Norwood Systems Limited reported a significant revenue increase for the half-year ended December 2025, alongside a widening net loss and strategic progress with Tier-1 telecom customers. The company secured additional funding and advanced its AI-driven voice platforms in collaboration with global hyperscalers.
- Revenue rose to $1.26 million, up from $474K year-on-year
- Net loss increased to $909K despite improved operating cash flow
- Completed paid proof-of-concept with Tier-1 Asia-Pacific CSP
- Secured $885K funding including convertible notes and short-term loans
- Ongoing collaborations with Microsoft Azure and AWS hyperscalers
Financial Performance Highlights
Norwood Systems Limited has delivered a mixed interim financial report for the half-year ended 31 December 2025. The company recorded revenues of $1.26 million, marking a substantial increase from $474,000 in the previous corresponding period. However, this growth came with a higher net loss of $909,374, compared to $636,907 a year earlier. Despite the loss, Norwood improved its net operating cash flow to a positive $150,421, reversing a prior outflow of $342,560.
Operational Progress and Strategic Partnerships
Norwood’s core focus remains on advancing its AI-driven voice platforms, OpenSpan and CogVoice, designed for communication service providers (CSPs). The company successfully completed a paid proof-of-concept for its OpenSpan Call Protect service with a Tier-1 Asia-Pacific CSP, a milestone that has led to ongoing discussions about production roll-out. Delivery under the Optus CogVoice Voicemail contract also progressed, with milestone payments received during and after the period.
Beyond the Asia-Pacific region, Norwood is actively developing a global Tier-1 pipeline across North America, Europe, the Middle East, and Asia-Pacific. The company is prioritising opportunities with clear near-term pathways to funded proofs of concept and production deployments, reflecting a strategic push to convert engagements into recurring revenue streams.
Funding and Financial Position
To support its operations and growth ambitions, Norwood secured $885,000 in additional funding during the half-year, including $505,000 from convertible notes and short-term borrowings. Subsequent to the reporting period, the company arranged further loan facilities totalling over $400,000 to bolster working capital, including a $200,000 unsecured loan from Plough Lane Superannuation Pty Ltd and a secured loan against anticipated R&D tax incentives.
Despite these funding efforts, Norwood reported a working capital deficit of $987,141 as at 31 December 2025, highlighting ongoing liquidity challenges. The Board has acknowledged a material uncertainty regarding the company’s ability to continue as a going concern but remains confident in securing additional funding and converting its pipeline into profitable contracts.
Technology and Market Positioning
Norwood continues to leverage hyperscaler partnerships, notably with Microsoft Azure and AWS, to enhance its OpenSpan platform’s capabilities. These collaborations facilitate integration of AI services such as real-time transcription, fraud detection, and automated call summarisation, positioning Norwood to meet the evolving demands of Tier-1 CSPs. The company plans to showcase its technology at the upcoming Mobile World Congress in Barcelona, aiming to increase market visibility and accelerate pipeline conversion.
Stable recurring revenues from long-term engagements with Spark NZ provide a foundation amid the company’s growth initiatives. Meanwhile, ongoing product development focuses on carrier-grade hardening, scalability, and agentic AI services to improve onboarding and operational efficiency.
Outlook and Strategic Focus
Looking ahead to the second half of FY2026, Norwood aims to prioritise the conversion of funded proofs of concept into production contracts, continue delivery under the Optus CogVoice program, and advance commercial discussions for the OpenSpan Call Protect service. The company’s disciplined cash management and funding strategy will be critical to sustaining operations and supporting growth.
While the financial results reflect the challenges of scaling in a competitive and capital-intensive sector, Norwood’s progress with Tier-1 CSPs and hyperscaler partners signals potential for future commercial traction. Investors will be watching closely for successful contract conversions and funding developments that can underpin a sustainable path forward.
Bottom Line?
Norwood’s interim results underscore both the promise and the financial pressures of scaling AI voice platforms in telecom, with upcoming contract wins and funding rounds pivotal to its trajectory.
Questions in the middle?
- Can Norwood successfully convert its Tier-1 proofs of concept into recurring revenue contracts?
- What is the timeline and likelihood for securing additional equity or debt funding beyond current facilities?
- How will hyperscaler partnerships influence Norwood’s competitive positioning and market penetration?