Highlights

  • AUCyber generated net operating cash inflow of A$194,000 in the September 2026 quarter, reversing a prior-quarter outflow.
  • New university security contracts signed in September add about A$1.34 million in combined annual recurring revenue.
  • Quarterly operating outgoings fell to A$4.67 million from A$5.11 million, helped by A$380,000 in staff savings.
  • A A$1.0 million Unsecured Loan Facility from 5G Networks was announced on 17 September 2026.

Tighter cost control and a run of university contracts helped AUCyber (ASX:CYB) swing back to positive Operating Cash Flow in the September 2026 quarter. The Cybersecurity services provider reported a net operating cash inflow of A$194,000, compared with an outflow of A$120,000 in the June quarter.

Customer receipts eased to A$4.86 million from A$5.10 million, which management attributed to billing timing on large projects that completed late in the quarter. Operating outgoings fell faster, to A$4.67 million from A$5.11 million, while gross Margin held at about 25%. Management linked the improvement to productivity gains, higher utilisation of internal staff and reduced reliance on subcontractors.

Universities Become a Growth Channel

On 28 September 2026, AUCyber announced further growth in its security operations centre (SOC) Business across Australian higher education. The University of New England signed a managed security services contract with an initial 12-month term and annual Recurring Revenue above A$600,000. A second, unnamed Australian university signed managed SOC contracts worth A$2.16 million over three years.

Together, the wins add about A$1.34 million in annual recurring revenue. The SOC services are monitored by an Australian-based team and delivered on the SentinelOne Singularity platform. AUCyber is also bidding for a managed SOC and security analytics engagement with a major Australian university worth about A$5.5 million over the contract term, although it has cautioned that there is no assurance the bid will succeed. The company said it has closed further contract opportunities since that announcement, without naming them.

Funding Rests on a Related-Party Facility

Cash fell to A$782,000 at 30 September 2026 from A$1.18 million, including a A$350,000 bank guarantee, after net financing outflows of A$591,000. Borrowing repayments of A$1.32 million were partly offset by A$647,000 drawn under a new A$1.0 million unsecured facility from 5G Networks, which replaced an open intercompany balance with defined terms. Management said the arrangement avoids the costs, security and covenants of external lenders.

The quarter also brought in A$520,000 of Equity proceeds after an outstanding Placement subscription was received in full. Available funding totalled A$1.14 million, and management described Liquidity as sufficient for short-term obligations.

Sovereign AI and Higher-Value Services Ahead

Management's stated priorities are expanding sales of its cyber products, delivering Sovereign AI solutions, shifting towards higher-value services and away from low-margin resale, improving operating cash flow and maintaining liquidity. The company also intends to expand further across universities and the wider education sector.

Shareholders will vote at a virtual Annual General Meeting on 19 November 2026 on resolutions including share rights that would replace directors' cash fees for 12 months and an additional 10% placement capacity. Directors Hugh Robertson and Joseph Demase hold relevant interests in about 89% of the shares through 5G Networks. Shares were unchanged at A$0.059 on 2 November 2026, giving a Market Capitalisation of about A$12.41 million, and were down 26.25% over 12 months.