Highlights

• DataWorks Group reported operating cashflow of approximately $538,000 for the June 2026 quarter, taking FY26 operating cashflow to a positive $276,000.

• Customer receipts exceeded $10 million during FY26, supported by collections and expanded contract activity.

• The company expanded its Ontario relationship through a change order valued at more than C$12.5 million, approximately A$14 million.

• DataWorks launched BetGuard, Ontario’s centralised self-exclusion platform, and commenced managed contact-centre operations from Toronto.

• The company secured a $1.5 million unsecured working capital facility in July 2026 to support operational liquidity.

DataWorks Group Limited (ASX:DWG) released its June 2026 quarterly activities report and Appendix 4C, highlighting the company’s first positive operating cashflow year, expansion of its Ontario contract and continued development of its regulated technology platform.

The company reported operating cashflow of approximately $538,000 for the June quarter, which contributed to full-year FY26 operating cashflow of approximately $276,000.

DataWorks Group shares closed at AUD 0.15 on 30 July 2026, recording a gain of 25.00% during the session. The company’s latest operational update highlighted improved cash generation, expansion of its government-linked contracts and progress across its self-exclusion technology platforms.

What Happened

DataWorks Group reported a significant operational milestone during FY26, achieving positive operating cashflow for the first time.

The company’s Appendix 4C for the June 2026 quarter showed operating cashflow of approximately $538,000, taking the full-year FY26 operating cashflow position to positive $276,000.

Customer receipts during FY26 exceeded $10 million, supported by collections and contract activity.

A major contributor to the company’s progress was the expansion of its Ontario relationship through a contract change order valued at more than C$12.5 million, approximately A$14 million.

The expanded agreement increased DataWorks’ role beyond technology provision to include managed contact-centre operations through a newly established Toronto facility.

During the quarter, the company also launched BetGuard, Ontario’s centralised self-exclusion platform, supporting the delivery of regulated gambling harm-minimisation services.

The combination of improved cash generation, contract expansion and operational progress represents an important development period for the company.

Inside the Announcement

On 30 July 2026, DataWorks Group released its Appendix 4C and quarterly activities report covering the three months ended 30 June 2026.

The company highlighted the completion of its largest contract expansion to date through the Ontario change order, which expanded the scope of services provided under its relationship with iGaming Ontario.

The Ontario agreement now includes managed contact-centre operations alongside the existing self-exclusion technology platform.

DataWorks also confirmed the operational launch of BetGuard, Ontario’s centralised self-exclusion platform, which supports gambling harm-minimisation initiatives across the province.

The company’s improved operating cashflow was supported by increasing customer receipts and the contribution from its expanded contract activities.

However, despite the improved cash trend, DataWorks continues to operate as a small technology company with historical losses and ongoing funding requirements.

The Business

DataWorks Group develops and operates regulated technology solutions focused on gambling harm minimisation.

The company’s flagship platform is BetStop, Australia’s National Self-Exclusion Register, which allows individuals to voluntarily exclude themselves from licensed wagering services.

DataWorks operates BetStop under contract to the Australian Government, with the platform integrated across approximately 200 licensed wagering operators.

The company has expanded this model internationally through its Ontario operations in Canada.

In Ontario, DataWorks operates the centralised self-exclusion platform now branded BetGuard for iGaming Ontario.

The Ontario contract has expanded significantly since commencement in 2024, with the company now providing additional managed contact-centre services.

DataWorks was previously known as IXUP Limited (ASX:IXU), before changing its name and business focus toward regulated technology solutions supporting gambling harm minimisation.

Financial and Operational Position

DataWorks remains a small company with improving cash generation but a history of statutory losses.

The company reported positive operating cashflow during FY26; however, previous financial periods included significant losses.

FY25 revenue was approximately $7.20 million, while the company recorded a full-year loss of around $10 million.

Liquidity remained a key focus area during 2026.

At 31 March 2026, DataWorks held cash and cash equivalents of $78,899, alongside security deposits that increased total liquid assets to approximately $269,000.

The company also reported approximately $1.7 million in trade receivables expected to be collected within weeks.

To support working capital requirements, DataWorks entered into a $1.5 million unsecured funding facility on 3 July 2026.

The facility was provided by Stroud Agricultural Company Pty Ltd as trustee for the Vernon Trust and carries an interest rate of 18% per annum over a three-month term.

While the facility provides additional liquidity support without equity dilution, the relatively high interest rate highlights the importance of maintaining improving cash generation.

Potential Growth Drivers

The Ontario relationship remains one of DataWorks’ key growth opportunities.

The company’s original iGaming Ontario agreement, valued at approximately A$10 million from 2024, was expanded through a change order exceeding C$12.5 million, approximately A$14 million.

The expanded relationship takes combined contract value beyond A$24 million for the customer relationship.

The launch of BetGuard represents an expansion of DataWorks’ role from software provider to platform operator.

The platform supports all 82 licensed Ontario gambling operators and provides a foundation for recurring technology and operational revenue.

In Australia, BetStop continues to represent a significant government-linked platform opportunity.

The company has also identified potential future contract opportunities across domestic and international markets.

Additional growth opportunities may come from continued contract expansion, new regulatory technology deployments and ongoing cost management initiatives.

Key Risks and Uncertainties

Despite the improved cashflow performance, DataWorks continues to face several risks associated with its size, funding position and market concentration.

The company has historically recorded losses and maintained a limited cash balance, making effective working capital management important.

The $1.5 million unsecured funding facility carries an 18% annual interest rate, which increases financing costs.

DataWorks’ revenue remains concentrated across two major government-linked contracts: BetStop in Australia and BetGuard in Ontario.

Any changes to regulatory requirements, contract terms or customer relationships could materially affect future performance.

The company is also subject to an ongoing strategic review announced in December 2025, with Tekkorp Capital Advisors engaged to assess strategic opportunities.

The company has stated that there is no certainty that any transaction will result from the review.

As a smaller listed technology company, DataWorks shares may also experience volatility due to changes in investor sentiment and trading liquidity.

What to Watch Next

Investors tracking DataWorks Group may monitor several upcoming developments.

These include continued conversion of trade receivables into cash, repayment or refinancing of the $1.5 million unsecured facility and further progress from the Ontario BetGuard platform.

The company’s strategic review process will also remain an area of focus, with investors watching for any developments regarding potential transactions or strategic outcomes.

Additional contract opportunities in Australia, Canada and other regions may provide further growth opportunities.

The company also has approximately 8.9 million unlisted options due to expire in September 2026, which may influence the future capital structure.

The Bottom Line

DataWorks Group’s June 2026 quarterly update highlighted a meaningful operational milestone, with the company reporting its first positive operating cashflow year.

The improved cash generation was supported by customer receipts exceeding $10 million, expansion of the Ontario contract and the launch of BetGuard.

The company’s growth opportunity remains linked to expanding regulated technology platforms across gambling harm-minimisation markets.

However, funding requirements, historical losses, contract concentration and the ongoing strategic review remain important considerations.

DataWorks enters the next phase with improved operating momentum, while investors will continue assessing whether the company can convert its contract expansion and positive cashflow progress into sustainable long-term growth.

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