Key Highlights

  • Constellation Technologies reported FY26 customer receipts of A$2.06 million against recognised revenue of A$1,710,289.
  • The company holds A$226,221 of deferred revenue that it expects to recognise in the first quarter of FY27 once equipment is installed.
  • It swung to a loss after tax of A$458,246 from a profit of A$9,521, and cash fell to A$442,082.

Constellation Technologies (ASX:CT1), which sells Internet of Things (IoT) monitoring technology, collected more cash from customers in FY26 than it was able to book as revenue. Its annual results for the year to 30 June 2026, lodged on 27 August 2026, show customer receipts of A$2.06 million against reported revenue of A$1.71 million, after delays in hardware delivery and installation pushed income into the next period. The company holds A$226,221 of deferred revenue that it expects to recognise in the first quarter of FY27, once the equipment is installed.

What the business does

Constellation combines cloud, IoT, edge-computing sensors, big data, analytics, machine learning and artificial intelligence, and reports a single segment selling and commercialising IoT solutions in Australia. Revenue comes from monitor tags, monitoring services, consulting and labour hire, with monitoring the largest contributor. Its CT Product Suite has included the CT Meridian and CALLISTO platforms for food safety, healthcare, retail and logistics, along with custom hardware such as flood monitoring. The company is based in Melbourne and has about 24 employees.

FY26 results

The Appendix 4E reported revenue of A$1,710,289, down from A$1,807,330. The fall is given as 5 per cent in the financial statements and 6 per cent in the directors' report. Platform and subscription revenue rose 22 per cent to A$856,453. Management attributed the shortfall to hardware delivery and installation delays at customer sites in the second half, and the directors' report says revenue would have risen about 7 per cent had the deferred amount been recognised. Recognition depends on those installations going ahead.

The company swung to a loss after tax of A$458,246 from a profit of A$9,521. The result included a A$72,558 impairment on a handheld temperature device being retired and an income tax expense of A$54,287. Net assets fell to A$402,036 from A$861,733, and cash declined to A$442,082 from A$554,824.

Current liabilities of about A$1.12 million exceeded current assets of about A$0.89 million, leaving net current liabilities of roughly A$227,000. The company has more than A$7.2 million of Australian tax losses available. The auditor's report is described as unqualified.

Quarterly cash flow and funding

The June 2026 quarterly cash flow report shows A$586,000 of customer receipts and cash of A$442,000, consistent with the year-end balance. The company has not announced a current capital raising. With 1,487,233,703 shares on issue according to the annual results, any future raising at a low share price could lead to meaningful dilution.

Board changes and risks

Anoosh Manzoori resigned as a director on 30 April 2026, and Zhigang Zhang was appointed on 6 May 2026. The main risks include dependence on hardware supply and installation timing, the company's small scale, customer concentration, which has not been quantified, and a thin working-capital position.

The Bottomline

Constellation's FY26 numbers show growth in platform and subscription revenue alongside a loss and net current liabilities. Whether the A$226,221 of deferred revenue is recognised in the first quarter of FY27, as the company expects, depends on installations taking place at customer sites.