Close the Loop (ASX:CLG) released its financial results for the half-year ended Dec. 31, 2025, revealing a period of significant operational pressure.
While the company achieved a slight revenue increase of 2% to $92.3 million compared to the prior corresponding period, profitability took a sharp hit.
Underlying EBITDA fell 23% to $9.3 million, and underlying NPATA dropped 61% to $2.5 million.
The company’s recycling division struggled, particularly within the North American Information Technology Asset Disposition segment.
To address these inefficiencies, the company is transitioning key product lines to its Mexicali facility, which is currently ramping up throughput and labor efficiency to improve future operating leverage.
However, the underperformance of ISP Tek Services necessitated a substantial $23.2 million impairment charge on intangible assets during this period.
In contrast, the packaging division remained a bright spot, delivering a resilient performance driven by steady demand in Australia and South Africa.
Operating cash flow swung to a loss of $4.9 million, and net debt climbed 12% to $56.98 million.
At the time of reporting, Close the Loop's share price was $0.026.