Motio's Debt-Free Growth Story Stays Under the Radar

A tiny out-of-home digital advertising business keeps compounding earnings at 20-25% a year, and fund managers say the market still hasn't noticed.

30 Sep 2026 · 3 min read

Motio, a tiny out-of-home digital advertising business trading at just $17 million to $18 million market capitalisation, has quietly compounded EBITDA growth of 20 to 25 percent a year while paying off all its debt and building a cash balance, drawing fund managers who describe it as exceptionally cheap for the growth on offer and largely under the radar.

A capital-light business gathering momentum

Merewether Capital said first-quarter revenue was only slightly higher after Motio exited low-margin third-party revenue, but stronger margins allowed management to forecast cash profit of $600,000. The following month, Merewether reported Motio generated more than $700,000 of EBITDA, over 20 percent growth on the prior year, putting it on track for $2.5 million to $3 million of EBITDA in FY26, reasonable value against a market capitalisation of just $17 million, with the company also completing a small capital raise to pay off remaining debt and build working capital.

Debt-free with a growing rollout pipeline

Merewether Capital said Motio's revenue rose 3 percent to $4.3 million with net profit of $800,000, compared with a small loss the prior year, and with strong cash generation and the earlier capital raise, the company had paid off all debt, held $4 million of cash on the balance sheet, and had a pipeline of new customer site locations for its digital screens, with management highlighting 150 to 175 new locations contracted to install over the second half.

With strong cash generation and a small capital raise last year MXO has now paid off all debt, has $4m cash on the balance sheet and a pipeline of new customer site locations to roll out their digital screens.

— Merewether Capital, Monthly Report, February 2026

Sales activity hits record highs

DMX Asset Management said it added to its position after Motio noted sales activity had hit record highs, with forward revenue up 13 percent on the same time the prior year and the fourth quarter tracking to exceed its previous record. Merewether Capital said the trading update showed a strong re-acceleration of growth in the third quarter, up around 20 percent on the prior year after modest growth in the first half, with momentum continuing into the seasonally strong fourth quarter and forward revenue bookings up 13 percent, supported by more digital screens contracted across its Health network.

Cheap for the growth on offer

DMX Asset Management said FY26 cash EBITDA rose 24 percent to $2.4 million, with May and June the highest revenue months in the company's history and momentum broad-based across the business, expected to continue into FY27 with first-quarter forward bookings up 20 percent, describing Motio as very much under the radar and well led. Merewether Capital said a further trading update guided to EBITDA of $2.5 million, 25 percent growth on the prior year, noting Motio is historically a very capital-light business where most of that EBITDA should convert cleanly to cash flow, leaving the stock trading exceptionally cheap for the growth on offer at its current market capitalisation.

MXO is historically a very capital light business and I expect most of that EBITDA to convert cleanly to cashflow; with a current market cap of $17m, it leaves MXO trading exceptionally cheap for the growth on offer.

— Merewether Capital, Investor Update, June 2026

Momentum accelerates further into FY27

DMX Asset Management said Motio's FY26 net profit before tax came in at $1.6 million, a $1.7 million improvement on the prior year, with FY27 revenue at week seven of the new financial year running 28 percent ahead of the same point a year earlier, underpinned by around $2.5 million of cash EBITDA in FY26, an $18 million market cap, $4 million of cash and a strong double-digit revenue growth outlook.

What fund managers say they are watching next is continued rollout of digital screens across the Health network and newer segments, delivery of the 150 to 175 new contracted locations, whether the FY27 revenue acceleration sustains, and whether the market eventually re-rates a business fund managers currently describe as largely under the radar.