Key Highlights

  • Knosys reported FY26 revenue of A$9.7 million and a net loss after tax of A$2.5 million.
  • Cash rose to A$4.9 million from A$2.8 million, with net operating cash inflow of A$2.2 million.
  • The company began marketing and tendering for Libero in the United States in the first quarter of FY27.

Knosys (ASX:KNO) reported a wider loss for the year to 30 June 2026 but improved operating cash flow and a larger cash balance, and is pointing to a United States launch of its Libero library software as its next growth step. Much of the cash improvement came from a prepaid contract rather than from profit.

What the company does

According to its 27 August 2026 results announcement, Knosys is a Melbourne-headquartered software-as-a-service provider offering library management (Libero), knowledge management (KIQ) and, until its exit from that market, intranet products. The March 2026 quarterly said Libero had about 100 library customers across Australia and Germany.

FY26 results

Revenue was A$9.7 million, down from A$9.8 million, and annual recurring revenue was A$9.0 million. Operating expenses rose 5 per cent to A$12 million, which the company attributed to contractor and consulting costs, higher hosting costs and one-off restructuring. EBITDA was a A$1.6 million loss, compared with a A$0.6 million loss in FY25, and the net loss after tax was A$2.5 million, against A$1.5 million.

Net operating cash flow was an inflow of A$2.2 million, compared with an outflow of A$1.2 million, and cash rose to A$4.9 million from A$2.8 million. A significant factor was the two-year extension with ANZ (ASX:ANZ), signed on 27 May 2026 and worth A$3.8 million with an optional third year, which the company said was paid in advance. A prepayment lifts cash immediately, but the revenue is recognised over the contract term, so it is not a measure of profit. At 31 March 2026 cash had been A$1.8 million, with operating cash flow close to break-even for that quarter.

GreenOrbit transition

The company's older GreenOrbit intranet product is shrinking. Knosys said customer attrition is expected to continue for about 18 months. In January 2026 it signed an agency agreement with Oak Engage, under which it expects to receive commissions on customers it migrates; that income has not yet been earned. The March quarterly put customer migration over roughly the next two years and reported cash receipts for the quarter of A$2.7 million, 14 per cent below the prior year, which the company attributed to timing and GreenOrbit attrition.

US launch

Management expects a positive FY27, driven by the United States launch of Libero, which began with marketing and tendering in the first quarter of FY27 (July to September 2026). An internal restructure in November 2025 was aimed at localising the product for the US market. The company said Libero 7 is expected to be ready for commercial sale during FY27, while its April quarterly referred to the next version as "Libero X". No US contract has been announced, and management's expectations are guidance rather than results.

The Bottomline

The key risks are sustaining recurring revenue as GreenOrbit declines, competition in library software, the cost of establishing a US presence and reliance on a few large contracts such as ANZ. Under the normal quarterly reporting deadline, the September quarterly report is due by the end of October 2026 and may give the first indication of US progress.