DXN (DXN) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue was $1.74 million, down 63% year-over-year due to project delays and customer-driven deferrals, with activity resuming on key contracts.

• Modular Division contributed ~85% of FY25 revenue, Data Centre Operations 12%, and DCaaS 3%.

• The company operates a vertically integrated model, delivering modular data centres and services across Asia Pacific, with a robust backlog and pipeline.

• Strategic MOU and shareholder agreement signed to establish a joint venture in Indonesia, targeting Southeast Asia and Asia-Pacific growth.

• DCaaS segment launched, generating recurring revenue and expanding the service offering.

Financial highlights

• Q2 FY26 revenue: $1.74 million (Modular: $1.3m, Data Centre Ops: $0.6m, DCaaS: $0.08m), down 63% YoY.

• Cash balance at 31 December 2025: $1.7 million.

• Q2 FY26 cash receipts: $2.2 million.

• Backlog at quarter-end: $14.5–15 million, providing strong revenue visibility.

• Operating cash flow for Q2 FY26: $(666,337), compared to $(427,620) in the previous quarter.

Outlook and guidance

• 65% of backlog targeted for conversion to revenue in 2HFY26, with 80 projects under exploration.

• Revenue expected to increase in Q3 and Q4 as delayed projects resume.

• Expansion into Indonesia and Southeast Asia expected to drive future growth and market diversification.

• Ongoing focus on growing DCaaS for revenue stability and diversification.