SOCO Corporation Ltd (ASX:SOC): Contract Growth and Margin Improvement

Aditi Sarkar

23 September 2026 05:49 AM AEST

SOCO Corporation Ltd (ASX:SOC): Contract Growth and Margin Improvement

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Highlights

FY2026 Revenue reached $20.6 million, with second-half revenue increasing 12.5% from the first half.
Gross Margin improved to 25.6%, supported by stronger delivery performance in H2 FY2026.
Contracted sales exceeded $24 million during FY2026, with approximately $9.5 million carried into FY2027.
Support and Recurring Revenue increased as projects transitioned into managed services.

SOCO Corporation Ltd (ASX:SOC) is an Australian information technology services consultancy specialising in cloud solutions, Business applications and integration projects with a focus on Microsoft technologies. The company works with organisations across government, defence, compliance-driven sectors and other industries requiring digital transformation capabilities. During FY2026, SOCO focused on project delivery, sales execution, recurring revenue growth and operational improvements.

FY2026 Financial Performance and Second-Half Recovery

SOCO reported revenue of $20.6 million for FY2026 compared with $21.3 million in FY2025. The company recorded a statutory net loss after tax of $6.35 million, primarily due to a non-cash Impairment charge of $5.12 million relating to the Axsym cash-generating unit. Gross Profit increased 2.6% to $5.28 million, while gross margin improved to 25.6%. Second-half revenue increased to $10.9 million from $9.7 million in the first half, with gross margin improving to 30.5%.

Underlying EBITDA returned to positive territory in H2 FY2026 at $0.22 million, while Operating Cash Flow also returned to positive during the second half.

Contract Growth and Recurring Revenue Development

SOCO secured more than $24 million in contracted sales during FY2026, with second-half contracted sales increasing by more than 40% compared with the first half. Approximately $9.5 million of contracted project value was carried into FY2027 for mobilisation and delivery.

Support and recurring revenue increased during the year as several engagements moved into support or managed-services arrangements. The company continued focusing on government, defence and compliance-driven sectors.

Strategic Priorities and FY2027 Outlook

SOCO’s FY2027 priorities include converting contracted work into delivered revenue, maintaining margin discipline, increasing support and managed-services revenue and continuing development of technology capabilities. The company is also focused on AI and intelligent automation initiatives aligned with Microsoft technologies.

SOCO secured approximately $2.9 million of additional contracted sales between 1 July and 15 August 2026 and continues focusing on delivery execution and cash generation.

Key Insights

SOCO Corporation is focused on IT consulting, cloud solutions and Microsoft-aligned digital services. FY2026 reflected improved second-half operating performance, higher contracted sales and continued development of recurring revenue opportunities.

FAQs

Q:What does SOCO Corporation do?

A:SOCO is an IT consultancy specialising in cloud solutions, business applications and integration projects.

Q:What was SOCO’s FY2026 revenue?

A:SOCO reported revenue of $20.6 million for FY2026.

Q:What sectors does SOCO focus on?

A:SOCO focuses on government, defence and compliance-driven sectors.

Q:What were SOCO’s contracted sales in FY2026?

A:SOCO secured more than $24 million in contracted sales during FY2026.

Q:What are SOCO’s FY2027 priorities?

A:SOCO is focused on converting contracted work, improving recurring revenue, maintaining margins and developing technology capabilities.

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