Spacetalk Limited (ASX: SPA), a leader in wearable and software solutions for family safety, delivered another promising update in its quarterly report for Q2 FY25. Key metrics highlight a significant expansion in the company’s mobile subscription base and Annual Recurring Revenue (ARR), underscoring Spacetalk’s successful transition into a software-driven business model.
CEO Simon Crowther emphasised the significance of these results, noting, “The growth in our mobile subscriber base reflects the success of our strategic focus on developing high-quality, recurring revenue streams. This strong foundation positions us well for continued growth and international expansion.”
ARR from Spacetalk Mobile alone surged by 44% year-on-year to $6.6 million, further validating the company’s pivot toward higher-margin subscription-based revenue.
Spacetalk CEO Simon Crowther
Spacetalk reported gross profit growth of 18% year-on-year to $3.2 million, reflecting a deliberate focus on higher-margin revenue streams. Operating payments, excluding inventory purchases, dropped by 25%, demonstrating the company’s disciplined approach to cost management.
While cash flow from operating activities remained steady at a net outflow of $1.1 million, Spacetalk generated $1.2 million in cash from operations before inventory investments. The $2.2 million inventory expenditure was attributed to strategic stockpiling ahead of high-demand periods like Black Friday and Christmas, as well as for anticipated international growth.
Spacetalk has been executing an ambitious international expansion strategy, with active sales efforts now underway in the United States, the United Kingdom, Canada, Finland, New Zealand, and Australia. This is a marked shift from its Australia-only focus in previous years and reflects the company’s confidence in its scalable, capital-light model.
At the heart of Spacetalk’s ecosystem is its mobile app, which connects wearable devices for children and seniors with caregivers. The company recently released version 1.5 of its app and is actively developing a new version, Spacetalk 2.0. The updated platform aims to deepen customer engagement through new features like enhanced location services, SOS alerts, and personal health insights, setting the stage for broader user adoption and monetisation.
Spacetalk has outlined clear priorities for FY25 and beyond, including:
These initiatives align with Spacetalk’s goal of reaching $20–$25 million in ARR by 2026.
Spacetalk’s continued focus on innovation, operational efficiency, and market expansion reflects its transformation into a resilient, software-led organisation. With recurring revenue as its backbone, the company is poised to capture opportunities in the rapidly growing family safety technology market.
Investors will be watching closely as Spacetalk scales its mobile services, launches new hardware and software, and deepens its foothold in international markets. The next phases of this journey could redefine the company’s position as a global leader in wearable safety technology.