides

Sparc Technologies has released the slide deck that Managing Director Nick O’Loughlin will present during an online investor webinar scheduled for 11:30am AEDT on 2 February 2026, with the session aimed at updating the market on the company’s progress and initiatives. A recording of the webinar will be made available afterward via the company’s website and social media channels, providing broader access for investors and stakeholders unable to attend live.

The most recent analyst rating on (AU:SPN) stock is a Hold with a A$0.23 price target. To see the full list of analyst forecasts on Sparc Technologies Ltd stock, see the AU:SPN Stock Forecast page.

Sparc Technologies Hits Hydrogen Pilot Milestone and Books First ecosparc Sale

Sparc Technologies reported that its Sparc Hydrogen joint venture has completed construction and commissioning of a first-of-its-kind green hydrogen pilot plant at the University of Adelaide’s Roseworthy Campus and achieved sustained hydrogen generation under concentrated sunlight, marking a key step toward scaling and commercialising its low-electricity photocatalytic water splitting reactor technology. The company strengthened Sparc Hydrogen’s leadership with the appointment of inaugural CEO Alana Barlow, expanded protection of its reactor IP with additional patents and a new provisional filing, and advanced materials R&D, while its graphene-based ecosparc additive business secured a first commercial sale in Asia, collaborated with Dulux on a lighthouse protective coating project, and gained industry recognition with a best-paper award, all supported by an R&D tax refund and a year-end cash balance of A$1.94 million.

The most recent analyst rating on (AU:SPN) stock is a Hold with a A$0.23 price target. To see the full list of analyst forecasts on Sparc Technologies Ltd stock, see the AU:SPN Stock Forecast page.

Sparc Technologies Schedules Investor Webinar to Outline Graphene and Green Hydrogen Progress

Sparc Technologies will host an investor webinar on 2 February 2026, led by Managing Director Nick O’Loughlin, to brief investors on recent progress across its graphene-based additives and green hydrogen technology platforms. The session will cover commercialisation milestones for its ecosparc® graphene additive in protective coatings as well as development of Sparc Hydrogen’s photocatalytic water splitting technology and the Roseworthy pilot plant, signalling continued operational momentum in both its advanced materials and emerging green hydrogen businesses and offering investors insight into the company’s evolving technology pipeline and commercial strategy.

The most recent analyst rating on (AU:SPN) stock is a Hold with a A$0.23 price target. To see the full list of analyst forecasts on Sparc Technologies Ltd stock, see the AU:SPN Stock Forecast page.

Sparc Books First Commercial Sale of ecosparc Graphene Additive in Protective Coatings Market

Sparc Technologies has recorded the first commercial sale of its ecosparc® graphene-based additive to a government-linked paint manufacturer in Southeast Asia for use in solvent-based protective coatings, following proof-of-concept testing that showed superior performance compared with rival graphene products and unmodified coatings. The deal marks a key commercialisation milestone that brings in initial revenue, validates six years of R&D and recent collaborations with major industry players, and positions Sparc to scale sales in 2026 using its existing manufacturing capacity and expanding global marketing and distribution channels, without requiring significant new investment.

The most recent analyst rating on (AU:SPN) stock is a Hold with a A$0.15 price target. To see the full list of analyst forecasts on Sparc Technologies Ltd stock, see the AU:SPN Stock Forecast page.