Infotrust has completed a sweeping reshaping of its business, exiting Cloud and Communications, repaying $27 million in bank debt and acquiring Canberra cyber specialist Catalyst Cyber. The balance-sheet reset leaves the ASX-listed group targeting more than $6 million in FY27 underlying EBITDA, but its continuing business remains loss-making and execution risks are plainly visible.
- Continuing revenue up 9.8% to $64.1 million
- $23.1 million statutory loss, including $19.85 million divestment loss
- $18.3 million cash and no bank borrowings at year-end
- Catalyst Cyber expands Federal Government cyber capability
- FY27 underlying EBITDA guidance above $6 million
Debt-free balance sheet resets Infotrust’s investment case
Infotrust Ltd (ASX:ITS) has traded away its old identity. The company sold its Cloud and Communications arm, repaid its $27 million senior bank facility and acquired Canberra-based Catalyst Cyber as it rebuilt itself around sovereign cyber security and digital resilience. At 30 June 2026, Infotrust held $18.3 million in cash and no bank borrowings, a materially cleaner financial position than the one it carried into the year.
The transformation came with a substantial accounting bill. Infotrust reported a statutory loss attributable to shareholders of $23.1 million, compared with a $1.4 million loss in FY25. The result included a $19.85 million after-tax net loss associated with the divestment of Cloud and Communications, while the continuing business recorded a $7.83 million loss after tax.
Revenue grows while underlying earnings retreat
Continuing-operations revenue rose 9.8% to $64.1 million, but underlying EBITDA fell to $2.7 million from $3.4 million. Infotrust attributed the weaker underlying result to investment in people and specialist capability, the cost of operating as a standalone cyber security business, longer sales cycles, delivery-capacity constraints and limitations in systems used to convert sold work into recognised revenue.
That makes the company’s FY27 target more demanding than the headline revenue growth might suggest. Infotrust has issued guidance for underlying EBITDA of more than $6 million, more than double FY26’s outcome, while acknowledging that delivery depends on customer demand, pipeline conversion, available staff, Catalyst Cyber integration and broader market conditions. The report also identifies sold cyber projects awaiting delivery, billable headcount below budget and below-target marketing-generated contract wins as areas requiring improvement.
Catalyst Cyber adds government reach and contingent obligations
The April acquisition of Catalyst Cyber gives Infotrust a stronger presence among Federal Government and other high-assurance customers, alongside specialist capability in advisory, security engineering, incident response and assurance. Catalyst contributed $2.1 million of revenue and $524,000 of after-tax profit between completion on 17 April and 30 June 2026.
The acquisition is not a simple bolt-on with a fixed price tag. Infotrust paid $1.6 million in cash and issued 1.87 million shares, while deferred and contingent consideration totalled $17.1 million at acquisition. The company recognised $12.6 million of contingent consideration assuming full achievement of future-year earnings targets, and its estimate of the first-year completion consideration remains subject to final determination under the sale agreement.
Sovereign cyber strategy now rests on delivery
Infotrust’s continuing operations now sit within one Cyber Security segment spanning managed security, its Australian-operated 24x7 Security Operations Centre, governance and risk services, digital resilience, identity and data security, secure AI, cloud security, and digital forensics and incident response. The company says it wants to increase recurring revenue, cross-sell across its customer base and package these capabilities into clearer, integrated offers.
The balance-sheet reset gives management more room to pursue that strategy, while operating cash flow turned positive at $4.1 million from an outflow of $2.2 million in the prior year. Yet the accounts also show how much depends on the next phase: goodwill headroom for the Cyber Security cash-generating unit was about $8.1 million, while Forensic IT had only about $400,000 of headroom under the company’s impairment testing assumptions. The first evidence of whether the reset has created a stronger business will come through revenue conversion, recurring sales and cash generation rather than another strategic presentation.
Bottom Line?
Infotrust has bought itself financial flexibility, but FY27’s more than $6 million EBITDA target leaves limited room for delays in sales conversion, delivery capacity or Catalyst Cyber integration.
Questions in the middle?
- Can Infotrust more than double underlying EBITDA without weakening service quality or relying on further acquisitions?
- How much of the sold-but-undelivered cyber work will convert into FY27 revenue and cash?
- Will Catalyst Cyber meet the earnings thresholds underpinning its substantial deferred and contingent consideration?