Spirit Technology Solutions Ltd. (ITS) AI Stock Analysis

• Market Cap: AU$99.84M
• Dividend Yield: N/A
• Average Volume (3M): 27.33K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• Revenue Growth: -18.64%
• EPS Growth: 92.67%
• Country: AU
• Employees: 36
• Sector: Communication Services
• Sector Strength: 97
• Industry: Information Technology Services
• EPS (TTM): N/A
• 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$0.65
• Price Target Upside: 18.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): AU$111.33M

• Rating: 44 Neutral
• Price Target: AU$0.57 ▲(3.09% Upside)

Spirit Technology Solutions Ltd. faces significant financial and technical challenges. Declining revenues, negative profitability, and bearish technical indicators weigh heavily on the stock's outlook. The lack of earnings call data and corporate events further limits positive catalysts.

Positive Factors

Strategic cloud partnerships

Partnerships with major cloud providers and technology vendors strengthen ST1's service ecosystem and referral channels. Over the medium term these alliances lower go-to-market costs, accelerate product integration, enable joint sales, and support scaling of recurring managed-cloud and subscription revenue.

Improving gross margins

A material gross margin improvement signals better project pricing, higher-value mix or improved delivery efficiency. Sustained higher gross margins can buffer revenue volatility, support incremental investments in product and sales, and improve the path to long-term operating profitability.

Lower leverage

A lower debt-to-equity ratio reduces financial risk and interest burden, improving balance sheet flexibility. This strengthens ST1's ability to fund strategic initiatives, weather cyclical downturns, and pursue selective investments without immediate reliance on dilutive equity or costly refinancing.

Negative Factors

Declining revenue trend

Sustained revenue declines reduce scale and operating leverage, limiting the firm's ability to absorb fixed costs and invest in R&D or sales. Without reversal, persistent top-line erosion can undermine margins, weaken customer credibility, and constrain long-term growth and competitive positioning.

Negative operating and free cash flows

Ongoing negative operating and free cash flows create structural liquidity pressure and force reliance on external financing. Over months this limits capital for product development and sales investment, increases refinancing risk, and can necessitate cost reductions that harm long-term competitiveness.

Persistent unprofitable operations

Negative net profit and EBIT margins indicate the business is not generating sustainable returns from operations. Persisting unprofitability erodes equity and restricts reinvestment capacity, likely requiring structural changes (pricing, cost base, or business mix) to restore long-term shareholder value.

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

Spirit Technology Solutions Ltd. is facing financial challenges with declining revenues and profitability issues. Despite improvements in gross profit margin and leverage, significant cash flow challenges persist.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	102.39M	102.39M	125.85M	127.11M	135.34M	102.79M
Gross Profit	21.87M	15.87M	11.61M	12.60M	12.24M	13.35M
EBITDA	7.75M	7.75M	-6.23M	-8.22M	-46.22M	8.62M
Net Income	-1.37M	-1.37M	-10.55M	-11.39M	-53.17M	1.16M
Balance Sheet
Total Assets	172.68M	172.68M	171.42M	119.18M	123.51M	177.31M
Cash, Cash Equivalents and Short-Term Investments	6.34M	6.34M	8.87M	7.02M	11.73M	8.49M
Total Debt	31.55M	31.55M	38.82M	29.44M	16.03M	14.02M
Total Liabilities	74.11M	74.11M	98.37M	66.05M	64.09M	67.64M
Stockholders Equity	98.57M	98.57M	73.05M	53.13M	59.42M	109.68M
Cash Flow
Free Cash Flow	-2.54M	-2.54M	-4.39M	-4.43M	-767.00K	-18.00K
Operating Cash Flow	-2.19M	-2.19M	-4.13M	-3.73M	3.61M	5.04M
Investing Cash Flow	-17.42M	-17.42M	-16.14M	-11.03M	-1.36M	-52.90M
Financing Cash Flow	17.08M	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%