Excite Faces Cashflow Challenges Despite Record Sales and New Funding

Strong Sales Momentum Across Divisions

Excite Technology Services Limited (ASX, EXT) has reported a robust quarterly performance for the period ending 30 September 2025, highlighted by record sales of $7.1 million in September alone. This surge reflects strong execution across its core business units, Cyber Security, IT & Managed Services, and Digital Forensics & Training. Customer receipts also jumped 140% to $4.2 million, underscoring growing demand for Excite’s integrated technology solutions.

The company’s IT & Managed Services division secured a significant two-year contract renewal worth $2.14 million with Keyton Retirement Living, reinforcing its foothold in the aged-care sector where cybersecurity and IT reliability are critical. Meanwhile, the Cyber Security division landed multiple enterprise contracts, including a major national defence cloud migration project and a CISO-as-a-Service engagement, demonstrating Excite’s expanding presence in high-assurance environments.

NANGU Tactical Centre Operational and Digital Forensics Growth

A key milestone for the quarter was the operational commencement of the NANGU Tactical Centre, a national hub for digital forensics training and incident response. The centre has already engaged federal agencies, defence, and industry partners, positioning Excite as a leader in forensic capabilities and readiness.

The Digital Forensics and Training division delivered approximately $4.9 million in contracts, including multi-year renewals with federal and state law enforcement and border protection agencies. These contracts highlight Excite’s trusted partnerships and its role in supporting Australia’s national security through advanced forensic tools and accredited training programs.

Financial Position and Funding Update

Excite closed the quarter with $1.2 million in cash and cash equivalents, supplemented by $315,000 in undrawn financing facilities and $5.8 million in receivables. The company secured $2.1 million in convertible note funding from institutional investors, including continued backing from Belgravia Strategic Equities Pty Ltd. This capital injection is intended to support operational scaling, cost restructuring, and the path toward cashflow breakeven.

However, the CBIT Pty Ltd acquisition earn-out was not payable after an independent audit revealed a normalised EBITDA loss of approximately $936,000 for the relevant period. While this finalises the earn-out review, CBIT continues to contribute strong cashflows to the group.

Looking Ahead

Excite’s management remains focused on sustainable growth, operational efficiency, and deepening engagements with Federal, Defence, and enterprise clients. With a strengthened balance sheet and scalable service lines, the company is well positioned to capitalise on rising demand for trusted Australian expertise in cybersecurity, digital forensics, and managed IT services.