Can DataWorks Overcome Payment Timing Risks to Achieve Cash Flow Break-even?

Contract Expansion and Revenue Growth

DataWorks Group Limited (ASX – DWG) has reported a strong start to FY26, highlighted by the expansion of its approximately A$10 million contract with iGaming Ontario. This extension introduces advanced call centre capabilities, expected to contribute more than A$1 million in additional revenue, with the majority anticipated within the current financial year. The company has successfully met all contractual milestones on schedule, reinforcing its reputation as a global leader in responsible gambling technology.

Operational Excellence and Cost Discipline

On the operational front, DataWorks continues to demonstrate robust performance through its BetStop™ National Self-Exclusion Register in Australia. Since launch 26 months ago, the platform has processed over 31 billion verification checks with negligible friction, maintaining 100% uptime and sub-5 millisecond response times. Meanwhile, the company’s disciplined approach to cost management has yielded an 18% reduction in operating cash outflows compared to the previous quarter, with administration and staff costs notably down by over 35% and 12% respectively.

Financial Position and Liquidity Management

Despite a modest cash balance of approximately A$0.3 million at quarter-end, DataWorks has implemented a short-term liquidity facility of A$250,000 to manage timing differences between cash inflows and operational expenses. The company expects significant milestone payments in the near term to materially strengthen its cash position. With revenues aligning with contract milestones and ongoing cost efficiencies, DataWorks is on track to achieve positive operating cash flow in upcoming quarters, although the timing of government payments may influence the exact breakeven point.

International Pipeline and Strategic Outlook

DataWorks is actively pursuing multiple international opportunities, including a major domestic land-based self-exclusion contract in Australia, though progress there has been slower than anticipated. The company’s unique position as the sole provider of two large-scale government-backed self-exclusion systems globally, Australia’s BetStop and Ontario’s CSE, serves as a powerful reference for future contracts. The Secure Data Engine division remains in pilot phase, with funding discussions ongoing but outside of DataWorks’ direct control.

Looking Ahead

With a streamlined cost structure aligned to its revenue profile and a growing sales pipeline, DataWorks is focused on disciplined execution and conversion of new contracts. The company’s leadership in regulated gaming technology positions it well to capitalize on increasing global regulatory emphasis on responsible gambling. Investors will be watching closely for upcoming milestone payments and contract awards that could significantly enhance the company’s financial outlook.