Activeport’s SaaS Surge Fuels Q4 Revenue Growth and New Telecom Deals
Activeport Group Ltd reports a robust 31% increase in SaaS revenue and a 26% rise in software licensing in Q4 FY25, driving total revenue growth and securing major telecom contracts ahead of FY26.
- SaaS revenue up 31% quarter-on-quarter to $734K
- Software license revenue grows 26% to $495K
- Total revenue edges up to $2.18M despite reduced low-margin services
- High-margin software and SaaS now 56% of total revenue, up from 32%
- New contracts with Telekom Malaysia, Reliance Jio, Ishan Technologies, and FibreconX
Strong SaaS and Software Licensing Growth
Activeport Group Ltd has delivered a compelling Q4 FY25 performance, with its software-as-a-service (SaaS) revenue climbing 31% to $734,000 and software license revenue rising 26% to $495,000 compared to the previous quarter. This growth has helped total revenue reach $2.18 million, marking a return to upward momentum despite a deliberate reduction in lower-margin service contracts.
Strategic Shift Towards High-Margin Recurring Revenue
The company’s strategic pivot away from legacy service contracts towards high-margin software products is evident, with software and SaaS now comprising 56% of total revenue, up sharply from 32% at the start of FY25. This shift has improved gross margins significantly, positioning Activeport for stronger profitability as it capitalizes on recurring revenue streams.
Major Contract Wins Signal Growth Ahead
Activeport’s recent contract wins with major telecommunications players such as Telekom Malaysia, Reliance Jio, Ishan Technologies, and the FibreconX network underpin its growth trajectory. While much of the new recurring revenue will begin flowing in FY26 following project go-lives, these deals validate Activeport’s orchestration software as a preferred solution across Asia, India, and Europe.
Outlook and Market Positioning
Chairman and CEO Peter Christie highlighted the challenges of optimizing the business in a market that demands consistent quarterly growth but expressed confidence in the company’s baseline recurring revenue and cost structure. With an annualised exit revenue run rate of $8.7 million in Q4, Activeport is well-positioned to accelerate growth and move towards positive free cash flow in FY26.
Industry Context and Competitive Edge
Activeport’s software solutions focus on network orchestration, GPU orchestration, and network-as-a-service, targeting telecommunications carriers, internet service providers, and data centre operators globally. Its ability to secure contracts with some of the largest operators across multiple regions in a relatively short time frame underscores its growing reputation as a vendor of choice in a competitive market.
Bottom Line?
Activeport’s Q4 momentum sets the stage for a promising FY26 as new contracts begin to deliver recurring revenue growth.
Questions in the middle?
- How quickly will the new contracts translate into recognised revenue in FY26?
- What impact will the shift away from low-margin services have on overall profitability?
- Can Activeport sustain its SaaS and software licensing growth amid increasing competition?
