Key Highlights

  • The company began its first US commercial push for Libero, including a telemarketing campaign aimed at public library directors.
  • Annual Recurring Revenue slipped to $8.7 million, partly due to early GreenOrbit customer migrations.
  • Cash was $3.2 million at 30 September, and the 4C shows a net operating outflow of $1.59 million.
  • The company is targeting a near-breakeven operating cash result in the December quarter, helped by an expected R&D tax refund.

Knosys (ASX:KNO) is a Melbourne-based software-as-a-service company with three product lines: Libero, which manages libraries; Knowledge IQ (KIQ), a knowledge management tool; and the GreenOrbit intranet. It is now redirecting resources. According to its September quarter report, released on 29 October 2026, the company has begun its first US commercial push for Libero. At the same time it is moving GreenOrbit customers across to a partner's platform.

That shift helps explain the latest numbers. Annual recurring revenue (ARR) slipped to $8.7 million. Cash receipts fell to $1.4 million, which the company attributes to timing. Cash was $3.2 million at 30 September, and the company expected it to rise to about $3.5 million by the end of October.

From build to sell in the US

Knosys says it spent the quarter moving Libero's US expansion from planning into market engagement. The work included a telemarketing campaign aimed at public library directors and joining the main US library associations. It also launched US-focused Marketing and sponsored the Iowa Library Association conference, where Libero made its US debut in early October. The company reports that North America became its largest source of qualified new Libero leads in the quarter. It also completed US localisation of Libero 6.

These are leads and marketing activity, not contracts. Knosys has not yet announced a US customer, and says it hopes to report its first US customer engagements in coming quarters. Selling to public libraries often involves tenders and long procurement cycles. The company is targeting mid-sized libraries, consortia and cooperative purchasing contracts that can avoid a full tender.

Exiting the intranet market

In January 2026 Knosys signed an agency agreement with Oak Engage, under which GreenOrbit customers are introduced to Oak's intranet platform. ARR fell 3% over the quarter, which the company mainly attributes to early customer migrations. Management expects group ARR to fall in the near term as it moves away from GreenOrbit over FY27 and FY28. It says commission payments from Oak Engage should largely offset this at first. ARR from Libero and KIQ was described as steady.

Cash flow and the ANZ timing effect

In FY26 Knosys reported revenue of $9.7 million, a net loss after tax of $2.5 million and positive operating Cash Flow of $2.2 million. The prior quarter benefited from $5.4 million of receipts, including a $3.8 million advance from ANZ Bank for two years of KIQ licence fees under an extension announced in May. Because that cash arrived early, September quarter receipts were lower. The Appendix 4C shows a net operating outflow of $1.59 million, including $1.15 million of staff costs, which were down on a year earlier. There are no Debt facilities. The 4C's estimate of funding is 2.03 quarters, but this mechanical figure reflects a quarter the company describes as unusually weak for receipts. Knosys is targeting a near-breakeven operating cash result in the December quarter, helped by an expected R&D tax refund.

Risks and milestones

Like other small software companies, Knosys depends heavily on a few large customers and on renewal timing. The ANZ contract is a clear example. The main company-specific risks are falling ARR during the GreenOrbit exit, the cost and uncertainty of entering a new country, and the need for US sales to arrive before cash is depleted. The Annual General Meeting will be held at 10:00am (Melbourne time) on 25 November 2026 in Melbourne. The December quarter cash result and any first US Libero contract are the next measures to watch.