Harvest Tech forges ahead on profit plan, eyes positive EBITDA

Harvest Technology Group is one year ahead of its plan to reach profit as it focuses on achieving a positive EBITDA before July 2026.

Harvest Tech is on track to achieve profitability ahead of schedule. Pic via Getty Images.

• Harvest Technology is one year ahead on its pathway to profit plan

• Company aims to achieve a positive EBITDA before July 2026

• Rapid advances in technology and AI are unlocking commercial potential

 

Special Report: Remote communications tech-solutions provider Harvest Technology Group is tracking one year ahead of its pathway-to-profit plan as it focuses on achieving a positive EBITDA before July 2026.

Harvest Technology Group (ASX:HTG) is currently in stage three of a four-stage plan to profitability.

It’s a plan that came about after an early 2024 board review of the company’s performance and direction, pinpointing strong growth, high recurring revenue and increases in market share.

With the company cost base reset, new sales models in place, the current stage is all about driving to profitability, with the goal to achieve the first month of positive operating EBITDA by the end of FY26.

With high-margin, in-house developed products and full ownership of its IP, HTG expects additional revenue to rapidly boost EBITDA, while operating costs remain low.

HTG aims to have revenue exceed $5 million and EBITDA losses less than $1m in FY26, an improvement from a $6.1m loss in FY24 and an expected less than $3m loss for FY25.

The company aims to achieve its first full year of positive EBITDA in FY27.

Some of the other focus areas of stage three include:

• Sustainably growing revenue
• Continuing to expand the sales pipeline
• Optimising margins
• Innovating with new products and solutions
• Containing operating costs

HTG said its forecast predicts achieving the first month of positive operating EBITDA one year ahead of the three-year plan.

Solving barriers in remote video and data delivery

The tech company is specifically focused on overcoming challenges associated with remote video and data streaming.

Nodestream is the company’s secure integrated platform for real-time collaboration, communication and data exchange.

The platform provides an all-in-one solution accessible from anywhere, deployable at any time. It’s designed to enable users to enhance video, audio and data streaming over unstable networks and ensure optimal quality-of-service even under difficult conditions.

The company primarily sells its products to global corporate customers and government clients, with typically long sales cycles.

Its clients span across defence – including NATO members – global mining and energy companies,  public safety (such as disaster response) and maritime services.

Harvest Tech has now introduced “bundled” offerings, which may include third-party products and services, to not only shorten sales timelines but also provide a strategic avenue to expand its overall offering and growing profitable revenue.

The company said its gross margins were strong across all segments including ~90% for software sales, greater than 40% for hardware and 80% for bundled solutions.

Various revenue streams

The company has various revenue streams, generating one-time revenue from hardware sales and recurring revenue from software licenses and bundled sales all anchored by its industry leading Nodestream tech.

Additional income also comes from consulting, implementation and ongoing support services.

Nodestream is also being embedded into third-party solutions across both defence and commercial sectors.

This includes defence-specific applications such as integration with drones and UAVs, as well as mission-critical commercial applications such as vessel safety and navigation systems.

Hitting key stage one and two milestones

Harvest Tech said that around one year into its three-year pathway to profit plan, the company has been transformed, achieving milestones set in stages one and two.

Key achievements during stage one included securing a new CEO. After being appointed interim CEO earlier in 2024, Ilario Faenza took on the role of leading the company in August.

With expertise of the technology sector, sales, marketing, and capital raising, Faenza has was touted by the company as a “turnaround specialist”.

European customer meetings were held in stage one to gather feedback, and the sales pipeline refined by removing non-core sales.

Nodestream X was also released and new major investors secured.

Cost-cutting, reseller deals, upgrades and FSE listing

In stage two, the key focus was addressing operating expenses (OPEX) and refining the sales model.

A restructure was implemented to right-size operating costs and a new go-to-market model was launched using sales agents and resellers.

Meanwhile the company established the subsidiary Harvest Technology Europe Ltd (HTE) in Ireland to relaunch its Nodestream product range across the UK and European markets.

To expand its global reach, Harvest Tech inked a reseller agreement with Pulsar Beyond via their Pulsar Solution Inc entity.

To support growth of its European operations, the company retained services of three experienced managers in their field via Three Pro Consultants Ltd (TPC).

The company also launched new website and marketing materials.

In April, a new Nodestream hardware range was released and the company also started trading on the Frankfurt Stock Exchange (FSE), opening the door to a wider base of investors and boosting visibility in key European markets.

Faenza and advisors will be undertaking roadshows across Asia and Europe over the coming months.

By May 2025, Harvest Tech said its sales pipeline had tripled compared to December 2024 with the growth attributed to reseller partnerships.

Stage four about accelerating growth

HTG plans to hit stage four of its pathway to profit plan in FY27, shifting its focus toward accelerating growth, targeting forecast revenue of more than $9m and EBITDA exceeding $1m.

The stage includes expanding its sales pipeline by securing additional sales partners and penetrating new customer verticals.

It will continue rollout of bundled solutions designed to shorten the time to revenue activation from new customers.

The company plans to remain disciplined with cost management and margin optimisation, with ongoing investment in product innovation to maintain a competitive edge and further support sustainable growth.

Faenza said additional growth opportunities above the base plan could come from aligned acquisitions, where the company was always reviewing potential deals, but very cautiously given the plan doesn’t require any acquisitions to achieve targets.

Opportunity as tech improves

Rapid advances in AI, machine learning, sensor technology and satellite communications have been accelerating the rollout of autonomous beyond line-of-sight (BLOS) operations.

The company noted these innovations are making remote systems more secure, reliable, and cost-effective and unlock further commercial potential for the company.

Meanwhile the global satellite communications (SATCOM) market is gaining momentum – valued at up to US$200 billion in 2024, according to Harvest Tech, and forecast to reach as much as US$300bn by 2030-2034, with a CAGR ranging from 9.4% to 12.3%.

Key drivers of growth include rollout of low Earth orbit (LEO) satellites and high-throughput satellites (HTS), which are expanding coverage, reducing latency and enabling bandwidth-heavy applications.

The company is also preparing to release its NEON range of products, positioning HTG as an AI enablement solution with advanced Edge Computing and expected to feature strongly in future revenue growth.

Investor interest is also rising in emerging markets like Asia-Pacific and Africa, where demand for reliable, remote connectivity is increasing.

This article was developed in collaboration with Harvest Technology Group, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Harvest Tech forges ahead on profit plan, eyes positive EBITDA