• FY2026 revenue performance below budget due to timing impacts on customer deliveries and softer US performance
• Strong momentum in data centre security segment with continued order activity and new customer wins
• Keyvision and Smart Lockers/Access segments performing in line with expectations
• FY2026 revenue guidance revised to $13-14 million due to project timing shifts

TZ Limited has released its Appendix 4C - Quarterly Cash Flow Report for the quarter ended 30 March 2026, along with an operational and strategic update for FY26. The key highlights include:Financial Summary:- Net cash used in operating activities was $830,000- Cash receipts from customers totalled $2.679 million for the quarter- Operating cash outflows included product manufacturing and operating costs of $1.282 million, staff costs of $1.403 million, and administration and corporate costs of $0.481 millionBusiness Update:- FY2026 revenue performance has been below budget primarily due to timing impacts associated with customer deliveries and softer performance in the US- The company expects the June quarter to be the strongest for the financial year, supported by the completion of previously delayed shipments and continued conversion of existing orders- The data centre security segment continues to see strong momentum, driven by both new builds and the refurbishment and modernisation of existing facilities- Keyvision continues to perform in line with expectations, with a growing pipeline supported by enterprise customers- The Smart Lockers and Smart Access segment remains the primary contributor to recurring revenue, with ongoing engagement from enterprise clientsRevenue Outlook:- The company has revised its FY26 revenue guidance to a range of $13 million to $14 million, as a number of projects initially anticipated for delivery in Q4 FY26 have shifted into the early part of FY27- These projects, including a key government-related project valued at approximately $2.5 million, are expected to contribute to revenue in the early part of FY27Debt and Capital Management:- TZ has a current debt level of $5 million, with the $1.5 million Debenture with First Samuel Limited to be rolled to 30 June 2027- The company is also working with its lender, Causeway Finance, to extend near-term repayment obligations to 31 May 2026- Additional funding has been secured in April 2026 to support debt reduction, working capital requirements, and continued investment in growth opportunities

The company has revised its FY2026 revenue guidance to a range of $13 million to $14 million.

The company is entering the final quarter of FY26 with strong underlying momentum across its core segments. While timing impacts have shifted a number of projects into early FY27, these projects remain active and are expected to contribute to near-term revenue. With a solid forward pipeline, increasing engagement across the data centre sector, and continued focus on execution and capital management, the company remains well positioned to drive improved performance into FY27.