Knosys Ltd Posts FY26 Revenue of $9.7M as US Libero Launch Nears

Knosys holds revenue steady at $9.7m as it gears up for US Libero launch

In its FY26 full-year results for the period ended 30 June 2026, Knosys Limited (ASX:KNO) reported revenue stability at $9.7m, down 2% on the prior corresponding period, alongside a return to positive operating cash flow of $2.2m.

The financial year marked a transition period for the company. Knosys completed a major phase of its Libero product development and pivoted its focus toward US market entry, closing the year with a strengthened cash balance of $4.9m.

Managing Director John Thompson framed FY26 as a foundation-setting year, positioning the commercial launch of the Libero library management solution in the US as the central narrative for FY27.

John Thompson, Managing Director

“Knosys is an innovative technology company which is strategically harnessing proven AI toolsets… We enter FY27 with a clear market positioning for our Libero Community Experience & Discovery Hub, as the digital town square for public libraries, with a US launch underway and expected to further advance over the balance of FY27.”

FY26 financial results at a glance

The headline financials reflected a disciplined focus on cash generation. The standout was the $3.4m swing in operating cash flow, moving from an outflow of $1.2m in FY25 to an inflow of $2.2m in FY26, and a $2.1m stronger cash balance.

EBITDA and NPAT losses widened during the period, with the company recording an EBITDA loss of $1.6m and a net loss after tax of $2.5m. Management attributed the wider losses to one-off restructuring costs and higher operating expenditure, while noting these changes leave Knosys with a structurally lower cost base heading into FY27.

Operating expenses for the year were driven by:

• Operating expenses of $12m, up 5% on the prior corresponding period

• Higher contractor, consulting and SaaS hosting costs

• One-off restructuring expenses tied to the November 2025 pivot to US localisation

A resilient recurring revenue base

Annualised Recurring Revenue (ARR) of $9.0m was broadly maintained across the year. The slight dip reflected the company’s deliberate transition away from the GreenOrbit business over time, rather than any loss of momentum in its core products.

Recurring revenue strength from Libero and KnowledgeIQ (KIQ) offset the planned GreenOrbit decline, underpinning the stability of the recurring revenue base through the transition.

ANZ Bank extends KIQ contract for $3.8m

In May 2026, ANZ signed a two-year contract extension, with an optional third year, for the continued use of Knosys’ Knowledge Management enterprise solution, KnowledgeIQ (KIQ). The total contract value of $3.8m was paid in advance.

The ANZ KnowledgeIQ contract extension, paid fully upfront at $3.8m, eliminated collection risk across the term and gave Knosys an immediate cash injection that contributed directly to the improved $4.9m year-end balance.

The extension continues a long-standing enterprise relationship. Over the next two years, Knosys will support ANZ in integrating a new AI assistant into its knowledge management portal, helping the bank use AI to improve employee workflows and customer service.

Libero customer wins and renewals

Libero traction during FY26 spanned new logos, product expansions and renewals:

• New Libero 6 cloud customers: Oberon Council, Fliedner University, Wuchopperen Health Service and Balranald Shire Council

• An initial five existing Libero customers added the Libero mobile library application

• Sixty existing Libero customers renewed their subscriptions

GreenOrbit transition and the Oak Engage agency agreement

In January 2026, Knosys entered an agency agreement with Oak Engage to introduce the Oak intranet and employee experience platform to its GreenOrbit customer base, offering a technology upgrade.

The company experienced some attrition in its GreenOrbit customer base in the second half of FY26, reflecting its decision to exit this business over time. This trend is expected to continue over approximately the next 18 months, mitigated by commissions to be received from Oak for customers who migrate to the Oak Engage platform.

Understanding library management software — and why the US matters

A library management system provides a unified foundation for patron discovery, engagement and branch operations, bringing together the tools libraries use to serve their communities and run their sites. Modern libraries increasingly require a single, integrated platform rather than a patchwork of separate tools.

The Libero Community Experience & Discovery Hub is positioned as an all-in-one system with a mobile-first user experience, relatively fast deployment and a content-provider agnostic design. Knosys positions it as “the digital town square for public libraries.”

For investors, the key hook is consolidation. The Libero platform has the potential to replace two to five existing systems within the public library ecosystem, delivering clear value and a simplified offering for customers.

Libero is already a proven solution across Australia and Germany, with circa 100 library customers. The company also frames its products within the AI value chain, positioning them as “Systems of Record” and a “single source of verified information” that allows large organisations to securely integrate external AI tools while eliminating the risk of data inconsistency.

FY27 outlook — the US launch takes centre stage

The forward investment case centres on US commercialisation. Marketing activities in the US commenced in Q1 FY27, including:

1. The launch of a new US website

2. The activation of a US-based telemarketing team to introduce Libero to the market

3. The relocation of resources from Australia to the US to support the sales process

Knosys is already tendering for the use of the Libero solutions in the US library market. Libero is expected to formally launch in the US in FY27, before scaling in other international markets.

The company is also working on the next-generation Libero 7 program, which is expected to be ready for commercial sale in FY27. Libero 7 features enhanced automation and personalisation, with a primary focus on public libraries.

FY26 was defined by revenue stability and cash discipline, with the return to positive operating cash flow and a $4.9m cash position leaving the company with a structurally lower cost base. That foundation sets up FY27, where the anticipated US commercialisation of Libero becomes the primary catalyst for potential new revenue growth.

Don’t Miss the Next ASX Tech Breakout

Get FREE breaking ASX tech news delivered to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ subscribers already staying ahead of the market with Big News Blast. Click the “Free Alerts” button to receive real-time alerts the moment market-moving announcements drop.