DUG Technology (DUG) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY25 was US$28.7M, down 4% year-over-year, mainly due to a shift toward elastic MP-FWI pilot projects and a decline in services and HPCaaS revenue, while software revenue grew 22% driven by renewals and offshore wind adoption.

• EBITDA declined 26% to US$5.2M, reflecting investments in R&D, infrastructure, new regions, and talent acquisition.

• Order book grew 28% month-over-month to US$42.2M at 31 Jan 2025, indicating strong forward momentum from elastic MP-FWI pilot projects and global expansion.

• Net loss after tax was US$3.87M for H1 FY25, compared to a profit of US$1.32M in H1 FY24, due to higher depreciation and finance costs.

• Expansion into new geographies, including Abu Dhabi, India, and Brazil, with a global footprint now spanning five continents.

Financial highlights

• Total revenue decreased 4% year-over-year to US$28.75M; software revenue up 22% to US$3.2M, services revenue down 3% to US$24.4M, and HPCaaS revenue down 46% to US$1.08M.

• EBITDA was US$5.2M, down 26% year-over-year; EBIT was negative US$1.2M, down from US$3.96M.

• Net loss after tax was US$3.87M; basic and diluted EPS were negative (3.28) and (3.18) US cents, respectively.

• Cash on hand at 31 Dec 2024: US$17.3M; net debt: US$7.0M; total finance debt: US$24.3M.

• Depreciation and amortisation more than doubled to US$6.39M; finance expense increased 232% year-over-year.

Outlook and guidance

• Services order book at US$42.2M as of January 2025, positioning for a strong H2 FY25 with continued project wins, especially in software and MPFWI.

• Anticipated acceleration in software sales and follow-on contract awards from successful pilot projects.

• No immediate plans to expand compute capacity, but infrastructure is in place to support future growth.

• Expectation of revenue from BAC immersion cooling licensing and Nomad sales within the financial year.

• Material contract milestones expected to be reached in Q3 FY25.