Atturra Limited reported mixed full-year 2026 results on Wednesday, with revenue growth offset by margin pressure and higher investment spending. The Australian IT services provider posted AUD 351.8 million in revenue for the year ended June 30, 2026, up 17% from AUD 301.0 million in the prior period, though organic growth remained broadly flat.
Underlying earnings before interest, tax, depreciation and amortization fell 5% to AUD 30.1 million, while adjusted net profit after tax declined to AUD 13.5 million from AUD 19.6 million. Gross margin contracted to 33% from 34% a year earlier. The company maintained a cash balance of AUD 66 million at June 30 but saw net tangible assets decrease by AUD 36.8 million year over year.
Atturra’s shares fell 6.25% to AUD 0.38 following the release, extending a decline from the prior close of AUD 0.40. The stock has traded between AUD 0.35 and AUD 0.85 over the past 52 weeks.
Chief Executive Officer Stephen Kowal acknowledged that fiscal 2026 "did not meet our expectations," citing integration challenges from recent acquisitions. The company has completed the purchase of Blue Connections and Scholarion, with total deployment in the year reaching approximately AUD 25 million through acquisitions and an on-market buyback program.
Looking ahead, Atturra guided to record revenue, EBIT and underlying EBITDA in fiscal 2027, with performance heavily skewed to the second half. The company plans to increase AI spending by about AUD 3 million, which is expected to reduce H1 earnings by roughly AUD 2 million. Scholarion, its education-focused AI platform, will require more than AUD 4 million in investment in the coming year, with an expected loss after capitalization of AUD 2.4 million, primarily in H1. Break-even is targeted for fiscal 2027, with meaningful profitability expected by fiscal 2029.
Atturra’s predictable revenue now accounts for 78% of total revenue, exceeding its 75% target. The company operates five primary data centers in New Zealand and serves over 1,000 clients across Australia and New Zealand through tier 3/4 co-location providers.
