Zimi Limited

Income statement

Sources: Moomoo income statement data (FY2021–FY2024 revenue, cost of revenue, gross profit, operating expenses, S&A); InvestSMART/Morningstar (depreciation, amortisation, net profit, EPS, FY2023–FY2025); Annual Report FY2025 (revenue A$815,877; operating loss A$3,252,864). EBITDA is an analyst approximation (net loss less depreciation and amortisation, ignoring small interest charges of ~A$60,800 in FY2025); it is not a company-reported figure. Diluted EPS equals basic EPS (loss-making; options anti-dilutive).

Sources: Company FY2026 update (July 2026) reporting invoiced revenue +142% to A$1.98 million and receipts +120% to A$1.99 million; FY2025 comparatives derived from those growth rates. Note FY2026 Q1 also included a A$1.851 million raise that was announced in FY2025 and completed in September 2025.

Half-year and quarterly detail (FY2025–FY2026)

Source: Google Finance half-year data derived from Zimi's Appendix 4D/annual filings (aggregator; treat as indicative). Notably, cost of goods sold exceeded revenue in both halves, implying negative reported gross margin — possibly reflecting inventory write-downs, manufacturing re-start costs or classification of production overheads.

Sources: Appendix 4C reports (Sep 2025, Dec 2025, Mar 2026). June quarter values are analyst residuals from FY2026 totals and are indicative only (invoiced revenue residual depends on the September quarter figure, which was not disclosed in retrieved materials).

Margins and growth

Sources: Operating margin per InvestSMART/Morningstar; other ratios derived. Revenue CAGR FY2021–FY2025: mathematically ~116% p.a. off a A$18k base, which is meaningless given volatility; FY2022–FY2025 CAGR: approximately -37% p.a.; FY2022–FY2026 (invoiced basis, mixing statutory and management metrics): approximately -12% p.a.

Balance sheet

Sources: Annual Report FY2024 (cash A$520,572; 2023 A$980,126; net assets A$1,363,279; 2023 A$4,283,716; current ratio 1.1x vs 2.3x); Annual Report FY2025 (cash A$215,963; net current assets A$308,402); InvestSMART (FY2025 total debt A$490.8k, share equity A$932.3k, long-term debt nil). Total assets and goodwill/intangibles: n.p.d. in retrieved materials; however, amortisation of ~A$1–2 million p.a. indicates capitalised development costs and/or acquired intangibles from the 2020 Zimi acquisition that have been progressively written down — net tangible assets per security fell 52.2% in FY2025 (Appendix 4E FY2025).

Cash flow

Sources: Moomoo direct-method cash flow data (FY2021–FY2024; operating cash flow approximated as receipts less payments less interest); Annual Report FY2025 (net operating cash outflow A$2,467,830). Capex and capitalised development: n.p.d. (September 2025 quarter investing outflow A$76,000).

Ratios

ROE derived from net loss over closing equity. ROA, ROIC, asset turnover and cash conversion cycle cannot be computed without total assets, inventory, receivables and payables (n.p.d. in retrieved data). Net debt/EBITDA and interest coverage are not meaningful given negative EBITDA.

Commentary

Revenue. Zimi's top line is defined by boom-bust cycles rather than a growth trend. FY2022 revenue of ~A$3.3 million reflected channel fill after the Quantify–Zimi merger; FY2023 collapsed by 93% as Powermesh production stopped. FY2024 rebounded to A$3.23 million with recommenced production, the Smoke Alarms Australia distribution order and new Senoa sales. FY2025 then fell 74.8% to A$815,877, which management attributed (in the FY2025 report commentary) to the transition of manufacturing supply; the report emphasised that supply arrangements now provided a foundation for revenue growth. FY2026 shows the recovery: December 2025 quarter invoiced revenue of A$590,000 was up 300% on the prior year, and full-year invoiced revenue reached A$1.98 million. Even so, FY2026 remains below FY2022 and FY2024 levels.

Gross margin. Margins are thin and erratic (11% in FY2022, negative in FY2023, 21.5% in FY2024). Half-year data for H2 FY2025 and H1 FY2026 shows cost of goods sold exceeding revenue, which — if accurate — means the company is not yet earning a positive contribution on its hardware at current volumes. This is the most important unit-economics question for the investment case.

Operating costs and losses. Operating expenses have trended down from ~A$6.2 million (FY2023) to ~A$4.8 million (FY2024), and staff, administration and lease costs fell substantially again in the March 2026 quarter. Net losses have narrowed from A$5.4 million (FY2023) to A$3.4 million (FY2024) and A$3.3 million (FY2025, a 3.34% improvement). A significant share of reported losses is non-cash amortisation (~A$1 million p.a.).

Balance sheet and liquidity. The balance sheet has steadily eroded: net assets fell from A$4.3 million (FY2023) to A$0.9 million (FY2025), and year-end cash fell to A$216,000 in FY2025. The FY2025 financial statements contain a material uncertainty regarding going concern, with directors relying on the A$1.851 million raise and the Group's history of raising capital. Debt is small (~A$0.5 million, all current) but non-trivial relative to equity.

Cash flow. Operating cash burn has typically been A$2.3–2.8 million per year, partly offset by R&D tax incentive refunds. The December 2025 quarter marked a notable inflection with positive operating cash flow of A$374,000, driven by receipts on large orders, but the company returned to the equity market in May 2026, indicating that positive cash generation was not sustained.

Management guidance

No quantitative guidance. Management points to: a forward order pipeline of A$469,000 at June 2026; continued growth through project, Amazon and NDIS channels; the 2027 launch of the next-generation Matter range through Directed; and expected further portfolio additions. There is no consensus estimate.

Bull case

1. Channel unlock: Directed's >10,000 retail outlets plus GSM's wholesale reach give Zimi a genuinely national route to market for the first time, which could step-change volumes in 2027 if sell-through materialises.

2. Matter timing: Re-engineering Senoa for Matter positions Zimi as one of the few Australian-designed, electrician-installed Matter wiring devices at the moment the standard reaches mainstream retail.

3. Operating leverage on a tiny cost base: With staff and overheads already cut and FY2026 invoiced revenue up 142%, incremental revenue at improving gross margins could move the company toward cash break-even, as briefly achieved in the December 2025 quarter.

Bear case

1. Unit economics unproven: Half-year data showing COGS above revenue suggests the product may not yet be profitable to make at current scale; growth would then increase cash burn.

2. Funding treadmill: A going-concern qualification, sub-A$1 million cash balances and raises at A$0.004–0.006 imply continued heavy dilution, eroding per-share value even if the business grows.

3. Competitive squeeze: Matter levels the playing field for low-cost Asian manufacturers and incumbents with far greater scale and wholesaler relationships, limiting Zimi's pricing power and differentiation.

Key catalysts and monitorables (next 12 months)

Analyst verdict

Zimi Limited is a sub-scale, high-risk smart-home hardware company whose strategic narrative has improved markedly in 2026 while its financial foundation remains fragile. The positives are real and recent. The December 2025 quarter delivered the company's strongest invoiced revenue in two years and its first positive operating cash flow quarter; FY2026 invoiced revenue more than doubled to roughly A$2 million; and the September 2026 exclusive agreement with Directed Electronics gives the company something it has never had — national retail reach across Australia and New Zealand for a Matter-native product range launching in 2027. The board now combines the Gerard family's deep electrical-industry heritage with direct oversight of the Zencontrol manufacturing facility, which should reduce the supply interruptions that wrecked FY2023 and FY2025.

Against this, the financial evidence remains weak. Statutory revenue has never sustainably exceeded A$3.3 million; gross margins have been thin or negative; net assets have shrunk to under A$1 million; and the auditor-flagged going-concern uncertainty persists. Each operational step forward has been funded by equity at progressively lower prices, culminating in a placement at A$0.004 and a share count now above one billion. Retail distribution at scale requires inventory investment that the current balance sheet cannot finance without further dilution or supplier/shareholder support.

The investment case is therefore binary and option-like: success depends on the 2027 Matter launch generating meaningful sell-through at positive margins before funding capacity is exhausted. Investors should treat Zimi as a speculative venture position, sized accordingly, and monitor three data points above all others — reported gross margin, quarterly customer receipts, and the price and size of the next capital raise. Until gross margin is demonstrably positive and receipts consistently exceed A$1 million per quarter, the balance of evidence favours caution.

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Principal sources: Zimi Limited ASX announcements and filings — Annual Reports FY2022, FY2024, FY2025; Appendix 4E FY2025; Quarterly Activities/Appendix 4C reports (Dec 2023, Sep 2025, Dec 2025, Mar 2026, Jun 2026); ASX releases dated 26 Nov 2025, 19 Feb 2026, 30 Apr 2026, 4 May 2026, 12 May 2026, 29 Jun 2026, 23 Jul 2026, 31 Jul 2026, 23 Sep 2026, 7 Oct 2026. Secondary/aggregator data: Market Index, InvestSMART/Morningstar, Moomoo, TipRanks, Google Finance, Simply Wall St, MarketBeat, MarketScreener, Kalkine, Grafa, Listcorp, Strawman, Statbase. Aggregator-sourced figures are flagged where used; discrepancies (e.g., FY2022 revenue A$3.33m vs A$3.05m) are noted in the text.