TZ Limited reported a $1.92 million loss for the half-year ending December 2025, with revenues of $5.4 million impacted by delayed US projects and integration challenges from its Keyvision acquisition. The company is banking on large tenders and expanding Microsoft data centre sales to drive recovery.
- Half-year loss of $1.92 million, down from $1.04 million prior year
- Revenue of $5.4 million, 35% below budget due to US tariff uncertainties
- Keyvision acquisition integration caused sales delays and platform bugs
- Data Centre Security division growing with Microsoft sales and large tenders
- Company managing $6.25 million secured debt, negotiating repayment extensions
Financial Performance and Challenges
TZ Limited has reported a net loss of $1.92 million for the half-year ended 31 December 2025, nearly doubling the loss from the previous corresponding period. Revenues reached $5.4 million, reflecting a modest increase year-on-year but falling 35% short of the company’s internal budget. The shortfall was primarily driven by delayed project commencements in the United States, where tariff uncertainties disrupted capital purchases and slowed sales momentum.
The company’s adjusted EBITDA worsened to a loss of $1.15 million, highlighting ongoing operational pressures. Despite these setbacks, TZ’s management remains cautiously optimistic about regaining lost ground in the US market, citing a growing sales pipeline and several large tenders currently underway.
Keyvision Acquisition and Integration Impact
In May 2025, TZ completed the acquisition of Keyvision Holdings Pty Limited, a property management platform provider. However, integration has proven more complex and costly than anticipated. Shortly after launch, the new Keyvision software version encountered significant bugs, halting sales for over three months as the company’s software and quality assurance teams worked to resolve issues.
This delay has impacted Keyvision’s revenue, which is estimated at around $1.05 million for the calendar year, below the target needed to trigger the full second instalment payment of the acquisition. Nonetheless, TZ is confident that fixing these issues will unlock new sales opportunities, especially as Keyvision’s platform is integrated with TZ’s smart access solutions to offer bundled products for residential and commercial properties.
Growth in Data Centre Security and Strategic Outlook
The Data Centre Security division is a bright spot for TZ, with recent sales to Microsoft via Wesco Anixter accelerating since October 2025. The company has recorded approximately A$2 million in sales in this segment, benefiting from the global expansion of data centres and increased demand for secure access solutions, particularly in AI infrastructure environments.
TZ is actively expanding its global sales footprint through additional personnel, distribution partnerships, and targeted marketing efforts at major industry conferences. The company is also pursuing a $5 million European tender for a portfolio of data centres, leveraging the validation from its Microsoft engagement.
Balance Sheet and Debt Management
On the financial front, TZ carries $6.25 million in secured debt, split between Causeway Finance and First Samuel Limited. The group breached certain loan covenants related to cash reserves and repayment schedules as of 31 December 2025. However, it has secured waivers and conditional extensions on repayments, with ongoing discussions to restructure debt and raise capital.
The company aims to reduce debt by $2.75 million by mid-March 2026, contingent on successful capital raising efforts. Management acknowledges the lumpy nature of its cash flows, driven by subscription revenue cycles and project timing, but believes the foundations are in place for a return to profitability.
Looking Ahead
TZ’s priorities for the second half of FY26 include converting advanced-stage tenders in the US and Europe, accelerating Microsoft-related deployments, stabilising Keyvision’s platform, and strengthening distributor partnerships. While the revenue guidance of $17 million to $21 million for FY26 now appears ambitious, the company’s pipeline of large opportunities could materially improve outcomes if successfully secured.
Investors will be watching closely as TZ navigates these operational challenges and capital management efforts, with the potential for significant upside if the company can capitalise on its expanding data centre security footprint and resolve integration issues.
Bottom Line?
TZ Limited’s path to recovery hinges on winning large tenders and stabilising Keyvision, while managing debt pressures and tariff-related headwinds.
Questions in the middle?
- Will TZ secure the large US and European tenders critical to hitting revised revenue targets?
- How effectively can the company stabilise and grow Keyvision’s platform post-integration issues?
- What are the prospects and timelines for successful capital raising and debt restructuring?