Dataworks Group Limited reported a significant reduction in its half-year loss alongside a major contract extension in Ontario, marking a pivotal shift to positive cash flow.
- Half-year loss reduced by 60% to $1.78 million
- Revenue declined 6.4% to $3.65 million
- Secured $14 million contract extension for Ontario self-exclusion services
- BetStop™ platform usage and user outcomes continue to improve
- Achieved positive operating cash flow in December 2025 quarter
Financial Performance and Loss Reduction
Dataworks Group Limited has reported a half-year loss of $1.78 million for the six months ending 31 December 2025, a marked improvement from the $4.44 million loss recorded in the prior corresponding period. Despite a 6.4% decline in revenues to $3.65 million, the company’s strategic cost realignments and operational efficiencies have contributed to this significant reduction in losses.
The company’s net tangible assets per share remained negative at 2 cents, reflecting ongoing challenges in asset valuation amid restructuring efforts. No dividends were declared or paid during the period, consistent with the company’s focus on stabilising its financial position.
Growth Through Contract Wins in Ontario
A key highlight of the half-year was Dataworks’ securing of a substantial contract extension in Ontario, Canada. Building on its original $10 million Centralised Self-Exclusion (CSE) contract awarded in August 2024, the company executed a change order valued at approximately A$14 million. This extension involves the delivery and operation of end-to-end managed contact centre services, enhancing the company’s recurring revenue profile and reinforcing its position as a leader in RegTech solutions for problem gambling.
Additionally, Dataworks was awarded a separate $1.15 million contract to establish advanced contact centre capabilities, further expanding its footprint in the Ontario market. These contracts underscore the company’s technological expertise and trusted delivery capabilities in the highly regulated iGaming sector.
BetStop™ Platform and User Outcomes
Dataworks continues to operate the BetStop™ National Self-Exclusion Register on behalf of the Australian Government via the Australian Communications and Media Authority (ACMA). The platform has surpassed 50,000 registrations and processed over 31 billion real-time checks since launch, demonstrating robust engagement.
Research commissioned by ACMA highlighted strong user outcomes, with 77% of users reporting improved quality of life and 96% reducing or stopping wagering. These findings validate the platform’s effectiveness and bolster Dataworks’ reputation for delivering impactful RegTech solutions.
Transition to Positive Cash Flow and Strategic Outlook
December 2025 marked a turning point as Dataworks reported a positive operating cash flow of $1.1 million for the quarter, reflecting the cash-generative nature of its core contracts and a streamlined cost base. The RegTech division alone is now profitable and cash flow positive on a standalone basis, signaling improved financial health.
The company has also initiated a process to explore strategic interest in its asset base and proprietary technology, appointing advisors to engage with potential parties. While this process remains exploratory with no certainty of a transaction, it indicates management’s proactive approach to unlocking shareholder value.
Going Concern and Market Confidence
Despite the progress, the directors acknowledge material uncertainty regarding the company’s ability to continue as a going concern, given ongoing losses and cash flow pressures. However, they remain confident in Dataworks’ capacity to raise additional capital if required, supported by a history of successful fundraisings and improved trading conditions.
The company’s focus on commercialising its intellectual property, expanding its recurring revenue streams, and maintaining strong contract delivery will be critical to sustaining momentum in the coming periods.
Bottom Line?
Dataworks’ improved financial footing and contract wins set the stage for a critical phase of growth and capitalisation in RegTech.
Questions in the middle?
- How will Dataworks manage the material uncertainty around its going concern status?
- What are the timelines and milestones for revenue recognition from the Ontario contract extension?
- Could the strategic interest process lead to a sale or partnership that reshapes the company’s future?