Harris Technology Group Limited reported a 16% increase in Q2 FY26 sales, driven by strong demand for refurbished technology products, alongside positive operating cash flow and improved gross margins.
- Q2 FY26 sales rose 16% to $4.4 million
- Refurbished tech division sales exceed $0.5 million monthly
- Positive operating cash flow of $0.7 million in Q2 FY26
- Gross margin improved to 37.2% in H1 FY26, up 230 basis points year-on-year
- Inventory at $3.0 million with $2.3 million cash on hand and $1.2 million undrawn financing
Strong Quarterly Sales Driven by Refurbished Tech
Harris Technology Group Limited (ASX – HT8) has delivered a robust performance in the December 2025 quarter, posting sales of $4.4 million, a 16% increase from the previous quarter. This growth was largely fuelled by the company’s strategic pivot towards refurbished technology products, which have gained significant traction among cost-conscious consumers during the busy retail season encompassing Black Friday through to Boxing Day.
The refurbished tech division notably exceeded $0.5 million in monthly sales throughout the quarter, underscoring the success of Harris Technology’s focus on higher-margin offerings. This shift away from new IT products towards refurbished items reflects a broader industry trend where buyers seek value without compromising on quality.
Improved Margins and Cash Flow Signal Operational Strength
Alongside rising sales, Harris Technology reported a positive operating cash flow of $0.7 million for the quarter, a sign of improving operational efficiency. The company’s gross margin for the first half of FY26 rose to 37.2%, up 230 basis points compared to the same period last year, driven by the increasing contribution of refurbished products which typically carry better margins.
Inventory levels remained stable at $3.0 million, slightly higher than the previous quarter, reflecting ongoing investment to support sales growth. Cash on hand stood at $2.3 million, complemented by $1.2 million in undrawn financing facilities, providing the company with a solid liquidity position despite the decision not to renew a $5 million Marketlend facility.
Leadership Commentary and Strategic Outlook
CEO Garrison Huang highlighted the momentum in refurbished tech sales as a key driver of Harris Technology’s recent success. He noted that increased buying power and strengthened supplier relationships have enabled the company to maintain low inventory hold times, particularly for popular Apple products like MacBooks and iPads. This agility positions Harris Technology well to capitalise on growing market demand and enhance profitability.
Looking ahead, the company’s focus on scaling its refurbished tech division appears to be a deliberate and effective strategy to differentiate itself in a competitive eCommerce landscape. While the company continues to manage operating costs carefully, including staff and administrative expenses, the positive cash flow and margin improvements suggest a sustainable path forward.
Harris Technology’s transition to an online-only retail model, leveraging platforms such as Amazon and eBay, further supports its ability to reach a broad customer base without the overheads of physical stores. This digital-first approach aligns with evolving consumer behaviours and the increasing acceptance of refurbished technology products.
Bottom Line?
Harris Technology’s refurbished tech focus is gaining momentum, but sustaining growth will require continued supplier strength and market responsiveness.
Questions in the middle?
- Can Harris Technology maintain its refurbished tech sales momentum beyond the holiday season?
- What impact will the closure of the $5 million Marketlend facility have on future liquidity and growth initiatives?
- How will competitive pressures in the refurbished tech market affect Harris Technology’s margins and market share?