Netlinkz Reports $12.1M Loss, Down 43%, Driven by ASEAN Cybersecurity Focus

Strategic Restructure and Market Realignment

Netlinkz Limited (ASX – NET) has unveiled its preliminary financial results for the year ended 30 June 2025, revealing a net comprehensive loss of $12.1 million. While still in the red, this represents a notable 43% improvement compared to the $20.6 million loss recorded in the previous year. The company attributes this progress largely to a comprehensive strategic restructure completed during the financial year.

Central to this transformation was Netlinkz’s decision to exit the challenging China and Japan markets, pivoting instead towards the burgeoning ASEAN region. The Philippines has emerged as the focal point of this new strategy, underpinned by the formation of Securelink Networks Ltd, a joint venture with the Philippine Telegraph and Telephone Corporation (PT&T), one of the country’s most established telecom providers.

Operational Focus and Cost Discipline

The restructure also entailed a leaner organisational model, concentrating on cybersecurity software and platform management sales through Securelink Networks. This shift has enabled a significant reduction in head office operating costs and monthly cash burn. Additionally, the company successfully renegotiated its debt arrangements, securing extensions on maturity dates and receiving interest waivers from lenders, many of whom have expressed willingness to convert debt into equity once Netlinkz regains its ASX quotation.

Research and development expenses have also been curtailed following the finalisation of key product developments, further easing the financial burden.

Growth Catalysts in the Philippines

Securelink Networks officially launched in Manila in March 2025, with strong attendance from government officials, enterprise partners, and diplomatic representatives, signaling robust local support. The joint venture is leveraging PT&T’s existing customer contracts as a foundation to scale cybersecurity and network solutions across enterprise and government sectors.

Notably, Netlinkz secured a five-year contract worth approximately $9.5 million through its SSI business, alongside a landmark $1 million Virtual Secure Network (VSN) license sale to a major Philippine corporate customer. This initial deployment across multiple retail and logistics sites provides a critical use case to drive further adoption in the region.

Mitigating Risks and Future Outlook

By divesting its China operations and transitioning to a license-based model for Chinese customers, Netlinkz has mitigated geopolitical risks associated with China-US tensions and eliminated the need for further capital investment in that market. The company is now focused on scaling revenue streams from cybersecurity, data management, and lawful interception products via Securelink.

Despite the ongoing losses and a working capital deficit, the board remains confident in the company’s going concern status, supported by lender backing, cost reductions, and a strategic plan targeting positive cash flow in FY26. Preparations are underway to lift the ASX suspension and raise new capital, which will be critical to sustaining growth momentum.