Excite Technology Doubles Losses Amid 53% Revenue Surge and CBIT Acquisition
Excite Technology Services reported a strong 53% revenue increase to $12.27 million for FY2025 but also saw its net loss nearly double to $4.44 million. The company expanded its footprint with the acquisition of digital forensics specialist CBIT Pty Ltd.
- 53% revenue growth to $12.27 million
- 94% increase in net loss to $4.44 million
- Acquisition of CBIT Pty Ltd completed in October 2024
- Material uncertainty on going concern flagged in audit
- Raised $5.15 million via equity and convertible notes
Revenue Growth Outpaces Losses
Excite Technology Services Limited has reported a significant 53% increase in revenue for the year ended 31 March 2025, reaching $12.27 million, up from $8 million the previous year. This growth reflects the company’s ongoing expansion in cybersecurity services across Australia, including managed services and digital forensics.
However, this top-line improvement was overshadowed by a near doubling of the net loss after tax, which widened to $4.44 million from $2.28 million in FY2024. The increased loss is largely attributable to rising operating expenses, including higher employee benefits, depreciation, and finance costs, as the company invests to scale its operations.
Strategic Acquisition of CBIT Pty Ltd
In a key strategic move, Excite completed the acquisition of CBIT Pty Ltd in October 2024. CBIT is a specialist in digital forensics hardware, software, and training, with a diversified customer base spanning enterprise, government, and small business sectors. The acquisition involved a total consideration of $3 million, comprising cash, share-based payments, and deferred consideration.
This acquisition bolsters Excite’s service offerings and revenue streams, particularly in annuity-based contracts, and is reflected in the goodwill recorded on the balance sheet. Management’s valuation assumes prudent revenue growth and cost management, underpinning the company’s long-term growth strategy.
Financial Position and Going Concern
Despite the revenue growth and acquisition, Excite’s financial position remains stretched. The company reported net tangible assets per share of negative 4 cents, and net liabilities increased due to higher trade payables and convertible notes. Cash and cash equivalents stood at $1.14 million at year-end, with net cash outflows from operating activities rising to $3.76 million.
The audit is underway with an expectation of an unmodified report but includes a material uncertainty related to the company’s ability to continue as a going concern. This reflects risks around sustaining contract renewals, managing costs, and successfully raising further capital.
Capital Raising Supports Growth Ambitions
To support its growth and working capital needs, Excite raised $5.15 million during the year through a combination of equity placements and convertible notes, including a $2 million convertible note from Belgravia Group and a $3 million share placement to sophisticated and institutional investors. These funds are intended to underpin strategic opportunities and operational scaling.
Management remains confident in the company’s prospects, citing ongoing contract wins, channel partnerships, and cost control initiatives. However, the path to profitability remains challenging, and investors will be watching closely how the integration of CBIT and revenue growth translate into improved financial performance.
Bottom Line?
Excite Technology’s growth story is gaining momentum, but the widening losses and going concern uncertainty signal a critical phase ahead.
Questions in the middle?
- Can Excite Technology convert its revenue growth into sustainable profitability?
- How will the integration of CBIT Pty Ltd impact future earnings and cash flow?
- What are the company’s plans to mitigate going concern risks and secure additional funding?