Key Highlights

  • Norwood Systems Limited (ASX:NOR) reported FY26 recognised Revenue of $2,436K, an increase of 28.1% on the prior year.
  • Net operating cash outflow reduced from $653K in FY25 to $229K in FY26, supported by record customer cash receipts of $2,368K.
  • Norwood secured a $595,000 contract enhancement with Optus in June 2026 and a voicemail services renewal expected to deliver approximately $1.5 million through FY2028.
  • The company completed a paid Australian Tier-1 OpenSpan Voice AI pilot and commenced a £150,000 paid pilot with a major UK telco.

Norwood Systems Limited (ASX:NOR) shares price jumped 20% on 22 September. Following the share price gain, NOR’s Appendix 4E Preliminary Final Report for the year ended 30 June 2026 comes in focus as it reported recognised revenue of $2,435,631, an increase of 28.1% on the $1,901,935 recorded in FY25. The company attributed the increase to stronger commercially Earned income from carrier delivery and recurring services. Customer cash receipts reached $2,368,200 during the year, a Company record representing growth of 20.4% from $1,967,142 in FY25.

Net cash used in Operating Activities reduced to $228,818 in FY26 from $653,220 in FY25, an improvement the company attributed to stronger customer collections combined with grant receipts, non-cash items and working-capital timing. Cash and cash equivalents at 30 June 2026 stood at $175,900, up from $137,765 a year earlier. The working Capital Deficit reduced 23.2% to $700,292, while net liabilities reduced 30.7% to $517,949. The Group recorded a loss for the year of $859,927, compared with a loss of $599,721 in FY25, with the increase in loss attributed primarily to a $224,781 increase in EBITDA loss to $520,459.

Carrier Delivery and Contract Expansion

Delivery progressed under Norwood's five-year CogVoice Voicemail platform Supply program during the year, with the company securing a $595,000 contract enhancement with Optus in June 2026 covering additional solution development, implementation and delivery. Alongside this, Norwood announced a voicemail services renewal expected to deliver approximately $1.5 million through FY2028, extending the recurring carrier relationship. The company's long-standing relationship with Spark New Zealand continued to contribute stable recurring platform and support revenues during the period.

Revenue by product line for FY26 comprised Optus Voicemail revenue of $1,071,808, Spark Voicemail revenue of $741,903, World Apps stores revenue of $108,396, project revenue of $282,501, and Corona revenue of $230,622.

OpenSpan Paid Pilots and International Validation

Norwood completed a paid Australian Tier-1 OpenSpan Voice AI pilot on schedule during the year, which the company said demonstrated the platform's rapid deployment capability in a carrier environment. The company also signed a £150,000 paid pilot agreement with a major UK telco and commenced delivery in June 2026, with progression to production remaining subject to successful pilot completion and customer approval.

Successful Call Protect proof-of-concepts were also completed with operators in the Asia-Pacific region and the United States during the year, providing what the company described as additional external validation of the platform, while noting that no production award should be inferred unless definitive agreements are executed. OpenSpan Call Protect received the international APICTA 2025 Gold Award during the period, which the company said provided independent recognition of its technology innovation and application to voice security challenges.

Corporate Activity

A number of corporate developments occurred during the year. On 17 September 2025, the Company announced the resignation of Dr John Tarrant as a Director and Chair, with Dr Tarrant remaining a substantial shareholder. The Balmain Resources Pty Ltd Facility was fully discharged and replaced with a $345,000 short-term Unsecured Loan from Shareholder Dilek Saticieli, subsequently repaid in December 2025. The Company entered a $125,000 revolving line of Credit facility with Bizcap AU Pty Ltd in October 2025, and in August 2025 fully repaid its FY2025 R&D loan facility using FY2025 R&D tax refund proceeds, amounting to a $519K repayment.

In December 2025, Norwood completed an oversubscribed Placement of fully paid ordinary shares raising $650,200 before costs, with free attaching unquoted Options issued to participants. A new secured R&D loan facility was entered into with Innovation Structured Finance Co LLC in February 2026, with a balance of $228,275 at 30 June 2026. A separate $200,000 unsecured loan facility with Plough Lane Superannuation Pty Ltd, controlled by former director Dr John Tarrant, had $180,000 outstanding at year end, subsequently extended to 30 September 2026. During the June 2026 quarter, 13,980,272 options were exercised, providing gross proceeds of $349,507.

Conclusion

Norwood Systems closed out FY26 with recognised revenue growth of 28.1% and a substantially narrower net operating cash outflow, developments the company linked to expanded carrier delivery under its CogVoice platform and progress moving OpenSpan from technical validation toward repeatable paid-pilot engagements. With a $595,000 Optus contract enhancement, a UK telco pilot underway, and a Working Capital deficit that reduced across the year, the company enters FY27 focused on converting its expanded carrier relationships and international proof points into production deployments.