Key Highlights

  • Data#3's most recent ASX lodgement was a routine notification of its FY26 reporting date on 8 July 2026, with no trading update or contract announcement since.
  • What happened The S&P/ASX 200 Information Technology index was down 1.34 per cent at 1,746.60 at the same time, the weakest sector bar energy, while the S&P/ASX 200 eased 0.26 per cent to 8,953.80.
  • Xero was off 0.8 per cent, WiseTech Global 0.7 per cent, NEXTDC 2.1 per cent and Megaport 2.82 per cent at AUD 17.59.
  • Data#3 fell further than the index but is far smaller and less liquid than the sector's giants.

A sector slide, not a company event Nothing company-specific appears to explain the fall. Data#3's most recent ASX lodgement was a routine notification of its FY26 reporting date on 8 July 2026, with no trading update or contract announcement since. On the evidence available, the fall reflects the sector move rather than news about the Business .

Company Overview

Shares in Data#3 Limited (ASX: DTL), the Brisbane-based IT reseller and services provider, were down 2.66 per cent at AUD 9.50 by about 10.26am AEST on Monday 3 August 2026, on Australian Financial Review markets data carried on a 20-minute delay.

Latest Update

The S&P/ASX 200 Information Technology index was down 1.34 per cent at 1,746.60 at the same time, the weakest sector bar energy, while the S&P/ASX 200 eased 0.26 per cent to 8,953.80. Xero was off 0.8 per cent, WiseTech Global 0.7 per cent, NEXTDC 2.1 per cent and Megaport 2.82 per cent at AUD 17.59. Data#3 fell further than the index but is far smaller and less liquid than the sector's giants.

Operations and Strategic Direction

Software Solutions moved roughly AUD 2.0 billion of gross sales but generated only AUD 72.6 million of Gross Profit , a Margin of 3.6 per cent. Infrastructure Solutions produced AUD 71.2 million from AUD 570.7 million, and Services AUD 145.6 million, more than half the group total. Recurring sales were 69 per cent of the total. Why the Balance Sheet looks strange

Financial and Market Snapshot

Pushing AUD 3 billion of third-party product through a company with net Assets of only AUD 84.2 million produces odd-looking period ends. It closed FY25 with AUD 356.7 million of cash and no borrowings, after an operating cash inflow of AUD 126.3 million that followed an AUD 86.2 million outflow the year before. Those swings are Working Capital timing, not Earnings power.

Broader Context

The next update should clarify whether current developments are translating into measurable progress. Market expectations can change quickly when operational results differ from earlier assumptions. Cash conversion offers another practical measure of the quality of reported earnings. Customer Demand can change quickly when economic conditions and competitive behaviour shift. Capital allocation remains relevant because every expansion decision carries an Opportunity cost . Management commentary will be weighed against measurable Revenue , margin and cash-flow outcomes.

What May Be Watched Next

The FY26 result: FY25 was reported on 25 August 2025, and data providers list the FY26 result for 24 August 2026. Whether Software Solutions gross profit recovered in the second half to match FY25, as management indicated it should.

Key Risks

The bear case is equally coherent. AI compresses the value of pure licence resale, because vendors increasingly sell direct through hyperscaler marketplaces and consumption contracts that need no intermediary. Vendor margin programmes can change unilaterally, as Microsoft's did from January 2025. Services gross profit is going backwards, with project services and people solutions challenged. A Payout Ratio above 90 per cent leaves little buffer if gross profit stalls.