The ASX-listed portfolio business generated $6.33 million in revenue in the September quarter, up 30% year-on-year, and 38% on the June quarter. Operating cash outflow narrowed 56% to $1.84m.
The growth includes the first full quarter from its earlier acquisitions – Val Morgan Digital, Pedestrian Group and Time Out Australia. The ASX reporting didn’t offer a breakdown of separate organic growth figures.
Vinyl (ASX:VNL) nabbed Val Morgan Digital for $10.5 million in March, paying $7m cash and $3.5m in scrip, as well as adding Pedestrian from Nine andthen Time Out, both in June, for nominal considerations.
Gaunt increased his unsecured loan facility from $10m to $12m. It carries interest at the RBA cash rate plus five percentage points, with principal due in March 2031. The support comes against a thin cash buffer. Vinyl ended September with $777,000 cash and just $53,000 in undrawn facilities.
Before the October top-up, that represented 0.45 quarters of funding at September’s operating cash burn.
Customer receipts rose 37% annually to $5.52m, at the bottom end of the revised guidance of $5.5-6.5m, well below July’s $7m+ forecast.
Collections are a weakness, with more than $5m outstanding at Sept 30, including $1.5m+ overdue. The company blamed it on inherited billing systems and said it was tightening debtor oversight.
More than $8m in existing receivables and amounts to be invoiced were due during the December quarter.
Despite its positioning as a music tech, publishing is the beating heart, with the FY26 accounts, released last month, showing $14.49m, or 77% of revenue, from that side of the business.
The group’s FY26 net loss reduced to $8.6m, from $15.9m in FY25. Vinyl’s auditor noted material uncertainty over its ability to continue as a going concern, dependent on forecast profitability and, if needed, further funding, which five weeks on, has arrived.
Having made a similar claims in previous years, CEO Josh Simons once again dangled the carrot of impending financial viability. Vinyl is now targeting a sustainably positive monthly EBITDA run-rate from December, but that doesn’t establish either a statutory profit or positive operating cash flow.
There are encouraging signs: monthly gross margins increased from 53% in July to 56% in September. Operating expenses are trending lower, with further savings are expected this quarter by shedding duplicate personnel, software, property and administration costs from its M&A deals
“We have built the audience scale. Our priority now is profitable business scale,” Simons said.
Vinyl maintained its $38–40 million FY27 revenue forecast and says December-quarter bookings are already at record levels, helped by campaigns postponed from September.
But based on that guidance, it needs roughly $10.6–11.2m in average quarterly revenue across the remaining nine months – huge leap on September’s result.
Investors nonetheless welcomed today’s news with the shares soaring by nearly 18% on Thursday, adding half a cent to reach 3.3 cents.
Vinyl shares have fallen 64% in 2026.
