DataWorks Posts $1.1M Positive Cash Flow, Boosts Contract Pipeline
DataWorks Group has reported a robust turnaround with a $1.1 million positive operating cash flow in Q2 FY26, underpinned by major government contracts and validated social impact from its BetStop™ platform.
- Achieved $1.1 million positive operating cash flow in December quarter
- Cash receipts surged 74% quarter-on-quarter to $3.0 million
- Fully repaid $250,000 liquidity facility, ending quarter with $0.9 million cash
- Independent research confirms BetStop™’s strong social and consumer protection outcomes
- Multiple regulated market contract opportunities progressing, with decisions expected in 2H FY26
Strong Cash Flow Signals Turning Point
DataWorks Group Limited (ASX – DWG), a leader in regulated gaming technology, has reported a significant financial milestone in its December 2025 quarter. The company posted a positive operating cash flow of $1.1 million, marking its first strongly cashflow-positive quarter in over two years. This turnaround was driven by $3.0 million in customer receipts, a 74% increase from the previous quarter, alongside a $0.7 million R&D tax rebate.
Importantly, DataWorks fully repaid and cancelled its $250,000 liquidity management facility, strengthening its cash position to $0.9 million by quarter end. This improved liquidity provides a solid foundation as the company navigates the coming months.
Operational Excellence in Core Contracts
DataWorks continues to deliver on its flagship government-backed contracts in Australia and Canada. The BetStop™ National Self-Exclusion Register, operated exclusively for the Australian Government, maintained 100% uptime with over 31 billion real-time verification checks since its August 2023 launch. Independent research commissioned by the Australian Communications and Media Authority (ACMA) validated BetStop™’s social impact, with 77% of registrants reporting improved quality of life and 96% reducing or stopping online wagering.
Meanwhile, the Ontario iGaming Centralised Self-Exclusion program in Canada remains on track, reinforcing DataWorks’ unique position as the only operator globally managing two large-scale, government-backed real-time self-exclusion systems.
Growing Pipeline and Strategic Interest
DataWorks is actively progressing multiple commercial opportunities across regulated gambling markets worldwide. Several of these are expected to reach decision points in the second half of FY26, with potential contract wins poised to materially enhance the company’s financial outlook and liquidity profile.
Additionally, the company’s strategic interest process, supported by Tekkorp Capital Advisors, remains ongoing. While no new material developments have been disclosed, the Board is encouraged by the level of interest in DataWorks’ proprietary technology and government contracts.
Outlook and Market Positioning
Looking ahead, DataWorks expects to maintain around breakeven net operating cash flow through the March 2026 quarter, supported by disciplined cost management and a strengthened cash position. The company’s evolution towards a software-as-a-service (SaaS) model and its proven delivery capability in regulated markets position it well to capitalize on growing regulatory focus on responsible gambling and consumer protection.
With validated social impact outcomes and a robust commercial pipeline, DataWorks is steadily building momentum as it advances its strategic goals in the regulated gaming technology sector.
Bottom Line?
DataWorks’ positive cash flow and validated technology set the stage for potential contract wins and strategic developments in 2026.
Questions in the middle?
- Which new regulated markets might DataWorks enter following current pipeline decisions?
- How will the transition to a SaaS model impact DataWorks’ revenue and margins?
- What are the potential outcomes and timelines of the ongoing strategic interest process?
