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Highlights

  • Nuix shares plunge up to 14% amid a sharp downturn in global and local tech markets.

  • The company now expects ACV growth at the lower end of its forecast range.

  • Despite the hit, Nuix continues rolling out its next-gen platform and expects positive cash flow in FY 2025.

It’s been another turbulent day for the Australian share market, with technology stocks bearing the brunt of the selloff. The local tech sector is reeling after Wall Street's Nasdaq Composite dropped roughly 6% on Friday, officially entering bear market territory. The ripple effects have hit the ASX hard, with the S&P/ASX All Technology Index falling more than 7% in Monday trading.

One of the hardest-hit stocks is Nuix Ltd (ASX:NXL), which saw its share price tumble by as much as 14% to AU$2.33 in early trade. The sharp fall reflects not only the broader tech market weakness but also investor reaction to the company’s latest trading update.

ACV Guidance 

Nuix, a provider of investigative analytics and intelligence software, informed investors this morning that it now expects its Annualised Contract Value (ACV) to grow at the lower end of its previously forecast range of 11% to 16% for the full year, in constant currency terms.

The company attributed the revised outlook to an increasingly unpredictable operating environment, which has made it more difficult to finalise deals. The update underscores the challenges many tech firms are facing, as global macroeconomic uncertainty continues to weigh on corporate spending and decision-making cycles.

Market Reaction and Sector Pressure

Today’s steep decline in Nuix’s share price comes amid a broader selloff across global technology names. With the Nasdaq’s plunge sending shockwaves across markets, investor sentiment has taken a hit, especially for companies with forward-looking revenue projections and exposure to economic volatility.

For Nuix, the revised ACV guidance was met with disappointment by investors who were hoping for stronger momentum heading into the final quarter of the fiscal year. The share drop reflects concern that revenue growth may slow further if market conditions remain unstable.

Silver Linings in the Update

Despite the cautious outlook on contract growth, Nuix highlighted several positives in its update. The company confirmed it is making steady progress in rolling out its next-generation platform, Nuix Neo. This platform is designed to expand the firm’s capabilities in forensic data analytics and investigation — areas expected to support longer-term growth.

Nuix also noted that it anticipates revenue growth to outpace operating cost growth in FY 2025, when excluding net non-operational legal costs. As a result, the company expects to be underlying cash flow positive for the full year, which could provide some reassurance to shareholders concerned about profitability.