The DUG Technology Ltd (ASX: DUG) share price is sinking 22% to $1.51 on Thursday despite the company reporting a 38% jump in revenue to US$86.4 million and returned to profit for FY26.
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What did DUG Technology report?
- Revenue increased 38% to US$86.4 million
- Normalised EBITDA rose 78% to US$27.4 million, excluding a one-off expense
- Net profit after tax was US$2.6 million, a turnaround of US$7.0 million from FY25
- Software and HPCaaS revenue jumped to US$22.6 million, making up 26% of total revenue
- Multi-Client revenue came in at US$4.1 million, with 12 projects in the library
- Net cash from operating activities rose to US$20.9 million, up 273% year on year
What else do investors need to know?
DUG returned to profitability in FY26, with net profit after tax reaching US$2.6 million after recording a loss in the prior year. The company's growth was broad-based, with strong performance across software, high performance computing as a service (HPCaaS), and services, particularly in emerging regions such as Brazil and the Middle East.
Investments in HPC infrastructure are already in place to support new contracts and continued growth, including a recent hardware expansion to deliver on fresh software and HPC deals. The services order book ended the year at US$33.6 million, underpinned by rising exploration activity and a healthy sales pipeline.
What's next for DUG Technology?
Looking ahead, DUG expects continued momentum in FY27, with a full year of revenue from contracts secured in FY26 and a material software and HPC infrastructure award worth US$9.3 million. The firm has invested heavily in compute capacity over recent years, positioning it to meet growing industry demand.
DUG sees high activity levels in its core markets, supported by strong oil prices and increased exploration programs as companies seek more advanced imaging and data solutions. Management highlighted their focus on growing recurring revenue streams through software, HPCaaS, and the expanding Multi-Client business.
DUG Technology share price snapshot
The DUG Technology share price is now down 18% since the start of the year, compared to a 4% gain from the S&P/ASX 200 index (ASX: XJO).
