Key Highlights

  • TZ Limited (ASX:TZL) shares fell 18.18% to $0.027 during the 22 September trading session.
  • FY26 Revenue from ordinary activities declined 4.09% to $9,995,484, with the company citing customer Capital Expenditure deferrals and project timing shifts.
  • Profit from ordinary activities after tax attributable to owners fell 26.39% to a loss of $4,451,686, compared with a loss of $3,517,624 in the prior year.
  • The company commenced a cost base restructure in May 2026, including approximately $1.5 million of wage reductions, and highlighted Data Centre Security as an emerging growth platform.

TZ Limited (ASX:TZL) shares were down 18.18% to $0.027 during the Trading session on 22 September. TZ Limited operates across three main Business platforms: Smart Lockers and Smart Access, Keyvision, and Data Centre Software, encompassing physical access-control technology and digital audit software marketed under the Praetorian and Centurion product names.

FY26 Financial Results

Recently, the company reported revenues from ordinary activities of $9,995,484 for FY26, down 4.09% on the prior year. Adjusted EBITDA, which the company defines as Earnings before interest, tax, Depreciation and Amortisation adjusted for Impairment and R&D incentive grant, improved 9.8% to a loss of $2,316,533, compared with a loss of $2,568,197 in FY25.

Profit from ordinary activities after tax attributable to the owners of TZ Limited declined 26.39% to a loss of $4,451,686, compared with a loss of $3,517,624 in the prior corresponding period. Net tangible Assets per ordinary security stood at negative 3.58 cents at 30 June 2026, compared with negative 4.22 cents a year earlier, a figure the company noted is inclusive of right-of-use assets and Lease liabilities. No dividends were paid, recommended or declared during the current or prior financial period.

The company stated that FY26 trading was affected by customer capital expenditure deferrals and project timing, though it noted several deferred opportunities have since moved into the FY27 pipeline, with orders already being received and discussions progressing with existing and prospective customers.

Cost Base Restructure

TZ Limited disclosed that it commenced a cost base restructure in May 2026, including approximately $1.5 million of wage reductions, and introduced a revised, more incentivised sales commission structure effective from 1 July 2026. The company said it enters FY27 with a reduced operating cost base while maintaining the ability to substantially scale operations.

The company highlighted one customer example in its outlook commentary, noting that a customer which contributed US$580,000 of FY26 revenue is undertaking a refurbishment program, with FY27 invoices to that customer already exceeding twice the prior year's revenue from that account, which the company said illustrates the potential for revenue to re-accelerate as deferred projects resume.

Segment Performance and Growth Platforms

TZ described its Annuity Recurring Revenue, or ARR, as its primary strategic focus, with the current split comprising 75% from Smart Lockers and Smart Access, 15% from Keyvision, and 10% from Data Centre Software associated with the TZ DC locking system. Increasing ARR from the data centre sector was flagged as a major focus for FY27.

The company identified Data Centre Security as an emerging growth platform, noting it is progressing discussions with major rack manufacturers to integrate its physical access-control technology and digital audit software directly into rack solutions, against a backdrop of global data centre capacity forecast to nearly double by 2030.

Keyvision, which serves the Australian Build to Rent and high-density residential market, reported apartments under contract increasing to 12,373, with expectations to exceed 15,000 by March 2027 and a target of achieving profitability during FY27. The company noted Australia's institutional Build to Rent sector has expanded to a pipeline of approximately 51,000 apartments with an estimated value of $40.1 billion. Smart Lockers and Smart Access remains the company's largest established revenue platform, with FY27 priorities including conversion of deferred enterprise projects, a university deployment pipeline, and a targeted refresh program across the company's global Day Locker installed base.

The Bottom Line

TZ Limited's FY26 results reflect the impact of customer capital expenditure deferrals on annual revenue and profitability, with the reported loss widening compared with the prior year despite an improvement in adjusted EBITDA. The company has implemented a cost base restructure and pointed to a recovering FY27 pipeline, alongside emerging growth prospects in Data Centre Security and continued expansion of its Keyvision platform within the Build to Rent sector. Investors will likely monitor the pace of pipeline conversion and progress toward Keyvision profitability as key indicators for FY27 performance.