ASX Tech Stocks Becoming Outperformers
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While tech stocks have been doing well lately, what with a low rate environment. Backed by economic growth, these stocks have been outperforming in general.
SKS Technologies Group Limited (ASX: SKS)
had a very big FY25 as it took advantage of the rising demand in data centres. Its revenue jumped 92% to A$261.7 million and NPAT went up more than double to A$14 million. Operating cash flow was A$35 million which is more than four times higher than before and it helped the company improve working capital and fund growth plans. A fully franked dividend of 6 cents per share was announced which is six times higher than FY24 showing the profit growth. Some of the major projects were worth more than A$200 million in hyperscale data centres in Melbourne and Darwin and also defence and corporate projects. Work on hand finished the year at A$200 million with repeat business of 94% showing strong client confidence. For FY26 the company expects revenue around A$300 million with pipeline of government, corporate and defence projects and also new opportunities in AI focused data centres.
Life360 Inc (ASX: 360)
had a very strong Q2 FY25 as growth in both subscribers and hardware pushed up revenues. Revenue for the June 2025 quarter went up 36% year on year to about US$115.4 million and total revenue for first half reached US$219.0 million. The company also moved into profit with a net income of US$11.4 million for the half compared to a net loss of US$20.7 million in same period last year. This turnaround came mainly from operating leverage as paid subscribers increased to 3.1 million which is 18% higher than June 2024. Operating cash flow almost doubled to US$25.4 million and cash reserves are sitting at US$432.7 million. Paying circles also jumped 25% to 2.5 million and average revenue per circle grew because of higher prices and more premium plans. Hardware sales were strong too with 0.8 million units sold in Q2. The company also made acquisitions like Fantix Inc which expanded its platform. Looking forward Life360 is expecting more growth from subscriptions and new products in AI safety and family connection.
DUG Technology Limited (ASX: DUG)
had a mixed FY25 with total revenue of about US$62.6 million which is down 4% from FY24. EBITDA came in at US$15.4 million with a margin close to 25%. The second half of the year was much stronger as revenue increased to US$33.8 million and EBITDA to US$10.2 million because of better order momentum with US$45.7 million in new services projects added. Services revenue finished at US$51.9 million while software sales improved to US$8.3.Net loss after tax was US$4.4 million compared to a profit of US$3.3 million in FY24, this was mainly because of higher depreciation and finance costs due to upgrades in the data centre. Operating cash flow for the year was US$5.6 million and cash at the end of June was US$16.4 million. The order book touched a record US$52 million, supported by global expansion with new offices opening in Abu Dhabi and Brazil. Looking to FY26 the company will be focusing on scaling its own eMP-FWI imaging technology, getting more software adoption and driving growth from DUG Cool and DUG Nomad.
(Source: Company Announcements)
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