Highlights

  • Subsidiary CBIT won a A$2.9 million, 24-month digital forensics software contract with a federal government regulator.
  • Customer receipts rose 71% year on year to A$7.20 million in the September 2026 quarter.
  • Net Operating Cash Flow reached A$1.33 million, which the company described as its strongest quarter on record.
  • Cash increased to A$3.98 million at 30 September 2026, supported by an upsized A$3.5 million placement.

Excite Technology Services (ASX:EXT) has added a A$2.9 million federal government contract to its digital forensics book, announcing on 20 October 2026 that wholly owned Subsidiary CBIT had been selected by an unnamed Australian Federal Government regulator. The agreement runs for 24 months to September 2028 and covers digital forensics and investigative analytics software and associated services.

The win arrived a week after the company, which trades as Excite Cyber, reported its strongest quarterly operating cash flow for the three months to 30 September 2026.

Forensics Division Builds Contracted Revenue

The regulator contract follows standard federal government terms, allowing the agency to terminate or vary scope at its discretion. The company did not name the regulator, saying its identity is not material in itself, and did not disclose the timing of Revenue recognition.

During the September quarter, the group also expanded a separate major federal government digital forensics contract valued at A$3.20 million over 24 months, covering certified digital evidence collection, training, forensic software and specialist hardware. Management said the Digital Forensics and Training division enters the December 2026 quarter with strong contracted revenue.

Receipts Climb and Cash Flow Turns Strongly Positive

Customer receipts reached A$7.20 million in the Sep-2026 quarter, up 71% on the same quarter a year earlier and 47% on the June 2026 quarter. Receipts for the six months to 30 September 2026 totalled A$12.11 million, while annual receipts grew from A$8.6 million in FY24 to A$23.6 million in FY26.

Net operating cash flow was A$1.33 million for the quarter. Cash rose to A$3.98 million at 30 September 2026 from A$0.47 million at 30 June, helped by the A$3.5 million Placement announced in July 2026, which was upsized from an initial A$3.26 million. A A$315,000 Loan Facility remained undrawn.

Smaller wins in the quarter included a A$152,000 enterprise licensing deal with a large faith-based community services organisation and a A$68,000 managed detection and response contract with a national not-for-profit.

Recurring Services and Secure AI in Focus

Excite operates across three divisions: cyber security, IT and managed services, and digital forensics and training. The board's stated FY27 priority is consolidating positive operating cash flow, while the cyber security and IT managed services teams aim to convert advisory and assessment work into multi-year recurring contracts.

The next stage of its roadmap targets sales acceleration, a greater share of client IT spending, a secure AI offering and deeper partnerships with Fortinet and Cellebrite. The board is also evaluating Acquisition opportunities, mainly in cyber security and managed IT services, although no decision has been made and there is no assurance a transaction will proceed.

Shares were priced at A$0.005 on 2 November 2026, down 10% on the day, giving a Market Capitalisation of A$12.48 million.