Announcement PDF 1HFY26 Investor Update 25 February 2026 spacetalk.co 2 Executing the Growth Agenda New Spacetalk App Platform Underpinned by an entirely new tech stack and now live in more than 30 markets and 16 languages our app is beginning to connect users at multiple stages of their lives. Our Strategy Family safety at every stage of life, remains the foundation of our long - term vision. Our Objective is clear: to build a cash - generative, defensible niche within the global family - safety market. spacetalk.co Simon is a serial entrepreneur and CEO with 20 years of commercial success in the technology sector. Simon had his first profitable exit in 2000 which paved the way for increased leadership roles and exits in subsequent years. Simon was CEO with AirMap , Managing Director with Yamaha Motor Ventures & Laboratory Silicon Valley and CEO of Nearmap (ASX:NEA) which he led as a public company and built into a leading geospatial and data analytics business. “The first half of FY26 marks a genuine turning point for Spacetalk. We are completing our transformation into a software - led business model and for the first time have the platform to drive our software subscription revenue and CLTV beyond young children and watches. As a result, we have entered into an MOU with TPG Telecom to distribute our family safety platform to millions of Vodafone customers on a co - branded basis across Australia. The final agreement will offer attractive economics and support our ARR growth and is scheduled to go live in the first half of FY27. It validates our platform strategy and establishes a repeatable, capital - efficient growth model that we are now actively expanding internationally. The platform transformation was a complex and necessary process. I want to acknowledge that some customers were affected during this period - we have addressed this directly through strengthened technology leadership and operational improvements. That work is behind us. What we have built is a modern, scalable platform capable of supporting enterprise - grade telco deployments worldwide, and the TPG/Vodafone MOU is the first proof of what that platform will deliver. Partnering with telcos gives us access to millions of existing customers on a co - branded or white - label deployment. A single telco partnership of this size would be transformational on its own. Our goal is to build a portfolio of these relationships. We are actively discussing with telco partners in international markets and expect to announce more agreements soon - each of which will generate additional ARR and significantly expand our customer base. These partnerships plus our Spacetalk mobile and app subscription revenue are the main drivers of our forecast of $20 - 25 million in ARR for calendar year 2026. The telco channel model allows us to scale customer acquisition non - linearly without a proportional increase in costs - a shift that fundamentally changes the growth potential of this business. Spacetalk occupies a defensible and valuable niche: family safety technology designed for a kid’s first connected device. As telcos worldwide seek differentiated products for family segments, we are increasingly positioned as the platform of choice. The strategy is clear and the growth opportunities ahead are substantial. I am genuinely excited about what this business can achieve for shareholders from here.” Simon - CEO & Managing Director, Spacetal k spacetalk.co Progress and Context 4 spacetalk.co 5 1HFY26 Key Highlights In FY23 most of our revenue came from selling kids’ wearables locally through high - street retailers in Australia. In 1HFY26 most of revenue was recurring from MVNO subscriptions, app fees and schools. Revenue quality We re - entered international markets using a capital - light, digital - first approach. By expanding our ecommerce footprint. January’25 Today We are active in 15 markets with 5 priority countries We have Spacetalk Mobile live in three markets By the end of the financial year, we will have MVNO’s in: Australia USA United Kingdom Sweden Germany spacetalk.co 6 1H26 Key Financial Metrics › ARR grew to $12.0m, up 9% from $11.0m in 1HFY25, primarily due to 26% growth in Spacetalk Mobile ARR from $6.6m to $8.3m. › The scalable architecture of the new platform supports increased app engagement, enhanced upgrade pathways, and improved in - app acquisition capabilities, creating a flywheel effect that is expected to further accelerate mobile subscriber growth. › The Active Mobile Subscriber base increased by 26% from 45.6k in 1H25 to 57.4k in 1H26, highlighting the strong adoption of Spacetalk Mobile. › This growth reflects the effectiveness of our customer acquisition strategy. Active Mobile Subscribers increased by 26% vs PCP › Overall income was stable at $10.2m compared to $10.3m in 1H25. › Mobile revenue grew significantly by 29% from $3.0m in 1H25 to $3.9m in 1H26, driven by the 26% increase in the mobile subscriber base. › 59% of 1H26 revenue was recurring in nature, up 6ppts from 53% in 1H25. › Device revenue declined by 18% as retailers sold - out in channel stock and as focus turns to software. Underlying sell - outs grew by 6%. Total income stable as non - hardware revenue growth offsets reduction in devices revenue Annual Recurring Revenue (ARR) grew by 9% vs PCP spacetalk.co 7 We are Completing the Transformation to a Software - led Growth Engine +643% Active Mobile Subscribers Total App Users +49% Structures Processes People Figures versus February 2023 On track to deliver $20m-$25m* ARR in calendar year 2026 spacetalk.co Pathway to $20M+ ARR 8 spacetalk.co 9 Initial Focus on Families with Kids 7-17 and Telco platform 2023 – Present Families with Kids 7 - 17 Sandwich Generation Parent Next Kids Watch* Loop Apple & Samsung Watch Apps Spacetalk App 2.0 Content Filtering B2C *Analysis ongoing spacetalk.co Grandparents and Older Relatives ‘Sibyl’ Seniors MPERS & AI 10 Next Focus B2B & B2C Products for Seniors Aging at Home 2025 – 2026 Families with Kids 7 - 17 Sandwich Generation Parent Next Kids Watch* Loop Apple & Samsung Watch Apps SIBYL Spacetalk App 2.0 Content Filtering B2C *Analysis ongoing spacetalk.co 11 Multiple dimensions of safety evolve over a lifetime Location Walk / bike to school alone Route freedom Secure ride home Share with friends Location awareness in an emergency Know family locations Physical Emergency help Personal safety back up Safe nights out Safe late commutes Prevent falls & Emergency help Protect family physically Digital Content restrictions Content management, filtering and restrictions Content management, filtering and restrictions Secure digital identity Scam prevention and digital security Monitor families digital exposure without intruding Emotional Stress check in Connect with peers safely Connect with peers safely Maintain family connections Connect with family Be reassured Health Encourage active play Build healthy habits Manage stress levels Good sleep habits Keep moving Monitor family health 7- 11 Kids NEW Tweens NEW Teens NEW Young Adults NEW Older People Sandwich Generation Parent spacetalk.co 12 What Can You Expect for Rest of the Financial Year Germany & Sweden MVNOs Australian Schools EOL Home Care Provider Pilot B2B Nov 2025 July 2026 Spacetalk App 2.0 Q2 Launch Content Filtering Q3 Apple & Samsung Watch Apps Q3 & Q4 B2C Ongoing Feature Releases and Updates Q3 Ongoing Next Kids Watch* Q4 - Q1 FY27 ‘Sibyl’ POC Seniors MPERS & AI Q4 *Analysis ongoing spacetalk.co Telco Software Platform Focus 13 Screens and content are illustrative* Spacetalk App Platform is designed to be a growth and retention flywheel for Telcos… …and provide access to millions of potential paid subscribers at Sandwich Parent Kids Tweens Teens Young Adults Older people App Mobile plan Watch Plan App Mobile plan Mobile plan Health and Safety Wearable Watch App Wearable Plan App Mobile plan Mobile plan App Enterprise software driving ARR and value for Telcos Next Kids Watch Apple & Samsung Watch Apps Content Filtering Spacetalk App 2.0 Loop Global Telcos Platform (NOW) Global Telco & Care Provider Platform (2026 est.) Families with Kids 7 - 17 Grandparents and Older Relatives Sandwich Generation Parents ‘Sibyl’ Seniors MPERS & AI SIBYL Value add for Telco customers. Purpose built to create value for Telcos. CAC | ARPU | CLTV | SUBS Insight driven CLM, marketing and low CAC sales channel. Multiple daily brand touchpoints for your customers and prospective customers. Aligned success and shared reward. spacetalk.co 18 Uniquely Positioned to Drive Telco Customer Lifecycle Management Strong consumer value proposition drives strong data led telco value proposition: Carriers App usage and engagement Home internet service provider Advanced AI driving push messaging, right touchpoint, right person, right moment Customer Lifecycle Management Decrease CAC Increase ARPU Maximise CLTV Plan sales Hardware sales Premium app subscriptions New subscribers NBN / Broadband sales Grow Subscribers Location Family construct Connections Names and Ages Behaviours Mobile Devices Tiered membership as a premiumadd on Features scale with tier Unique value adding service New predictable recurring revenue stream Increased ARPU Mobile plan and hardware sales Engagement, upsell and cross - sell Sliding scale of integration from simple to comprehensive for Telco products Potential for whole of family mobile plans in one place Seamless links to Telco eCommerce, or in-app purchase Peace of mind in the digital world Daily protection, not just screen time limits Simple, powerful online safety features for parents One of the biggest sources of parental anxiety Daily safety-use experience that drives engagement and loyalty All of the benefits of a phone with non of the risks Spacetalk on leading smartwatches Turn a smartwatch into a safety device Brings the Spacetalk Platform experience to Apple and Samsung smartwatches Provides a stepping stone to a first phone, or add-on product offer Drives smartwatch hardware sales, plan uptake and family retention spacetalk.co 23 Financial Highlights Screens and content are illustrative* spacetalk.co 24 Financial PerformanceHighlights 1H26 1H25 Change Total income ($m) 10.2 10.3 (1%) Revenue from continuing operations ($m) 9.3 9.8 (5%) Gross Profit from continuing operations ($m) 4.6 4.8 (4%) GP margin (%) 50% 49% 1ppts Annual Recurring Revenue ($m) 12.0 11.0 9% Recurring revenue mix (%) 59% 53% 6ppts Active Spacetalk Mobile Subscribers (higher ARPU than App) 57.4k 45.6k 26% Adjusted EBITDA ($m)* (4.2) (0.1) >1,000% Spacetalk Mobile Drives Growth in Recurring Revenue * See Adjusted EBITDA reconciliation in Appendix spacetalk.co 25 MobileRevenue Strong S ubscriber Growth and Revenue Expansion ‘000 1H26 1H25 % Active mobile subscribers 57.4 45.6 26% Spacetalk mobile revenue 3,926 3,040 29% Spacetalk mobile gross profit 1,957 1,625 20% Gross profit (%) 50% 53% Subscriber Growth The number of paying mobile subscribers grew by 26% from 45.6K in 1H25 to 57.4K in 1H26. This increase demonstrates the success of our mobile service offerings and the effectiveness of our customer acquisition strategy . Revenue Increase Spacetalk mobile revenue saw a 29% increase, rising from $3.0m in 1H25 to $ 3.9 m in 1H26, in line with the increase in subscriber numbers. Stable Gross Profit Margin Despite the increase in the subscriber base, our gross profit margin of 50% indicates our ability to maintain profitability while scaling our mobile business. The consistent margin underscores the efficiency of our mobile operations and the potential for future profitability as we continue to expand. Foothold for Increasing Lifetime Value This growth in mobile subscribers provides a solid foundation for our strategy to enhance the lifetime value of families in our ecosystem. The new platform is expected to increase further monetisation opportunities in this base over time . spacetalk.co 26 Device Revenue Device Sales continue to Drive Ecosystem entry despite timing effects Device Unit Sales # • Device unit sales declined primarily due to timing impacts, as retail partners drew down on existing inventory, resulting in reduced reorder activity. • Underlying consumer demand continued to grow, with the sell - out from retail inventory increasing by 6% year - on- year. • Device unit sales remain the primary entry point into the Spacetalk ecosystem, driving initial user engagement and subsequent service adoption. Device Revenue $ • Device revenue decreased to $3.8m (1H25: $4.6m) in line with the reduction in unit sales during the period. Device Gross Margins • Gross profit increased by 2%, with margin expansion more than offsetting the impact of lower revenue. • Gross margin improved to 37% (1H25: 30%), reflecting a higher proportion of sales from the higher - margin Adventurer 2 product relative to the prior corresponding period . ‘000 1H26 1H25 % #Device sales 22.2 27.9 (20%) # Device sell - outs 24.1 22.8 6% Device revenue 3,761 4,613 (18%) Device gross profit 1,398 1,369 2% Gross profit (%) 37% 30% spacetalk.co 27 App Revenue App 2.0 Establishes Foundation for Scalable Monetisation ‘000 1H26 1H25 % #Total App Users (active past 6 months) 86.9 86.4 1% #Paying App Users 22.3 26.0 (14%) App revenue 1,004 1,220 (18%) App gross profit 778 865 (10%) Gross profit (%) 77% 71% App 2.0 Launch • The launch of App 2.0 represents a significant evolution of the Company’s software platform. • The App provides a more flexible foundation for introducing premium features, subscription tiers, and monetisation initiatives, supporting the Company’s transition toward a software - led business model. Stable App User Base • Total active app users in Australia remained consistent year - on- year, reflecting a stable user base. To date, our strategic focus has been on migrating users to mobile subscriptions, which offer higher revenue per user (RPU), greater gross profit per user, and longer lifetime value. Opportunity in Non-paying App Users • The base of non - paying app users presents a significant future revenue opportunity given the enhanced features of, and monetisation strategies enabled by App 2.0. Gross Profit Margin • App gross margin increased to 77% from 71%, albeit from a small revenue base. As part of the re - platforming and launch of App 2.0, the company transitioned to the AWS platform, which is expected to provide improved operating leverage and scalability going forward. • As the subscription base expands, margin leverage is expected to translate to more meaningful absolute gross profit contribution. spacetalk.co 28.6 45.6 57.4 1H24 1H25 1H26 28 New App Flywheel Effect tofurther DriveMobileGrowth Enhancing Customer Value and Ecosystem Integration 26% Active App Users - AU Active mobile subscribers The success of Spacetalk Mobile… • Historically, ARR growth has been primarily driven by expansion in the mobile subscriber base. Spacetalk Mobile has significantly enhanced our ecosystem, with paying mobile subscribers increasing from 45.6k in 1H25 to 57.4k in 1H26. • Mobile subscriptions deliver higher revenue per user (RPU) and profitability per customer in absolute terms. • New mobile subscribers received the app for free, boosting overall customer value and engagement within the Spacetalk ecosystem. …now enhanced by new App • Following the launch of the new App, the Company expects app - based ARR to become an increasingly meaningful contributor, as enhanced functionality and monetisation features are progressively introduced. • The scalable architecture of the new platform supports increased app engagement, enhanced upgrade pathways, and improved in - app acquisition capabilities, creating a flywheel effect that is expected to further accelerate mobile subscriber growth. 26.0 22.3 60.4 64.6 86.4 86.9 1H25 1H26 Other Active AppUsers Paid AppUsers spacetalk.co 29 SchoolRevenue Stable Gross Margins 1H26 1H25 % Schools (#) 274 1,018 (73%) ‘000 Schools revenue 566 918 (38%) Schools gross profit 472 877 (46%) Gross profit (%) 83% 96% Number of Schools The number of schools utilising Spacetalk services declined by to 274 at the end of 1H26 (1H25: 1,118), as state governments continued to progressively insource these services. School Revenue Revenue decreased by 38% due to the decline in the number of school subscriptions. Increases in SMS usages by the remaining schools user base partially offset the decline in school subscribers. Gross Margins Gross margins remained strong at 83% being a decline from 1H26 margin of 96%. Margins were impacted by the mix between licences and SMS usages during the period. Given the relatively small revenue base, modest shifts in product mix can result in disproportionate percentage movements in reported gross margin. spacetalk.co 30 Recurring Revenue Streams Focus on building a Strong Recurring Revenue Model Recurring revenue streams App Subscriptions: $2.3M • The app enhances device functionality, driving user engagement and increasing recurring subscription revenue. • The launch of App 2.0 has further strengthened this dynamic by expanding feature capability and enabling more flexible monetisation pathways. Expansion with Mobile Subscriptions: $8.3M • Spacetalk Mobile offers higher Average Revenue Per User (ARPU) and extends customer lifetime value. • It also opens opportunities to sell additional products not attached to wearables, further enhancing the revenue potential from our existing customer base. Impact of New Platform on App and Mobile Subscriptions • The new platform is expected to support greater subscription conversion, enable upsells, reduced churn and improved scalability, reinforcing a more predictable recurring revenue base over time. • The new platform also enables the launch of app - only subscription plans and a tiered pricing model for the first time, expanding monetisation pathways and improving customer segmentation. Schools – SMS & Licensing Fees: $1.4M • The Company generates additional recurring revenue from schools through SMS services and licensing fees, contributing to a diversified revenue stream that supports sustained growth. - 0.6 4.6 6.6 8.3 3.5 4.3 3.1 2.6 2.3 2.3 2.5 1.9 1.8 1.4 5.8 7.4 9.5 11.0 12.0 1H22 1H23 1H24 1H25 1H26 ARR (Sm) Mobile App Schools Total spacetalk.co 31 Profit andLoss Product mix provides resilience as Company transitions to S oftware - led Model Summary Income Statement ($’000) 1H26 1H25 % Revenue from continuing operations 9,257 9,844 (6%) Gross profit from continuing operations 4,605 4,786 (4%) Other income 888 455 95% Operating costs (9,741) (5,297) 84% Adjusted EBITDA* (4,248) (56) >1,000% Discontinued operations - (47) n/a Loss after income tax attributable to owners of Spacetalk (5,507) (991) 456% Revenue from continuing operations Revenue decreased by 6% from $9.8M in 1H25 to $9.3M in 1H26. The decrease was due to a timing related reduction in order activity in the devices segment. This was partially offset by strong performance in the mobile segment, with revenues up 29% from $3.0M in 1H25 to $3.9M in 1H26 . Gross profit from continuing operations Gross profit decreased by 4% from $4.8M in 1H25 to $4.6M in 1H26 in line with revenue. Gross margin was stable at 50% in 1H26 compared to 49% in 1H25, demonstrating resilience of the Company’s diversified product mix and the strength of its underlying business model. Operating costs Operating costs increased from $5.3M in 1H25 to $9.7M in 1H26. Following a sustained program of business rightsizing over the past few periods, the Company has commenced targeted reinvestment to support its transition to a software - led operating model. During the period, focused investments were directed towards expanding sales and marketing capability and strengthening technology resources ahead of the first iteration of the new platform. *See Adjusted EBITDA reconciliation in Appendix. spacetalk.co 32 Cashflow Targeted Investments to Support S trategic Growth Summary Cashflow Statement ($’000) 1H26 1H25 % Receipts from customers 10,154 7,957 28% Net cash used in operating activities (3,818) (1,666) 129% Purchase of intangible assets (1,964) (652) 201% Net cash used in investing activities (1,970) (659) 199% Cashflow before financing activities (5,788) (2,325) 149% Cashflow from financing activities 6,176 2,971 108% Net decrease in cash and cash equivalents 389 649 (40%) Cash and cash equivalents at year end 1,538 2,419 (36%) Receipts from Customers Receipts increased by 28% from $8.0M in 1H25 to $10.2M in 1H26. The increase is primarily due to timing as well as an improving revenue mix with a higher proportion of recurring mobile subscription revenue collected at point of sale. Strategic Investments Cash used in investing activities increased from $(0.7)M in 1H25 to $( 2.0 )M in 1H26, as the Company invested in technology infrastructure and product innovation. The launch of the new platform during the period was the culmination of such targeted investments. Cash flow before Financing Activities Cashflows before financing activities decreased from $(2.3)M to $(5.8)M in line with the Company’s targeted reinvestment to support its growth strategy, including additional resourcing, platform development, international expansion and brand - building initiatives. spacetalk.co 33 Balance Sheet Successful Refinancing and Extending Borrowing FY24 to FY25 Balance sheet Dec - 25 Jun - 25 Cash and cash equivalents 1,538 1,149 Inventory 2,190 1,692 Trade and other receivables 2,048 1,563 Intangible assets 3,724 2,561 All other assets 1,985 1,635 Total assets 11,485 8,600 Trade and other payables 5,254 4,267 Borrowings 3,600 4,600 Converting notes 4,496 - All other liabilities 4,492 3,996 Total liabilities 17,842 12,863 Net (Liability) / Asset (6,357) (4,263) Debtor days (Ave. Receivables / Revenue x 365) 30 17 Inventory days (Ave. Inventory / Cost of sales x 365) 150 102 Inventory Management Inventory increased to $2.2M (Jun - 25: $1.7M), to support sales volumes and ensure product availability. Inventory days increased from 102 to 150 due to the timing of retailer re - order activity. Receivables Management Trade and other receivables increased to $2.0M (Jun - 25: $1.6m), due to higher sales activity toward the end of the peak period. While debtor days increased from 17 to 30 days, they remain within acceptable parameters. Intangible Assets The increase in intangible assets from $ 2.6 M to $3.7M due to capitalisation of eligible costs in development of the Company’s platform The increase underscores our continued investment in technology and intellectual property, which are critical for our future growth strategies. The launch of the new platform during the period represents an important milestone in the transformation towards a software - led model. spacetalk.co 34 Successful Refinancing Our Lender Supporting our Growth Plans FY24 to FY25 FY25 by quarter Debt Facility at 31 Dec ‘24 $5M Loan amount 9.5% Interest rate stability Repayment Schedule Mar 2025 $1.0M Sep 2025 $0.75M Mar 2026 $1.0M Mar 27 $2.25M Covenants Minimum Cash Balance Required to maintain at least $0.75M at all times EBITDA Covenant Specific quarterly targets effective from 31 March 2025 Debt Facility at Feb’25 $5M Loan amount 9.5% Rate remained unchanged Repayment Schedule Mar 25 – Feb 26 $0.100M / per month Mar 26 – Mar 27 $0.125M / per month Mar 27 Final payment of outstanding capital Covenants Minimum Cash Balance Required to maintain at least $0.75M at all times EBITDA Covenant Specific quarterly targets effective from 30 June 2025 Debt Facility from Jul’25 $3.6M* Loan amount 9.5% Rate remained unchanged Repayment Schedule Jul 25 – Dec 25 Payment holiday Jan 26 – Jul 27 $0.100M / per month Jul 27 Final payment of outstanding capital Covenants# Minimum Cash Balance Required to maintain at least $0.75M at all times EBITDA Covenant Specific quarterly targets effective from 30 June 2025 *Post conversion of $1m of debt to a Converting note. #New covenant targets are currently being negotiated with financier spacetalk.co 35 Appendices Screens and content are illustrative* spacetalk.co 36 Adjusted EBITDA reconciliation 1H26 1H25 Change Loss from continuing operations before income tax (5,507) (991) 456% Depreciation and amortisation expense 1,132 639 77% Interest expense 1,080 235 360% Loss / (gain) on fair value of derivatives (1,209) (114) 961% Share based payments 256 175 46% Adjusted EBITDA ($m) (4,248) (56) >1,000% spacetalk.co 37 Important Legal Information This presentation has been prepared by Spacetalk Ltd. (“Spacetalk,” or “Company,” or “SPA”). This presentation: • has been prepared in good faith and with reasonable care. Neither SPA nor any other person makes any representation or warran ty, express or implied as to the accuracy, reliability, reasonableness or completeness of the contents of this presentation (including any projections, foreca sts, estimates, prospects and returns), and any omissions from this presentation. To the maximum extent permitted by law, SPA and its respective officers, employees and advisers disclaim and exclude all liability for any loss or damage (whether or not foreseeable) suffered or incurred by any person acting on any in formation (including projections, forecasts, estimates, prospects and returns) provided in, or omitted from, this presentation or any other written or oral inf ormation provided by or on behalf of SPA. • is intended to be general background information only, and is not intended to be relied upon. The information in this present ation does not take into account your financial objectives, situations or needs. Investor should consult with their own legal, tax, business and/or financial advis ers in connect with any investment decision. • should be read in conjunction with Spacetalk’s financial reports and market releases on ASX. • may include forward - looking statements about Spacetalk and the environment in which Spacetalk operates, which are subject to sig nificant uncertainties and contingencies, many of which are outside the control of Spacetalk – as such undue reliance should not be placed on any forward - looking statements as actual results or performance may differ materially from these statements. • includes statements relating to past performance, which should not be regarded as a reliable guide to future performance. • includes certain financial information which Spacetalk considers useful to assist in evaluating Spacetalk’s performance, however, such information has not been subject to audit or review in accordance with Australian Auditing Standards. • All dollar values are in Australian dollars (A$) unless otherwise stated. spacetalk.co