Norwood Systems Ltd (NOR) AI Stock Analysis

• Market Cap: AU$5.66M
• Dividend Yield: N/A
• Average Volume (3M): 499.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• 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: 43 Neutral
• Price Target: AU$0.01 ▲(0.00% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is primarily constrained by weak financial fundamentals—loss-making margins, negative equity/solvency concerns, and deteriorating free cash flow trends—despite strong top-line growth. Technicals are also unfavorable with the price below key moving averages and negative MACD, while valuation provides limited support given the negative P/E and lack of dividend yield data.

Positive Factors

Revenue Growth

Sustained, double‑digit top‑line expansion demonstrates strong market traction for Norwood's telecom software. Over a multi‑month horizon this revenue momentum supports scale economies, broader carrier adoption, and provides a foundation to invest in product and sales capabilities needed for durable competitiveness.

Recurring, scalable business model

A licensing/subscription and services mix yields recurring revenue and high operational leverage as software scales. For telecom platforms, recurring licences and maintenance create stickiness with carriers and enterprises, enabling predictable renewals and margin expansion potential as fixed costs are amortized.

Free cash flow covers net losses

Generating free cash flow equal to net losses indicates the business can sustain operations cash‑wise despite accounting losses. Over months this provides runway to execute growth initiatives, reduces immediate financing pressure, and gives management optionality to prioritize profitable scaling or restructure costs.

Negative Factors

Negative profitability margins

Substantially negative gross and net margins show the core business currently loses money on delivered services and products. Without structural margin improvement—via pricing power, cost reduction, or higher‑mix recurring software revenue—these losses impede reinvestment, capex funding, and durable path to profitability.

Negative equity and high leverage

Negative equity reflects accumulated losses that have eroded shareholder capital; combined with a high implied leverage ratio this limits financial flexibility. Over the medium term it raises refinancing and solvency risks, increases cost of capital, and constrains strategic investments or large customer commitments.

Deteriorating cash generation trend

A steep decline in free cash flow growth and poor conversion of net income to operating cash signal worsening underlying cash generation. Persisting this trend reduces runway and may force dilutive financing or cutbacks, undermining the company’s ability to sustain product development and long‑term commercial expansion.

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 makes money primarily by licensing and supplying its telecommunications and voice communications software to customers such as telecommunications carriers/service providers and enterprises, and by providing associated implementation, integration, and support/services for those deployments. Revenue is typically earned through (a) software licence and/or subscription fees for the use of its communications platforms and applications, (b) professional services fees for design, deployment and integration work, and (c) ongoing maintenance/support arrangements. null

Norwood Systems Ltd Financial Statement Overview

Summary

Despite very strong revenue growth (100.57%), profitability is weak with negative gross (-38.89%) and net (-31.53%) margins. The balance sheet is a major risk due to negative stockholders’ equity and an unfavorable debt/equity profile, and cash generation is deteriorating with free cash flow growth at -58.86% and weak cash conversion (operating cash flow to net income -0.31).

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: Positive
• 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 22.51 is Positive, 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	45 Neutral	AU$9.53M	-1.37	-18.92%	―	8.20%	37.20%
FRX	44 Neutral	AU$27.30M	5.86	-166.02%	―	-11.11%	-71.43%
NOR	43 Neutral	AU$5.66M	-1.87	―	―	66.48%	77.19%
HFY	42 Neutral	AU$8.27M	-4.21	-11.62%	―	-9.44%	83.16%
SPA	41 Neutral	AU$7.54M	-0.41	―	―	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.