Knosys (ASX:KNO), the Melbourne software-as-a-service company, has ended its 2026 financial year with more cash than it started with while still reporting a bigger loss. That contrast is the central point for anyone following ASX:KNO: the Business is generating cash from customers paid in advance, and is now trying to turn its Libero library software into growth in the United States.

What the company does

Knosys describes itself as a SaaS provider that helps organisations manage information and knowledge. Its two lines are KnowledgeIQ, used by enterprise customers including ANZ, and Libero, a library management platform. The company says Libero has roughly 100 library customers and that it is entering a commercialisation phase.

The FY26 numbers

For the year to 30 June 2026, the Annual Report released on 27 August 2026 shows Revenue of $9.7 million, down 2 per cent, and annual Recurring Revenue (ARR) of $9.0 million. EBITDA was a loss of $1.6 million and the net loss after tax was $2.5 million, compared with $1.5 million a year earlier. Cash rose to $4.9 million from $2.8 million, and the company reports no borrowings, only $0.2 million of Lease liabilities. Net Assets fell to $3.6 million from $5.9 million.

The June quarter report, lodged on 29 July 2026, said cash receipts were $5.4 million, up 158 per cent on the prior corresponding period, and net Operating Cash Flow was $3.1 million. That figure includes a $0.7 million Research and Development tax benefit. Because Knosys bills many customers annually in advance, quarterly receipts can swing with contract timing; the company itself described an earlier half-year cash outflow as reflecting normal timing differences in annual receipts.

ANZ contract

On 27 May 2026 Knosys announced that ANZ had signed a two-year extension worth $3.8 million, paid in advance, with an optional third year. This is a signed contract; revenue is recognised over the contract period rather than when the cash arrives, so the payment should not be read as a single-period Earnings item.

The US push for Libero

Management says the next step is selling Libero to US public libraries. The annual report refers to launching a Libero community experience and discovery hub in US public libraries in late 2026, and the Quarterly Report says implementations are expected to begin in the first quarter of FY27. A next-generation version, Libero 7, is expected to be ready for commercial sale during FY27. These are company plans and expectations, not contracted revenue.

Sector context

Library management is a specialist niche with established vendors. Knosys says its rollout can take around 10 weeks against 6 to 12 months for legacy systems. That is a company claim, and the pace at which US libraries actually switch will be the test.

Risks to weigh

Revenue slipped 2 per cent and losses widened in FY26 even as cash improved, so the cash gain leans on advance payments and the tax benefit. Growth depends on winning US customers with a relatively small business, and the company’s headcount was restructured in the first half of FY26. Unquoted Options at $0.15 expired on 1 July 2026, leaving 216,138,698 ordinary shares on issue.