Highlights

  • Revenue for Q1 FY27 was $4.4 million, down from $17.1 million, mainly due to lower nbn volumes.
  • Underlying EBITDA, excluding share-based payments, was a loss of $0.6 million.
  • BSA signed a binding agreement to acquire 100% of Eonetics Pty Ltd.
  • Net cash was $14.6 million at 30 September 2026, with no external borrowings.

BSA Limited (ASX:BSA) has released its trading update, quarterly activities report and Appendix 4C for the quarter ended 30 September 2026. CEO Sasho Kacevski described the period as "a transitional period" for the company, as it works to rebuild its revenue base following the end of its nbn contract and pursues a new acquisition.

Q1 FY27 Trading Results

Revenue for the quarter was $4.4 million, compared with $17.1 million in the same quarter of FY26. The decline mainly reflects lower nbn volumes following unfavourable tender and contract renewal outcomes and the expiry of the nbn contract on 30 September 2025.

Reported EBITDA was a loss of $1.7 million, which included a $1.0 million non-cash share-based payment expense. Excluding this item, underlying EBITDA was a loss of $0.6 million, compared with a $4.0 million profit a year earlier. The prior period included non-recurring nbn transition-out payments, while the current quarter reflects a lower revenue base and delays in mobilising new opportunities, partly offset by cost management.

Eonetics Acquisition

BSA has executed and exchanged a binding Share Purchase Agreement to acquire 100% of Eonetics Pty Ltd. The acquisition is intended to expand BSA's technology capabilities and service offering across infrastructure inspection, surveillance and connectivity.

Completion remains subject to outstanding legal due diligence, shareholder and regulatory approvals and other customary conditions. A shareholder meeting is scheduled for 25 November 2026, after which completion is anticipated.

Cash Position and Outlook

BSA held net cash of $14.6 million at 30 September 2026, down from $16.4 million at 30 June, and has no external borrowings. Net operating cash outflow for the quarter was $1.7 million, and the company estimates about nine quarters of available funding.

Mr Kacevski said, "Our priority is to convert the current pipeline into sustainable revenue and improved earnings." He added that the company "remains well positioned to support its operations and pursue its growth strategy." BSA will continue to focus on disciplined cost management and operational efficiency.

Key Takeaways

  • BSA's revenue fell sharply following the end of its nbn contract.
  • The proposed Eonetics acquisition aims to broaden the company's technology services.
  • Net cash of $14.6 million and no borrowings provide a stable funding base.
  • Converting the pipeline into sustainable revenue is the company's main priority.