Revenue Falls to $4.4 Million as BSA Limited (ASX:BSA) Turns to Eonetics After nbn Contract Ends

Aditi Sarkar

29 October 2026 01:31 PM AEDT

Revenue Falls to $4.4 Million as BSA Limited (ASX:BSA) Turns to Eonetics After nbn Contract Ends

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Highlights

BSA reported September-quarter revenue of $4.4 million, down from $17.1 million a year earlier after its nbn contract expired.
The company swung to an underlying EBITDA loss of $0.6 million, against a $4.0 million profit in the prior-year quarter.
BSA signed a binding agreement to acquire Eonetics, with completion expected after a shareholder meeting on 25 November 2026.
Cash closed at $15.0 million with no borrowings drawn, giving BSA an estimated nine quarters of runway at current spending.

A quarter that brought in $17.1 million a year ago brought in $4.4 million this time. BSA Limited (ASX:BSA) calls the three months to 30 September 2026 transitional: the nbn contract has ended, new business has been slow to mobilise, and the result tipped into an EBITDA loss. At the same time, the company has exchanged a binding agreement to acquire Eonetics, a deal it presents as a step toward broader technology capabilities.

Revenue falls with the nbn contract

Unaudited revenue for the first quarter of the 2027 financial year came in at $4.4 million, compared with $17.1 million in the same quarter a year earlier. BSA attributes the fall mainly to lower nbn volumes after unfavourable tender and contract renewal outcomes, and to the expiry of the nbn contract on 30 September 2025. It adds that new business opportunities have been slow to mobilise.

From profit to loss

Reported EBITDA was a loss of $1.7 million, including a non-cash share-based payment expense of $1.0 million. Excluding that item, BSA reports an underlying EBITDA loss of $0.6 million, compared with a $4.0 million profit a year earlier. The company notes that the prior-year quarter was supported by non-recurring nbn transition-out payments and other project contributions.

The Eonetics deal

BSA has executed and exchanged a binding share purchase agreement to acquire 100% of Eonetics Pty Ltd, a business spanning infrastructure inspection, surveillance and connectivity. The purchase price is not disclosed, and the report gives no financial information on the target.

Completion is not yet certain. It is subject to outstanding legal due diligence, shareholder and regulatory approvals and other customary conditions.

Cash and liquidity

Cash at 30 September 2026 was $15.0 million, including $0.4 million of restricted cash, compared with $16.8 million at 30 June. Net cash, excluding insurance funding, fell by $1.8 million over the quarter to $14.6 million. No external borrowings were drawn.

Operating cash flow was an outflow of $1.7 million, against an outflow of $4.7 million a year earlier, which included $5.6 million of redundancy-related payments. Receipts from customers were $4.0 million, while payments to suppliers and staff were $5.8 million and lease payments were $0.2 million.

Within the Appendix 4C, product and operating costs were $3.71 million, staff costs were $1.04 million, and administration and corporate costs were $0.99 million, with $70,000 of legal settlements. Interest received was $156,000, and investing cash flow was nil.

BSA holds a $2.1 million bank guarantee facility, of which $1.7 million is used, with a 25% cash backing requirement. Available funding is stated at $15.4 million, and the company estimates a runway of about nine quarters at the current rate of cash use. Because that exceeds two quarters, the going-concern questions in the Appendix 4C are marked not applicable.

Related-party payments totalled $234,000, covering directors' fees and salaries, including those of the chief executive and chief financial officer.

Priorities and what to watch

Chief executive Sasho Kacevski described the period as transitional. The stated priorities are converting the pipeline into sustainable revenue, improving earnings and maintaining cost discipline. The report gives no earnings guidance and names no specific new contract awards.

Two milestones are confirmed: the shareholder meeting on 25 November 2026 to consider the Eonetics acquisition, and completion of the deal once approvals and conditions, including legal due diligence, are satisfied. Pipeline opportunities are not contracted revenue, and the company has not quantified them.

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