Spirit Technology Solutions Ltd. (ITS) AI Stock Analysis

• Market Cap: AU$83.68M
• Dividend Yield: N/A
• Average Volume (3M): 27.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.11
• Revenue Growth: -18.64%
• EPS Growth: 92.67%
• Country: AU
• Employees: 36
• Sector: Communication Services
• Sector Strength: 97
• Industry: Information Technology Services
• EPS (TTM): -0.02
• Shares Outstanding: 190,176,330
• 10 Day Avg. Volume: 39,418
• 30 Day Avg. Volume: 27,331
• PEG Ratio: 0.63
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -31.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$0.60
• Price Target Upside: 9.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.01
• Revenue Forecast (FY): AU$63.30M

• Rating: 43 Neutral
• Price Target: AU$0.41 ▼(-25.45% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by weak financial performance (declining revenue, ongoing losses, and negative operating/free cash flow). Technicals add downside pressure as the stock trades below key moving averages with negative MACD. Valuation provides limited support given the negative P/E and no dividend yield data.

Positive Factors

Gross Margin Expansion

A near-doubling of gross margin suggests the business is improving pricing, product mix, or direct cost control. Higher gross margins provide structural room to absorb SG&A, support path to profitability, and improve resilience even if top-line growth remains muted.

Improved Leverage

A materially lower debt-to-equity ratio reduces interest and solvency risk, improving financial flexibility. This durability supports investment or restructuring options without overreliance on costly external financing and lowers bankruptcy risk during downturns.

Lean Operating Base

A small headcount implies a lean cost structure and operational agility. Lower fixed payroll and overhead make it easier to scale up or down, conserve cash, and redirect limited resources toward high-return initiatives, aiding recovery if revenues stabilize.

Negative Factors

Declining Revenue

Sustained top-line contraction erodes scale and pricing power, undermining operating leverage. Continued revenue declines make it harder to fund R&D, sales or customer retention, increasing the risk that fixed costs and investment cannot be absorbed long term.

Negative Cash Flows

Persistent negative operating and free cash flows deplete liquidity and shorten runway, forcing reliance on external capital or asset sales. That constrains strategic initiatives, increases dilution risk, and limits the company's ability to execute long-term growth plans.

Ongoing Losses / Negative ROE

Continued net losses and negative return on equity signal inability to generate shareholder value from current operations. This impairs reinvestment capacity, harms investor confidence, and increases the challenge of attracting capital without a clear profitability turnaround.

Spirit Technology Solutions Ltd. Business Overview & Revenue Model

Company Description

Infotrust Ltd engages in the provision of cyber security, and technology services and solutions in Australia. The company operates through three segments: Cloud and Communication, Cyber Security, and Secure Managed Technology. The Cyber Security segment provides cyber security offering, including managed security services, security operations centre, professional and advisory services, and DFIR services and solutions, as well as security software sales. The Secure Managed Technology segment delivers a suite of technology solutions to mid-market and enterprise organizations, including software, hardware, and services. The Cloud and Communications segment provides integrated solutions to small and medium-sized businesses, combining hardware, software, installation, configuration, and managed voice, collaboration and data connectivity. It serves mining, K-12 schools and education providers, healthcare and aged care, manufacturing, property managers and developers, and professional service industries. The company was formerly known as Spirit Technology Solutions Ltd and changed its name to Infotrust Ltd in October 2025. Infotrust Ltd was founded in 2005 and is headquartered in South Melbourne, Australia.

How the Company Makes Money

ST1 generates revenue through multiple streams, primarily from project-based contracts for software development and consulting services. The company charges clients on a time-and-materials basis for custom software projects, while also offering subscription-based pricing for its cloud solutions and ongoing IT support services. Key revenue streams include the sale of proprietary software licenses, recurring fees from managed services, and consulting fees from strategic IT advisory projects. Additionally, ST1 has formed strategic partnerships with major cloud providers and technology vendors, which not only bolster its service offerings but also create additional referral and commission-based revenue opportunities.

Spirit Technology Solutions Ltd. Financial Statement Overview

Summary

Overall fundamentals are weak: revenue declined (latest period down 14.06%), profitability remains negative (negative net profit and EBIT margins), and operating/free cash flow are negative. Offsetting positives include improved gross margin (9.23% to 21.36%) and better leverage (debt-to-equity down from 0.53 to 0.32), but not enough to overcome cash flow and earnings pressure.

Income Statement

Spirit Technology Solutions Ltd. has faced declining revenue over the past few years, with a significant drop of 14.06% in the latest period. The company has struggled with profitability, as evidenced by negative net profit margins and EBIT margins. However, there was an improvement in gross profit margin from 9.23% to 21.36% in the latest year, indicating some operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio has improved from 0.53 to 0.32, suggesting better leverage management. However, the return on equity remains negative, indicating ongoing challenges in generating returns for shareholders. The equity ratio is relatively stable, reflecting a balanced asset structure.

Cash Flow

Cash flow performance is concerning, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges. Despite this, the free cash flow to net income ratio suggests some ability to cover net losses with free cash flow.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	102.39M	125.85M	127.11M	135.34M	102.79M
Gross Profit	15.87M	11.61M	12.60M	12.24M	13.35M
EBITDA	7.75M	-6.23M	-8.22M	-46.22M	8.62M
Net Income	-1.37M	-10.55M	-11.39M	-53.17M	1.16M
Balance Sheet
Total Assets	172.68M	171.42M	119.18M	123.51M	177.31M
Cash, Cash Equivalents and Short-Term Investments	6.34M	8.87M	7.02M	11.73M	8.49M
Total Debt	31.55M	38.82M	29.44M	16.03M	14.02M
Total Liabilities	74.11M	98.37M	66.05M	64.09M	67.64M
Stockholders Equity	98.57M	73.05M	53.13M	59.42M	109.68M
Cash Flow
Free Cash Flow	-2.54M	-4.39M	-4.43M	-767.00K	-18.00K
Operating Cash Flow	-2.19M	-4.13M	-3.73M	3.61M	5.04M
Investing Cash Flow	-17.42M	-16.14M	-11.03M	-1.36M	-52.90M
Financing Cash Flow	17.08M	22.11M	10.05M	993.00K	49.95M

Spirit Technology Solutions Ltd. Technical Analysis

• Last Price: 0.55

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ITS, the sentiment is undefined. The current price of 0.55 is equal to the 20-day moving average (MA) of ―, equal to the 50-day MA of ―, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a undefined sentiment for AU:ITS.

Spirit Technology Solutions Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Spirit Technology Solutions Ltd. Corporate Events

Spirit Sells Nexgen to Aussie Broadband to Fund Cyber-Focused Expansion

Spirit Technology Solutions has completed the restructure of its Infotrust division with the sale of its Nexgen cloud and communications segment to Aussie Broadband for up to $50 million, equivalent to seven times FY25 EBITDA. The deal delivers $44.1 million upfront and a further $5.9 million contingent on performance over FY26 and FY27, significantly reducing net debt and freeing capital for growth.

The company plans to deploy proceeds and existing debt facilities to fund a pipeline of acquisitions aimed at expanding into new geographies and adding cyber service capabilities. Infotrust will consolidate into a single business unit under a refreshed brand focused solely on cyber and secure managed technology, reinforcing Spirit’s ambition to cement its position as the ASX’s largest sovereign pure-play operator in this space.

The most recent analyst rating on (AU:ITS) stock is a Sell with a A$0.41 price target. To see the full list of analyst forecasts on Spirit Technology Solutions Ltd. stock, see the AU:ITS Stock Forecast page.

Infotrust forecasts H2 FY26 EBITDA to exceed $3 million

Infotrust Ltd, a sovereign Australian cyber security and managed technology provider, supports organisations with integrated, resilient technology services designed to keep their operations secure and compliant. Its focus on security and connectivity positions the company within a growing market for managed cyber and technology solutions.

The company has issued guidance that underlying EBITDA from continuing operations for the second half of FY26 is expected to exceed $3 million. This outlook signals improving financial performance from its core business and may reinforce market confidence in Infotrust’s operating momentum and its positioning in the competitive cyber security and managed services sector.

The most recent analyst rating on (AU:ITS) stock is a Sell with a A$0.41 price target. To see the full list of analyst forecasts on Spirit Technology Solutions Ltd. stock, see the AU:ITS Stock Forecast page.

Infotrust Swings to $16.5m Half-Year Loss on Nexgen Impairment and Divestment

Infotrust reported a 9% rise in revenue from ordinary activities to $31.1 million for the half-year to 31 December 2025, but underlying EBITDA from continuing operations slumped 38% to $0.4 million as profitability came under pressure. The group’s total loss attributable to shareholders ballooned to $16.5 million, driven largely by a $15.6 million impairment on non-current assets in its soon-to-be-divested Nexgen cloud and communications unit, with discontinued operations posting a sharply higher loss despite an increase in profit before impairment.

While the loss from continuing operations narrowed slightly to $3.7 million from $4.2 million a year earlier, the heavy write-down linked to the Nexgen divestment pushed the consolidated bottom line deeply into the red and prompted the board to withhold dividends for the period. The reclassification of Nexgen as held for sale and treated as a discontinued operation underscores a significant reshaping of Infotrust’s portfolio, with the disposal expected to refocus the company on its remaining core businesses and potentially alter its competitive positioning in the ICT services market.

The most recent analyst rating on (AU:ITS) stock is a Sell with a A$0.41 price target. To see the full list of analyst forecasts on Spirit Technology Solutions Ltd. stock, see the AU:ITS Stock Forecast page.

Aussie Broadband buys Nexgen to boost SME communications push

Aussie Broadband has agreed to acquire 100% of Nexgen Investment Group for an upfront cash consideration of $44.1 million, plus an earn-out of up to $5.9 million tied to future EBITDA targets. Nexgen will continue to operate as a standalone entity, while its existing base of about 6,000 SME NBN customers on multi-year contracts and its Agentic AI product set will extend Aussie Broadband’s SME reach and product portfolio.

The deal is expected to be earnings-per-share accretive, with Nexgen forecast to contribute $2.7 million to Aussie Broadband’s EBITDA in FY26 and generate annual cost synergies of $2 million to $4 million within two years. Management describes the acquisition as a strategic fit that combines Aussie Broadband’s network strengths with Nexgen’s unified communications capabilities, reinforcing the group’s position in the SME market and supporting margin expansion and sustainable growth, funded through existing cash and undrawn debt facilities.

The most recent analyst rating on (AU:ITS) stock is a Hold with a A$0.45 price target. To see the full list of analyst forecasts on Spirit Technology Solutions Ltd. stock, see the AU:ITS Stock Forecast page.

Infotrust Sells Nexgen Unit to Aussie Broadband to Complete Cyber Security Pivot

Infotrust Ltd has agreed to sell its Cloud & Communications segment, Nexgen Investment Group, to Aussie Broadband for up to $50 million in cash and contingent consideration, in a move that completes its strategic pivot to a focused cyber security and secure managed technology business. The deal, which follows Nexgen’s FY25 revenue of $44.1 million and uEBITDA of $7.7 million, will see Infotrust provide 12 months of transitional services while using the proceeds to reduce net debt, fund earnings-accretive acquisitions in higher-margin cyber-first service lines and strengthen its balance sheet, prompting the withdrawal of FY26 earnings guidance pending a refreshed outlook.

Management says the divestment will simplify the group, sharpen its focus on core cyber offerings and enable it to progress a mature pipeline of strategic acquisitions without raising additional capital, even though Group EBITDA will fall on a standalone basis after the sale. The board remains confident the transaction aligns with Infotrust’s long-term strategy to become Australia’s leading cyber security provider and plans to issue updated financial guidance once the impact of the divestment and prospective acquisitions on ongoing operations is fully assessed.

The most recent analyst rating on (AU:ITS) stock is a Hold with a A$0.45 price target. To see the full list of analyst forecasts on Spirit Technology Solutions Ltd. stock, see the AU:ITS Stock Forecast page.

Infotrust Sets Date for H1 FY26 Results and Investor Briefing

Infotrust Ltd has scheduled the release of its audited financial results for the first half of FY26 after market close on Thursday, 26 February 2026, signalling an upcoming update on the company’s financial and operational performance. The announcement underlines the company’s effort to maintain active engagement with investors by pairing the results release with a dedicated briefing hosted by senior leadership the following day.

An investor webinar will be held on Friday, 27 February 2026 at 10:00am AEDT, led by Managing Director and CEO Julian Challingsworth, CFO Paul Miller and CEO – Cyber and Executive Director Simon McKay. This coordinated communication, supported by Infotrust’s Investor Hub, is designed to give stakeholders direct access to management and clearer insight into the company’s strategic direction and trading conditions.

The most recent analyst rating on (AU:ITS) stock is a Hold with a A$0.45 price target. To see the full list of analyst forecasts on Spirit Technology Solutions Ltd. stock, see the AU:ITS Stock Forecast page.

Infotrust Strengthens Governance With Appointment of Co-Company Secretary

Infotrust Ltd has appointed Nina Mlinarevic as Co-Company Secretary, effective 28 January 2026, while existing Company Secretary Nick Hornstein will remain in his role and continue as a key liaison with the ASX. The move formalises Mlinarevic as an additional responsible officer for ASX communications, signalling a strengthening of the company’s governance and compliance framework as it continues to operate in the critical cyber security and managed technology sector.

The most recent analyst rating on (AU:ITS) stock is a Sell with a A$0.48 price target. To see the full list of analyst forecasts on Spirit Technology Solutions Ltd. stock, see the AU:ITS Stock Forecast page.