Norwood Systems Ltd (NOR) AI Stock Analysis

• Market Cap: AU$6.79M
• Dividend Yield: N/A
• Average Volume (3M): 499.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.19
• Revenue Growth: 66.48%
• EPS Growth: 77.19%
• Country: AU
• Employees: 3
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): >-0.01
• Shares Outstanding: 565,927,600
• 10 Day Avg. Volume: 568,530
• 30 Day Avg. Volume: 499,774
• PEG Ratio: 0.20
• Price to Book (P/B): -12.93
• Price to Sales (P/S): 5.08
• P/FCF Ratio: -14.78
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: AU$0.01 ▲(40.00% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is primarily held down by weak financial fundamentals—negative margins, negative equity, and worsening cash flow—despite strong revenue growth. Technicals are moderately supportive in the short term but look stretched (high RSI/Stoch), while valuation is difficult to assess given negative earnings and no dividend data.

Positive Factors

Strong revenue growth

Sustained triple-digit revenue growth demonstrates durable customer adoption and expanding addressable market for Norwood's communications software. Over a multi-month horizon this supports scale economics, improves negotiation leverage with carriers, and enables reinvestment in product and sales to deepen market penetration.

Recurring license/subscription and services mix

A business model combining subscription/license revenue with professional services and maintenance creates predictable, recurring cash inflows and client stickiness. This mix supports durable revenue visibility, upsell and lifecycle monetization, reducing revenue volatility over the medium term.

Cloud-native UC products for carriers and enterprises

Offering cloud-based, carrier-focused unified communications aligns with structural telco migration to IP and cloud services. Focused product-market fit with service providers can be a durable competitive advantage—enabling deep integrations, long-term contracts and relevance as networks continue modernizing.

Negative Factors

Negative gross and net margins

Persistently negative gross and net margins indicate the core business is not covering direct costs or operating expenses. Over several months this undermines internal funding for R&D and sales, requires external capital to sustain operations, and raises questions about the unit economics of customer contracts.

Negative shareholders' equity and high leverage

Negative equity and meaningful leverage signal solvency strain and a fragile capital structure. This restricts financial flexibility, complicates access to debt or equity financing, and increases risk that operational setbacks force restructurings or onerous financing terms within a multi-month horizon.

Deteriorating cash generation

Sharp FCF decline and poor cash conversion mean the company struggles to turn revenues into usable cash. Over the medium term this constrains reinvestment, heightens reliance on external funding, and may force cutbacks in sales, support or product development that weaken growth prospects.

Norwood Systems Ltd Business Overview & Revenue Model

Company Description

Norwood Systems Limited provides mobile voice, messaging, data, and cyber security services to consumers, enterprises, and carriers worldwide. The company offers World Voicemail, a visual voicemail app; SecondLine for business and personal communication from multiple numbers on a single phone; World Phone for putting a second phone and number on smartphone; World Message, an app-to-app messaging app; World Secure, a Wi-Fi security solution; and World Wi-Fi for finding and securely connecting to Wi-Fi hotspots; as well as Cognitive Voice services. The company was founded in 2011 and is based in Nedlands, Australia.

How the Company Makes Money

Norwood Systems generates revenue through a subscription-based model, offering various tiers of its communication services to both businesses and individual users. Key revenue streams include monthly or annual subscriptions for their VoIP services, premium features within their mobile applications, and usage-based billing for additional call minutes or data. Additionally, Norwood Systems has established partnerships with telecom providers and technology platforms, allowing them to expand their market reach and integrate their services into existing networks, further enhancing their revenue potential.

Norwood Systems Ltd Financial Statement Overview

Summary

Despite strong revenue growth (100.57%), profitability and balance-sheet health are weak: gross margin (-38.89%) and net margin (-31.53%) are negative, stockholders’ equity is negative, and cash generation is deteriorating (free cash flow growth -58.86%).

Income Statement

Norwood Systems Ltd has shown a significant revenue growth rate of 100.57% in the most recent year, indicating potential for expansion. However, the company struggles with negative profitability metrics, including a gross profit margin of -38.89% and a net profit margin of -31.53%. These negative margins highlight ongoing challenges in cost management and profitability.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative stockholders' equity and a high debt-to-equity ratio of -1.27. This indicates a reliance on debt financing and potential solvency issues. The return on equity is positive at 80.29%, but this is due to negative equity, which is not a sustainable financial position.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate of -58.86%, indicating deteriorating cash generation capabilities. The operating cash flow to net income ratio is -0.31, suggesting inefficiencies in converting net income into cash. However, the free cash flow to net income ratio is 1.0, indicating that the company is generating enough cash to cover its net losses.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	2.66M	1.90M	1.14M	964.20K	1.23M	1.05M
Gross Profit	-185.33K	-739.75K	-1.44M	-1.30M	-453.76K	-632.00K
EBITDA	-373.22K	-219.07K	-2.44M	-1.74M	-902.00K	-1.41M
Net Income	-872.19K	-599.72K	-2.58M	-1.89M	-1.08M	-871.00K
Balance Sheet
Total Assets	766.50K	1.43M	522.91K	752.59K	917.80K	327.84K
Cash, Cash Equivalents and Short-Term Investments	37.95K	137.76K	68.98K	380.14K	496.93K	58.47K
Total Debt	250.72K	950.45K	767.23K	790.01K	965.89K	535.40K
Total Liabilities	1.63M	2.18M	1.75M	1.85M	1.75M	1.48M
Stockholders Equity	-859.32K	-746.91K	-1.23M	-1.10M	-835.13K	-1.15M
Cash Flow
Free Cash Flow	-160.24K	-653.22K	-2.01M	-1.22M	-1.09M	-403.88K
Operating Cash Flow	-160.24K	-653.22K	-2.00M	-1.18M	-1.09M	-402.94K
Investing Cash Flow	-149.24K	-149.24K	-2.67K	-39.78K	-3.03K	-939.00
Financing Cash Flow	128.04K	871.25K	1.70M	1.10M	1.53M	309.63K

Norwood Systems Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:NOR, the sentiment is Negative. The current price of 0.01 is below the 20-day moving average (MA) of 0.01, below the 50-day MA of 0.01, and below the 200-day MA of 0.02, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 33.92 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:NOR.

Norwood Systems 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%
5GG	47 Neutral	AU$11.26M	-3.82	-18.92%	―	8.20%	37.20%
NOR	46 Neutral	AU$6.79M	-7.06	―	―	66.48%	77.19%
FRX	44 Neutral	AU$33.37M	22.00	-166.02%	―	-11.11%	-71.43%
HFY	42 Neutral	AU$10.86M	-17.50	-11.62%	―	-9.44%	83.16%
SPA	41 Neutral	AU$8.17M	-0.68	―	―	12.24%	55.89%

Norwood Systems Ltd Corporate Events

Norwood Systems secures $200,000 working capital facility from major shareholder

Norwood Systems has secured a new working capital facility of up to AU$200,000, arranged in two tranches, to support near-term funding needs and growth initiatives. The first AU$150,000 is available immediately, with a further AU$50,000 accessible before the end of March, giving the company added flexibility as it advances customer engagements and product deployments.

The loan is being provided on an unsecured basis by Plough Lane Superannuation, an entity controlled by ex-director and major shareholder Dr John Tarrant, at an interest rate of 9.75% accruing daily until the 30 June 2026 repayment date. Norwood’s board considers the terms to be better than prevailing market rates, underscoring continued insider support for the business while potentially improving the company’s short-term liquidity position.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Posts Record H1 FY2026 Revenue on Optus Milestones and Tier-1 Call Protect Breakthrough

Norwood Systems reported a record preliminary unaudited recognised revenue of $2.1 million for the first half of FY2026, underpinned by steady milestone progress on its CogVoice™ Voicemail deployment with Optus, including completion and payment of the fourth and fifth contractual milestones and customer cash receipts already exceeding $480,000 early in the March quarter. The company also successfully completed a paid proof-of-concept for its OpenSpan™ Call Protect product with a Tier-1 Asia-Pacific operator, advanced a growing global Tier-1 telco pipeline across North America, EMEA and APAC, deepened joint go-to-market work with Microsoft and architecture collaboration with AWS, progressed internal development and planned alpha testing for its MoCA™ coding tool, and strengthened its balance sheet through an oversubscribed $650,000 share placement and debt reduction, signaling disciplined execution and positive traction in scaling its AI-driven telco and software offerings.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Director Increases Indirect Shareholding

Norwood Systems Limited has disclosed a change in the indirect security holdings of its director, Mr Paul Ostergaard, through an Appendix 3Y notice to the ASX. The filing reports that, via the Netwealth Investments Limited (Chill Cast Super Fund a/c), Ostergaard acquired 120,000 additional ordinary shares in Norwood Systems on 6 January 2026 at a price of $0.013 per share, incrementally increasing his already substantial indirect stake and signalling continued alignment of the director’s financial interests with the company’s equity performance for existing shareholders.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Grants 12.5 Million Options to Director as Part of NED Remuneration

Norwood Systems Limited has disclosed a change in director Philip Otley’s interests, issuing him 12.5 million unquoted options as part of his non-executive director remuneration package for 2024, 2025 and 2026. The options, exercisable at $0.03 and expiring on 1 December 2028, increase Otley’s total holdings in the company and align his incentives more closely with shareholder value over the medium term, signalling a continued reliance on equity-based compensation to manage cash outflows and retain board talent.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Issues 3.33 Million Unquoted Options Expiring in 2026

Norwood Systems Limited, listed on the ASX under the code NOR, has notified the market of a new issue of unquoted options as part of its capital structure management. According to its latest filing, the company will issue 3,333,000 unquoted options (ASX code NORAAH), each exercisable at A$0.03 and expiring on 31 December 2026, with the issue dated 24 December 2025, signaling additional potential future equity and modest dilution for existing shareholders if the options are exercised.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems to Issue 25 Million Unquoted Options

Norwood Systems Limited has notified the ASX of the intended issue of 25 million unquoted options, each exercisable at $0.03 and expiring on 1 December 2028. The new options, to be issued on 24 December 2025, represent a significant additional potential equity pool for the company and may be used for purposes such as incentivising staff or raising future capital, which could impact existing shareholders through possible future dilution and support the company’s longer-term funding and growth plans.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Issues 5 Million Unquoted Options Under Existing Transactions

Norwood Systems Limited has notified the market of the issue of 5 million unquoted options, exercisable at $0.025 and expiring on 11 December 2027. The options, which are not intended to be quoted on the ASX, form part of previously announced transactions and reflect ongoing use of equity-based instruments in Norwood’s capital management, with potential future dilution for existing shareholders if exercised.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Director Increases Stake

Norwood Systems Ltd has announced a change in the director’s interest, with Mr. Paul Ostergaard acquiring additional shares in the company. This acquisition of shares by the director reflects a potential increase in confidence in the company’s future prospects and may influence stakeholder perceptions positively.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Completes Share Placement to Bolster Capital

Norwood Systems Ltd has completed a placement of 50,000,000 fully paid ordinary shares at $0.013 each, as announced on 8 December 2025. This move, compliant with relevant sections of the Corporations Act, strengthens the company’s capital position, potentially enhancing its operational capabilities and market presence.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.01 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Issues 25 Million Unquoted Equity Securities

Norwood Systems Ltd announced the issuance of 25 million unquoted equity securities in the form of options exercisable at $0.025, expiring on December 11, 2027. This move is part of previously announced transactions and is not intended for quotation on the ASX, potentially impacting the company’s financial strategy and stakeholder interests.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Announces Quotation of 50 Million Securities

Norwood Systems Ltd has announced the quotation of 50 million fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of a previously announced transaction, potentially impacting the company’s market presence and offering stakeholders an opportunity to engage with the company’s growth trajectory.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Announces New Securities Issue to Boost Growth

Norwood Systems Ltd has announced a proposed issue of securities, including 50 million ordinary shares and 30 million options, set to be issued on December 10, 2025. This strategic move is expected to enhance the company’s capital base, potentially strengthening its market position and providing additional resources for future growth and development.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Announces Director’s Securities Interest Update

Norwood Systems Ltd has announced a change in the director’s interest in securities, specifically involving Mr. Paul Ostergaard. The changes include acquisitions and disposals of ordinary shares and performance rights, reflecting adjustments in Mr. Ostergaard’s investment portfolio. This update is part of the company’s regulatory compliance with ASX listing rules, ensuring transparency in the director’s financial interests.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.

Norwood Systems Initiates Trading Halt for Capital Raise Announcement

Norwood Systems Ltd has requested a trading halt on its securities pending the announcement of a capital raise. This halt will remain until the start of trading on December 8, 2025, unless an announcement is made earlier. The move indicates a strategic financial maneuver that could impact the company’s operations and market positioning, signaling potential growth or restructuring efforts.

The most recent analyst rating on (AU:NOR) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Norwood Systems Ltd stock, see the AU:NOR Stock Forecast page.