Stonegate Capital Partners Updates Coverage on Electro Optics Systems Holdings Ltd (EOS) 1Q 2025

Dallas, Texas--(Newsfile Corp. - April 30, 2025) - Electro Optics Systems Holdings Ltd (ASX: EOS): Stonegate Capital Partners updates their coverage on Electro Optics Systems Holdings Ltd (ASX: EOS). In November of 2024 EOS announced the signing of a binding agreement to divest the Company's EM Solutions segment for an enterprise value of $144.0M to Cohort, a UK based company. We note that this transaction triggers the repayment of its current debt facility. Following the closing of this transaction, which was completed on January 31, 2025, the Company had ~$128.0M in cash on the balance sheet and zero debt outstanding. We view this transaction as accretive to the Company's gross margin and expect that it will provide EOS with sufficient liquidity to pursue growth objectives closer to the Company's core operations. Following quarter end, EOS received the final payment of $1.3M, representing the final working capital completion adjustment.

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Key Takeaways:

• Following the closing of EM Solutions, the Company had ~$128.0M in cash on the balance sheet and zero debt outstanding.
• The Company saw year-over-year revenue growth of 9%.
• Our DCF analysis arrives at a valuation range of AUD$1.59 to AUD$1.70 with a midpoint of AUD$1.64.

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About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

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