Q1 FY27 highlights: software revenue up 149% to $599k
In its quarterly trading update for the quarter ended 30 September 2026 (Q1 FY27), Activeport Group Ltd (ASX: ATV) recorded software revenue of $599k, up 149% on the prior quarter. Group revenue rose 18% to $1.72 million.
The quarter saw the completion of a Group-wide restructure that reset the cost base and sharpened the focus on the core software business. Activeport also reported the following highlights:
- $2.6 million total contract value (TCV) of new software contracts signed
- $1.45 million TCV of existing contracts delivered first revenue
- GPUs deployed up 36% on the prior quarter to 1,400
- A new Canadian sovereign AI gateway to launch in Toronto
Peter Christie, CEO
“Mike Glynn and Matt Hawken have delivered outstanding results in their first full quarter…”
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Revenue performance by division
Software was the only division to grow quarter on quarter, offsetting declines in Connectivity and Services. The figures below are unaudited, and Activeport noted that some recurring revenue will be allocated to unearned income in the accounts.
| Revenue ($’000) | Q4 FY26 | Q1 FY27 | Variance | % |
|---|---|---|---|---|
| Software | 241 | 599 | 358 | 149% |
| Connectivity | 729 | 668 | (61) | (8%) |
| Services | 485 | 451 | (34) | (7%) |
| Total | 1,455 | 1,718 | 263 | 18% |
Software drives growth
Software is Activeport’s core business and was the primary driver of growth in the quarter. During Q1, $1.45 million of projects contracted in FY26 went live and began generating recurring revenue, and a further $2.6 million of new contracts were signed, activating revenue from $4.05M TCV of projects.
Revenue under these contracts scales with the volume of services Activeport’s customers deliver through using the software. According to the company, this provides upside above the $4.05 million baseline over the terms of the contracts.
A three-year Atturra software agreement illustrates the structure, combining an upfront customisation payment with recurring annual licence fees for a white-label Network-as-a-Service portal.
All contracts referred to in the announcement include customary termination clauses, including for breach of ownership, change of ownership and insolvency.
Connectivity and Services: planned trade-offs
Connectivity revenue fell 8% to $668k as planned network rationalisation moved customers off third-party networks. Activeport stated this move will significantly reduce cost of goods sold going forward.
The relaunch of the Global Edge and Future Broadband brands drove an increase in new circuit orders in the latter part of the quarter. Together with the restructured, higher-margin network, the company said this provides strong momentum into Q2.
Services revenue fell 7% to $451k as technical teams were consolidated into a single delivery business. Moving selected delivery tasks to the Bangalore office is expected to further improve Services margins.
GPU deployments and R&D: the AI and cloud gaming angle
Deployed GPUs increased 36% over the quarter to 1,400. Growth was driven primarily by expansion of the www.jiogames.com platform at Reliance Jio in India.
Cloud gaming runs games on powerful servers in a datacentre and streams the video to the player’s device. Each simultaneous player (a “stream”) needs computing hardware behind it, so the capital expenditure (capex) per stream influences how economically a host can scale.
Activeport’s R&D team delivered a new video streaming solution built for the latest generation of CPU-NPU-GPU chiplets from AMD. The platform supports more than 100 concurrent streams on a single small form factor motherboard, substantially reducing per-stream capex for cloud gaming hosts.
The new GPU software is being adapted for the emerging agentic AI market and will launch first in Toronto, Canada. This is under a memorandum of understanding (MOU) signed with global datacentre operator Telehouse to deliver an AI gateway to sovereign neoclouds. An MOU is not a binding contract.
As part of the restructure, Activeport also made the following people changes:
- The VP of Connectivity Sales migrated to Ireland
- The VP of Product migrated to London
- A new VP of EMEA Software Sales was appointed, based in Amsterdam, to drive new revenue in the region
Outlook: path to cash flow positive in Q4 FY27
Activeport expects a strong Q2 FY27, with revenue growth across all three business units and the launch of new products. The company stated that its target is to become cash flow positive in Q4 FY27.
The announcement points to a leaner cost base, growing recurring software revenue and momentum in Connectivity and GPU deployments. It did not disclose cash balance or burn figures.
Activeport’s earlier restructure update put annualised savings at $2 million, alongside a 34% cash burn improvement against the FY26 quarterly average.
Peter Christie, CEO
“…Our software has been refreshed, customers are responding strongly and our new branding looks fantastic. The team is refocused on delivering revenue quickly, and we’re attracting some of the best talent in the industry to help us move faster. As CEO but also a significant shareholder, I couldn’t be happier with ActivePort’s performance since we appointed Mike and Matt.”
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