Activeport’s software engine wakes up as Q1 contracts hit $4.05 million

Software revenue drives Activeport’s first-quarter rebound

Activeport Group Ltd (ASX:ATV) has put its software business firmly back at the centre of the story, with revenue rising 149% quarter on quarter to $599,000 in Q1 FY27. Group revenue climbed 18% to $1.72 million, despite declines in connectivity and services.

The quarter saw $1.45 million of projects contracted in FY26 go live, while Activeport signed a further $2.6 million of new software contracts. Together, those projects represent $4.05 million in total contract value activated during the period, although TCV is not the same as revenue recognised in the accounts. The company said customer usage can lift revenue above that baseline over the contract terms.

The result follows a group-wide restructure that Activeport says reset its cost base and sharpened its focus on software. The completed restructure, which earlier reporting said cut annualised costs, now sits alongside a relaunch of the Global Edge and Future Broadband brands that the company says drove more new circuit orders late in the quarter.

Network rationalisation trades near-term revenue for lower costs

Connectivity revenue fell 8% to $668,000 as Activeport moved customers away from third-party networks. Management described the rationalisation as planned and said it should materially reduce cost of goods sold going forward, while a restructured, higher-margin network is expected to support momentum into Q2.

Services revenue also slipped, falling 7% to $451,000 as technical teams were consolidated into a single delivery business. Selected work is being shifted to Bangalore, which Activeport expects will further improve services margins. The company has also moved senior connectivity and product executives to Ireland and London and appointed a vice-president of EMEA software sales in Amsterdam.

GPU growth opens a second technology pathway

Activeport’s deployed GPU base expanded 36% during the quarter to 1,400, driven primarily by the expansion of Reliance Jio’s cloud gaming platform in India. Its research and development team has also built a video streaming solution for AMD’s latest CPU-NPU-GPU chiplets, with the company saying the system can support more than 100 concurrent streams on a single small-form-factor motherboard.

Activeport is adapting that GPU software for agentic artificial intelligence and plans to launch it first in Toronto under a memorandum of understanding with Telehouse for an AI gateway serving sovereign neoclouds. The announcement provides a product and market direction, but does not give a contract value or revenue timetable for the Toronto project.

Q4 cash flow target remains the key test

Activeport expects revenue growth across all three business units in Q2 FY27 and retains a target of becoming cash flow positive in Q4 FY27. That remains a forward-looking objective rather than a reported result. The figures in this update are unaudited, some recurring revenue will be allocated to unearned income, and the contracts include customary termination provisions.

The next meaningful test is whether the new software projects convert into recurring revenue at the pace implied by the quarter’s contract activity, while the network changes deliver the promised cost benefits. Q2 will also show whether the connectivity recovery and GPU expansion can progress without the software surge doing all the heavy lifting.