Highlights

  • Excite Technology Services shares rose 16.67% on 29 May 2026 following the release of the company’s FY26 financial update.
  • Revenue from ordinary activities increased 74% year-on-year to $21.33 million in FY26
  • Net loss after tax improved 16% to $5.39 million compared with FY25.
  • CBIT digital forensics Business remained a major contributor to overall group revenue growth.

Excite Technology Services Ltd (ASX:EXT) reported a notable increase in annual revenue for FY26 as the company continued expanding its cyber security, managed IT, and digital forensics operations across Australia. The company’s latest Appendix 4E and preliminary final report highlighted a 74% rise in revenue to $21.33 million for the year ended 31 March 2026, reflecting continued growth in customer activity and contributions from acquired operations, particularly CBIT Pty Ltd.

The share price movement during the afternoon session on 29 May 2026 appeared to coincide with the release of the company’s FY26 financial update, with investors reacting to the significant uplift in revenue and ongoing business expansion initiatives despite the company remaining loss-making. Excite Technology Services shares traded at AUD 0.007, up 16.67% for the session, although the stock remains approximately 30% lower over the past year.

Revenue Growth Driven by Cybersecurity and Digital Forensics Expansion

Excite Technology Services reported total revenue of $21.33 million in FY26 compared with $12.27 million in FY25. The increase was largely supported by growth across hardware and software resale, managed services, cybersecurity solutions, and Training activities.

Revenue from hardware and software resale increased substantially to $14.47 million from $6.66 million a year earlier. Training revenue also improved to $1.23 million, while services revenue remained relatively stable at just above $3 million.

The company said its operations are now organised across several divisions, including Excite Cyber, VIT, Excite IT, and CBIT. Among these, CBIT continued to contribute significantly to group revenue following its Acquisition during the previous financial year.

Management noted that five major customers accounted for approximately 36% of total external revenue during FY26, representing $7.7 million in sales. This compares with one major customer contributing 12% of revenue in the prior year.

Losses Narrow Despite Ongoing Investment Phase

While revenue growth improved considerably, the company continued to operate at a net loss as it invested in scaling its operations and expanding service capabilities.

Excite Technology Services reported a net loss after tax of $5.39 million for FY26, compared with a loss of $6.43 million in FY25. This represented a reduction of approximately 16% year-on-year.

The company’s operating loss stood at $5.39 million, with expenses increasing across several areas as the business expanded. Software and hardware costs rose sharply due to increased sales activity, while office and administration expenses also increased as the company integrated acquired businesses and expanded operations.

Employee benefits expenses declined to $5.51 million from $9.20 million in FY25, partly reflecting changes in workforce structure and lower share-based payment expenses.

Depreciation and Amortisation expenses increased to just over $1 million following additional leased office Assets and intangible assets associated with prior acquisitions.

Interest expenses also rose to approximately $859,000, reflecting increased financing activities and Lease liabilities.

Company Continues to Focus on Growth Strategy

Excite Technology Services stated that it remains in a growth phase as it continues building scale across its cybersecurity services and technology solutions businesses.

The company’s operating segments include:

Excite Cyber – cybersecurity services primarily in New South Wales

VIT – cybersecurity services in Tasmania

Excite IT – managed IT services nationally

CBIT – digital forensics hardware, software, and training

Corporate division – management, acquisitions, and group activities

The CBIT division remained a major contributor to group revenue during FY26, generating approximately $15.83 million in external customer sales.

Management said the company continues investing in cybersecurity and digital forensic capabilities amid rising enterprise and government Demand for security-related technology services.

Going Concern Position Remains Under Review

Despite revenue growth, the financial statements included a material uncertainty regarding going concern, which management acknowledged as part of the audit process.

The company reported net operating cash outflows of approximately $4.526 million during FY26, compared with $3.65 million in FY25. Cash and cash equivalents at year-end stood at approximately $999,262.

Directors stated that the business remains dependent on several factors to support ongoing operations, including:

Winning new projects and managed services contracts

Renewal of existing customer agreements

Continued cost management initiatives

Potential future Debt or Equity funding

The company noted that failure to achieve these assumptions could materially impact future cash flows and operations. However, directors stated they remain confident that the group can continue operating as a going concern based on expected business growth and funding initiatives.

Balance Sheet Reflects Expansion and Financing Activity

Excite Technology Services reported total assets of $13.886 million at 31 March 2026, up from $10.76 million in the previous year.

Right-of-use assets increased significantly to $5.28 million following additional office lease arrangements, while intangible assets stood at $5.66 million.

However, total liabilities also increased materially to approximately $17.99 million from $11.70 million in FY25.

Convertible note liabilities rose to $5.82 million, while lease liabilities increased following the expansion of office facilities and operational footprint.

Net liabilities for the group stood at approximately $4.10 million at year-end.

The company also raised additional Capital during the year, including approximately $2.8 million through share placements and $3.15 million through convertible notes.

CBIT Acquisition Continues to Shape Business Operations

The company continued integrating CBIT Pty Ltd following its acquisition completed in October 2024.

CBIT operates in digital forensics hardware, software, and training services, supplying enterprise, government, and small business customers.

Excite Technology Services said the acquisition aligns with its strategy of expanding Recurring Revenue streams and strengthening its cybersecurity ecosystem.

Management disclosed that Goodwill associated with the acquisition continues to be tested for Impairment using discounted Cash Flow models based on projected revenue growth and operational assumptions.

The company applied a 16% pre-tax discount rate and forecast revenue growth assumptions ranging from 5% to 30% in the initial years for valuation purposes.

Management Highlights Revenue Scaling Efforts

The company stated that it expects continued focus on scaling operations, customer acquisition, and integration of acquired businesses moving forward.

Management also highlighted recently announced channel partnerships and ongoing opportunities in cybersecurity and managed services markets.

Industry demand for cybersecurity infrastructure, digital forensics capabilities, and managed IT services has remained elevated amid increasing cyber threats and compliance requirements across corporate and government sectors.

Excite Technology Services said it aims to continue positioning itself within these growing technology segments while balancing operating costs and capital requirements.

Outlook

Looking ahead, investors are likely to monitor whether Excite Technology Services can continue converting revenue growth into improved operational performance and reduced losses.

The company’s ability to secure additional customer contracts, improve Operating Cash Flow, and manage funding requirements may remain key areas of focus for the market over coming quarters.

While the latest results demonstrated continued top-line expansion, the company’s balance sheet position and ongoing funding needs may also remain under investor scrutiny as management continues executing its growth strategy.