- 01Record $1.33m quarterly operating cash inflow; half-year +$1.22m.
- 02Receipts rose 47% QoQ to $7.2m; cash reached $3.98m.
- 03Federal contract totals $3.2m over 24 months.
Excite Technology Services (ASX: EXT) has delivered a record $1.33 million quarterly net operating cash inflow as its cost reduction program and stronger customer receipts reshaped its financial performance.
The quarterly operating inflow represented a $3.23m improvement on the June quarter, lifting operating cash flow for the six months to September to a positive $1.22m.
Customer receipts climbed to $7.2m in the September quarter, up 47% from the preceding quarter and 71% against the corresponding period last year.
Excite ended September with $3.98m in cash and cash equivalents, compared with $466,000 three months earlier.
The result gives the cyber security and technology services provider a stronger financial base as it shifts from restructuring towards recurring contracts, broader customer relationships, and organic growth.
Cash Generation Momentum
Customer receipts for the half-year reached $12.11m, a 15% increase on the previous corresponding period, while receipts over the past three quarters totalled $16.06m.
The turnaround followed a restructuring initiated in October 2025, with management maintaining a lower employment cost base while continuing to secure and deliver contracts.
Excite raised $3.5m before costs through a July placement, contributing to the increase in its quarter-end cash position alongside positive operating performance.
“This is the operating leverage our strategy was designed to create, which is now showing up in our cash flow,” managing director Bryan Saba said.
“The placement and positive operating cash flow have strengthened the Group’s liquidity, which provides the platform to move into the next stage of our roadmap: accelerating sales, growing recurring managed services, continuing to broaden our share of client IT and security spend, and building our secure AI capability.”
Government Contract Visibility
Digital Forensics and Training expanded a major federal government engagement to an aggregate value of $3.2m over 24 months, covering certified evidence collection, training, forensic software, and specialist hardware.
The multi-year arrangement supports the group’s push towards more predictable revenue and extends its presence across government, law enforcement, and integrity agencies.
Within IT Managed Services, a $152,000 enterprise licensing award established a relationship with a faith-based community services organisation operating in aged care, education and community support.
That division secured a further $46,000 in compliance consulting work for a renewable energy and infrastructure operator, connected with a battery energy storage project.
Managed Security Relationships
The Cyber Security business secured a $68,000 Security Operations Centre as a Service contract with a national not-for-profit organisation, combining managed detection and response with broader technology services.
It also won a $35,000 platform engagement with a facilities and asset management provider and a $32,000 cyber review for a professional services firm.
Excite aims to convert such advisory and assessment engagements into longer-term managed security relationships while expanding its share of existing clients’ IT expenditure.
Its next priorities include accelerating sales, expanding recurring managed services, building secure AI capabilities and deepening partnerships with technology vendors, with the board currently evaluating potential acquisitions in Cyber Security and IT Managed Services.
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