Spirit Technology Solutions Ltd. (ST1) AI Stock Analysis

• Market Cap: AU$100.79M
• Dividend Yield: N/A
• Average Volume (3M): 44.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -18.64%
• EPS Growth: 92.67%
• Country: AU
• Employees: 36
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): <0.01
• Shares Outstanding: 190,176,330
• 10 Day Avg. Volume: 16,618
• 30 Day Avg. Volume: 44,420
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$0.50
• Price Target Upside: -3.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: AU$0.50 ▼(-3.85% Downside)

The overall stock score is primarily driven by financial difficulties, with negative profitability and cash flow challenges posing significant risks. Technical indicators provide some positive signals with a recent upward trend, but overbought conditions could limit further gains. Valuation remains unattractive due to negative earnings and no dividend yield.

Spirit Technology Solutions Ltd. Business Overview & Revenue Model

Company Description

Spirit Technology Solutions Ltd. provides collaboration and communication, cyber security, and managed IT services in Australia. It offers collaboration and communication services, including integrated collaboration, voice, and video solutions with data and office technology for small businesses. The company also provides cyber security services, such as cyber managed services and solutions to corporate and enterprise customers through a 24/7 Security Operations Centre and professional service teams. In addition, it offers a range of managed IT and professional services, including end-user, public cloud, infrastructure and networking, data, and voice solutions to SMB and midmarket customers. The company was formerly known as Spirit Telecom Limited and changed its name to Spirit Technology Solutions Ltd. in October 2020. Spirit Technology Solutions Ltd. is based in Melbourne, Australia.

How the Company Makes Money

Spirit Technology Solutions Ltd. makes money through a diversified revenue model that includes subscription-based services, one-time project fees, and ongoing support contracts. Key revenue streams are derived from managed IT services, where businesses pay recurring fees for IT support and management, and cloud services, which involve subscription-based pricing for hosting and data management. The company also earns through telecommunications services, providing clients with solutions like VoIP and unified communications. Significant partnerships with leading technology providers enhance its offerings, allowing Spirit Technology Solutions to deliver cutting-edge solutions and maintain a competitive edge in the industry.

Spirit Technology Solutions Ltd. Financial Statement Overview

Summary

Spirit Technology Solutions Ltd. is experiencing financial difficulties, with shrinking revenue, negative profitability metrics, and cash flow challenges. The balance sheet shows increasing leverage risk, although the equity structure remains balanced. Overall, the company faces significant financial risks that need strategic action.

Income Statement

Spirit Technology Solutions Ltd. has faced declining revenue with a decrease from 2023 to 2024 by approximately 1%. The gross profit margin is shrinking, and the company has consistently posted net losses over the past years, indicating challenges in achieving profitability. Negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio has increased over time, indicating a rising leverage risk. However, the equity ratio remains reasonable, suggesting that the company still maintains a balanced asset-to-equity structure. The return on equity is negative due to net losses, pointing to poor shareholder returns.

Cash Flow

Operating cash flow has been negative for the past two years, reflecting cash management challenges. Free cash flow has also been negative, which could affect future growth investments. The cash flow to net income ratios are not favorable, given the consistent net losses.

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	21.87M	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

• Technical Analysis Sentiment: Neutral
• Last Price: 0.52
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ST1, the sentiment is Neutral. The current price of 0.52 is below the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.54, and above the 200-day MA of 0.49, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of -0.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:ST1.

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%
ST1	55 Neutral	AU$100.79M	―	-1.60%	―	-18.64%	92.67%
SWP	54 Neutral	€42.90M	―	-19.40%	―	35.24%	-182.42%
FSG	52 Neutral	―	―	―	―	―	―
VN8	49 Neutral	AU$26.34M	―	-3.77%	―	-7.05%	75.68%
HFY	43 Neutral	AU$4.09M	―	-11.62%	―	-9.44%	83.16%
5GN	41 Neutral	$41.89M	―	-5.06%	―	26.95%	90.52%

Spirit Technology Solutions Ltd. Corporate Events

Spirit Technology Solutions Returns to Profitability in FY25

Spirit Technology Solutions Ltd reported a significant return to profitability in FY25, achieving an unaudited underlying EBITDA of $11 million and revenue of $102.4 million. This marks the company’s first profit since its restructuring began in FY23. The Managed Services segment returned to profitability, supported by new security-enabled offerings, while the Cyber Security segment achieved strong earnings. Despite challenges in the Communication and Collaboration segment, Spirit maintained a disciplined cost base and is poised for sustainable growth in FY26, with plans to explore acquisition opportunities and expand recurring revenue streams.

Spirit Technology Solutions Announces Change of Business Address

Spirit Technology Solutions Ltd, a leader in secure digital transformation, has announced a change in its registered office and principal place of business to a new location in Melbourne, effective 1 July 2025. This move reflects the company’s ongoing commitment to enhancing its operational capabilities and maintaining its position as a key player in the digital security and managed services industry.