Norwood Systems has reported a record preliminary revenue of $2.1 million for the first half of FY2026, driven by milestone payments from Optus and a successful Tier-1 APAC proof-of-concept. The company is progressing multiple global telco engagements and strengthening strategic partnerships with Microsoft and AWS.
- Record preliminary H1 FY2026 revenue of $2.1 million
- Completion and payment of fifth Optus CogVoice milestone
- Successful Tier-1 APAC OpenSpan Call Protect proof-of-concept
- Oversubscribed $650,000 share placement completed
- Ongoing R&D including MoCA alpha testing preparations
Strong Revenue Momentum and Customer Milestones
Norwood Systems (ASX – NOR), a cloud-native AI communications innovator, has delivered a record preliminary unaudited revenue of $2.1 million for the six months ended 31 December 2025. This milestone reflects disciplined execution across its Tier-1 customer engagements, notably with Optus. During the quarter, Norwood completed and received payment for the fifth contractual milestone under its CogVoice Voicemail contract with Optus, with cash receipts in the current March 2026 quarter already exceeding $480,000.
The company’s CEO and Founder, Paul Ostergaard, highlighted that these payments underscore Norwood’s capability to manage complex, multi-phase projects with major telecommunications operators. The Optus partnership remains a cornerstone of Norwood’s growth strategy, driving scalability and automation in voice communication services.
Breakthrough in Tier-1 APAC Market with OpenSpan Call Protect
Norwood also achieved a significant technical and operational milestone by successfully completing a paid proof-of-concept (POC) for its OpenSpan Call Protect solution with a Tier-1 Asia-Pacific operator. This marks Norwood’s first Tier-1 APAC POC for Call Protect and sets a strategic reference point for further global engagements. While discussions are ongoing regarding commercial roll-out terms, no binding production contract has yet been secured.
Beyond APAC, Norwood continues to advance its global pipeline of Tier-1 telco opportunities across North America, Europe, Middle East, and Africa (EMEA), focusing on converting proof-of-concept projects into scalable production deployments that generate recurring revenue.
Strategic Partnerships and Product Innovation
Norwood’s joint go-to-market activities with Microsoft telco account teams remain active, with multiple operator briefing sessions conducted and more planned. Concurrently, the company is progressing AWS architecture work aimed at enhancing carrier-grade scalability, resiliency, and security for its cloud-native AI services.
On the innovation front, Norwood is advancing its MoCA (Manager of Coding Agents) initiative, a horizontal software development productivity tool leveraging its agentic orchestration technology. Preparations are underway for an international alpha testing program targeting independent software developers and enterprises. While MoCA is not expected to materially impact near-term financials, it represents an incremental intellectual property asset with commercialisation potential.
Financial Position and Capital Management
Norwood completed an oversubscribed $650,000 share placement during the quarter to support ongoing operations and growth initiatives. The company also reduced debt by repaying $383,000 of borrowings and maintains a revolving line-of-credit facility with $65,000 undrawn at quarter end.
Operating cash outflow for the quarter was $343,000, reflecting continued investment in research and development, product manufacturing, marketing, and staff costs. Closing cash stood at $38,000, but post-quarter milestone payments and a forecasted $280,000 drawdown from an R&D loan facility are expected to bolster liquidity in the near term.
Norwood’s management remains confident in its ability to sustain operations and meet business objectives, citing a forecasted increase in revenues and a decline in operating expenses for the March 2026 quarter.
Bottom Line?
Norwood’s record revenue and strategic milestones position it well, but near-term liquidity and contract finalisations remain key watchpoints.
Questions in the middle?
- Will Norwood convert its Tier-1 APAC OpenSpan Call Protect POC into a binding production contract?
- How will the MoCA alpha testing program influence Norwood’s product diversification and revenue streams?
- What impact will ongoing strategic partnerships with Microsoft and AWS have on Norwood’s global market penetration?