Highlights

  • DUG Technology lifted FY26 Revenue 38% to US$86.4 million, with HPC-as-a-service revenue up 383%.
  • Normalised EBITDA rose 78% to US$27.4 million, while net profit after tax reached US$2.6 million.
  • A US$9.3 million software and HPC infrastructure award from a national oil company began in Q1 FY27.
  • Shareholders will vote on director re-election, executive Options and Placement capacity at the 19 November AGM.

High-performance computing sold as a service has become a meaningful part of the revenue mix at DUG Technology (ASX:DUG), helping the Perth-based technology company swing to a net profit in the year to 30 June 2026.

With the full-year result behind it, the company is now preparing for its Annual General Meeting in West Perth on 19 November 2026, where shareholders will consider a placement capacity resolution and executive incentive grants.

Software and HPC Now a Quarter of Revenue

FY26 revenue rose 38% to US$86.4 million. Services revenue grew 23% to US$63.8 million, software revenue increased 33% to US$11.1 million and HPC-as-a-service revenue rose 383% to US$11.5 million. Together, software and HPC-as-a-service accounted for 26% of group revenue, up from 17% in FY25.

Normalised EBITDA climbed 78% to US$27.4 million, lifting the Margin to 32% from 25%. That figure excludes a US$1.5 million one-off expense linked to a legal matter, and statutory EBITDA was US$25.9 million. Net profit after tax was US$2.6 million, compared with a loss of US$4.4 million a year earlier. That represented a US$7.0 million turnaround in the bottom line.

Contracts Underpin the Compute Build-Out

The growth in HPC-as-a-service follows a Malaysian contract signed in September 2025, worth US$43.3 million over an initial three-year term and described by DUG as the largest software and HPC award in its history. In late August 2026, the company secured a further US$9.3 million software and HPC infrastructure award from a national oil company, with a two-year term starting in Q1 FY27.

The expansion of compute capacity has been funded partly through asset financing, which totalled US$23.5 million at year-end. Net Debt rose to US$13.0 million from US$3.9 million, while cash stood at US$10.5 million. Operating cash inflow improved to US$20.9 million from US$5.6 million. DUG also had 12 multi-client data projects at various stages of completion.

AGM Agenda and FY27 Direction

At the 19 November meeting, shareholders will vote on the remuneration report, the re-election of director Louise Bower and the issue of 288,575 zero exercise price options to managing director Matthew Lamont under the company's long-term incentive plan. A special resolution seeks approval for additional placement capacity of up to 10% of Issued Capital under Listing Rule 7.1A, and a further resolution covers amended incentive plan rules.

In his letter to shareholders, Lamont pointed to an energised industry, a large pipeline of opportunities and a contracted software and HPC base entering FY27. The company has not issued quantitative FY27 guidance, while its board has stated an intention to keep investing in its technology, infrastructure and global operations.

Shares were priced at A$1.43 on 2 November 2026, down 1.04% on the day, giving a Market Capitalisation of A$194.06 million and a 12-month decline of 34.7%.