Orcoda Faces $2.5M Loss as Resource Division Contracts; Can New Deals Reverse Trend?

Financial Performance Overview

Orcoda Limited (ASX, ODA) has released its audited financial results for the fiscal year ended 30 June 2025, revealing a challenging year marked by a significant revenue decline and a return to net losses. Total revenue fell by 33% to $17.16 million, reversing the prior year’s $905,000 profit to a net loss of $2.5 million. This downturn was primarily driven by the Resource & Infrastructure division, which experienced a 46% revenue drop and a 91% decline in EBITDA due to a major customer deferring its works program.

Resource & Infrastructure Division, Setback and Recovery

The Resource & Infrastructure division’s income fell sharply from $16.7 million in FY24 to $9.1 million in FY25, with EBITDA plummeting from $3.3 million to just $30,000. The deferral of the major customer’s works program was the key factor behind this decline. However, the division showed signs of recovery in the second half of FY25, posting a positive EBITDA of $0.7 million compared to a negative $0.4 million in the first half. New contracts worth approximately $3 million were signed in June and July 2025, and the division currently holds $5.4 million in work for the first quarter of FY26, suggesting a promising rebound.

Transport Technology Division, Growth Amidst Challenges

In contrast, the Transport Technology division demonstrated resilience and growth, increasing its EBITDA by 11% to $2 million and maintaining an annual recurring revenue (ARR) of around $5 million. Despite a 6% decline in total income to $7.96 million, the division benefited from investments in sales and marketing, which have begun to yield positive results. The proprietary software platform, recently rebranded as Transport360, along with complementary offerings such as Contractor360 and Future Fleet’s telematics and AI solutions, underpin the division’s growth strategy. The company has also expanded its sales force and is pursuing strategic partnerships with major vendors like Tata Consultancy Services, Microsoft, and AWS to enhance its market position.

Strategic Initiatives and Board Changes

Orcoda’s management has taken the FY25 setback as an opportunity to diversify its customer base and reduce concentration risk, particularly in the Resource & Infrastructure division. The company’s new five-year strategic plan focuses on digital transformation, expanding recurring revenue streams, and pursuing value-accretive acquisitions. Board changes during the year included the resignation of two non-executive directors and the appointment of Patrick Bodegraven as an executive director, bringing extensive experience in digital transformation and consulting.

Financial Position and Outlook

As of 30 June 2025, Orcoda held $2.53 million in cash and cash equivalents, with a net debt position of $459,000 and a conservative debt-to-equity ratio of 18%. The company raised $1.075 million through a capital placement in April 2025 to support growth initiatives. While FY25’s financial results reflect the impact of project delays, the recommencement of major customer works and new contract wins provide a solid foundation for FY26. The company remains committed to its vision of becoming a leading smart transport corridor technology provider, leveraging integrated Intelligent Transport Management Systems and AI-driven solutions.