Activeport’s Q1 FY27 revenue rose 18% to A$1.72 million as software sales more than doubled, while a completed restructure promises A$2 million in annualised savings. The sharper growth story arrives with a pressing funding question: quarter-end cash covered only 0.7 quarters of reported operating outflows.
- Group revenue up 18% quarter on quarter to A$1.72 million
- Software revenue rises 249% to A$599,000
- A$2.6 million of new contract value signed at 90%+ gross margin
- Restructure expected to deliver A$2 million in annualised savings
- A$3 million funding facility remains under negotiation
Software growth accelerates into the September quarter
Activeport Group Ltd (ASX:ATV) has put its software strategy on the scoreboard, but not yet on the cash ledger. Revenue rose 18% from the June quarter to A$1.72 million in Q1 FY27, led by a 249% jump in software revenue to A$599,000.
The quarter activated A$4.05 million of software project total contract value, comprising A$1.45 million of projects contracted in FY26 that moved into production and more than A$2.6 million of new contracts signed during the period. The company says software licences typically carry gross margins above 90%. The figures are unaudited, and some recurring revenue will be allocated to unearned income in the accounts.
That A$4.05 million activation was reported in earlier coverage as Q1 software contracts, but the latest report adds the operating detail behind the headline. Atturra is taking a branded orchestration platform covering network, cloud, compute and GPU services, while Microscan’s stage-one agreement is worth more than A$1 million and spans a 1,800-kilometre pan-India fibre network. Both projects are under delivery and scheduled for completion in the coming months.
Restructure cuts costs while connectivity revenue resets
Management says the restructure launched after new leadership arrived in June is complete, with A$2 million in annualised savings, including A$1.85 million from lower payroll. The quarter absorbed A$408,000 in one-off redundancy payments, leaving net operating cash outflow at A$2.03 million. Excluding those costs, underlying operating cash outflow was A$1.62 million, an 8% improvement on the June quarter.
Connectivity revenue fell 8% to A$668,000 as customers were moved from third-party networks onto Activeport’s own Global Edge platform. Services revenue declined 7% to A$451,000 after technical teams were consolidated into a single delivery business. Activeport says the network rationalisation should improve gross margins, though the immediate quarter still shows the revenue transition rather than its eventual payoff.
Placement lifts cash, but funding remains the immediate constraint
The A$3.64 million placement, previously reported as the July equity placement, left Activeport with A$1.40 million in cash at 30 September, up from A$613,000 three months earlier. That improvement was financing-driven: the business used A$2.03 million in operating cash and invested a further A$582,000, including A$564,000 in intellectual property.
On the Appendix 4C calculation, cash plus A$70,000 of unused facilities represented 0.7 quarters of funding at the quarter’s operating cash-outflow rate. Activeport says the reported rate should not be treated as the ongoing level because the quarter included the redundancy payment, and it expects an approximately A$1.38 million R&D Tax Incentive refund in the December quarter. It is also in advanced negotiations for a further A$3 million facility, mostly debt secured against future R&D refunds. Neither the refund nor the proposed facility has yet solved the near-term funding requirement.
AI Gateway and Global Edge move into execution
Activeport has signed a memorandum of understanding with Telehouse Canada for an AI Gateway in Toronto, targeted for launch in January. The proposed service would connect enterprise users with AI and neocloud compute and is intended to expand to other Telehouse data centres, making the arrangement strategically notable but commercially less certain than the Atturra and Microscan contracts because it remains an MoU.
Global Edge services rose 9.7%, with 443 wholesale services at quarter-end, while Future Broadband reached 1,547 retail services. Singapore is due to go live in Q2 pending licence approval, alongside existing operations in Australia and New Zealand. GPU servers under management increased 29% to more than 1,400 across 18 countries, giving the company a growing operational base for its orchestration and AI ambitions.
Bottom Line?
The December quarter must convert contracted software work into cash receipts while Activeport secures the proposed A$3 million facility and awaits its R&D refund.
Questions in the middle?
- How quickly will the Atturra and Microscan projects contribute recognised revenue and customer cash receipts?
- Will the proposed A$3 million facility be completed on terms that avoid another near-term equity raise?
- Can Global Edge expansion and the Toronto AI Gateway produce additional high-margin revenue before cash reserves tighten further?