Announcement PDF 1 ATOMOS LTD ACN 139 730 500 ASX: AMS Appendix 4E – Preliminary Unaudited Final Report Reporting period Reporting period: Previous corresponding period (‘PCP’): for the year ended 30 June 2025 for the year ended 30 June 2024 Results for announcement to the market Atomos Ltd and its controlled entities is referred to as “Atomos”, “the Group” or “the Company” within this report. Revenue and profit/(loss) after tax for the year ended 30 June 2025 2025 2024 % Change $'000 32,656 $'000 35,721 (9%) Revenue from ordinary activities Loss from ordinary activities after tax attributable to members Earnings before interest, tax, depreciation and amortisation (EBITDA) (14,512) (22,362) 35% improved (11,833) (17,336) 32% improved Earnings before interest, tax, depreciation, amortisation and items not in the ordinary course of business1 (7,403) (11,840) 37% improved Profit/(Loss) from ordinary activities after tax attributable to members before items not in the ordinary course of business1 (10,082) (15,068) 33% improved declined 1Results have been presented to exclude the impact of items outside the ordinary course of business to allow shareholders to make a meaningful comparison with prior year comparatives. Further details on the material items have been provided in the notes below. Dividends No dividends have been paid during the period, and it is not proposed that any dividends be paid. No dividends were paid during the previous corresponding period. Overview of operating results The Group’s revenue declined by $3.0 million in FY25, or 9%, compared to the PCP. However, EBITDA (excluding impairments in the current and PCP), was significantly improved with tighter expense control. Key highlights were as follows: • Revenue of $32.7m, 9% lower than the PCP. o Revenue in the second half (H2) of FY25 revenue was $14.1m, 24% lower than the first half (H1) FY25. 2 Appendix 4E – Preliminary Unaudited Final Report (continued) • Gross Profit of $8.5m, $2.7m lower than the PCP. FY25 GP% was 26% compared to 31% for PCP, significantly impact by $3.2m of inventory obsolescence expense and increasing tariffs in the United States. On an underlying basis (i.e. excluding non-recurring items), FY25 gross profit was $11.3m and GP% was 34%. Margins are expected to improve into FY26 following repricing in the US market • Reported earnings before interest, tax, depreciation, amortisation and impairment (EBITDA) a loss of $11.8m (FY24: 17.3m loss) • Underlying EBITDA a loss of $7.4m (FY24: $11.8m loss) which excludes non-recurring items • FY25 had non-recurring costs of $4.4m, primarily related to a $3.2m provision for inventory obsolescence and $2.7m in employee restructure costs, offset by a $1.7m reversal to onerous contracts provision. For a further explanation of the results above please refer to the accompanying Review of Operations. Annual General Meeting In accordance with ASX Listing Rule 3.13.1, the Company advises that its Annual General Meeting will be a physical meeting held on 14 November 2025 and the closing date for receipt of nominations from persons wishing to be considered for election as a director, is 5 September 2025. Other details relating to the AGM will be advised in the notice of meeting to be sent to all shareholders and released to ASX immediately after dispatch. Net tangible assets per security 30-Jun-25 Net tangible assets per security Total number of shares on issue at period end 30-Jun-24 (0.9) cents 1,215,018,471 0.3 cents 1,213,662,308 For the purposes of calculating net tangible assets per security, the carrying values of the Right-of-use assets and the related lease liabilities have been excluded from the calculations. Entities over which control has been gained or lost during the period There are no entities over which control has been gained or lost during the period. Associates and joint venture entities There are no entities over which control has been gained or lost during the period. Dividend reinvestment plans The Company currently does not have a dividend reinvestment plan. 3 Appendix 4E – Preliminary Unaudited Final Report (continued) Independent audit report This report is based on the consolidated financial statements that are in the process of final audit completion. The independent audit report will be included within the Company’s Annual Report and an unmodified audit opinion is expected with attention drawn to material uncertainty related to going concern. Accounting standards This report has been compiled using Australian Accounting Standards and International Financial Reporting Standards. Other information required by Listing Rule 4.3A Other information requiring disclosure to comply with Listing Rule 4.3A is contained in the 30 June 2025 Annual Report (including the Directors’ Report) which has not been lodged with this Appendix 4E. 4 Atomos Limited Consolidated Statement of Profit or Loss and Other Comprehensive Income For the year ended 30 June 2025 Notes 2025 2024 $'000 $'000 Revenue 32,656 35,721 Cost of sales (24,162) (24,517) Gross profit 8,494 11,204 26% 31% Other income Net foreign exchange gain/(loss) - 349 (1,191) 302 Employee benefits expense (8,929) (10,326) Research and development expense (1,579) (2,348) Advertising and marketing expense (2,471) (3,543) Finance costs (1,426) (1,224) (313) (6,702) (2,252) (2,258) Warranty and royalty expense (746) (936) Occupancy expense (492) (343) (2,340) (2,114) (14) (621) (1,210) (1,610) - (1,798) (14,469) (21,968) (43) (394) (14,512) (22,362) - - - Exchange differences on translating foreign operations 1,108 (349) Other comprehensive (loss)/profit for the year 1,108 (349) (13,404) (22,711) Basic loss per share (0.01) (0.06) Diluted loss per share (0.01) (0.06) Administration and other expense Distribution expense Legal and professional services Transaction costs Depreciation and amortisation Fair value adjustment Loss before income tax Income tax benefit/(expense) Loss for the year Other comprehensive income, net of income tax Items that will not be reclassified subsequently to profit or loss: Items that may be reclassified subsequently to profit or loss: Total comprehensive loss for the year Earnings per share 5 Atomos Limited Consolidated Statement of Financial Position As at 30 June 2025 Notes Assets Current assets Cash and cash equivalents Trade and other receivables Inventories Other current assets Total current assets Non-current assets Property, plant and equipment Right-of-use assets Intangible assets Financial assets Total non-current assets Total assets 2025 $'000 2024 $'000 1,813 1,828 9,054 1,962 14,657 2,900 4,970 8,714 3,346 19,930 226 1,322 1,548 16,205 876 4,158 5,034 24,964 Liabilities Current liabilities Trade and other payables Borrowings Provisions Lease liabilities Income taxes payable Total current liabilities Non-current Liabilities Borrowings Provisions Lease liabilities Income taxes payable Non-current Liabilities Total liabilities Net assets 6,702 181 2,685 594 1,566 11,728 11,314 136 4,603 916 1,456 18,425 14,208 95 1,196 15,499 27,227 (11,022) 83 4,114 4,197 22,622 2,342 Equity Issued capital Foreign currency translation reserve Share based payments reserve Options reserve Accumulated losses Total equity 134,077 463 3,627 264 (149,453) (11,022) 134,037 (645) 3,627 264 (134,941) 2,342 6 Atomos Limited Consolidated Statement of Changes in Equity For the year ended 30 June 2025 Balance at 1 July 2023 Transactions with owners Share-based payments Issue of new share capital Transaction costs relating to issue of share capital Total transactions with owners Comprehensive income Loss for the period Other comprehensive income Total comprehensive income/(loss) Balance at 30 June 2024 Balance at 1 July 2024 Transactions with owners Share-based payments Issue of new share capital Transaction costs relating to issue of share capital Total transactions with owners Comprehensive income Loss for the period Other comprehensive income Total comprehensive income/(loss) Balance at 30 June 2025 Issued capital (Ordinary shares) Accumulated losses $'000 119,301 $'000 (112,579) Foreign currency translation reserve $'000 (296) 16,215 (1,479) 14,736 - 134,037 Share based payments reserve Options reserve Total equity $'000 3,072 $'000 264 $'000 9,762 - 555 555 - 555 16,215 (1,479) 15,291 (22,362) (22,362) (134,941) (349) (349) (645) 3,627 264 (22,362) (349) (22,711) 2,342 134,037 (134,941) (645) 3,627 264 2,342 40 40 - - - - 40 40 134,077 (14,512) (14,512) (149,453) 1,108 1,108 463 3,627 264 (14,512) 1,108 (13,404) (11,022) 7 Atomos Limited Consolidated Statement of Cash Flows For the year ended 30 June 2025 2025 2024 $'000 $'000 Receipts from customers 35,814 37,554 Payments to suppliers and employees (49,061) (45,551) Interest received 18 17 Income taxes paid (39) (13,268) (1,139) (9,119) (3) (3) (41) (41) Notes Operating activities Net cash used in operating activities Investing activities Payments for property, plant and equipment Net cash used in investing activities Financing activities Proceeds from issue of equity instruments in the company Payment for equity raise costs Interest paid on borrowings and lease liabilities Repayment of lease liabilities 40 16,215 - (1,479) (479) (695) Proceeds of borrowings 21,981 (1,224) (1,145) 5,100 Repayment of borrowings Net cash generated by financing activities (8,723) 12,124 (8,323) 9,144 Net change in cash and cash equivalents (1,147) (16) Cash and cash equivalents, beginning of period 2,900 2,943 Exchange differences on cash and cash equivalents 60 1,813 (27) 2,900 Cash and cash equivalents, end of period * Minor Reclassifications between Cashflow and previously reported Appendix 4C’s 8 Notes to the Consolidated Financial Statements Review of Operations FY25 revenue of $32.7 million was $3.0m or 9% lower compared to revenue of $35.7m in the PCP. Revenue was lower in FY25 due to ongoing headwinds in the global economy, as well as the introductions of additional tariffs in the United States from February 2025 and increasing competition from lower cost competitors, softening demand from increasingly price conscious customers. Revenue was $14.1m in H2 FY25, following revenue of $18.6m in H1 FY25. The US tariffs had a significant impact on H2 FY25 following a conscious decision to pause all sales into the US during April and May with the fluid tariff situation. Forecast increases in revenues from new products, Ninja Phone and Sun Dragon, did not eventuate as each product failed to resonate with customers. Accordingly, obsolescence provisions of $1.5m and $0.5m respectively, were raised during FY25. Gross Profit margin was 26% compared to 31% for PCP, significantly impact by $3.2m of inventory obsolescence expense and increasing tariffs in the United States. On an underlying basis (i.e. excluding non-recurring items), FY25 gross profit margins were consistent with FY24 at 34%. Margins are expected to improve into FY26 following repricing in the US market. Operating expenses were $8.6m or 30% lower in FY25 compared to FY24 on a reported basis. Excluding non-recurring costs, operating costs were $5.6m or 23% lower in FY25 compared to FY24. The Company has finalised its comprehensive cost restructure having already significantly reduced staff costs with headcount now under 55, down from around 90 in December 2024. The restructure is now complete, with the full financial benefit being realised from 1H26. FY25 EBITDA loss of $11.8m was $5.5m or 32% favourable to EBITDA loss of $17.3 in FY24. The FY25 underlying EBITDA loss after adjusting for one-off/non-recurring items was $7.4m which was $4.4m or 37% favourable compared to FY24. Finance costs increased by $0.2m to $1.4m in FY25 primarily due to the drawdown on the new debt facility during the year ended 30 June 2025. Total debt as at 30 June 2025 was $14.389m (including $181k for credit cards) compared to $136k (credit cards) as at 30 June 2024. Depreciation and amortisation decreased by $0.4m in FY25 due to lower fixed asset acquisitions in FY25 as well as the closure of several offices including Melbourne Connect, Germany, US and UK. Income tax expense in FY25 relates tax payments made by non-Australian 100% owned subsidiaries. The consolidated loss of the Group for the financial year after providing for income tax amounted to $14.5 million (2024: loss $22.4 million). 9 Summary of results for 2025 compared to prior period Consolidated Statement of Profit or Loss and Other Comprehensive Income Revenue Cost of sales Gross profit Gross Margin % Operating expenses Other income EBITDA Depreciation and amortisation Impairment of associate Finance costs Loss before income tax Income tax benefit / (expense) Loss for the year 2025 2024 Change $ $'000 32,656 (24,162) 8,494 26% (20,327) 0 (11,833) (1,210) 0 (1,426) (14,469) (43) (14,512) $'000 35,721 (24,517) 11,204 31% (28,889) 349 (17,336) (1,610) (1,798) (1,224) (21,968) (394) (22,362) $'000 (3,065) 355 (2,710) 8,562 (349) 5,503 400 1,798 (202) 7,499 351 7,850 Change % (9%) (1%) (24%) (5%) (30%) (100%) (32%) (25%) N/A 17% (34%) (89%) (35%) 10 Review of Operations (continued) Gross Profit compared to prior period – Underlying basis Underlying Gross Profit - excluding 2025 2024 non-recurring inventory write-downs $'000 $'000 Revenue 32,656 35,721 Cost of sales (21,395) (23,680) Gross profit 11,261 12,041 Gross Margin % 34.5% 33.7% Change $ Change % $'000 (3,065) 2,285 (780) (9%) (10%) (6%) 0.8% Revenue, Gross Profit and Gross Margin H2 FY24 compared to H1 FY24 – Underlying basis Revenue, Gross Profit and Gross Margin 2HFY25 1HFY25 Change $ Change % FY25 Total Revenue $'000 14,070 $'000 18,586 $'000 (4,516) (24%) $'000 32,656 Cost of sales (9,878) (11,518) 1,640 (14%) (21,395) Gross profit 4,192 7,068 (2,876) (41%) 11,261 Gross Margin % 30% 38% (8%) 34% Included in the 2025 and 2024 results were certain items which were significant and/or not incurred in the ordinary course of business and are fully detailed in the normalised earnings section on pages 13 and 14. The impact of excluding these items from the Consolidated Statement of Profit or Loss and Other Comprehensive Income is as follows: Normalised Consolidated Statement of Profit or Loss and Other Comprehensive Income 2025 2024 Change $ Change % $'000 $'000 $'000 Revenue Gross profit Gross Margin % Operating expenses Other income 32,656 11,261 34% (18,664) 0 35,721 12,041 34% (24,230) 349 (3,065) (780) 5,566 (349) (9%) (6%) 1% (23%) (100%) Normalised EBITDA (7,403) (11,840) 4,437 (37%) 11 Inventories Inventories Inventories on hand at cost Provision for obsolescence Inventories on hand - written down value 2025 $'000 17,157 (8,103) 9,054 Movements in provision for obsolescence Balance at 1 July 2023 Increase in inventory obsolescence - FY2024 Balance at 30 June 2024 Increase in inventory obsolescence - FY2025 Decrease due to stock disposal - FY2025 Balance at 30 June 2025 $'000 (4,785) (837) (5,622) (3,184) 703 (8,806) 2024 Change $ Change % $'000 14,336 (5,622) 8,714 $'000 2,821 (2,481) 340 20% 44% 4% The cost of inventories recognised as an expense for the 2025 financial year was $21.6m (2024: $20.6m). The cost of inventories recognised as an expense includes $2.5m of net inventory write-downs in 2025 (2024: $0.8m). Other Key Balance Sheet Movements Trade Debtors Trade Debtors decreased by $3.14m from $4.97m in FY24 to $1.83m in FY25. The decrease includes the early settlement of June Invoices and lower sales in the May/June Period year-on-year. Trade and other Payables Trade and other payables decreased by $4.61m from $11.31m in FY24 to $6.70m in FY25. The prior year figure included an amount of $3.3m relating to Aged Creditors on Payment Plans which were settled in FY25 as well as the accruals for legals costs and settlement in relation to the former CEO. Right-of-use assets Right of use assets decreased by $2.84m from $4.16m in FY24 to $1.32m in FY25. The decrease reflects cancellation of the Melbourne Connect lease and the closure of Global Offices in Germany, US and UK. 12 Issued Capital – Ordinary Shares 30-Jun-25 $'000 134,078 Ordinary shares – fully paid 30-Jun-24 $'000 134,037 Movements in issued capital All shares are equally eligible to receive dividends and the repayment of capital and represent one vote at a shareholders’ meeting of the Company. Reconciliation of underlying earnings for 2025 and the prior financial year Issue Date Balance at beginning of year Shares issued on exercise of listed options Shares issued on exercise of listed options Shares issued on exercise of listed options Balance at end of year 13-Sep-24 30-Sep-24 1-Nov-24 2025 Shares $'000 1,213,662,308 134,037 1,297,500 $0.03 39 57,840 $0.03 1 823 $0.03 1,215,018,471 134,077 Issue Price Earnings before interest, tax, depreciation and amortisation (EBITDA) is a non-IFRS term which the Group uses to measure performance. Additionally, the reported 2025 and 2024 results included a number of items that were significant and/or not considered to be in the ordinary course of business and the tables below quantify these to provide a view of the underlying trading results. 13 $’000 Revenue Cost of sales Gross profit Gross Margin % Operating expenses Other income EBITDA Depreciation and amortisation Finance costs Loss before income tax Income tax expense Loss for the year 2025 Items that were significant and/or not in the ordinary course of business1 Underlying Result 32,656 (24,162) 8,494 26% (20,327) 0 (11,833) (1,210) (1,426) (14,469) (43) (14,512) 2,767 2,767 32,656 (21,395) 11,261 34% (18,664) (7,403) (1,210) (1,426) (10,039) (43) (10,082) 1,663 4,430 4,430 4,430 1 Items that were significant and/or not in the ordinary course of business (2025) Inventory Write-downs, Operating Expenses and Impairment Charges Provision for inventory obsolescence Obsolescence reduction due to stock disposal One off Inventory write-off Employee restructure costs Debt facility legal fees Non-recurring tradeshow marketing expenses Reversal of onerous contract provisions Legal fees relating to historic contractual matters Inventory Write-downs, Operating Expenses and Impairment Charges 3,184 (703) 286 2,663 221 398 (1,714) 96 4,430 Total Items not in the ordinary course of business 4,430 $’000 14 2024 $’000 Revenue Cost of sales Gross profit Gross Margin % Operating expenses Other income EBITDA Depreciation and amortisation Impairment charge Finance costs Loss before income tax Income tax expense 35,721 (24,517) 11,204 31% (28,889) 349 (17,336) (1,610) (1,798) (1,224) (21,968) (394) Loss for the year (22,362) 1 Items that were significant and/or not in the ordinary course of business (2024) Inventory Write-downs, Operating Expenses and Impairment Charges Employee restructure costs Ex-CEO separation and legal claim Debt facility novation and legal fees Fees related to strategic review Bad debts related to prior periods Provision for inventory obsolescence Provision for legacy purchase orders for component inventory Impairment of associate Inventory Write-downs, Operating Expenses and Impairment Charges Total Items not in the ordinary course of business -End of Appendix 4E – preliminary Unaudited final report- Items Underlying that were Result significant and/or not in the ordinary course of business1 837 837 4,659 5,496 1,798 7,294 7,294 35,721 (23,680) 12,041 34% (24,230) 349 (11,840) (1,610) (1,224) (14,674) (394) (15,068) $’000 773 1,145 259 134 291 837 2,057 1,798 7,294 7,294