Activeport Group Ltd reported a 36% revenue decline and a 25% increase in net loss for the half-year ended December 2025, while securing key contracts with Tier 1 telcos and raising $8.8 million in capital.
- Revenue down 36% to $3.18 million
- Net loss increased 25% to $3.86 million
- New Singapore subsidiary established
- Major Tier 1 telco contracts secured in Australia and Asia
- Raised $8.83 million through rights issue, placement, and options
Financial Performance and Challenges
Activeport Group Ltd has reported a challenging first half for the 2026 financial year, with revenues falling 36% to $3.18 million compared to the prior corresponding period. The company’s net loss widened by 25% to $3.86 million, reflecting ongoing investment in product development and market expansion. Despite the revenue decline, recurring software-as-a-service (SaaS) revenue grew to represent 80% of total income, signalling a strategic shift towards higher-margin, subscription-based offerings.
Strategic Expansion and Contract Wins
During the period, Activeport established a new subsidiary in Singapore, Activeport Networks Pte Ltd, marking a significant step in its international expansion. The company secured and delivered two major contracts with Tier 1 telecommunications customers, including deployments in Australia, India, and Thailand. Notably, Activeport’s network orchestration software was integrated with a global network partner’s Network-to-Network Interface (NNI) product, extending international connectivity for a key customer. These contracts are expected to start generating invoicing and revenue growth in the second half of the financial year.
Innovation in GPU Orchestration and AI Opportunities
Activeport’s GPU orchestration software, which supports cloud gaming and AI workloads, saw significant deployment through its partner Radian Arc. Following Radian Arc’s acquisition by Submer Technologies, Activeport anticipates new collaboration opportunities in the rapidly growing AI sector. The company is advancing its software releases, with version 3.0 due in Q3 and version 4.0 planned for year-end, aiming to enhance performance and cost efficiency for graphically intensive applications.
Capital Raising and Balance Sheet Management
To support its growth and operational needs, Activeport raised a total of $8.83 million through a combination of a fully underwritten rights issue, institutional placements, and option exercises. This capital injection has helped reduce borrowings by $1.52 million and strengthened the company’s cash position to $3.85 million at the half-year mark. However, the auditor’s report highlighted a material uncertainty regarding the company’s ability to continue as a going concern, citing operating losses and cash outflows as key risks.
Outlook and Market Positioning
Activeport is positioning itself to capitalise on its edge-to-cloud orchestration capabilities, with the upcoming launch of its NNI gateways platform expected to unlock new revenue streams by enabling seamless carrier interconnections globally. The company’s focus on software-driven revenue, combined with ongoing R&D enhancements and customer acquisitions, suggests potential for accelerated growth in the second half of FY26. Nevertheless, the path to profitability remains contingent on successful contract execution and continued capital support.
Bottom Line?
Activeport’s strategic wins and capital raise set the stage for growth, but the looming going concern uncertainty demands close investor scrutiny.
Questions in the middle?
- How quickly will the new Tier 1 telco contracts translate into recurring revenue?
- What impact will the Submer Technologies acquisition of Radian Arc have on Activeport’s AI initiatives?
- Can Activeport sustain operations without further capital raises given current cash burn?