Can Harris Technology Sustain Growth as It Shifts Focus to Refurbished Tech?

Strong Sales Momentum in Refurbished Technology

Harris Technology Group Limited (ASX – HT8) has kicked off FY26 with encouraging results, posting $3.8 million in sales for the September quarter, a 20% increase from the previous quarter. More notably, the company achieved breakeven net operating cash flow, signaling improved operational efficiency and financial discipline.

The refurbished technology division continues to be the standout performer, generating over $1 million in sales for the third consecutive quarter. This growth reflects Harris Technology’s strategic pivot to capitalize on consumer demand for cost-effective, high-quality refurbished products. The company has bolstered its refurbishment team and strengthened supplier relationships, including securing a new stream of Apple products; a category previously underrepresented in its inventory.

Inventory and Cash Position Support Growth Strategy

Inventory levels were reported at $2.8 million, slightly down from $3.1 million in the prior quarter, despite $3.3 million in new purchases. This suggests efficient inventory turnover aligned with the company’s focus on higher-margin refurbished goods. Harris Technology ended the quarter with $1.8 million in cash and an undrawn financing facility of $6.1 million, providing a solid liquidity buffer to support ongoing operations and growth initiatives.

The company’s financing structure includes $1.93 million drawn from an $8 million facility, with loans from related parties at competitive interest rates. This financial flexibility positions Harris Technology to continue investing in its refurbishment capabilities and expanding its product offerings.

Outlook and Strategic Implications

CEO Garrison Huang highlighted the refurbished division’s rapid growth as a key driver toward returning the company to profitability. By leveraging volume buying power and expanding supplier partnerships, Harris Technology aims to deepen its footprint in Australia’s refurbished tech market; a segment that appeals strongly to price-conscious consumers.

While sales from new IT products are expected to decline as resources shift to refurbishment, the higher margins in this segment could improve overall profitability. The company’s online-only retail model, operating across major platforms such as Amazon and eBay, remains well-positioned to capture evolving consumer preferences.

Investors will be watching closely to see if Harris Technology can sustain this momentum and translate operational improvements into consistent profitability in coming quarters.