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XPON Technologies Group Ltd. (AU:XPN)
ASX:XPN
Australian Market

XPON Technologies Group Ltd. (XPN) AI Stock Analysis

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AU

XPON Technologies Group Ltd.

(Sydney:XPN)

Rating:40Underperform
Price Target:
AU$0.00
▼(-100.00%Downside)
XPON Technologies Group Ltd. is currently facing multiple challenges, primarily in its financial performance with negative profitability and weak balance sheet metrics, contributing significantly to the low overall score. Technical analysis further supports a bearish outlook, compounded by valuation concerns due to negative earnings. Overall, the stock presents a high-risk profile.

XPON Technologies Group Ltd. (XPN) vs. iShares MSCI Australia ETF (EWA)

XPON Technologies Group Ltd. Business Overview & Revenue Model

Company DescriptionXPON Technologies Group Limited provides mission-critical services and software solutions to businesses in Australia, New Zealand, the United Kingdom, and Europe. It offers Wondaris, a customer data platform for marketers that centralizes customer and marketing data and generates insights for automated campaign activation; and Holoscribe, an extended reality platform that offers publication of 360 degree content, which enables brands to create immersive digital experiences. The company also provides application modernization, enterprise cloud and marketing technology, data and analytics, machine learning and artificial intelligence, and digital solutions. It serves retail, financial services, media and entertainment, and travel industries. The company was incorporated in 2019 and is based in Newstead, Australia.
How the Company Makes MoneyXPON Technologies Group Ltd. generates revenue primarily through the sale and subscription of its digital transformation products and services. Key revenue streams include licensing fees for its proprietary software platforms, subscription fees for cloud-based services, and professional services such as consulting and implementation support. The company partners with various enterprises to deliver customized solutions that drive digital engagement and efficiency. Additionally, XPON may leverage strategic partnerships and alliances to expand its market reach and enhance its product offerings, contributing to its overall earnings.

XPON Technologies Group Ltd. Financial Statement Overview

Summary
XPON Technologies Group Ltd. is facing significant financial challenges, with negative profitability metrics, a weak balance sheet characterized by negative equity, and consistent cash flow deficits. To improve its financial health, the company must focus on enhancing revenue growth, managing operational costs, and strengthening its equity position. Strategic adjustments are necessary to achieve sustainable financial performance.
Income Statement
35
Negative
XPON Technologies Group Ltd. has faced challenges in profitability, indicated by negative net income and EBIT margins over the years. Despite a 9.69% revenue growth from 2022 to 2023, gross profit margins have been inconsistent and negative in recent years, highlighting cost management issues. The company needs to stabilize its revenue growth and manage expenses to improve profitability.
Balance Sheet
30
Negative
The balance sheet reveals a weak financial position with negative stockholders' equity in the most recent year, indicating potential solvency risks. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio has been declining, showing reduced asset coverage by equity. Improvement in equity and asset management is essential for financial stability.
Cash Flow
40
Negative
Cash flow from operations has been consistently negative, indicating cash management issues. However, there was a notable improvement in free cash flow from 2023 to 2024, although it remains negative. The company needs to enhance cash flow generation to support operations and reduce reliance on external financing.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
9.57M9.87M15.07M13.31M5.44M1.72M
Gross Profit
7.02M7.32M-2.67M8.59M-789.89K-807.96K
EBIT
-302.38K-3.71M-8.66M-6.54M-2.23M-1.99M
EBITDA
-2.09M-6.33M-8.32M-6.05M-1.61M-1.92M
Net Income Common Stockholders
-1.98M-6.76M-8.60M-6.30M-1.93M-1.93M
Balance SheetCash, Cash Equivalents and Short-Term Investments
2.26M3.45M4.42M8.24M13.28M1.02M
Total Assets
8.17M9.85M14.62M19.26M22.56M5.33M
Total Debt
0.001.04M56.93K641.40K768.00K469.16K
Net Debt
-2.26M-2.40M-4.36M-7.60M-12.52M-547.35K
Total Liabilities
9.47M11.76M10.54M7.41M6.73M2.18M
Stockholders Equity
-1.30M-1.92M4.08M11.85M15.83M3.15M
Cash FlowFree Cash Flow
1.72M-2.44M-3.73M-5.60M-992.91K-1.63M
Operating Cash Flow
1.72M-2.44M-3.65M-5.39M-955.09K-1.57M
Investing Cash Flow
1.80K-258.49K-76.93K-583.65K-45.48K-20.30K
Financing Cash Flow
1.79M1.73M-63.46K12.50M1.69M2.38M

XPON Technologies Group Ltd. 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
$11.80B10.37-7.29%2.91%7.39%-7.96%
AUXPN
40
Underperform
-584.63%-10.23%39.68%
$292.95M-133.28%
DERW8
€7.92B95.3237.44%0.62%
$22.80B115.8313.73%0.18%
AUDUB
39
Underperform
AU$44.60M-131.93%15.31%61.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:XPN
XPON Technologies Group Ltd.
0.01
0.00
0.00%
BRCHF
BrainChip Holdings
0.17
0.02
13.33%
DE:RW8
Technology One Limited
23.60
12.68
116.12%
WTCHF
Wisetech Global
70.45
4.46
6.76%
AU:DUB
Dubber Corporation Limited
0.02
>-0.01
-33.33%

XPON Technologies Group Ltd. Corporate Events

XPON Technologies Appoints New Company Secretary to Enhance Governance
May 20, 2025

XPON Technologies Group Limited has announced the appointment of Hasaka Martin as the new Company Secretary, succeeding Patricia Vanni and Sally Greenwood. Martin brings over 15 years of experience with listed companies and is a fellow of the Governance Institute of Australia. This strategic appointment underscores XPON’s commitment to strengthening its corporate governance and communication with the ASX, potentially enhancing its operational efficiency and stakeholder relations.

Coopers Shield Pty Ltd Acquires Substantial Stake in XPON Technologies
May 15, 2025

XPON Technologies Group Limited has announced that Coopers Shield Pty Ltd, as trustee for the Cooper Family Trust, has become a substantial holder in the company, acquiring a 7.44% voting power through 30,811,725 fully paid ordinary shares. This acquisition was part of the purchase of Alpha Digital Design Consultants (Aust) Pty Ltd, indicating a strategic move that could potentially enhance XPON’s market position and influence within its industry.

XPON Technologies Sees Shift in Substantial Shareholder Interests
May 14, 2025

XPON Technologies Group Limited has experienced a change in the interests of one of its substantial holders, Matthew Arnold Forman. The change, effective from May 8, 2025, reflects a decrease in voting power from 31.32% to 27.45% due to transactions involving Black Oak Super Pty Ltd and Black Oak Ventures Pty Ltd. This alteration in shareholding could impact the company’s governance and decision-making processes, potentially influencing its strategic direction and stakeholder relations.

XPON Technologies Director’s Share Acquisition
May 14, 2025

XPON Technologies Group Limited announced a change in the director’s interest, specifically involving Matthew Arnold Forman. Forman, who is the sole director and shareholder of Black Oak Ventures Pty Ltd, has acquired 200,000 fully paid ordinary shares at $0.0170 per share, increasing his indirect interest through the MABL Family Trust. This acquisition reflects a strategic move in Forman’s investment portfolio, potentially impacting the company’s governance and stakeholder interests.

XPON Technologies Expands Through Strategic Share Allotments
May 9, 2025

XPON Technologies Group Ltd. announced the allotment of 30,811,725 fully paid ordinary shares to the vendor of Alpha Digital Design Consultants as part of its acquisition, with these shares subject to voluntary escrow until May 2026. Additionally, XPON issued 21,000,000 shares related to the conversion of warrants from a previous capital raising, reflecting the company’s strategic moves to expand its market presence and enhance its financial structure.

XPON Technologies Announces New Securities Quotation
May 9, 2025

XPON Technologies Group Ltd. has announced the issuance of 21,000,000 fully paid ordinary securities to be quoted on the ASX, effective May 9, 2025. This move is part of the company’s strategy to leverage convertible securities and options, potentially impacting its market positioning and offering new opportunities for stakeholders.

XPON Technologies Announces New Securities Quotation on ASX
May 9, 2025

XPON Technologies Group Ltd. has announced the issuance of 30,811,725 ordinary fully paid securities, which are set to be quoted on the Australian Securities Exchange (ASX) under the code XPN. This move is part of a previously announced transaction, and it signifies a strategic step in enhancing the company’s financial standing and market presence.

XPON Technologies Expands with Alpha Digital Acquisition
May 6, 2025

XPON Technologies Group Limited has announced further details regarding its acquisition of Alpha Digital Design Consultants. The acquisition involves a vendor loan of $1.54 million, which will be paid over three years, secured by Alpha Digital’s shares. This strategic move is expected to bolster XPON’s AI-powered growth and strengthen its market position by integrating Alpha Digital’s expertise in performance marketing and analytics, enhancing XPON’s service offerings to enterprise and mid-market brands.

XPON Technologies Announces Proposed Securities Issue
May 5, 2025

XPON Technologies Group Ltd. has announced a proposed issue of 59,400,000 ordinary fully paid securities, with the issuance date set for October 29, 2027. This move is part of a strategic placement or other type of issue, which could potentially impact the company’s market positioning and provide opportunities for growth and expansion.

XPON Technologies Announces Proposed Securities Issue
May 5, 2025

XPON Technologies Group Ltd. has announced a proposed issue of 30,811,725 ordinary fully paid securities, with the issue date set for May 6, 2025. This strategic move is aimed at enhancing the company’s financial position and supporting its growth initiatives, potentially impacting its market presence and stakeholder value.

XPON Technologies Acquires Alpha Digital to Boost AI Growth
May 5, 2025

XPON Technologies Group Ltd. has announced the acquisition of Alpha Digital, which will immediately add $4 million in recurring revenue and accelerate the company’s path to profitability. This strategic move is expected to enhance XPON’s market positioning by leveraging AI-driven growth, potentially impacting stakeholders positively through increased financial stability and expanded market reach.

XPON Technologies Acquires Alpha Digital to Boost AI Growth
May 5, 2025

XPON Technologies Group Ltd. has announced the acquisition of Alpha Digital Design Consultants, an Australian digital marketing firm, to enhance its AI-driven growth strategy. This acquisition is expected to accelerate XPON’s journey towards profitability by integrating Alpha Digital’s strong customer base and revenue streams, while offering a comprehensive suite of AI marketing solutions to its clients. The deal structure is designed to align with growth objectives, emphasizing the synergy between XPON’s AI capabilities and Alpha Digital’s marketing expertise, thus positioning the combined entity for competitive advantage in the digital marketing landscape.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.