ARBB · ARB IOT Group Limited

ARB IOT Group Limited delivered strong revenue growth of 82% year-over-year to $37.0 million for the six months ended December 31, 2025, primarily fueled by sales of IoT hardware AI servers as highlighted in Exhibit 99.1. This marks a significant rebound from the prior period's $18.4 million, reflecting successful execution in the IoT AI Server Solution segment amid expanding demand for AI data center infrastructure in Malaysia. Gross profit, however, contracted 32% to $0.5 million due to a near-proportional 86% rise in cost of sales, yielding a slim gross margin pressured by high input costs. Operating losses persisted, driven by elevated administrative expenses of $4.1 million (down from $5.9 million YoY) and substantial non-cash depreciation/amortization charges totaling approximately $3.6 million on property, plant, equipment, and intangibles. The net loss narrowed 47% to $3.6 million, with EPS loss improving to $(2.04), benefiting from scale efficiencies and reduced prior-year impairments. Balance sheet shows improved liquidity with $24.4 million in current assets versus $17.7 million previously, bolstered by $8.5 million in new contract liabilities from customer prepayments signaling robust backlog. Cash position dipped slightly to $7.9 million amid $3.8 million deposit placements, but operations generated positive $0.1 million cash flow, a turnaround from prior $2.0 million outflow. No forward guidance provided; focus remains on AI partnerships and smart agriculture deployments per Exhibit 99.2 MD&A context. Investors should monitor gross margin recovery and cash conversion as revenue scales.