Key Highlights

  • Revenue for the September 2026 quarter was $4.3M, matching Q4 FY26, with customer receipts of $4.7M.
  • Refurbished sales were about $2.6M, roughly 60% of quarterly revenue, at an average gross margin of about 37%.
  • Drawn borrowings fell about 55%, from $1.25M to $0.56M, after $0.7M of repayments.
  • Cash on hand of $1.3M and $2.4M of undrawn facilities gave total available funding of $3.7M.

Harris Technology Group Limited (ASX:HT8), the online retailer behind the Harris Technology brand, has reported results for the September 2026 quarter, the first quarter of its 2027 financial year. Sales revenue came to $4.3 million, the same as the $4.3 million recorded in the June quarter, while customer receipts totalled $4.7 million.

Net operating cash flow was positive at $0.1 million, following operating cash generation of $0.9 million across FY26. All FY27 figures quoted in the report are unaudited.

Refurbished Category Drives the Mix

Refurbished technology remained the largest category by both revenue and net profit contribution. It generated approximately $2.6 million in the quarter, around 60% of total revenue. Monthly refurbished revenue reached approximately $1.04 million in July 2026, which the company identifies as a new monthly high for the category.

The refurbished category held an average gross margin of approximately 37% for the quarter, compared with about 19% for the group's IT category. Blended margin across the company was 33.9%, up from 30.9% in the fourth quarter of FY26.

Sales in August and September were lower, which the company attributes to a delay in the scheduled arrival of parts used in refurbishing a range of laptops. The delivery was received in October 2026. Harris Technology has also reduced its sourcing of lower-grade products, such as items with scratches that cannot be buffed, and is concentrating on A-grade stock. Lower-grade products will still be refurbished but will mainly be sold through owned channels.

Cash Flow, Inventory and Spending

The Appendix 4C shows receipts from customers of $4,746,000 against operating payments that included $3,428,000 for product manufacturing and operating costs, mainly inventory purchases, $690,000 for staff costs, $516,000 for administration and corporate costs and $3,000 for advertising and marketing. After interest received of $4,000 and finance costs paid of $15,000, net cash from operating activities was $98,000.

Inventory on hand at 30 September 2026 was $2.5 million, down from $2.9 million at 30 June 2026, a net balance that took into account $3.4 million deployed on inventory purchases during the quarter. Payments to directors or entities controlled by them, comprising rents and fees, were $62,000.

The company says it is upgrading its quality assurance systems and its customer purchase and unboxing experience, as it heads into a retail period that includes Black Friday, Cyber Monday and Christmas. Managing Director and CEO Garrison Huang described the quarter as building on FY26 momentum, delivering positive operating cash flow and surpassing $1 million in monthly sales in July.

Debt Repayment and Funding Facilities

During the quarter Harris Technology repaid approximately $0.7 million of borrowings, with the Appendix 4C recording repayments of $701,000. Total drawn debt fell from $1.25 million at 30 June 2026 to $0.56 million at 30 September 2026, a reduction of about 55%. The Managing Director's personal loan was fully repaid, and the balance owed to GWH Trust, an entity he controls, was reduced to $0.56 million.

Two facilities are provided by the Managing Director and a related entity. The first is a loan of up to $2 million from GWH Trust, at 6% annual interest from July 2026, unsecured, expiring on 30 September 2027 and repayable in instalments of $13,300 per month, with $556,610 drawn. The second is a $1 million facility from the Managing Director at 6% interest, also unsecured and expiring on 30 September 2027, which is undrawn. Undrawn facilities available to the company rose to $2.4 million.

Cash fell from $1.933 million at the start of the quarter to $1.299 million at quarter end, reflecting the $732,000 of net financing outflows, which comprised the $701,000 of repayments and $31,000 of other items, set against the $98,000 operating inflow.

Where the Numbers Leave the Company

The quarter shows revenue unchanged on the prior quarter at $4.3 million, a higher blended margin of 33.9%, a refurbished category contributing around 60% of sales, and positive operating cash flow of $0.1 million. On the balance sheet, drawn borrowings stand at $0.56 million, cash at $1.3 million and total available funding at $3.7 million, including $2.4 million of undrawn related-party facilities. Inventory closed the quarter at $2.5 million, payments to related parties totalled $62,000, and all FY27 figures remain unaudited.