Norwood Systems Accelerates Growth with $3M Optus Contract and 66% Revenue Surge
Norwood Systems reported a 66.5% revenue increase to $1.9 million in FY2025, driven by a landmark five-year contract with Singtel Optus and expanding services in New Zealand. The company also narrowed its net loss by 77%, signaling improved operational momentum.
- 66.5% revenue growth to $1.9 million in FY2025
- Secured a $2.98 million five-year voicemail platform contract with Singtel Optus
- Net loss reduced by 76.8% to $599,721
- Launch of AI-enabled CogVoice OpenSpan on Microsoft Azure
- Raised $1 million through convertible notes and equity placement
Strategic Contract Wins and Revenue Growth
Norwood Systems Limited has marked a significant step forward in its FY2025 results, reporting a 66.5% increase in revenue to $1.9 million. This growth was largely underpinned by the signing of a five-year, $2.98 million contract with Singtel Optus to replace its legacy voicemail platform with Norwood's AI-powered CogVoice solution. The contract execution accelerated in the final quarter, with key milestones achieved and software delivered ahead of production deployment.
Alongside Optus, Norwood's relationship with Spark New Zealand continued to contribute recurring revenue, while the company advanced discussions with Tier-1 communication service providers across Europe, North America, and the Asia-Pacific region. This expanding footprint reflects Norwood's growing credibility as a provider of carrier-grade AI voice services.
Innovation and Hyperscaler Partnerships
Innovation remains central to Norwood's strategy. The company launched CogVoice OpenSpan on Microsoft Azure, integrating with Azure OpenAI and Azure Speech services to offer an AI-native platform for telecom workloads. Collaboration with AWS also continues to support secure, scalable deployments for Tier-1 customers. These developments position Norwood at the forefront of AI voice technology in telecommunications, targeting use cases such as next-generation call handling, fraud detection, and micro-contact centres.
Financial Performance and Capital Management
Financially, Norwood narrowed its net loss by 76.8% to $599,721, a marked improvement from the prior year’s $2.58 million loss. EBITDA loss also decreased significantly, reflecting better operational control and revenue growth. Cash receipts from customers rose 48.2% to $1.97 million, driven by inflows from Optus and Spark NZ.
Capital raising efforts strengthened the balance sheet, with a $505,000 unsecured convertible note issue in December 2024 and a heavily oversubscribed $500,000 equity placement in May 2025. These funds are earmarked for ongoing R&D, market expansion, and partial debt repayment. The company also managed its loan facilities prudently, repaying $550,000 of borrowings during the June quarter.
Outlook and Strategic Focus
Looking ahead, Norwood plans to focus on converting contracted programs into stable cash flows, particularly by advancing the Optus deployment into production and expanding its Tier-1 CSP pipeline globally. The company emphasizes disciplined cost management and capital efficiency as it seeks to capitalize on growing demand for AI-enabled telecom solutions.
While the company remains in a net liability position, the improved financial metrics and strategic contract wins suggest a positive trajectory. Continued execution on key milestones and successful pipeline conversions will be critical to sustaining momentum.
Bottom Line?
Norwood’s FY2025 progress sets the stage for potential market traction, but execution risks and cash flow stability remain key watchpoints.
Questions in the middle?
- How quickly will Norwood convert the Optus contract milestones into full production revenue?
- What is the likelihood and timeline for closing additional Tier-1 CSP deals in North America and Europe?
- How will ongoing R&D investments translate into competitive advantages and new product offerings?