Key Highlights

  • Revenue from customers reached US$86.4 million, up 38% on FY25, with HPCaaS Revenue up 383% to US$11.5 million.
  • Normalised EBITDA increased 78% to US$27.4 million, lifting the normalised EBITDA Margin to 32% from 25%.
  • Net profit after tax was US$2.6 million, a turnaround from a net loss after tax of US$4.4 million in FY25.
  • Operating cash flow increased to US$20.9 million from US$5.6 million in FY25, with a Services order book of US$33.6 million at year end.

DUG Technology Ltd (ASX:DUG) share price was trading at $1.62, down 16.75% or $0.33 on the day, as at 27 August 2026, 12:21pm AEST, as the company announced its audited financial results for FY26. Revenue from customers was US$86.4 million, up 38% on FY25's US$62.6 million. Services revenue increased 23% to US$63.8 million, Software revenue increased 33% to US$11.1 million, and HPCaaS revenue increased 383% to US$11.5 million, reflecting substantial growth in the company's high performance computing as a service offering.

Managing Director Dr Matthew Lamont said FY26 was a record year for the company, with revenue growing 38% and normalised EBITDA growing 78%, lifting margin to 32% from 25%. He said the company returned to profit and generated US$20.9 million of cash from operations, noting that Earnings grew at twice the rate of revenue, demonstrating the Operating Leverage in the business.

Return to Profitability

Normalised EBITDA increased 78% to US$27.4 million, representing a normalised EBITDA margin of 32%, up 7 percentage points from 25% in FY25. This normalised figure excludes a US$1.5 million one-off expense relating to the MP2 legal matter. Statutory EBITDA was US$25.9 million, up 68% on FY25's US$15.4 million, with EBITDA margin of 30%, up 5 percentage points.

Operating profit was US$12.2 million, up from US$2.6 million in FY25. Profit before tax was US$8.6 million, compared with a loss before tax of US$1.4 million in FY25. Net profit after tax was US$2.6 million, a turnaround from a net loss after tax of US$4.4 million in FY25, reflecting a tax expense of US$5.9 million for the year.

Cash Generation and Multi-Client Library Growth

Operating cash flow increased to US$20.9 million from US$5.6 million in FY25, reflecting both the improved earnings performance and continued discipline around working capital. Multi-Client revenue was US$4.1 million, up from US$2.4 million in FY25, with US$2.6 million of this delivered in the fourth quarter of FY26 alone, indicating accelerating momentum in the company's proprietary data library business.

The company's Services order book stood at US$33.6 million at 30 June 2026, a metric the company noted measures contracted Services work only and does not capture the Group's contracted Software and HPC revenue, meaning the total forward revenue visibility across all Business lines extends beyond this figure.

Intellectual Property Monetised Across Four Channels

Dr Lamont said the results come from a long period of through-the-cycle Investment rather than a single good year, describing intellectual property as central to everything the company does, now monetised in four ways: services, software, HPC and multi-client. He characterised these as different ways of selling the same core technology rather than separate businesses, noting that all four performed extremely well during FY26.

Dr Lamont said the broader industry environment is busier than it has been in years, with higher oil prices, rising exploration budgets and falling reserve life across the majors driving exploration into harder-to-image locations, which he said is precisely the problem the company's imaging technology was built to solve.

Outlook for FY27

Dr Lamont said the company enters FY27 within an energised industry, with a large pipeline of opportunities, a contracted software and HPC base, and a growing multi-client library. He said the company is excited about what lies ahead across each of its four monetisation channels.

The results were achieved alongside continued expansion of the company's global footprint, with offices across Perth, London, Houston, Kuala Lumpur, Abu Dhabi and Rio de Janeiro supporting its geoscience computing, cloud infrastructure and immersion cooling technology offerings across six continents.

Conclusion

DUG Technology's FY26 results mark a substantial turnaround from the prior year's loss, with revenue growth of 38% and a 78% increase in normalised EBITDA reflecting operating leverage across the business. The 383% surge in HPCaaS revenue stands out as a particular growth driver, alongside steady gains in the company's core Services and Software segments and an emerging contribution from its Multi-Client data library. With a Services order book of US$33.6 million and management describing a heightened level of industry activity driven by rising exploration budgets, the company's FY27 trajectory will depend on sustaining growth across each of its four revenue channels.