Q1 FY27 update: costs fall, revenue rises across all three divisions
Activeport Group (ASX: ATV) has reported operational progress across its Software, Network, and Services divisions in Q1 FY27 (July–September 2026), with revenue in each segment tracking above FY26 average levels at the midpoint of the quarter.
The update arrives alongside the completion of a cost restructure that is already generating measurable results. Following the appointment of Michael Glynn as COO in June, the company has delivered $2 million in annualised savings, including $1.85 million in payroll reductions.
With improved revenue and a lower cost base running simultaneously, underlying Q1 cash consumption — net of restructure costs — is tracking 34% below the FY26 quarterly average.
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Division-by-division: what’s driving the revenue lift
Software — new projects and a refreshed platform
Software revenue increased as FY26 projects were completed and moved into production. A strong pipeline of new projects commencing in Q1 and Q2 is expected to accelerate revenue growth through FY27.
The refreshed user interface was completed in record time, with a September 2026 launch planned. Customer interest in India has also increased significantly, with data centre operators and telcos seeking Activeport’s software to launch their own customer portals and strengthen their competitive position.
Separately, AI projects are underway in Australia and Canada, with more countries anticipated to follow. Activeport is applying its GPU orchestration technology to improve the price-performance of AI models running on GPU clusters in telco networks and data centres, representing a new software revenue stream for the company.
The AI Gateway for GPU compute, launched in partnership with FirstWave Cloud Technology, gives Activeport a 6% share of GPU consumption revenue plus per-port fees as enterprise and government AI workloads scale across carrier-grade networks.
Network — Global Edge goes international
Global Edge launched internationally in July 2026, marking a meaningful milestone for Activeport’s network division. Early traction has been swift:
The Global Edge telco platform signed New Zealand’s Spark and Singapore’s ViewQwest during its international launch week, with the company projecting NaaS ARR to grow past $6 million by FY28 as additional carriers come online.
- More than six international telcos have already committed to the service
- Circuit order volume is growing monthly
- Singapore is scheduled to be added in September 2026, with further countries to follow
Planned feature additions expected to support revenue and gross margin growth include:
- Connections between data centres
- Managed firewalls
- Cloud connectivity
- SD-WAN
Services — integrated and expanding
The Services business is now fully integrated into the Activeport Group and contributing to revenue growth. The team is expanding capabilities into neocloud infrastructure, networks, and DevOps to meet increasing demand for Activeport’s technical expertise applied to the growing AI sector.
Understanding Activeport’s software-led model — and why the restructure matters
Activeport delivers network automation and orchestration software to telecommunications, data centre, and IT operators. In practical terms, this means the company’s software enables existing infrastructure to become automated, revenue-generating platforms without operators needing to build those capabilities from the ground up.
This model carries a meaningful cost dynamic: once fixed costs are reduced, incremental revenue flows more directly toward profitability. This is the principle behind operating leverage in software businesses, and it is why the current restructure holds significance beyond the headline savings figure.
The 34% improvement in underlying cash consumption — measured net of restructure costs and relative to the FY26 quarterly average — suggests the cost base is already responding ahead of revenue growth fully accelerating. With all three divisions now tracking above prior-period revenue levels, the structural conditions for improved financial performance are taking shape.
What comes next for Activeport in FY27
Activeport enters FY27 with a leaner cost structure and multiple growth vectors active simultaneously across its three divisions. The near-term catalyst pipeline, as outlined in the Q1 FY27 update, is summarised below.
| Division | Near-Term Catalyst | Timeline |
|---|---|---|
| Software | Refreshed UI launch; India pipeline development; AI projects in Australia and Canada | September 2026 / FY27 |
| Network | Singapore addition to Global Edge; further country expansions; data centre interconnects, managed firewalls, cloud connectivity, SD-WAN feature additions | September 2026 onwards |
| Services | Neocloud infrastructure, networks, and DevOps capability expansion | FY27 |
No specific revenue targets or financial guidance were disclosed in the announcement. The company’s own framing of its position heading into the remainder of FY27 is captured below.
Activeport Group — Outlook Statement
“…a leaner cost base, stronger leadership, refreshed software platforms and a sharper global focus on high-margin revenue growth.”
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