• Acquisition of Keyvision Holdings Pty Ltd to strengthen SaaS and recurring revenue base
• US sales impacted by tariff-related supply chain issues, but expected to rebound in Q4
• Recurring annuity revenue on track for 20% year-on-year growth

TZ Ltd (ASX: TZL) has released its Appendix 4C - Quarterly Cash Flow Report for the quarter ended 31 March 2025. The key highlights include the acquisition of Keyvision Holdings Pty Ltd, which is expected to strengthen the company's SaaS and recurring revenue base and expand cross-selling opportunities globally. While sales in the US market were below budget due to tariff-related supply chain uncertainty, the business is well-positioned to recover lost ground during the June quarter, supported by a strong and growing sales pipeline. Recurring annuity revenue remains on track to deliver 20% growth year-on-year, reflecting the increasing contribution of SaaS-based offerings, particularly from Keyvision. Operating expenditure has been well-controlled, running 10% below budget despite one-off legal and transactional costs related to the acquisition and refinancing activities. The company has also secured a new $4 million debt facility, which enabled a partial repayment of the First Samuel debenture, reducing the outstanding balance to $1.5 million.

Provided current trends continue, FY26 is shaping up to be a strong growth year for TZ, with recurring subscription revenue from Keyvision forecast to reach ~$1.6 million per annum within the next 12 months.

Looking ahead, the company remains confident in a stronger performance in the final quarter of FY25 and into FY26. In addition to the expected rebound in US sales, demand for TZ's DC Cabinet Security products is growing in response to global data centre expansion. The company is also exploring AI-based solutions to enhance the capabilities of its smart locker system, which has been deployed across CapitaLand's properties in Singapore.