EPX reports 13% ARR growth as FY26 results reflect global expansion push
In its FY26 annual results presentation, EPX Limited (ASX: EPX) outlined a year of investment and international expansion, ahead of a shareholder webinar scheduled for 15 September 2026 at 1.00pm AEST.
The building energy efficiency technology company recorded Annual Recurring Revenue (ARR) up 13% to $17.5m, operating revenue up 7% to $15.8m, and site numbers up 54% to 1,142. Management framed the year around building out its EU/UK sales function and integrating the Wattwatchers acquisition, with the trade-off being a modestly wider underlying EBITDA loss. The core thesis: recurring revenue and contract momentum built in H2 FY26 are expected to convert to statutory revenue in FY27.
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FY26 results at a glance
The presentation summarised the key financial metrics management delivered across the completed financial year.
| Metric | FY26 | FY25/pcp | Change |
|---|---|---|---|
| Operating Revenue | $15.8m | — | +7% |
| Annual Recurring Revenue (ARR) | $17.5m | — | +13% |
| Annual Contracted Value (ACV) | $19.7m | — | +12% |
| Underlying EBITDA | ($1.4m) | ($1.1m) | Wider loss |
| Site Numbers | 1,142 | 740 | +54% |
| Cash (30 June 2026) | $1.6m | — | — |
Recurring revenue remained over 90% of total revenue, and ARR per full-time equivalent (FTE) rose from $204k to $240k, an increase of 18%. The wider underlying EBITDA loss reflected a deliberate investment trade-off rather than a deterioration in the core business, driven by $0.7m of sales and marketing investment and Wattwatchers acquisition costs.
Understanding EPX and why building performance data matters
For readers less familiar with the company, EPX operates a building performance platform that turns operational data into energy and cost savings. Its EDGE and EDGE Industrial cloud technology collects Building Management System (BMS), metering and operational data to reduce energy consumption and greenhouse gas emissions across commercial real estate.
The scale of that data operation is substantial. The platform analyses more than 5.6 billion data points annually, monitors 6.2m sqm of floor area across 25+ countries, and, according to company data, delivers on average a 21% reduction in energy consumption for its portfolio.
Why does this matter to investors? The demand backdrop is structurally supportive. Energy represents approximately one-third of commercial-building operating cost, while compliance and reporting obligations, including the Australian Sustainability Reporting Standards (ASRS), are expanding. Management identified three structural demand drivers:
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Capital pressure: higher rates increase the need to optimise existing assets and preserve occupancy.
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Operating-cost pressure: energy is roughly a third of building operating cost, so active control supports margins.
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Compliance and asset-value pressure: ratings, disclosures and regulation increasingly influence asset value and financing.
The company cited the Global Energy Intelligence / IoT market as projected to grow from US$250B in 2025 to US$880B by 2035. EPX noted its addressable market broadened from a roughly US$6bn energy-savings niche to approximately US$250bn following recent capability expansion.
Contract wins and the FY27 revenue conversion story
The core investment angle sits in the timing gap between contracted value and reported revenue. ACV grew 12%, but statutory revenue has not yet caught up because most ARR additions landed late in FY26. That growth is expected to flow through in FY27.
New contract wins were H2-weighted and drawn from both existing and new customers, including:
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Pure Health / Rafed (UAE) – new hospital and health clinics tender win
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Great Western Railway (UK) – renewal and uplift from an existing contract
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FirstGroup plc (UK) – new revenue from FirstGroup and First Bus
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TAFE NSW (AU) – tender win across all TAFE NSW sites
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Brookfield (UK) – competitive process win across 5 initial sites
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Charter Hall Industrial (AU) – re-enlivened post the Wattwatchers acquisition
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Revelop (AU) – competitive process win for sites in Australia
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DWS (UK/EU) – renewal of a 3-year Master Services Agreement
Sales were reorganised into Northern (EU/UK/UAE) and Southern (AU/NZ) hemispheres. Northern sales FTE grew from 1.5 to 4 between March and June, led by a new London-based Chief Sales Officer. The investment case rests on this pipeline converting to statutory revenue and ARR in FY27.
Wattwatchers acquisition: reset and repositioned for FY27
EPX completed the Wattwatchers acquisition in December 2025, purchasing the business out of administration via a Deed of Company Arrangement (DOCA). Management framed it as an operating reset now positioned for growth.
The gross acquisition cost was $1.1m, with a net cost of approximately $0.6m after roughly $0.5m of inherited stock, representing an acquisition revenue multiple of 0.4x on net purchase value. The FY26 revenue run rate sits at approximately $1.5m, with total revenue of $2–3m targeted.
Gross margin was reset from nil on acquisition to 40%, with a run-rate margin of around 55% targeted in FY27, and a positive EBITDA run-rate trajectory targeted for FY27.
The presentation was candid on the cleanup. EPX switched off 10,000+ devices, around 25% of the advertised fleet, belonging to non-paying or unreconciled customers. Roughly $0.6m of inherited operating expenses affected FY26 cash. Management also noted an “unexpected” market entry into EV, telecommunications and data centre environments, described as yet to be exploited.
Cash, cost discipline and H2 improvement
The FY26 operating cash outflow was ($2.6m), though the H2 underlying figure improved to ($0.7m), a reduction of approximately 40% on H1’s ($1.2m). Closing cash stood at $1.6m at 30 June 2026.
During the year, EPX raised $4.2m in equity and drew net borrowings of $1.5m. UAE debtor collections improved, with $0.4m collected across July and August. Total strategic investment reached $2.7m in FY26, spanning the sales build-out, Wattwatchers integration, consolidation of three platforms to reduce cloud costs, and team realignment. Notably, FTE was held flat at 72 while resources were redirected toward growth.
The EPX debt facility secured with Partners for Growth in June 2026 was structured as a 36-month revolving arrangement carrying no warrants or equity dilution, giving management a non-dilutive lever to fund M&A and working capital as FY27 opportunities emerge.
FY26 Presentation Outlook
“Outlook remains positive” — management pointed to a supportive macro environment, expanding mandatory reporting, and the priority of converting ARR and ACV growth into statutory revenue in FY27.
What’s next for EPX
The stated priority for FY27 is converting ARR and ACV growth into statutory revenue. Management expects further cost reduction after the Wattwatchers IT integration completes, with a focus on achieving positive underlying EBITDA.
The company indicated that merger and acquisition activity would continue “for the right assets.” Shareholders and investors can register for the FY26 results webinar, scheduled for 15 September 2026 at 1.00pm AEST and running approximately 40 minutes, via the registration link provided by EPX.
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