Harris Technology Posts $3.2M Q4 Sales, Lifts Gross Margin to 35.8%
Harris Technology reported a $3.2 million sales quarter with improved gross margins, driven by its expanding refurbished tech division, despite a year-on-year sales decline.
- Q4 FY25 sales reached $3.2 million with a slight operating cash outflow
- FY25 sales declined 18.6% to $13.6 million due to phasing out low-margin products
- Gross margin improved significantly to 35.8% from 29% in FY24
- Refurbished tech division surpassed $1 million in sales for two consecutive quarters
- Strong liquidity with $1.9 million cash on hand and $6 million undrawn financing
Sales and Margin Dynamics
Harris Technology Group Limited (ASX – HT8), a pure-play online retailer specialising in IT products, has released its quarterly activity report for the April to June 2025 period. The company posted $3.2 million in sales for the quarter, contributing to a full fiscal year total of $13.6 million. This represents an 18.6% decline compared to FY24, primarily due to a strategic scale-down of low-margin technology product lines amid challenging retail conditions.
Despite the sales contraction, Harris Technology achieved a notable improvement in gross margins, rising to 35.8% for FY25 from 29% the previous year. This margin expansion reflects the company’s deliberate pivot towards higher-margin refurbished technology products, which have become a core growth driver.
Refurbished Tech Division Gains Traction
The refurbished tech segment has shown promising momentum, with sales exceeding $1 million for the second consecutive quarter. This growth is attributed to increased consumer demand, partly stimulated by major online marketplaces ramping up advertising efforts. Harris Technology, as an authorised reseller on platforms such as Amazon, Kogan, Catch, and eBay, benefits from this increased traffic without incurring significant advertising expenses itself.
To support this growth, the company has engaged new partners to secure a steady supply of refurbished products. The $1.5 million capital raise in March 2025 has enhanced Harris Technology’s buying power, allowing it to acquire larger volumes of inventory when market conditions are favourable.
Financial Position and Outlook
At quarter-end, Harris Technology held $3.1 million in inventory, slightly down from the previous quarter, and maintained a robust cash position of $1.9 million. Additionally, the company has $6 million available in undrawn financing facilities, providing a strong liquidity buffer. Operating cash flow was slightly negative at $0.1 million for the quarter, reflecting ongoing investments in inventory and growth initiatives.
CEO Garrison Huang acknowledged the tough retail environment but emphasised the company’s strengthened position in the refurbished tech market. Looking ahead to FY26, Harris Technology plans to capitalise on rising consumer interest in cost-effective refurbished products by expanding its supply chain partnerships and scaling its refurbished division further.
Overall, Harris Technology’s strategic shift towards refurbished technology appears to be paying off, delivering improved profitability metrics even as total sales volumes contract. The company’s ability to maintain liquidity and manage inventory effectively will be critical as it navigates the evolving retail landscape.
Bottom Line?
Harris Technology’s margin gains and refurbished tech focus set the stage for potential growth, but sales contraction and cash flow warrant close monitoring.
Questions in the middle?
- Can Harris Technology sustain refurbished tech sales momentum amid broader retail headwinds?
- What impact will inventory management and financing costs have on future cash flow?
- How will the company balance growth in refurbished products with the phasing out of low-margin lines?
