In its FY26 results presentation dated 27 August 2026, DUG Technology reported record full-year results, with revenue climbing 38% to US$86.4m (FY25: US$62.6m) on the back of strong performance across all product lines. The company returned to profitability, posting a net profit after tax of US$2.6m, a US$7.0m improvement on FY25’s US$4.4m loss.
Normalised EBITDA rose 78% to US$27.4m (FY25: US$15.4m), outpacing revenue growth and demonstrating the operating leverage in the business. Normalised EBITDA excludes a US$1.5m one-off expense relating to the MP2 legal matter.
The MP2 legal matter was resolved via a negotiated settlement finalised in March 2026, with DUG securing a US$600,000 reduction from the original court judgment and both parties agreeing to release all future claims, closing the dispute with no further liability exposure.
FY26 financial performance at a glance
The headline results show earnings growing considerably faster than the top line, a clear signal of operating leverage.
| Metric | FY26 (US$m) | FY25 (US$m) | Change |
|---|---|---|---|
| Total Revenue | 86.4 | 62.6 | +38% |
| Normalised EBITDA | 27.4 | 15.4 | +78% |
| Normalised EBITDA margin | 32% | 25% | +7ppts |
| Operating profit | 12.2 | 2.6 | +375% |
| Net profit/(loss) after tax | 2.6 | (4.4) | +US$7.0m |
Notably, the normalised EBITDA margin expanded to 32% despite continued investment in new regions and the Multi-Client library, underscoring the scalability of the model.
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Revenue momentum across every product line
Growth was broad-based, with each of the three product lines contributing. The mix also shifted toward higher-margin recurring revenue.
- Services revenue up 23% to US$63.8m, driven by emerging markets (Brazil and the Middle East) and building Multi-Client momentum
- HPCaaS revenue up 383% to US$11.5m (FY25: US$2.4m)
- Software revenue up 33% to US$11.1m
The recurring-revenue story stands out. Combined Software and HPCaaS revenue grew to US$22.6m, now 26% of total revenue, up from US$10.7m and 17% in FY25.
Management reported that the Services Order Book stood at US$33.6m at 30 June 2026, supported by a large pipeline of opportunities and rising exploration activity.
Emerging regions and Multi-Client build through the year
New growth engines came online during the year, with Brazil and the Middle East delivering their first material revenue in FY26.
Multi-Client revenue grew to US$4.1m, including US$2.6m in Q4 FY26 as the broader project library began contributing. The company finished the year with twelve seismic data projects in the Multi-Client library at varying stages of completion.
Multi-Client is a high-margin, repeat-license business that addresses a considerably larger market than proprietary single-client processing, offering DUG a fresh, scalable growth avenue.
Understanding DUG’s technology edge
DUG is an ASX-listed technology company that uses high performance computing (HPC) and numerical science to process big data. Founded in Western Australia in 2003, it now employs more than 330 people across six global offices in Perth, London, Houston, Kuala Lumpur, Abu Dhabi and Rio de Janeiro.
At the core of its offering is eMP-FWI Imaging, an advanced seismic imaging technology. In plain terms, it simulates how sound waves travel through the Earth to build detailed pictures of the subsurface. Crucially, it produces both subsurface images and rock property information simultaneously, reducing drilling uncertainty and helping clients avoid costly well-placement errors.
The business operates as an integrated ecosystem built on proprietary intellectual property, spanning Services (74% of FY26 revenue), Software (13%) and Unified HPC infrastructure (13%).
Underpinning the infrastructure is DUG Cool, the company’s proprietary immersion-cooling technology. This patent is licensed exclusively to Baltimore Aircoil Company (BAC), forming the core technology behind BAC’s COBALT immersion cooling system for data centres.
By owning the full stack, from software and geoscience expertise to the HPC infrastructure itself, DUG operates a defensible and scalable model.
Balance sheet and cash flow strength
Operating cash generation strengthened materially during the year. Net cash from operating activities reached US$20.9m, up 273% on FY25’s US$5.6m, driven by higher receipts from customers.
The company reported net debt of US$13.0m, with total asset financing of US$23.5m at 30 June 2026. Cash at the end of the period was US$10.5m (FY25: US$16.4m).
The decrease in cash reflects net financing cash outflows of US$15.2m and continued investment in HPC infrastructure. Property, plant and equipment increased materially, including US$12.9m of HPC hardware received on 30 June 2026, purchased to deliver the separate US$9.3m contract and to provide capacity for future HPCaaS activity.
In effect, DUG delivered strong operating cash conversion while continuing to invest in its infrastructure.
FY27 outlook: growth infrastructure already in place
Management outlined three themes shaping the year ahead.
- Software and HPCaaS are set for continued growth. FY27 carries a full year of revenue from contracts won in FY26, alongside the US$9.3m Software and HPC Infrastructure Award, a separate, post-period contract announced on 26 August 2026 that does not form part of FY26 revenue.
The US$9.3m Software and HPC Infrastructure Award, announced on 26 August 2026 and covering a two-year term commencing Q1 FY27, delivers hosted HPC infrastructure alongside full access to the DUG Insight toolkit, creating an integrated offering with meaningful switching costs for the client.
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Compute capacity is already built. Sustained investment across FY24 to FY26, including the June 2026 delivery, means the infrastructure to support higher volumes is in place.
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Industry activity remains high. Higher oil prices are lifting client activity, while falling reserve life across the majors is pushing exploration into more complex settings where imaging quality is decisive.
Why FY26 matters for DUG investors
FY26 marked a return to profitable growth for DUG, with expanding margins and clear operating leverage as revenue scaled faster than costs.
The growing recurring-revenue base, now 26% of total revenue, improves earnings quality, while new geographic markets and the expanding Multi-Client library provide fresh growth runways. Combined with a US$33.6m order book and infrastructure already in place, the company appears positioned for continued momentum into FY27.
FY26 Highlight
“Record full-year revenue and normalised EBITDA driven by strong performance across all product lines.”
For investors, the FY26 result reframes DUG as a business capable of converting revenue growth into profit and cash, while continuing to invest in the recurring-revenue lines that could shape its next phase of growth.
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