Dug Technology Ltd’s shares tumbled 16.49% to $1.62 on Wednesday after the company reported record revenue and profitability for the fiscal year ending June 30, 2026, though the market reaction overshadowed the financial progress.
The stock, which closed at $1.94 the prior day, approached its 52-week low of $1.52 and remained well below its 52-week high of $2.85. Year-to-date, DUG is down 52%, with a 54% decline over the past 12 months. The company’s market capitalization stands at $26 million.
Fiscal 2026 financial performance showed significant improvement. Revenue rose 38% year-over-year to a record level, while normalized EBITDA surged 78% and the EBITDA margin expanded to 32%, up 7 percentage points from the prior year. The company returned to profitability at the net profit after tax level, with an improvement of AUD 7 million. Net debt at year-end was AUD 13 million.
Revenue growth was broad-based across segments. Services and seismic imaging revenue increased 23% but declined as a share of total revenue to 74%. Software revenue grew 33% to 13% of total revenue, while high-performance computing (HPC) revenue also reached 13% of the total. Multi-client revenue recorded a fourth-quarter run rate of USD 2.6 million. Capital expenditure totaled AUD 11.6 million, primarily directed toward HPC infrastructure and data storage.
Management highlighted one-off costs that weighed on EBITDA, including a AUD 1.5 million settlement related to the MP2 dispute and approximately AUD 700,000 in third-party compute costs incurred in June, along with conference-related expenses.
Geographic expansion continued, with new offices opened in Abu Dhabi and Rio de Janeiro. The Rio de Janeiro office, launched in July 2025, generated nearly AUD 6 million in revenue over seven months. The company’s global headcount reached 330 employees.
A new contract worth AUD 9.3 million for software and HPC services with a two-year term was announced, while third-party compute capacity is expected to be fully replaced within one to two months using proprietary infrastructure. Revenue guidance referenced a target of AUD 22.9 million.
During the earnings call, Managing Director and Founder Matt Lamont emphasized the company’s technology focus, stating that profitability was not the immediate priority. He noted that while 38% revenue growth was strong, the company aimed for further expansion. Acting CFO Daniel Lamont described the elevated costs as non-systemic and largely one-off in nature.
