Activeport Group Ltd reported a 22% increase in software license revenue and unveiled its Neocloud AI infrastructure platform, targeting a significant market shift in data centre operations.
- 22% growth in software license revenue
- Launch of low-cost Neocloud AI platform
- 27% increase in cash receipts from customers
- Global commercial discussions advancing
- Appointment of new VP to accelerate software delivery
Software Revenue Surges While SaaS Holds Steady
Activeport Group Ltd (ASX:ATV) posted a mixed third quarter for FY26 with a 22% quarter-on-quarter jump in software license revenue, reaching $350,000. Meanwhile, its SaaS revenue remained stable, dipping slightly by 5% to $1.16 million, aligning with the company’s expectations of quarterly variance within 5%. This revenue mix underscores Activeport’s pivot towards high-margin software offerings amid steady recurring revenue streams.
Cash receipts from customers climbed 27% to $2.13 million, reflecting strong commercial traction and improved collections. Despite this, the company’s operating cash burn widened to $1.09 million for the quarter, up 38%, driven by ongoing investment in product development and market expansion.
Neocloud Platform Targets AI Infrastructure Market with Disruptive Cost and Efficiency
Activeport’s headline announcement is the upcoming launch of its Neocloud platform, a turnkey AI computing infrastructure solution designed for data centre operators. Scheduled for release in the second half of 2026, Neocloud promises a dramatically lower entry cost of $20,000 compared to $3 million for comparable platforms, coupled with energy consumption of just 8kW per rack versus 76kW for standard alternatives. This positions Activeport to tap into the surging demand for AI workloads with a scalable, energy-efficient, and cost-effective solution.
The platform integrates AMD’s latest APU technology with Activeport’s software stack, offering a white-label portal to manage AI inference services and workload orchestration. This move leverages Activeport’s experience in distributed GPU computing for cloud gaming and targets the growing market of mid-tier data centres that cannot afford costly electrical upgrades.
Global Pipeline Expands with Major Data Centre Trial and Telco Engagements
Activeport secured a trial order from the world’s fifth-largest data centre operator for its software at their London campus, a significant endorsement of its technology at the highest industry level. By quarter-end, the company was advancing commercial discussions and final contract reviews across Asia, India, Canada, and Australia, with a projected 400% increase in projects commencing in Q4 alone.
In telecommunications, Activeport is seeing strong follow-on interest following its network-as-a-service deployment for Telekom Malaysia. The company is working with multiple major telcos across Asia, India, Central America, and the Middle East to roll out similar solutions. Its Network-to-Network Integration (NNI) gateways, designed to facilitate seamless inter-carrier connectivity, are attracting interest from operators worldwide ahead of a planned first live customer in H2 2026.
Activeport’s Australian edge network continues to grow revenue from last-mile connectivity services on the FibreconX network, with expectations for an NBN services revenue ramp-up as customer migrations complete in Q4.
Leadership Hires and Financial Position
To accelerate software development and capitalise on its expanding project pipeline, Activeport appointed Matt Hawken as VP of Product and Development. Hawken brings deep expertise from his previous role at Console Connect, a leading Network-as-a-Service platform, and will focus on boosting delivery speed and capacity.
Financially, Activeport ended Q3 with $2.1 million in cash, supplemented by an anticipated $1.6 million R&D grant for 2026, effectively raising available funds to $3.7 million. The company’s cash burn and funding runway, estimated at just over two quarters based on current operating cash flows, highlight the importance of converting projects into revenue swiftly. Activeport holds a strategic equity stake in Radian Arc, whose recent sale to Submer Technologies implied a valuation of approximately $1 million for Activeport’s shares, a positive mark on its balance sheet.
Capital raising remains a key focus, especially after recent shareholder approval lapses on director placements, prompting exploration of alternative funding avenues. The company’s zero exercise price options (ZEPOs) remain unvested, tied to share price milestones between $0.10 and $0.20, adding a layer of potential future dilution contingent on share price performance.
Activeport’s growth narrative is intertwined with the AI boom, which is driving demand across its network orchestration and GPU orchestration software portfolios. The company’s early adoption of a fully API-accessible “headless” software platform since 2023 has positioned it ahead of many peers in the AI inference infrastructure market.
These developments build on Activeport’s recent Submer acquisition which enhances its GPU software ecosystem, and follow a period of major telco deals that have laid the groundwork for its expanding global footprint.
Bottom Line?
Activeport’s low-cost AI platform and expanding global pipeline position it well for growth, but cash burn and funding remain key watchpoints.
Questions in the middle?
- Will Activeport’s Neocloud platform gain significant market share against entrenched AI infrastructure providers?
- How quickly can the company convert its growing project pipeline into sustainable recurring revenue?
- What funding strategies will Activeport pursue to extend its cash runway beyond two quarters?