Announcement PDF Annual Report For the Year Ended 30 June 2026 Spacetalk Limited ABN 93 091 351 530 www.spacetalk.co Contents Corporate directory 06 Directors' report 07 Auditor's independence declaration 28 Independent auditor's report to the members of Spacetalk Limited 29 Consolidated statement of profit or loss and other comprehensive income 34 Consolidated statement of financial position 35 Consolidated statement of changes in equity 36 Consolidated statement of cash flows 37 Notes to the consolidated financial statements 38 Consolidated entity disclosure statement 72 Shareholder information 73 Dear Shareholders On behalf of the Board of Directors, I am pleased to present the Company’s Annual Report for the 2026 financial year (‘FY26’) incorporating financial statements as presented on 28th August 2026. FY26 marked an important step in Spacetalk’s transformation, as the company strengthened the foundations required for its next phase of growth. During the year, we completed a significant re- platforming of our core technology architecture, establishing a modern and scalable solution to support new products, data capabilities and the continued evolution of Spacetalk into a software- led, hardware-enabled family safety platform. The investments made during FY26 were necessary to re-platform the business and position the business for scale. At the same time, Spacetalk Mobile continued to grow, demonstrating the ongoing transition towards higher-quality recurring revenue and a more predictable revenue mix. The agreements entered into with TPG Telecom and Vodafone Australia represent an important validation of our strategy. The partnership establishes a new software distribution channel for Spacetalk, while the new wholesale mobile agreement provides a pathway to improved economics and greater operational flexibility. Together, these agreements demonstrate the broader commercial opportunities now available to the Company as we move from building the platform to monetising it. Looking ahead to FY27, our focus is on disciplined execution. We must now convert the investments and foundations established through FY26 into sustainable growth, strengthen our recurring revenue base, maintain cost management and continue progressing opportunities that can deliver long-term value for shareholders. I would like to thank our CEO and Managing Director, Simon Crowther, and the entire Spacetalk team for their commitment and resilience during a demanding year of change. I would also like to thank our shareholders for their continued support as we enter the next stage of Spacetalk’s development. Georg Chmiel Non-Executive Chair Letter from the Chair of Spacetalk Ltd Positioning Spacetalk for Scale "FY26 marked an important step in Spacetalk’s transformation, as the company strengthened the foundations required for its next phase of growth." 4 I am pleased to report on the key milestones achieved in the 2026 financial year, which represent an important step in our company’s transformation and positions the business for scale. We remain focused on executing Spacetalk’s software-led growth strategy outlined to shareholders and guided by the overarching vision of ‘Family Safety at Every Stage of Life’. Re-platforming of our core technology during the financial year means we now have a modern, scalable architecture designed to support new products, data capabilities and distribution models. Rather than operating primarily as a children’s wearable hardware business, we are now building a software-led, hardware-enabled global family safety platform. The new architecture gives us a common foundation for Spacetalk and co-branded software experiences, broader device compatibility, new subscription models and enterprise distribution through partners. Importantly, it allows us to increasingly think about the household, rather than an individual device sale, as the long-term customer relationship. Spacetalk Mobile continued to perform strongly during the year and is now our largest revenue stream, reflecting the growing importance of recurring connectivity within the business. As our business model evolves, recurring revenue streams are becoming an increasingly important part of the Spacetalk ecosystem, supporting greater predictability, stronger customer relationships and increased lifetime value. Mobile remains central to this strategy and provides a strong platform from which we can deepen engagement across the households we serve. Hardware remains an important part of the Spacetalk ecosystem and continues to play a valuable role in acquiring customers and establishing recurring subscription relationships. Increasingly, we see hardware as one of several entry points into the broader Spacetalk platform. A device can begin the relationship, connectivity makes it recurring and software provides the opportunity to deepen engagement and introduce additional services over time. This integrated model allows us to build a broader and more valuable relationship with families beyond the initial device purchase. An important validation of this strategy occurred shortly after year-end. We entered into two binding agreements with TPG Telecom and Vodafone Australia. Vodafone Australia will launch and market a co-branded family safety and digital wellbeing proposition powered by Spacetalk’s software platform, creating a new enterprise distribution channel beyond our traditional direct-to-consumer model. Separately, Spacetalk Mobile will migrate to the TPG Telecom wholesale network, with Spacetalk retaining ownership of the customer relationship, brand, pricing and proposition. We expect this to improve unit economics and provide greater commercial flexibility. Together, these agreements represent an important step from building the capabilities of the new Spacetalk business toward commercialising them. FY27 is a year of execution. Our priorities are to bring the Vodafone Australia proposition to market, migrate Spacetalk Mobile to TPG, introduce new online safety and tiered subscription capabilities, progress additional enterprise software opportunities and continue advancing our product roadmap, including new kids hardware and the Sibyl seniors proposition. Cost discipline also remains important, with the optimisation programme identified during FY26 expected to deliver annualised efficiencies. The business is entering FY27 in a materially different position from the Spacetalk we began transforming in 2023. We have moved beyond a strategy dependent predominantly on children’s hardware toward a platform designed to connect devices, family members and services across different stages of life. I would like to thank the Spacetalk team for their commitment through a demanding year, our Board for their support and our customers, partners and shareholders for their continued confidence in the company. We have risen to the challenges to create this tremendous opportunity. Our focus in FY27 is clear: execute the strategy, improve the economics of the business and demonstrate the potential of the new Spacetalk. Simon Crowther CEO and Managing Director September 2026 CEO's Report 5 6 DIRECTORS’ REPORT Directors Georg Chmiel - Non-Executive Chair Simon Crowther - CEO and Managing Director Michael Rann - Non-Executive Director Andrew Grover - Non-Executive Director John Bird - Non-Executive Director Company secretary Hasaka Martin Notice of annual general meeting The details of the annual general meeting of Spacetalk Limited are: Thursday, 19 November 2026 Registered Office Suite 1, Level 9 80-82 Pitt Street Sydney NSW 2000 Principal place of business Suite 1, Level 9 80-82 Pitt Street Sydney NSW 2000 Share Registry Boardroom Pty Ltd Level 8 210 George Street Sydney NSW 2000 Telephone: 1300 737 760 Overseas callers: +61 2 9290 9600 Email: enquiries@boardroomlimited.com.au Auditor RSM Australia Partners Stock Exchange listing Spacetalk Limited shares are listed on the Australian Securities Exchange (ASX code: SPA) Website https://spacetalk.co https://investorhub.spacetalk.co Corporate Directory 7 DIRECTORS’ REPORT Directors’ Report The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Spacetalk Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2026. Directors The following persons were directors of Spacetalk Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: • Georg Chmiel - Chair • Simon Crowther - CEO and Managing Director • Michael Rann • John Bird (appointed 15 September 2025) • Andrew Grover (appointed 8 April 2026) • Martin Pretty (resigned 14 September 2025) Principal activities Spacetalk Limited is Australia’s leading provider of connected safety solutions for families, offering an integrated ecosystem of mobile devices, software, and services that deliver peace of mind at every life stage. Our mission is simple yet powerful: to keep families safe, connected, and supported—wherever life takes them. As a package, our technology platform provides a complete digital communication solution that supports safety and security for families across their life stages. Our unique proprietary ecosystem, which has continued to evolve over time, is today recognised as a leader in family safety and the connected wearables industry. The Spacetalk technology platform comprises both market-leading hardware and a trusted, client-controlled software platform that provides safety and security to users via the benefits of mobile technology. The multi-functional SaaS Spacetalk App can be customised, giving clients the ability to enable or disable individual features. Parents are empowered to block their kids access to the open internet, social media, and inappropriate adult content while simultaneously blocking calls and messages from unknown senders. The app can also monitor the location of vulnerable family members, including children and seniors, bringing enhanced peace of mind for the entire family. Dividends There were no dividends paid, recommended or declared during the current or previous financial year. 8 Operational and Financial Review KEY PERFORMANCE HIGHLIGHTS Income Statement ($'000) FY26 FY25 Total income ($'000) 17,143 20,105 Annual recurring revenue ($'000) 10,800 12,100 Revenue ($'000) 16,218 19,609 Revenue growth (%) (17)% 12% Gross Profit ($'000) 7,480 9,726 Gross Margin (%) 46% 50% Operating Expenses (excluding depreciation and amortisation) ($'000) (20,006) (12,459) Adjusted EBITDA1 ($'000) (10,227) (1,849) Loss from continuing operations before income tax ($'000) (17,153) (4,544) Adjusted EBITDA reconciliation 2026 2025 $'000 $'000 Loss from continuing operations before income tax (17,153) (4,544) Depreciation and amortisation expense 2,338 1,442 Finance costs 3,214 865 Share based payments 281 361 Write off of non-financial assets 1,093 27 Adjusted EBITDA (10,227) (1,849) 1. Adjusted EBITDA is defined as earnings before interest, tax, depreciation, and amortisation (“EBITDA”), further adjusted by adding back or deducting specific items that are considered non-operational, infrequent, or non-cash, such as impairment of non-financial assets, impairment charges,orotherone-offincome/expenses.Themeasureisreconciledtotheneareststatutorymeasure,withalladjustmentsexplicitlydisclosed in the accompanying notes to the financial statements. In our case, adjusted EBITDA excludes fair value of derivatives, share based payments and costs related to write-off of non-financial assets. Management believes that this Adjusted EBITDA is consistent, transparent and linked to corporate strategy. DIRECTORS’ REPORT 9 FINANCIAL PERFORMANCE Summary The 2026 financial year was a deliberate reset year for the Company in which management has put in place the commercial, product and distributionbuildingblocks for a software-led growth trajectory.TheCompanyinvestedaheadofrevenuetocompleteacomplexre-platforming new App launch in November 2025, rebuilding its technology capability and establishing a repeatable enterprise distribution model. Against that backdrop, revenue declined by 17% to $16.2m due to lower device revenue, the continued wind-down of the legacy Schools business and a period of platform remediation following the November 2025 launch. The overarching revenue decline reflects the transformational nature of the financial year which was otherwise operationally strong. The Companydelivered strong operational momentum acrossthebusinessandlaidthefoundationforasignificantstrategicmilestone achieved shortly after the year end. Subsequent to year end, on 6 July 2026, the Company executed two binding agreements with TPG Telecom Limited (ASX: TPG), a commercial agreement under which Vodafone Australia will launch and market an exclusive co-branded family safety and digital wellbeing offer powered by Spacetalk’s software platform, and a strategic MVNO wholesale agreement to migrate Spacetalk Mobile to the TPG Telecom wholesale network on improved economics. Together these agreements validate the Company’s B2B software proposition, expand the addressable market well beyond the direct-to-consumer channel, and establish a framework that management believes is repeatable with telecommunications operators in other markets. Segment performance 2026 2025 Change Revenue $’000 $’000 % MVNO (Spacetalk Mobile) 8,070 6,957 16% Apps 1,694 2,411 (30%) Schools 925 1,866 (50%) Recurring revenue 10,689 11,234 (5%) Devices 5,529 8,313 (33%) Seniors – 62 (100%) Total revenue 16,218 19,609 (17%) Other income 925 496 86% Total income 17,143 20,105 (15%) 2026 2025 2026 margin 2025 margin Gross profit $’000 $’000 % % MVNO (Spacetalk Mobile) 4,015 3,633 50% 52% Apps 1,352 1,687 80% 70% Schools 811 1,759 88% 94% Devices 1,302 2,587 24% 31% Seniors - 60 - 97% Total gross profit 7,480 9,726 46% 50% DIRECTORS’ REPORT 10 Spacetalk Mobile (MVNO) revenue grew 16% to $8.1m and is now the Group’s largest revenue stream, representing 50% of total revenue (FY25: 35%). Growth was supported by an 18% increase in active mobile subscribers to 60.6k (FY25: 51.3k). At year end, 56% of Spacetalk Mobile customers were on annual plans, supporting retention, revenue predictability and customer lifetime value. Gross margin was broadly stable at 50% (FY25: 52%). Devices revenue declined 33% to $5.5m and gross margin contracted 7ppt to 24%. Device sell-in volumes declined from 48,616 in FY25 to 42,331 in FY26. The revenue and margin declined as a result of a shift in product mix towards lower-priced variants, higher discounting and scan-back activity in a more competitive market, and reduced retailer sell-in as channel partners worked through existing inventory. Despite the decline in revenue, the Company sold a lower-featured device variant into a major new retail partner secured during the financial year. While this variant carries a lower average selling price that the Company’s premium devices, it strengthens the Company’s presence within a major family-oriented retail channel and broadens access to its target customer base. Underlying consumer demand remained broadly stable. Apps revenue declined 30% to $1.7m, reflecting the planned migration of standalone app customers to bundled mobile-and-service offerings, which carry superior unit economics, together with a transition period as a vast majority of smartwatch customers in Australia currently receive the app for free if they have a Spacetalk Mobile SIM card and subscription in their watch. Beyond the existing B2C base, the app presents a growing B2B opportunity through telco partnerships, including the Vodafone Australia deal and supported by further platform development scheduled for release in 2QFY27; tiered app pricing model, enabling customer segmentation and differentiated value capture, and the launch of enhanced safety features, which will expand monetisation opportunities across both the B2C and B2B user base. Gross margin improved 10ppt to 80% following the platform migration. Schools revenue declined 50% to $0.9m, consistent with the continued strategic wind-down of the legacy Schools business as state governments progressively insource these services. Annual Recurring Revenue ARR declined 11% to $10.8m (FY25: $12.1m). The decline is attributable to the wind-down of Schools ARR and a planned, expected reduction in App ARR ahead of the tiered pricing model roll-out. Spacetalk Mobile ARR grew 5% to $8.4m and now represents the substantial majority of the recurring base. Recurring revenue represented 66% of total revenue in FY26, up from 57% in FY25, reflecting continued improvement in revenue quality notwithstanding the overall revenue decline. Gross profit and margins Gross profit declined 23% to $7.5m (FY25: $9.7m) and gross margin contracted 4ppt to 46% (FY25: 50%). Margin compression was concentrated in the Devices segment. Recurring revenue gross margin was broadly maintained. 2026 2025 Operating expenses $’000 $’000 Advertising and marketing (2,142) (1,825) Allowance for expected credit loss (41) (315) Corporate and administration (8,635) (4,156) Employee benefits expense (7,788) (6,152) Share-based payments expense (281) (361) Write-off of non-financial assets (1,093) (27) Net (loss)/gain on foreign exchange (26) 377 Operating expenses (excluding D&A) (20,006) (12,459) Depreciation and amortisation expense (2,338) (1,442) Total expenses (22,344) (13,901) DIRECTORS’ REPORT 11 Operating expenses before depreciation and amortisation increased 61% to $20.0m. The principal drivers were: • Corporate and administration, up $4.5m, reflecting third-party technology, consulting and contractor spend on the re-platforming programme and remediation activity in the third quarter to address platform stability and elevated customer support ticket volumes following the November 2025 launch. • Employee benefits, up $1.6m, reflecting targeted investment in technology and product capability to support the transition to a software- led model. • Write-off of non-financial assets of $1.1m (FY25: $27k), including $0.6m written off against capitalised development assets superseded by the new platform and website as well as $0.5m inventory write-off ahead of the new kids smartwatch hardware launch targeted for 2HFY27. • Advertising and marketing, up $0.3m, supporting platform launch and international e-commerce expansion. Cash flows and financial position 2026 2025 Summary Cash Flow Statement $’000 $’000 Receipts from customers (inclusive of GST) 17,596 18,764 Payments to suppliers and employees (inclusive of GST) (25,645) (21,295) Government grants 877 446 Interest and other finance costs paid (227) (596) Net cash used in operating activities (7,399) (2,681) Payments for intangibles (4,461) (1,630) Net cash used in investing activities (4,515) (1,658) Cash flow before financing activities (11,914) (4,339) Net cash from financing activities 11,647 3,714 Net decrease in cash and cash equivalents (267) (625) Cash and cash equivalents at year end 878 1,149 Net cash used in operating activities increased to $7.4m, reflecting the higher cost base, inventory and service-enabling investment made ahead of the hardware and platform launches, and MVNO wholesale payments. Investment in intangible assets increased to $4.5m (FY25: $1.6m), representing capitalised development on the new platform and app. The carrying value of development assets at 30 June 2026 was $4.3m (FY25: $2.6m) after $2.1m of amortisation and $0.6m of write-off. Financing activities generated $11.6m, mainly comprising $7.5m from equity placements and $5.2m from converting notes, less share issue transaction costs and lease principal repayments. DIRECTORS’ REPORT 12 GROWTH STRATEGY The Company’s strategy is to build a scalable, high-margin recurring revenue business by embedding its family safety software platform within large existing customer bases; principally those of telecommunications operators and while maintaining a capital-light approach to market entry and expansion. Key growth initiatives are: • Scalable Telco SaaS model. The Vodafone Australia agreement gives millions of eligible postpaid mobile customers access to a co-branded family safety application powered by Spacetalk’s platform, with a premium tier available for up to 12 months from customer activation. The agreement creates a repeatable commercial framework that the Company is now pursuing with telecommunications operators across APAC, Europe and North America. Distribution through telco partners enables Spacetalk to scale with low marginal cost, minimal bespoke engineering and strong operating leverage. • Improved mobile unit economics. The strategic MVNO wholesale agreement with TPG Telecom will see Spacetalk Mobile migrate to a network covering majority of the Australian population. Spacetalk retains ownership of the customer relationship, brand, pricing and proposition. The agreement is expected to deliver improved wholesale economics, new long- life mobile plans for parents and seniors, and greater flexibility to launch targeted offers supporting subscriber growth, higher ARPU and stronger customer lifetime value. Phased migration commences in FY27. • Recurring revenue growth and monetisation. CVM capabilities implemented with the new platform are expected to improve ARPU and customer lifetime value and reduce churn. A tiered app subscription pricing model, together with online safety and digital wellbeing features, is scheduled for launch in 2QFY27 and is expected to reverse the recent decline in App ARR. • Product roadmap. The Company expects to launch the Spacetalk App on Apple and Samsung watches, extending the platform to a device-agnostic footprint, and will launch new kids smartwatch hardware with improved unit economics in 2HFY27. • International expansion. E-commerce capability has been rolled out across Europe, the UK, Singapore, the USA, Canada and New Zealand under a capital-light, e-commerce-first “land and expand” strategy. Platform-led commercial agreements are also expected to open hardware distribution channels that were not accessible under the previous hardware-led model. • Seniors market opportunity. Sibyl, the Company’s AI-enabled seniors device offering fall prediction, emergency alerts and predictive health insights, targets the “sandwich generation” and expands the addressable market across B2C and B2B segments. • Cost discipline. The cost optimisation programme identified during FY26 is expected to deliver approximately $3.5m of annualised cash savings, aligning the cost base to the software- led model and improving operating leverage as recurring revenue scales. DIRECTORS’ REPORT Significant changes in the state of affairs During the year, the Company completed two equity placements to sophisticated, professional and institutional investors, raising a total of approximately $7.5 million (before transaction costs) through the issue of 111,712,050 fully paid ordinary shares (refer note 22). The second placement was completed in two tranches, with the final tranche issued following shareholder approval obtained on 20 May 2026. During the year, the Company issued 6,550,000 converting notes with a total face value of $6,550,000 (refer note 21). 2,000,000 notes were converted to shares during the year. There were no other significant changes in the state of affairs of the Group during the financial year. Matters subsequent to the end of the financial year Strategic MVNO partnership Subsequent to 30 June 2026, the Company entered a strategic Mobile Virtual Network Operator (MVNO) wholesale agreement with TPG Telecom Limited (“TPG Telecom”) to support the next phase of growth for Spacetalk Mobile. Under the agreement, the Company will migrate its Spacetalk Mobile customer base to the TPG Telecom wholesale mobile network which provides coverage to 99 per cent of the Australian population across more than 1.2 million square kilometres. The Company will continue to own the customer relationship, brand experience, pricing and customer proposition, while TPG Telecom will provide wholesale mobile network capacity and related services. Commercial agreement with TPG Telecom (Vodafone Australia) Subsequent to 30 June 2026, the Company entered into a commercial agreement with TPG Telecom, under which Vodafone Australia will launch an exclusive offer to its customers for a co- branded family location, online safety and digital wellbeing solution powered by Spacetalk's proprietary software platform. Placement and capital raising On 5 August 2026, the Company announced that it had received binding commitments from institutional and professional investors to raise $10.0 million before costs through a two-tranche placement of fully paid ordinary shares at an issue price of $0.075 per share. Tranche 1 comprised 34,581,000 ordinary shares to raise approximately $2.6 million before costs, and was issued on 13 August 2026 under the Company’s existing placement capacity. At the General Meeting held on 16 September 2026, shareholders approved the issue of 98,752,333 Tranche 2 August Placement Shares to raise approximately $7.4 million before costs, completing the $10.0 million placement. Shareholders also approved the issue of 1,333,333 fully paid ordinary shares (included in Tranche 2) to Simon Crowther, or his nominee, being a related party of the Company, at the same issue price of $0.075 per share. In addition, shareholders approved the issue of 30,000,000 Lead Manager Options as partial consideration for services provided in connection with the placement. The Lead Manager Options are exercisable at $0.10 each and expire on 12 August 2029. 13 DIRECTORS’ REPORT Converting notes On 3 August 2026, the Company issued 59,630,957 fully paid ordinary shares for nil consideration, as a result of the conversion of 4,475,000 converting notes (with a face value of $1.00 each) at $0.08 per share, and interest payable on the converting notes under the terms of issue. No other matter or circumstance has arisen since 30 June 2026 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. Likely developments and expected results of operations Information on likely developments in the operations of the Group and the expected results of operations have not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the Group. Summary of key business risks The Group operates in a highly competitive and rapidly changing sector, which provides both opportunities and challenges. While some of these challenges and risks may be out of the Group’s control, we have made, and continue to make investments in our risk management and control frameworks to ensure we can respond to and mitigate the impact of these risks as they arise, whether they result from regulatory changes, shifts in the competitive environment, or other circumstances over which the Group has no control. Material risk areas What we are doing to manage the risk Capital and funding Challenges in securing sufficient debt and equity funding could impact our ability to effectively execute our strategy. • Regular communications and close relationship with debt funder. • Close management of cash flow. • Actively engaging with shareholders and the broader equity market. Strategic Staying responsive to shifts in the competitive landscape is essential. Ensuring our strategic actions are well- aligned with these changes will help maintain our market position. • Regular discussions of strategy and strategic initiatives with the Board. • Periodic measurement of results against targets. • Strengthen capability with experts who possess a good command of the environment. Technology Underinvesting in developing and maintaining systems which support innovation and growth. • Clear definition of technology roadmap. • Understanding changing customer needs and responding with the necessary technology improvements. People Attracting and retaining staff who align with our culture and can drive innovation and customer-focused solutions. • Remuneration and benefits structure to retain and attract top talent. • Clear and consistent on our culture and values. Macroeconomic Staying attuned to broader economic and retail trends is important to ensure our strategy remains relevant and effective. • Analyse and monitor economic and retail conditions, at a minimum, to identify shifts and take steps to manage potential impacts. Environment and climate Proactively understanding and addressing environmental risks and impacts will be vital to our long-term sustainability. • Review processes and practices to reduce impact on the environment. • Develop reporting on our environmental footprint. Environmental regulation The Group is not subject to any significant environmental regulation under Australian Commonwealth or State law. 14 Information on Directors Georg Chmiel Non-Executive Chair MBA (INSEAD), Master equiv. in Computer Science (Technical University of Munich), FAICD, ICDM(F) Georg is a business leader, company director and senior advisor with more than 3 decades of experience in rapidly growing companies and disruptive technologies. Georg has strong knowledge of the capital markets and technology business expertise with extensive global exposure in Asia, Australia, New Zealand, and Europe. Georg is a Non-Executive Chair and Co-Founder of Juwai-IQI. Other current directorships: Non-Executive Chair of Centrepoint Alliance (ASX: CAF) (from 7 October 2016) Non-Executive Director of Kinatico (ASX: KYP) (from 19 September 2023) Non-Executive Director of Xamble Ltd (ASX:XGL) (from 15 November 2023) Former directorships (last 3 years): Non-