Mobilicom Ltd (MOB) Earnings

Management highlights

### Financial Performance - Second quarter 2026 revenue reached $1.2 million, with all revenue from off-the-shelf sales to enterprise and defense customers, a majority from the U.S. market - The company holds $16 million in cash on hand, with a total potential capital position of $28.5 million including outstanding warrants; it has no debt, a single class of ordinary shares, and no active ATM program - EBITDA loss is approximately $0.5 million per month, in line with planned cash burn, with most of the reported IFRS net loss consisting of non-cash items like share-based compensation ### Product and Business Development - Launched two new products in the Scarper product family: Scarper Multiband and Scarper Tactical, and converted these launches into two new design wins within the first half of 2026, the fastest conversion from product launch to initial order in company history - Won a new design win with an Israeli Tier 1 defense player for a short to mid-range loitering munition platform, with potential for large future volumes - The company now has 9 active Tier 1 customer platforms, meeting the full-year 2026 target of 8-10 platforms by mid-year, exceeding the top end of the target range - One program of record has entered monthly delivery cadence, meeting the 2026 goal of 1-2 programs in monthly ramp-up - Received FCC Trusted Drone exemption status for all company products, meeting new U.S. regulatory requirements - Progressed cybersecurity software engagements with NVIDIA and Qualcomm ecosystems, on track to meet the 2026 full-year goal of 4-6 new OEM partners ### U.S. Market and Manufacturing Progress - Maintained ongoing monthly delivery for the U.S. Tier 1 Department of Defense Program of Record, and advanced the U.S. Army LASSO program validation phase - Completed the process of selecting a U.S. manufacturing partner, narrowing candidates from five to two, and is in the final stages of finalizing an agreement to meet onshoring requirements - Procured long lead items for 1,000 additional units to address supply chain constraints and support the first U.S. production run scheduled for 2026 - Selected to showcase its secured autonomy solution at Northern Strike 2026, a premier U.S. Department of Defense military exercise ### Strategic Positioning - Mobilicom provides IP-based cybersecurity and hardware subsystems for drone, robotics and autonomous system manufacturers, positioning the company at the convergence of three high-growth trends: drones, cybersecurity, and autonomous robotics - The company's integrated hardware-software stack model increases Mobilicom content per platform, improves customer retention, and creates higher cross-selling opportunities for high-margin software - New U.S. cybersecurity mandates align directly with the company's existing product offerings

Guidance

• Management reaffirmed its full-year 2026 operational targets, and the company is already on track or ahead of plan on all key 2026 goals: reaching 8-10 Tier 1 platforms, securing 4-6 new cybersecurity OEM partners, ramping 1-2 programs of record to monthly delivery cadence, and establishing U.S. onshore manufacturing capacity by the end of 2026 • Monthly delivery cadence for the existing U.S. Program of Record is expected to continue through the second half of 2026, driving continued revenue growth in H2 • New orders received after the end of the first half have already replenished backlog for the second half of 2026 • The first U.S. domestic production run is on track to be completed in 2026 as planned • Management expects that growing cybersecurity regulatory requirements will drive increasing demand for the company's offerings in coming quarters

Segment performance

Mobilicom operates two product segments: 1) Hardened secured hardware: This segment generated 100% of first half 2026 revenue through off-the-shelf product sales, with gross margins of 50-60%. It serves as the entry point to customer relationships and is the primary revenue driver in the period. All hardware solutions have received U.S. Department of Defense approval and NDAA validation. 2) Cybersecurity and software: This segment does not contribute meaningful current revenue, but is targeted for future cross-selling to existing hardware customers. It carries much higher gross margins of up to 90% and faces minimal competition in the small autonomous system cybersecurity space.

Risks & headwinds

• All forward-looking results are subject to material uncertainty, as disclosed in the company's SEC filings, and customer program timelines for volume production are controlled by OEM partners rather than Mobilicom • The emerging high-volume low-cost FPV drone market under the U.S. Drone Dominance Program is highly price competitive, and entering this segment carries risk of low or negative margins • Supply chain constraints remain a concern, requiring advance procurement of long-lead production materials • Volume production scaling is dependent on the progress of OEM customer programs, which can have longer timelines than internal development

Analyst Q&A

• Q: How did the U.S. Program of Record ramp-up translate to second quarter revenue and delivery, and when would the company need to raise new capital?

  A: The program moved to a steady monthly delivery cadence, resulting in $1.2 million in Q2 revenue, and this cadence is expected to continue through the second half. The company has a multi-year cash runway, no debt, and $12.6 million in potential additional capital from outstanding existing warrants. New capital would only be raised for opportunistic initiatives like accelerated growth or M&A, not to fund the current operating plan, with the focus on converting existing cash into production and deliveries.