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Scout Security Ltd. (AU:SCT)
ASX:SCT
Australian Market

Scout Security Ltd. (SCT) AI Stock Analysis

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AU:SCT

Scout Security Ltd.

(Sydney:SCT)

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Underperform 36 (OpenAI - 4o)
Rating:36Underperform
Price Target:
Scout Security Ltd. is facing significant financial difficulties, including declining revenue and persistent losses. The technical analysis indicates a lack of momentum, and the stock's negative P/E ratio highlights valuation challenges. Without any positive earnings call or corporate events to offset these issues, the stock's outlook remains weak.
Positive Factors
Recurring Revenue Model
The subscription-based services provide a stable and predictable revenue stream, which can help mitigate the impact of fluctuating direct sales and contribute to long-term financial stability.
Product Offering
A diverse product range in the growing home security market positions Scout Security well to capitalize on increasing demand for smart home solutions, supporting long-term growth.
Market Reach
Partnerships with established distributors expand market access and brand visibility, potentially driving sales growth and strengthening competitive positioning over time.
Negative Factors
Financial Instability
Negative equity and high leverage indicate financial distress, which may limit operational flexibility and investment capacity, posing risks to long-term viability.
Declining Revenue
The decline in revenue growth suggests challenges in maintaining market share or product demand, which could hinder long-term growth prospects and profitability.
Negative Profit Margins
Negative profit margins reflect inefficiencies and high operational costs, which could undermine financial health and require strategic adjustments to achieve sustainable profitability.

Scout Security Ltd. (SCT) vs. iShares MSCI Australia ETF (EWA)

Scout Security Ltd. Business Overview & Revenue Model

Company DescriptionScout Security Limited provides home security systems and services in the United States. Its products include hubs that connects directly to sensors across home; door panels with RFID sticker and security sensors to scare intruders; access sensors, which detects opening and closing of windows, doors, cabinets, and safes; and motion sensor alarms that protect areas of house that are hard to cover with a door panel or access sensor. It also offers video doorbells, indoor/outdoor video cameras, keypads, water sensors, glass break sensors, and door locks, as well as refurbished products; and accessories, such as yard signs, panic buttons, remote controls, siren and zigbee repeaters, window stickers, key fobs, and RFID stickers. The company provides cloud video storage and monitoring services. It sells its products and services directly through its Website, as well as through partners. The company was founded in 2013 and is based in Sydney, Australia.
How the Company Makes MoneyScout Security Ltd. generates revenue primarily through the sale of its security systems and associated products. The company's revenue model includes direct sales to consumers through its online platform, as well as through retail partnerships and distributors. Additionally, Scout Security offers subscription-based services for professional monitoring and cloud storage, providing a recurring revenue stream. Significant partnerships with technology integrators and retail chains enhance their market reach and contribute to sales growth by leveraging established distribution networks.

Scout Security Ltd. Financial Statement Overview

Summary
Scout Security Ltd. faces significant financial challenges with declining revenue, persistent losses, and a highly leveraged balance sheet. The company's negative equity and substantial debt raise concerns about its financial sustainability. Despite some improvement in operating cash flow, the overall financial health remains weak, necessitating strategic measures to enhance profitability and reduce leverage.
Income Statement
Scout Security Ltd. has demonstrated declining revenue over recent years with a revenue growth rate of 18.56% from 2023 to 2024 but a significant drop compared to previous years. The company has negative profitability margins, with a gross profit margin of 56.72% and a net profit margin of -182.58% for the latest year, indicating inefficiencies and high operational costs relative to revenue.
Balance Sheet
The company's balance sheet reflects significant financial instability, with a highly negative stockholders' equity of -$7,832,224 and a high debt-to-equity ratio, which cannot be computed due to negative equity. This indicates excessive leverage and potential solvency issues, posing substantial financial risk.
Cash Flow
Cash flow analysis shows a slight improvement in operating cash flow from -$3,442,303 in 2023 to -$1,787,839 in 2024, but free cash flow remains negative, indicating persistent cash flow issues. The operating cash flow to net income ratio is 0.50, showing some operational cash generation relative to net losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.97M1.97M1.66M4.31M1.67M3.12M
Gross Profit1.12M1.12M661.70K1.98M856.21K1.99M
EBITDA-2.58M-2.58M-3.68M-2.51M-3.23M-1.51M
Net Income-3.59M-3.59M-4.54M-3.15M-4.85M-1.65M
Balance Sheet
Total Assets532.90K532.90K1.75M1.96M3.59M1.04M
Cash, Cash Equivalents and Short-Term Investments163.82K163.82K1.05M236.86K2.08M62.31K
Total Debt4.74M4.74M4.19M2.31M961.63K206.60K
Total Liabilities8.37M8.37M6.25M4.40M3.65M2.45M
Stockholders Equity-7.83M-7.83M-4.49M-2.44M-60.00K-1.41M
Cash Flow
Free Cash Flow-1.79M-1.79M-3.44M-3.15M-2.15M-519.61K
Operating Cash Flow-1.79M-1.79M-3.44M-3.15M-2.15M-519.61K
Investing Cash Flow0.000.000.00-606.43K0.000.00
Financing Cash Flow903.97K903.97K4.25M2.02M4.00M216.60K

Scout Security Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
55
Neutral
$13.29B17.4210.03%0.93%7.13%-12.93%
53
Neutral
AU$22.41M-3.20-25.77%4.84%-12.12%
48
Neutral
AU$312.98M-11.40-73.85%43.58%-357.04%
45
Neutral
AU$12.14M-11.54-850.83%6.37%76.58%
45
Neutral
AU$10.73M-3.33-39.15%11.15%26.53%
45
Neutral
AU$1.39M-5.50-61.10%51.22%
36
Underperform
AU$1.63M-0.72-12.49%51.70%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SCT
Scout Security Ltd.
0.52
0.00
0.00%
AU:IMB
Intelligent Monitoring Group Limited
0.74
0.26
54.17%
AU:AVA
Ava Risk Group Ltd.
0.07
-0.05
-43.20%
AU:DTI
DTI Group Ltd
0.01
<0.01
20.00%
AU:MSG
MCS Services Limited
0.01
0.00
0.00%
AU:SP3
Spectur Ltd.
0.03
0.02
114.29%

Scout Security Ltd. Corporate Events

Scout Security Finalises Roo Inc. Acquisition, Scaling Global Security Platform
Dec 23, 2025

Scout Security Limited has completed the acquisition of New York-based Roo Inc. after receiving strong shareholder approval at a general meeting on 19 December 2025, making Roo a wholly owned subsidiary. The deal significantly scales Scout’s global platform by adding more than 900,000 users and 29,000 paying subscribers, diversifies its revenue base and supports a broader, more competitive home security offering. The completion also triggers a debt restructuring, including the conversion of part of Roo’s debt into equity, which is expected to strengthen the balance sheet and support future growth. Management anticipates material cost and operational synergies across product development, corporate overheads and marketing, with a target of achieving EBITDA-positive performance following the integration, positioning the combined group as a stronger, more profitable global security business.

Scout Security Wins Overwhelming Shareholder Support for Roo Acquisition and Capital Raisings
Dec 19, 2025

Scout Security Limited has secured strong shareholder backing at its extraordinary general meeting for key capital and acquisition initiatives, with all four resolutions passed by overwhelming poll majorities. Investors approved the issue of securities to complete the acquisition of Roo, as well as new and ratified placement securities from September and October, moves that collectively strengthen the company’s balance sheet and provide funding flexibility for its growth plans, signalling solid investor confidence in management’s strategic direction.

Scout Security bets on Roo Inc. acquisition and insuretech push to drive profitable growth
Dec 19, 2025

Scout Security’s CEO used the 2025 Extraordinary General Meeting to outline an expansion strategy that leverages the company’s established global white-label DIY security platform, which generates more than US$1 million in annual recurring revenue and is supported by a strong enterprise pipeline and partnerships with major telcos and technology companies. Central to this plan is the strategic acquisition of Roo Inc., expected to add over US$1 million in ARR, 29,000 paying subscribers, a Fortune 100 retail relationship and patented privacy-focused camera and doorbell technologies, positioning the enlarged group as a leading hybrid direct-to-consumer and enterprise operator with a path to EBITDA-positive operations. The company is also moving into the insuretech vertical via a white-label partnership with Bolt Tech, scheduled to launch in early 2026 and combining Scout’s water and climate sensors with insurance offerings, creating new revenue streams from engineering services, hardware sales and recurring monitoring fees while helping insurers reduce risk and enhance home protection propositions.

Scout Security Advances Strategic Merger and Expands Market Opportunities
Dec 5, 2025

Scout Security Ltd has made significant progress in the September quarter by advancing its strategic merger with Roo Inc, raising A$600k from private investors, and preparing for the lifting of its ASX suspension. The merger with Roo Inc is expected to enhance Scout’s market position and shareholder value through complementary capabilities. Additionally, Scout is in discussions with an Insurtech partner to expand its white label offerings, reflecting its strategy to penetrate adjacent markets with DIY security solutions.

Scout Security Ltd. Announces Results of Annual General Meeting
Nov 26, 2025

Scout Security Ltd. held its Annual General Meeting on November 26, 2025, where several key resolutions were passed. The re-election of directors Martin Pretty and David Shapiro, the approval of a 7.1A mandate, the issuance of securities under an incentive plan, and the renewal of proportional takeover provisions were all carried. The adoption of the remuneration report was adjourned to a later date. These decisions are likely to impact the company’s governance and operational strategies moving forward.

Scout Security Ltd. Announces Key Resolutions for Financial and Strategic Growth
Nov 17, 2025

Scout Security Ltd. has announced a General Meeting to discuss several key resolutions that could impact its financial and operational strategies. The resolutions include the approval to issue securities for the acquisition of Roo, the issuance of placement securities, and the ratification of previous share placements. These actions are aimed at strengthening the company’s financial position and expanding its market presence.

Scout Security Merges with Roo Inc to Expand Global Reach
Nov 6, 2025

Scout Security Ltd has announced a merger with New York-based Roo Inc, a DIY home security technology company, in a strategic move to enhance its global security-as-a-service business. This acquisition is expected to create a diversified and scalable platform by combining Roo’s 900,000 users and 29,000 paying subscribers with Scout’s existing operations, aiming for a positive EBITDA and cash flow position. The merger will also expand Scout’s international presence and recurring revenue base, positioning the company for potential market revaluation and further growth opportunities.

Scout Security Ltd. Announces Virtual AGM for November 2025
Oct 24, 2025

Scout Security Ltd. has announced its upcoming Annual General Meeting (AGM) scheduled for November 26, 2025, to be held virtually. The meeting will cover several key resolutions, including the adoption of the Remuneration Report, re-election of directors Martin Pretty and David Shapiro, approval of a 7.1A mandate for issuing equity securities, and the approval to issue securities under an incentive plan. The company is working to finalize its financial reports before the meeting, and if not completed, the meeting will be adjourned. These resolutions are significant for shareholders as they will impact the company’s governance and financial strategy.

Scout Security Ltd. Announces Quotation of New Securities on ASX
Oct 20, 2025

Scout Security Ltd. has announced the application for the quotation of 550,000 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of October 20, 2025. This move is expected to enhance the company’s market presence and provide additional capital for growth, potentially impacting its operational capabilities and offering new opportunities for stakeholders.

Scout Security Ltd. Raises Additional Capital to Support Operations
Oct 20, 2025

Scout Security Ltd. has successfully raised an additional $220,000 through the placement of 550,000 fully paid ordinary shares, bringing the total funds raised to $820,000. The funds will be used to satisfy existing creditors, complete outstanding reports, and meet other administrative and working capital needs. The company is committed to reinstating its securities for trading on the ASX and is in discussions regarding potential corporate and capital raising proposals.

Scout Security Ltd. Releases Interim Financial Report for 2024
Oct 16, 2025

Scout Security Ltd. has released its interim financial report for the period ending December 31, 2024. This announcement provides stakeholders with insights into the company’s financial performance, potentially impacting its market positioning and operational strategies. The report may influence investor confidence and strategic decisions moving forward.

Scout Security Announces Annual General Meeting and Director Nomination Process
Oct 2, 2025

Scout Security Limited has announced that its Annual General Meeting will be held on November 26, 2025. The company has outlined the nomination process for director elections, with nominations due by October 7, 2025. This meeting is an important event for stakeholders as it will provide further insights into the company’s strategic direction and governance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 08, 2025