How DUG Technology’s Record SaaS Deal Fuels Global Growth Momentum

Strong Financial Momentum

DUG Technology Ltd has kicked off FY26 with impressive momentum, reporting total revenue of US$16.7 million for the first quarter, a 19% increase compared to the same period last year. This growth was largely driven by a 21% rise in services revenue and a remarkable 40% jump in high performance computing (HPC) revenue, underscoring the company’s expanding footprint in advanced geoscience computing.

EBITDA surged 65% to US$4.2 million, reflecting operational efficiencies and robust demand. Operating cash inflow also improved, reaching US$0.4 million, a positive swing of US$1.1 million year-on-year. With a healthy cash balance of US$12.5 million and manageable net debt of US$5.7 million, DUG is well-positioned to fund its growth initiatives.

Record SaaS and HPCaaS Contract Signals New Era

A standout highlight for the quarter was the signing of a record Software-as-a-Service (SaaS) and HPC-as-a-Service (HPCaaS) contract, announced earlier in September. While no revenue from this contract was recognised in Q1 due to the mobilisation phase, the deal represents a significant milestone for DUG’s software and HPC businesses. The company has begun preparatory work, setting the stage for future revenue streams that could materially impact upcoming quarters.

This contract not only validates DUG’s cloud-based computing capabilities but also signals growing market confidence in its innovative elastic multi-parameter imaging solutions and energy-efficient immersion cooling technology.

International Expansion Gains Traction

Operationally, DUG achieved first revenue in Brazil during the quarter, a notable achievement in its international expansion strategy. Additionally, the company continued to build momentum in the Middle East, further diversifying its geographic revenue base. The Services Order Book closed at US$51.9 million, flat from the previous quarter but up an impressive 46% year-on-year, reflecting a strong pipeline and solid project conversion even in a typically quiet period.

Managing Director Dr Matthew Lamont highlighted these developments as evidence of sustained business momentum and strategic success. The company’s global presence now spans six continents, with offices in key hubs including Perth, London, Houston, Kuala Lumpur, and Abu Dhabi, positioning it well to capture emerging opportunities in geoscience computing.

Looking Ahead

While the quarter’s results are unaudited and the new SaaS/HPCaaS contract revenue remains forthcoming, DUG’s strong financial performance and strategic milestones suggest a promising trajectory. Investors will be watching closely for revenue recognition from the new contract and further progress in international markets as the year unfolds.