Hubify Soars 162%, AI-Media Craters: Tech Stocks Split on Funding and Profits
One microcap exploded higher on a tiny capital raise, while several software names were sold hard despite reporting growth. The week split cleanly between “cash in the bank” stories and “still burning cash” worries.
- Hubify (ASX:HFY) rocketed 162.50% after a $250k placement at a steep premium
- AI-Media (ASX:AIM) slid -39.47% even as ARR jumped 80% to $30m, with investors fixating on revenue mix and profitability
- Data#3 (ASX:DTL) fell -23.41% despite higher sales, as margin pressure became the talking point
- NEXTDC (ASX:NXT) was steady at -0.29% after lifting capex guidance and reporting record contracted capacity
Hubify (ASX:HFY) led the tape with a 162.50% jump, AI-Media (ASX:AIM) sank -39.47%, and Data#3 (ASX:DTL) dropped -23.41%. The causes were simple: HFY got a funding vote of confidence, while AIM and DTL were judged on what their numbers mean for future profit, not just revenue.
Microcaps: when a small raise moves a big price
Hubify (ASX:HFY) surged after raising $250,000 at 4.2 cents a share, which was far above its last close. Investors often treat that as a signal that someone is willing to pay up, even if the dollar amount is small. The company said the money will fund AI go-to-market work and a partnership with HubLab for AI-powered ICT and cyber services. StepChange (ASX:STH) rallied 33.33% after posting its first half-year result post-listing: $24.36 million revenue and a small profit. Beam Communications (ASX:BCC) climbed 20.59% after returning to a $2 million profit and flagging a $12.1 million capital return, which is cash paid back to shareholders.ARR is rising, but the market still asks: “When do profits arrive?”
AI-Media (ASX:AIM) reported ARR up 80% to $30 million and said it will launch a Hardware-as-a-Service model in the second half of FY26. Yet the shares fell hard. One likely driver is that services revenue fell 33%, while the business still posted an adjusted EBITDA loss (though much smaller). For beginners: ARR is the annual value of subscriptions already signed. It improves visibility, but it does not guarantee near-term profit. SiteMinder (ASX:SDR) was little changed at -0.55% after a strong half: revenue up 25.5% and losses narrowed sharply. Vista Group (ASX:VGL) rose 8.90% on record 2025 results and faster cloud onboarding. Both updates were the sort of “steady compounding” numbers that can be overlooked in a week dominated by big jumps and falls.AI infrastructure spend: the winners build capacity, the rest supply them
NEXTDC (ASX:NXT) reported net revenue up 13% to $189.2 million and a sharp lift in contracted utilisation to 416.6MW, alongside a forward order book of 297MW. The company also raised capex guidance to $2.4, $2.7 billion. Investors care about this because data centres are expensive to build. Higher capex can mean faster growth later, but it also means more cash going out the door now. SKS Technologies (ASX:SKS) fell -5.73% despite a 52.5% profit jump and a $130 million hyperscale data centre contract win in Melbourne. That weekly fall may read as simple profit-taking after earlier gains, rather than a rejection of the result. Data#3 (ASX:DTL) wasn’t so lucky. It grew gross sales 9.1% to $1.55 billion, but flagged pressure on software margins linked to changes in Microsoft incentive programs. In plain terms: it can sell more, yet make less per dollar sold.Gaps explained: some held, others opened down and kept sliding
Nuix (ASX:NXL) jumped 40.81% after reporting stronger profit and cash flow plus rapid growth in Nuix Neo contracts. Buyers kept coming after the reopen, which usually means investors were happy to pay higher prices once they’d read the detail. By contrast, XPON (ASX:XPN) sank -26.09% even though it reported a return to profit and positive operating cash flow. The early move went the wrong way and selling continued. That pattern often happens when investors don’t trust the new profit yet, or worry about what it took to get it. Similar “opened down and kept falling” action showed up in several small names after updates.Corporate reshuffles: deals, exits, and job cuts
Infotrust (ASX:ITS) traded up 6.02% on news it will sell its Nexgen unit to Aussie Broadband for $50 million (mostly upfront cash). The company is pivoting to cyber security and pulled FY26 guidance because the earnings mix will change. For readers: selling a division can simplify the story, but it also removes the revenue that division used to bring in. Offshore, Block (NYSE:XYZ) rose 27.23% after strong 2025 results and higher 2026 guidance, even as it announced a workforce reduction of more than 40% to push an AI-driven operating model. Investors often reward cost cuts when growth is already solid, because it can lift future profit. Spacetalk (ASX:SPA) dropped -18.00% after announcing a non-binding MOU with Vodafone Australia to distribute its Family Safety software platform. Non-binding means it is not locked in. The sell-off suggests the market wanted a signed contract, not a plan.Week 9 Sector Wraps
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Next week’s tone is likely to stay split. Companies that show signed contracts, improving cash flow, or completed sales (like NEXTDC’s order book progress and Infotrust’s divestment process) should get more attention than businesses still asking the market for time and funding.
Questions in the middle?
- Will AI-Media (ASX:AIM) convert its $30m ARR into clear positive EBITDA once the new HaaS model launches in 2H FY26?
- Can Data#3 (ASX:DTL) protect software margins after Microsoft incentive changes, or does profit growth slow even if sales keep rising?
- Does Spacetalk (ASX:SPA) turn the Vodafone MOU into a binding agreement quickly enough to support its 2026 ARR target?
