Senetas Corporation (ASX:SEN) disclosed full-year revenue of $20.2 million and an operating cash flow turnaround of $8 million at its 2026 Annual General Meeting held virtually on Friday, 13 November 2026, with the Chairman also confirming a $5.5 million capital return completed over the past year and a planned increase in research and development spending of between $1.0 million and $1.5 million.

Key Points

  • Revenue of $20.2 million for the 2026 financial year, up 4.7 per cent as reported and 9.3 per cent in constant currency
  • Product sales grew 22 per cent, with growth recorded in the Middle East, Australia and New Zealand, and first sales into South America
  • Operating cash flow of $4.4 million, representing an $8 million turnaround
  • $5.5 million returned to shareholders over the past year, with the Australian Taxation Office confirming both payments be treated as a return of capital
  • Indirect interest in Menlo Security carried in accounts at $21.0 million, with a liquidity event described as likely within the next twelve to eighteen months

FY2026 Financial Results and Capital Position

According to the Chairman's address delivered at the 2026 AGM, Senetas recorded revenue of $20.2 million for the financial year, up 4.7 per cent as reported and 9.3 per cent in constant currency. The filing states that earnings were lower than the prior year, citing the stronger Australian dollar, global partner Thales building inventory ahead of a sales pipeline for 2027, and the timing of maintenance renewals. Operating cash flow was $4.4 million, described as an $8 million turnaround. Cash stood at $18.6 million as at 30 June 2026, prior to an August capital return, and the operating business carried no debt.

Capital Returns and Australian Taxation Office Confirmation

The filing discloses that Senetas returned $5.5 million of capital over the past year, comprising $2.0 million in December alongside a share consolidation approved at the previous annual meeting, and a further $3.5 million in August. Last month, the Australian Taxation Office confirmed the company's submission that both payments should be treated as a return of capital rather than a dividend. The Chairman stated the board will continue to review further capital management as cash builds above business needs, noting that hardware growth must be funded ahead of customer receipts.

R&D Spending Increase and Menlo Security Carrying Value

The Chairman's address states that research and development spending will rise by between $1.0 million and $1.5 million in the current financial year, with the majority directed toward product certifications. The filing also discloses that the company's indirect interest in Menlo Security, held through majority-owned subsidiary VGM, is carried in accounts at $21.0 million. The board described a liquidity event as likely within the next twelve to eighteen months, while noting no transaction has been announced and that the timing and amount of any realisation are not within the company's control.