Rising Losses Cloud Excite Technology’s Strong Revenue Growth and $2.1M Capital Raise
Excite Technology Services Limited reported a remarkable 370% revenue increase to $13.54 million for H1 FY2026, driven by strong growth across its cybersecurity, digital forensics, and IT managed services divisions. However, losses widened 43% to $2.51 million, reflecting restructuring and scaling costs, while the company secured $2.1 million in convertible notes to support its growth ambitions.
- Revenue jumps 370% to $13.54 million in half-year
- Loss after tax increases 43% to $2.51 million
- Strong contract wins in digital forensics and cybersecurity
- Secured $2.1 million via convertible notes post-period
- Targeting $20 million+ annual recurring revenue and cash-flow positivity in H2 FY2026
Robust Revenue Growth Amid Operational Scaling
Excite Technology Services Limited has delivered its strongest half-year performance to date, with revenues soaring by 370% to $13.54 million for the six months ended 30 September 2025. This surge was fuelled by solid demand across its core divisions – cyber security, digital forensics and training, and IT managed services. Notably, the Digital Forensics & Training division secured over $7.9 million in sales contracts, including a $1.485 million federal government engagement and multi-year renewals with law enforcement and border protection agencies.
Meanwhile, the Cyber Security division deepened its footprint in critical infrastructure and enterprise sectors, winning new managed detection and response contracts and earning recognition for technical excellence. The IT & Managed Services segment continued to provide a steady recurring revenue base, highlighted by a $2.14 million contract renewal with Keyton Retirement Living.
Rising Losses Reflect Investment and Restructuring
Despite the impressive top-line growth, Excite reported a 43% increase in its loss after tax to $2.51 million. The widening loss is attributed to restructuring costs, termination payments, and investments to scale the new business units, partially offset by improved cash flow management. Operating expenses surged to $15.75 million, more than triple the previous period, reflecting the company’s aggressive expansion and integration efforts.
Management remains confident that these investments are laying the foundation for sustainable growth and profitability, with a clear focus on driving managed services recurring revenue towards a $20 million-plus annualised run-rate. The company aims to achieve cash-flow positivity in the second half of FY2026 through disciplined cost control and operational efficiencies.
Capital Raise to Support Growth Trajectory
To bolster its balance sheet and fund ongoing expansion, Excite secured firm commitments for $2.1 million through the issuance of unsecured convertible notes to institutional investors, including continued backing from Belgravia Strategic Equities Pty Ltd. As of the report date, $1.3 million had been issued, with the remainder expected by the end of November 2025. These convertible notes provide the company with flexible capital while aligning investor interests with future equity upside.
The company’s net tangible assets remain negative at 35 cents per share, reflecting significant intangible assets and lease liabilities. However, management’s strategic priority is to strengthen recurring revenue streams and refine cost structures to improve financial resilience.
Market Position and Strategic Outlook
Excite is well-positioned in the rapidly expanding Australian cybersecurity and digital forensics market, benefiting from increased regulatory mandates and government funding. The company’s sovereign Australian-based teams and end-to-end service capabilities address a growing demand for trusted providers in critical infrastructure and government sectors.
Looking ahead, Excite plans to prioritise organic growth and operational optimisation over acquisitions, with any future deals required to be immediately earnings and cash-flow accretive. Senior leadership appointments are anticipated to strengthen the sales organisation as the company scales.
Bottom Line?
Excite’s impressive revenue momentum is tempered by rising losses and cash burn, making its path to profitability and successful capital deployment critical in the coming quarters.
Questions in the middle?
- Will Excite achieve its $20 million+ recurring revenue target and cash-flow positivity by H2 FY2026?
- How will the convertible notes issuance impact shareholder dilution and capital structure?
- What are the risks if key government and enterprise contract renewals do not materialise as expected?