XPON Technologies Group Ltd. (XPN) AI Stock Analysis

• Market Cap: AU$7.85M
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.16
• Revenue Growth: -9.68%
• EPS Growth: 83.03%
• Country: AU
• Employees: 120
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): N/A
• Shares Outstanding: 490,356,350
• 10 Day Avg. Volume: 860,748
• 30 Day Avg. Volume: 1,169,433
• PEG Ratio: 0.03
• Price to Book (P/B): -1.25
• Price to Sales (P/S): 0.37
• P/FCF Ratio: -1.98
• 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: 48 Neutral
• Price Target: AU$0.02 ▲(80.00% Upside)

The score is held down primarily by weak financial performance (declining revenue, ongoing losses, negative equity, and negative operating/free cash flow). Technical indicators are more supportive with price above key moving averages and positive MACD, but valuation remains unattractive/unclear due to loss-making earnings and no dividend support.

Positive Factors

High gross profit margin

A 71.99% gross margin indicates strong inherent service or product economics and pricing power in delivery of marketing/tech services. If the company can control operating spend, this durable margin base supports a viable route to profitability as revenue stabilises or grows.

Broad service offering

A diversified portfolio of consulting, managed services and technology implementation creates multiple revenue streams and cross‑sell opportunities. These recurring and project-based services align with long-term digital transformation demand, supporting sustainable client relationships and revenue resilience.

Positive FCF to net income conversion

FCF to net income slightly above 1 shows the company converts accounting losses into cash at a better rate than many loss-making peers. This durable cash conversion metric suggests management can extract cash from operations, improving liquidity prospects if cost discipline continues.

Negative Factors

Declining revenue trend

A persistent revenue decline erodes scale economics and undermines the business model's ability to cover fixed operating costs. Over months, falling top-line reduces margin leverage, restricts reinvestment, and signals demand or competitive weaknesses that threaten long-term recovery prospects.

Persistent net losses and negative margins

Ongoing net losses and negative EBIT margins indicate the core operations are not profitable after operating costs. Even with high gross margins, sustained negative operating profitability pressures cash needs and increases reliance on external funding, impairing durable financial health.

Negative shareholders' equity

Negative shareholders' equity signals solvency and balance sheet distress, limiting borrowing capacity and reducing investor confidence. Over months this structural weakness constrains strategic options, may force dilutive recapitalisation, and elevates long‑term financial risk.

XPON Technologies Group Ltd. Business Overview & Revenue Model

Company Description

XPON 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 Money

XPON Technologies Group Ltd. generates revenue primarily through its subscription-based services and consultancy fees. The company's core revenue streams include monthly or annual subscriptions for access to its marketing automation and analytics platforms, which facilitate targeted marketing campaigns and customer insights. Additionally, XPON offers consulting services that help businesses optimize their digital marketing strategies and improve customer experiences. Partnerships with other tech firms and marketing agencies also contribute to its earnings by expanding its service offerings and customer base, thereby enhancing its market reach and revenue potential.

XPON Technologies Group Ltd. Financial Statement Overview

Summary

Weak overall fundamentals: declining revenue (-6.82%), persistent net losses and negative EBIT/net profit margins, negative stockholders’ equity indicating balance-sheet strain, and negative operating/free cash flow despite a strong gross margin (71.99%).

Income Statement

XPON Technologies Group Ltd. has faced declining revenue over the past year, with a negative revenue growth rate of -6.82%. The company also struggles with profitability, as indicated by negative net profit and EBIT margins. Although the gross profit margin is relatively high at 71.99%, the overall financial health is weakened by consistent net losses.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity, leading to a negative debt-to-equity ratio. This indicates financial instability and potential solvency issues. The return on equity is positive, but this is due to the negative equity, which is not a favorable sign.

Cash Flow

The cash flow statement shows negative operating and free cash flows, with a significant decline in free cash flow growth. However, the free cash flow to net income ratio is slightly above 1, indicating that the company is managing to generate cash flow relative to its net losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	8.92M	8.92M	9.87M	14.99M	13.31M	5.44M
Gross Profit	6.42M	6.42M	7.32M	-2.67M	8.59M	-789.89K
EBITDA	-643.24K	-643.24K	-6.33M	-8.32M	-6.05M	-1.61M
Net Income	-1.36M	-1.36M	-6.76M	-8.60M	-6.30M	-1.93M
Balance Sheet
Total Assets	11.94M	11.94M	9.85M	14.62M	19.26M	22.56M
Cash, Cash Equivalents and Short-Term Investments	2.73M	2.73M	3.45M	4.42M	8.24M	1.72M
Total Debt	4.24M	4.24M	1.04M	56.93K	641.40K	768.00K
Total Liabilities	14.59M	14.59M	11.76M	10.54M	7.41M	6.73M
Stockholders Equity	-2.65M	-2.65M	-1.92M	4.08M	11.85M	15.83M
Cash Flow
Free Cash Flow	-1.67M	-1.67M	-2.44M	-3.73M	-5.60M	-992.91K
Operating Cash Flow	-1.66M	-1.66M	-2.44M	-3.65M	-5.39M	-955.09K
Investing Cash Flow	938.03K	938.03K	-258.49K	-76.93K	-583.65K	-45.48K
Financing Cash Flow	46.29K	46.29K	1.73M	-63.46K	12.50M	1.69M

XPON Technologies Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XPN	48 Neutral	AU$7.85M	-4.86	―	―	-9.68%	83.03%
SEN	48 Neutral	AU$34.65M	-1.19	-64.51%	4.99%	-38.38%	-275.50%
FCT	42 Neutral	AU$10.61M	-1.22	-54.62%	―	-22.47%	39.26%
KNO	42 Neutral	AU$5.40M	-3.47	-23.31%	―	2.15%	-900.00%

XPON Technologies Group Ltd. Corporate Events

XPON Technologies Simplifies Capital Structure as 1.5 Million Warrants Expire

XPON Technologies Group Ltd has announced the lapse of 1.5 million XPNAU warrants, which expired on 31 January 2026 without being exercised or converted. The cessation of these convertible securities marginally simplifies the company’s capital structure by removing a potential source of future share dilution, which may be relevant for existing shareholders assessing XPON’s equity base and future financing flexibility.

The most recent analyst rating on (AU:XPN) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on XPON Technologies Group Ltd. stock, see the AU:XPN Stock Forecast page.

XPON Delivers Second Quarter of Positive Cash Flow as Revenue and Margins Climb

XPON Technologies reported a strong quarter to 31 December 2025, achieving its second consecutive period of positive operating cash flow, which rose to $2 million, and securing $0.9 million in positive statutory EBITDA, while group sales revenue increased 8.3% quarter-on-quarter to $3.42 million, 96% of which was recurring. Gross margin improved to 70%, the company added seven new customers and deepened relationships with three existing clients while maintaining a 97.3% monthly retention rate, progressed the integration of Alpha Digital with new cross-sell and joint Alpha + Wondaris deals, and ended the quarter with a strengthened cash balance of $4.3 million, underscoring improved financial stability and support for future growth initiatives.

The most recent analyst rating on (AU:XPN) stock is a Sell with a A$0.02 price target. To see the full list of analyst forecasts on XPON Technologies Group Ltd. stock, see the AU:XPN Stock Forecast page.

XPON Technologies Announces Cessation of Securities

XPON Technologies Group Limited announced the cessation of 7,590,669 securities due to the expiry of options or other convertible securities without exercise or conversion as of December 14, 2025. This cessation may impact the company’s capital structure and could influence stakeholder perceptions regarding the company’s financial strategies and market positioning.

The most recent analyst rating on (AU:XPN) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on XPON Technologies Group Ltd. stock, see the AU:XPN Stock Forecast page.

XPON Technologies Addresses ASX Query on Trading Activity

XPON Technologies Group Ltd. has responded to a query from the ASX regarding recent trading activity in its securities. The company confirmed that there is no undisclosed information that could explain the trading patterns. However, XPON highlighted its recent Q1 FY26 Activity Report, which showed a positive operating cash flow of $0.99 million and an EBITDA of $0.12 million, as a potential factor influencing market activity. XPON assures compliance with ASX listing rules and confirms that its disclosures are approved by its board.

XPON Technologies Requests Trading Halt Amid ASX Price Query

XPON Technologies Group Limited, listed on the ASX under the ticker XPN, has requested a trading halt on its securities. This halt is pending a response to an ASX price query, ensuring that trading does not occur in an uninformed market. The halt will remain until the company releases its response or until normal trading resumes on November 5, 2025.