How Will TZ Limited Bounce Back After a $3.5M FY25 Loss and Keyvision Acquisition?
TZ Limited reported a challenging FY25 with a $3.52 million net loss, impacted by integration costs and US tariff disruptions. Despite setbacks, the company completed the Keyvision acquisition and anticipates a strong revenue rebound in FY26.
- FY25 net loss of $3.52 million driven by integration and US market challenges
- Successful acquisition and integration of Keyvision Holdings completed
- Recurring revenue stable with ARR expected to grow to $5 million in FY26
- US tariffs caused over 50% sales decline in US region during FY25
- Positive FY26 outlook with forecast revenue of $17 million and expansion plans
A Difficult Year for TZ Limited
TZ Limited closed its 2025 financial year with a significant net loss of $3.52 million, a stark reversal from the modest profit recorded in the previous year. The loss was largely attributed to the costly integration of its recent acquisition, Keyvision Holdings, and severe disruptions in its US operations due to tariff-related turmoil.
The acquisition of Keyvision, a high-growth proptech company specializing in tenant engagement apps, was completed in May 2025. While the integration was ultimately successful, it proved more complex and expensive than anticipated, with legal and other acquisition costs exceeding initial budgets by a substantial margin.
Integration Challenges and Market Headwinds
TZ’s integration efforts included merging Keyvision’s invoicing and contract management into its existing Odoo and HubSpot systems, alongside assuming full control of Keyvision’s software quality assurance and accounting functions. Despite these operational achievements, the financial impact was pronounced, with acquisition-related expenses significantly overshooting forecasts.
Compounding these challenges, TZ’s US sales were severely affected by tariff changes, resulting in a sales decline exceeding 50% in that region. This disruption not only impacted FY25 results but also delayed expected sales growth, pushing recovery into the first half of FY26.
Recurring Revenue and Growth Prospects
On a positive note, TZ maintained a solid annuity recurring revenue (ARR) base of over $4 million annually, with the consolidation of Keyvision’s earnings contributing to an expected ARR increase to $5 million in FY26. The company also reported promising progress in its data centre security segment, notably through initial sales to Microsoft and ongoing customer deployments.
Looking ahead, TZ is optimistic about a revenue rebound to approximately $17 million in FY26, driven by growth in its data centre security offerings and the planned expansion of Keyvision’s platform into Southeast Asia and the US markets. The company is also exploring corporate and joint venture opportunities following the Keyvision integration.
Financial Position and Capital Management
Despite the losses, TZ has secured financing facilities, including a $4 million loan from Amal Security Service Pty Ltd and a $1.5 million loan from First Samuel Limited, to support its operations and growth initiatives. The company’s net tangible assets per share declined to negative 4.22 cents, reflecting the current net liability position, but management remains focused on capital structure optimization and cost control.
The board and management acknowledge the challenges faced in FY25 but emphasize the strategic value of the Keyvision acquisition and the strong market fundamentals underpinning their data security and proptech businesses. The company’s leadership is confident that the worst of the US tariff disruptions are behind them and that FY26 will mark a turning point.
Bottom Line?
TZ Limited’s FY25 setbacks set the stage for a pivotal FY26 as it leverages Keyvision’s platform and recovers US sales momentum.
Questions in the middle?
- How will TZ manage ongoing integration costs and operational risks post-Keyvision acquisition?
- What is the timeline and scale for Keyvision’s planned expansion into Southeast Asia and the US?
- How resilient is TZ’s US business to future tariff or regulatory changes?
