Thank you, and good morning, and thank you for joining us for this briefing of Data#3's FY26 full year financial results. I am joined by Cherie O'Riordan, our CFO, who will take you through our financial performance in detail a little later in the presentation.

For those of you not familiar with us, Data#3 is an ASX 200 listed IT services and solutions provider in Australia and the Pacific Islands. Our vision is to harness the power of people and technology for a better future.

We have over 48 years of experience evolving our solutions and services to enable our customer success combined with world leading vendor technologies. We deliver the digital future for our customers through our technology solutions and lifecycle services.

In terms of the agenda, we will start with the FY26 highlights, followed by key operational updates. Then Cherie will provide a detailed overview of financial performance.

I will cover IT sector trends and round out with our strategy and outlook before closing with Q&A. Let's start with our FY26 highlights.

We delivered gross sales of $3.4 billion for FY26, which represents growth of 12.7%, well ahead of Gartner's Australian IT industry growth forecasts of 8.9%, a strong achievement for a company of our scale. Recurring gross sales increased to 70% of the total, up from 69% in FY25, underpinned by multi-year customer contracts in our managed services, maintenance services, and software solutions businesses, and the ongoing shift by our customers to multi-year subscription and as-a-service offerings.

Net profit before tax of $78.8 million was up 14% on FY25, boosted by the solid gross sales growth and improved operating leverage achieved this financial year. Our customer satisfaction rating increased to 4.36 out of 5.

FY26 was a record year for Infrastructure Solutions. It was a record year for Software Solutions, which included the successful management of the Microsoft channel incentive changes, plus securing the five-year renewal of the whole-of-Federal Government Microsoft Products and Services Agreement with the Digital Transformation Agency.

It was also a record year for Business Aspect consulting and for Managed Services. We advanced our solutions development across Managed Azure, Managed Security, Device as a Service, and Managed Networks, and progressed our operational excellence agenda through our myD3 customer portals for purchasing management and support, plus we enhanced our internal modern data platform, security, and AI functions.

This next slide shows the consistency of Data#3's performance over the past 5 years. The FY26 was a strong result in its own right.

The more important message is that it's not a one-off. Across the FY21 to FY26 period, gross sales have grown at an 11.6% compound annual growth rate, gross profit at 9.4%, basic earnings per share at 16.3%, and dividends per share at 16%.

That consistency reflects the strength of our market position, the strength of our vendor and customer relationships, and the recurring nature of our growing share of our business. When we talk about consistent earnings growth, this is the evidence behind it: strong FY26 execution, a 5-year track record of compounding growth, and increasing recurring sales base that supports the resilience and visibility.

Moving on now to our key operational updates for FY26. Looking at growth by solution area for the year: Device as a Service grew over 100%, End User Compute 18%, Data Centre 19%, Public Cloud Azure 29%, Security 21%, and AI over 100%.

This is broad-based growth. Every one of our major solution areas contributed, and the fastest growing, AI and Device as a Service, are the areas in which we've been deliberately investing.

Microsoft recently reported its FY26 full year results, materially ahead of expectations, led by Azure, AI, and Microsoft 365. That momentum reads through directly to Data#3.

Microsoft grew Azure and cloud materially during the year, which aligns with our own Software Solutions growth areas for FY26 and looking forward to FY27. Microsoft's increase in Copilot and AI reflects directly on Data#3's strong AI growth in Copilot, Azure Foundry, and associated services.

Security remains central to enterprise cloud and Copilot adoption for Microsoft. Our security business grew 21%, with security software, E5, and managed security a key growth pillar for Data#3.

In short, Microsoft's AI and Azure momentum reinforces demand across Data#3's fastest growing lines: Azure consumption, Copilot deployment, security, and AI services. All of this culminated in Data#3 lifting Software Solutions gross sales 14% to $2.3 billion and being named Microsoft's Country Partner of the Year for Australia during FY26.

Our customer satisfaction improved across three key metrics during FY26: overall satisfaction, ease of working with Data#3, and the quality of account representation. This is reflected in our customers' experience.

Let's look at an example of Mitsubishi Motors Australia Limited. Mitsubishi faced growing IT complexity and limited internal capacity.

It operates a complex national IT environment supporting its head office and dealer network of around 4,000 users across Australia. After an 8-year relationship with Data#3, the customer went back to market as part of its governance process and chose to continue with Data#3 while expanding the scope of services.

This is a strong example of how Data#3 creates long-term value for customers and shareholders. The expanded engagement covers service desk, application support, software licensing management, and cloud optimization.

The outcome of the customer are reduced operational risk, better cost control, and improved governance. This managed service case study shows the quality of Data#3's services business and the depth that these engagements have to our overall relationships with customers.

These are sticky, trusted, recurring relationships where our people are deeply embedded in the customer environment. It shows our ability to move customers from just support services into broader lifecycle services across cloud, support applications, and managed operations.

We have a large customer base, and there is a broad opportunity to replicate these types of engagements with many more customers. Our ability to continue to deliver high quality solutions for customers is a testament to our incredible people and culture.

Data#3 has again been recognized by multiple third-party organizations during FY26 as having a leading workplace environment. This is reflected in our employee satisfaction score of 4.38 out of 5.

Our vendor partners are investing heavily in advanced technology solutions, and our expertise in implementing and managing those solutions is central to both our customers' success and our own. We work with over 500 vendors, and growth is increasingly broad-based across that portfolio, reflecting the breadth and resilience of our partner ecosystem.

FY26 brought local, regional, and global recognition across multiple partners. Highlights include the 2025 Microsoft Country Partner of the Year, the Cisco ANZ Partner of the Year, and a series of global and Asia Pacific Cisco awards.

These awards reaffirm our capability and that vendors and customers alike see us as a partner they can trust and a partner of choice. AI is now a core operating capability across Data#3, embedded in finance, HR, IT, cyber security, sales, and customer experience.

We run Microsoft Copilot, Copilot Studio, Azure Foundry, Azure Cognitive Search, and LinkedIn Sales Navigator internally, alongside our own AI-embedded solutions. We use our own business as the proving ground.

What we deploy internally, we take to our customers with the credibility of having run at that scale ourselves. Results are measurable.

This is AI-driven operating leverage story in practice: cost avoidance and capacity enhancement that scales with growth. We're just getting started.

I'll now hand over to Cherie for a closer look at our FY26 financial performance.

Thank you, Brad, and good morning, everyone. It's my pleasure to take you through our financial results for the 2026 financial year.

Data#3 delivered record gross sales of $3.4 billion for FY26, up 12.7% on FY25, with growth across Infrastructure Solutions, Software Solutions, and Services. Gross profit grew 5.3% to $305.2 million.

This is a strong outcome given the Microsoft incentive program changes that took effect on 1 January 2025 and had the greatest impact on the FY26 first half. The mitigation strategies we put in place proved successful, and software gross profit finished the year ahead of our expectations, with a strong second half.

Earnings before interest and tax increased 16.6% to $69.8 million, and net profit before tax increased 14% to $78.8 million, growth well ahead of gross profit growth, and clear evidence of the operating leverage we've been building. Basic earnings per share increased 13% to 35.16 cents, and the board has declared a final fully franked dividend of 18.25 cents per share, up 13% for the full year, representing a payout ratio of 90.3%.

We finished the year with a strong balance sheet and no borrowings, which continues to give us the flexibility to invest in growth while delivering attractive returns to shareholders. Moving now to the results by line of business, or operating segment.

Infrastructure Solutions delivered a record year. Gross sales grew over 14% to $651 million, boosted by End User Compute sales, which were underpinned by Windows 11 upgrades and device refresh cycles.

Data centre storage and server sales grew over 19% as customers moved to hybrid cloud and prepared for AI adoption. The business expertly managed any variability in supply chain related to global memory shortages and significant hardware price increases by leveraging its warehousing capabilities and vendor relationships to get the best outcomes for customers.

Infrastructure gross profit grew 18.6% to $84.5 million, with gross margin improving to 13% from 12.5%. This was driven by improved deal margins, accelerated rebates earned off the strong sales performance, and a shift in rebates from Maintenance Services following changes made to Cisco incentive programs earlier this year.

Management profit grew over 78% to $31.2 million in FY26, with the step change coming from higher rebates, in addition to significant cost efficiencies driven by automation and the restructuring completed during FY25 now having a positive annualized impact. Software Solutions also delivered a record year, with gross sales of $2.3 billion, up over 14% on FY25's $2 billion.

Growth was driven by ongoing demand for security products, cloud subscriptions, Adobe, and Microsoft Azure. Gross profit grew 7.6% to $78.1 million as the impact of the Microsoft incentive program changes were successfully mitigated.

Gross margin of 3.4% compares with 3.6% in FY25, and FY26 management profit grew 7.7% to $41 million. We achieved significant growth in cloud solution provider sales in the commercial mid-market sector and gained momentum with our licensing consulting and management offerings.

Enterprise Agreement renewals were strong, particularly in public sector. As Brad mentioned earlier, in March 2026, Data#3 was appointed by the Digital Transformation Agency as the sole provider of Microsoft products and services to the Australian Government for a five-year term, with a one-year extension option, which will ensure continuity of gross sales for the segment, as well as an opportunity for the provision of services into Federal Government.

We also delivered strong growth with non-Microsoft vendors during FY26, in line with our diversification strategy. In summary, all of the mitigation strategies we put in place in in response to the Microsoft incentive program changes have proven successful.

Services gross sales of $412.3 million grew 3.6% on the prior year, with different growth profiles across the services portfolio. Business Aspect consulting had a record year, with gross sales up of 22% to $37.1 million, as it capitalized on the market opportunity across key accounts and practices, including Transformation and Governance, and Information and Analytics.

Maintenance Services grew 11.5% to $192.3 million, with solid improvement in the second half as expected, and a record year of Cisco Enterprise Agreement wins. Managed Services grew 9.4% to $60 million, supported by ongoing contract wins and renewals, particularly in the resources sector.

On-site Managed Services was flat for the prior year sorry, was flat on the prior year, with some downsizing in key accounts, but the pipeline is solid for both Enterprise and on-site Managed Services. Project Services maintained solid market activity and pipeline coverage during FY26, however booking conversions reflected reduced business confidence, customer timing, and extended procurement processes.

New South Wales and ACT performed well, while Queensland, Vic, and WA recorded softer sales conversion and a slower market recovery as the year progressed. As a result, Project Services gross sales of $67.4 million were down 15.3% on the prior year.

FY26 marked the start of a multi-year transition for Project Services, with leadership changes, the development of new solutions and capability, and an overall enhanced services growth strategy for execution commencing FY27. People Solutions gross sales of $55.5 million were down 8.7% in FY26, reflecting an ongoing tight labor market and economic sentiment, which resulted in customer decisions to manage contractor numbers in some key Queensland accounts, together with some margin pressure from a more competitive market.

Renewal performance and activity levels remained strong, however conversions reflected customer decisions, cash rate pressures, and a tight market for specialist candidates. Services gross profit of $142.3 million and gross margin of 34.5% reflect the mix in services growth by business unit, in addition to the shift in Cisco rebates from Maintenance Services into the Infrastructure Solutions segment following the Cisco 360 program changes, a reallocation within the group rather than a loss of value.

Total rebates generated across all vendors in all segments in FY26 increased over 20% on the prior year. This next slide presents a summarized view of our FY26 statement of comprehensive income.

Statutory revenue and other income grew over 6% to $907 million. Statutory revenue includes adjustments to present our software licensing and vendor-delivered maintenance support sales on a net revenue basis.

However, internally we continue to measure performance in terms of gross sales. Gross profit grew 5.3% to $305.2 million, an increase of $15.5 million.

First half gross profit was most impacted by the Microsoft incentive program changes, while the second half saw a return to growth. Operating expenses including staff costs of $228.8 million increased just 2.4% in FY26.

Staff costs increased just over 2% on the prior year, supported by our disciplined focus on cost management, ongoing alignment of our cost base to market demand, and improved operating leverage. Lower billable services headcount aligned to customer demand was offset by targeted investment in specialist sales roles across all three segments to support future growth.

Wage inflation was modest during FY26. Operating costs benefited from a first half lease accounting adjustment of $0.9 million, offset by increased IT projects, software licensing, and other costs.

The result is EBITDA of $76.4 million, up 15.1% or $10 million, with the EBITDA margin improving 0.6 percentage points to 8.4%. Gross profit growth of 5.3% converting to EBITDA growth of 15.1% clearly demonstrates the operating leverage we've built.

Depreciation and amortization was steady at $6.6 million, and interest income of $10.1 million was in line with FY25, earned off a strong average cash position and a sustained high cash rate. Net profit before tax for the period grew 14% to $78.8 million, reflecting significant growth in infrastructure and software solutions management profit, and tight cost control, substantially offsetting the impact of the Microsoft incentive program changes on FY26.

Turning now to the balance sheet as at 30 June 2026. Cash of $326 million compares with $356.7 million at 30 June 2025.

As is usual for us, the May and June sales peak drives a strong closing cash position off the back of high value invoicing and collections activity. Other current assets of $720.7 million are up on $547.2 million, with trade debtors higher in June with the end of financial year sales peak.

Importantly, average days sales outstanding was maintained at 25 days. Trade creditors are correspondingly higher, with current liabilities of $975.9 million.

One balance worth highlighting is inventory, which closed at $73.4 million, up from $18.4 million at 30 June 2025. This reflects some larger hardware orders procured and held in advance of customers' requirements, deliberately positioned to get ahead of expected hardware price increases and potential supply constraints associated with global memory shortages, in addition to higher goods in transit from partially delivered vendor shipments.

All inventory is committed to customer orders, and holding costs are charged where inventory is retained beyond standard holding periods. Increase in non-current assets predominantly reflects newly recognized right-of-use assets and property, plant, and equipment related to our new Melbourne, Canberra, and Sydney office leases.

Net assets grew to $95.2 million from $84.2 million, the current ratio maintained at 1.1, and the company continues to operate with no borrowings. On to the cash flows: FY26 cash flows from operating activities were $23.3 million, compared with $126.3 million in FY25.

This movement reflects the timing of receipt of customer payments net of supplier invoices during the peak month of June, rather than any change in collection performance. Investing activities at $5 million relate predominantly to new office fit-outs, internal computer equipment, and software assets.

Financing activities of $48 million include dividends paid of $44.2 million, compared with $40.3 million in FY25, at a payout ratio of approximately 90%. Our average daily cash balance for the year was $276 million, up from $267 million in FY25.

Pulling the working capital picture together, we had closing cash of $326 million, average daily cash of $276 million, which is up over 3%, interest income of $10.1 million, and an average days sales outstanding held at 25 days. This final slide in the financial overview covers our internal cost ratio: internal expenses divided by gross profit, which is our key internal measure of operating leverage, and which has improved steadily over time.

FY26 ICR improved to 77.5% from 79.7% in FY25, supported by the restructuring of the Infrastructure Solutions business in the first half of FY25, company-wide automation initiatives, system improvements, and effective cost management. Staff costs increased just over 2% on the prior year as outlined earlier, and the increase in operating expenses was also modest.

This 2.2 percentage point improvement in ICR is what elevates our 5.3% gross profit growth to 14% net profit growth. Thank you for your time this morning.

I'll now pass back to Brad.

Thank you, Cherie. Let's now take a few minutes to review IT sector trends, and then our strategy and outlook.

In calendar year 2026, Gartner expects Australian technology industry spending to increase 8.9% to exceed $172 billion, growth well ahead of the broader economy, and driven in large part by spending related to generative AI adoption. Software is the largest IT spending category in Australia in 2026, having overtaken IT services.

Devices continue to grow, supported by AI-capable PCs. Investment in AI-related infrastructure continues to accelerate and is driving strong data centre growth.

While much of that investment sits with the hyperscalers, we are also seeing sustained customer interest in hybrid cloud as organizations determine the optimum environment for both their AI and their non-AI workloads. Overall, this is a growing market, and Data#3 has been exceeding industry growth.

Worth stepping back to see where this fits in the longer arc. The industry has moved through the enterprise era, the cloud era, the digital experience era, and now firmly in the AI era.

Data#3 has navigated each of these transitions successfully, and each one has expanded the value we deliver to our customers. The AI era is the largest of them, and we enter it with capability already built and running.

Let's explore a summary of our strategy before reviewing the outlook. Four strategic priorities drive our strategy: Solutions: developing solutions and services that deliver customer success; Customer Experience: differentiating Data#3 through the experiences we deliver to our customers; Operational Excellence: connecting and simplifying Data#3 to deliver an agile and efficient business; and People and Community: connecting Data#3 with the people and the communities in which we operate.

Our solution technologies are delivered across the full lifecycle: advise, procure, deploy, adopt, and operate. It is our ability to integrate these solutions and manage them throughout that lifecycle that is one of our competitive advantages.

Our Data#3 business units map to that lifecycle: Business Aspect advises; Infrastructure and Software Solutions help customers to procure the right technology solution; Project Services deploys; our customer success teams drive adoption; and Managed Services operates the technology. Each stage is a genuine capability, and together they create recurring revenue and multi-year customer relationships.

We deliver those solutions with deep industry relevance across energy, water, and utilities; mining and resources; construction and venues; defense and national security; education; and the public sector. Public sector customers showed improvement in activity levels this year, supported by the progression of digital strategies, cyber security requirements, and modernization programs.

AI touches every part of our solutions portfolio. In our AI solutions practice, we deliver AI-specific solutions such as Copilot and Azure Foundry.

In cyber security, we provide defense against AI-based attacks using AI-based tools. In applications and automation, we increase the efficiency of applications and utilize AI tools for automation and integration.

In collaboration, we have AI-enabled software and hardware with Microsoft Teams, Cisco Webex, and in-room equipment. In end user computing, AI PCs enable faster local processing and reduced latency.

In hybrid cloud, we are seeing increases in server, storage, and public cloud AI solutions. In networking, enterprise networks are being embedded with AI for better manageability and insights.

AI is a significant opportunity for Data#3 across software, infrastructure, and services alike. We supplement our lifecycle services with our enterprise AI lifecycle services to drive real business outcomes.

The Data#3 AI Factory is how we turn that opportunity into repeatable delivery. Moving customers from envision through transform to operate, it gives customers a defined path from proof of concept to production, and gives us a scalable, outcome-led AI go-to-market.

Our key initiatives for the year ahead are: the Artificial Intelligence Solutions Practice, a 24/7 sovereign Security Operations Centre, expanded Microsoft services in public sector, Managed Azure acceleration, enhanced development of our Unified Endpoint Management offering, and an upgraded ServiceNow environment within our Managed Services, which will provide AI capability, help us to be more efficient, and scale more readily. Two of those initiatives warrant more attention.

The first is a deliberate high priority investment in establishing a dedicated Artificial Intelligence Solutions Practice in FY27, positioning the business at the forefront of next generation value creation. Alongside it, we are building customer-facing AI delivery pods, enabling a more consistent, scalable, and outcome-led AI go-to-market.

The second is a strategic investment in a 24/7 sovereign Security Operations Centre in FY27, supplementing our existing hybrid SOC in Brisbane, and strengthening our leadership in trusted, locally-governed cyber security services. Cyber security remains one of our highest priorities for our customers, particularly in government, regulated industries, and critical infrastructure.

This capability is designed to meet customer requirements for data residency, locally operated services, and to provide regulatory alignment, and it strengthens our broader managed security and lifecycle services offerings. We are taking deliberate action to accelerate the growth of our profit and profitability of our services business.

The services plan includes enhanced capability, solutions, and strategy on which we commence executing in FY27. The services plan embeds advisory capability into key accounts, grows our annuity contract base, strengthens our managed services platforms, improves services sales disciplines, and aligns Project Services capability to high growth solution areas.

This supports a more services-led organization over time. On leadership, we thank Michael Bowser for his contribution to Data#3 and acknowledge his retirement after more than 38 years with the company.

We are pleased to welcome David Gold to the services leadership role, where he will drive the next phase of our services strategy. Turning to the outlook, we see growth opportunity across all three segments.

Infrastructure Solutions growth is expected to be supported by AI-ready infrastructure, end user computing, hybrid cloud, networking, cyber security, and lifecycle services. We will continue to focus on priority solution areas that address customer needs for productivity, resilience, compliance, and secure modernization.

In software, having successfully navigated Microsoft channel changes, we expect a return to normal growth, with a strategic focus on winning with complementary vendors, services, and packaged offerings. Microsoft AI products and programs provide further opportunity in FY27 and will continue to drive large Azure commitments, software advisory, and Microsoft services opportunities in the public sector.

The strategy will also focus on growth in the mid-market, supported by continued investment in our myD3 customer portal that enables efficiency and scale. In services, we expect growth from expanded managed and project services offerings across AI, security, devices, and cloud.

Managed Services is expected to continue performing well, supported by a solid pipeline. Maintenance Services carries momentum in Enterprise Agreement wins, and consulting is gaining momentum through opportunities in cyber security and analytics.

Project Services and People Solutions are expected to build from the current market conditions in the near term as customers manage project timing and contractor numbers. The pipeline is solid, providing momentum into the second half, and supporting growth for the full year as we execute on our services growth strategy.

Consistent with previous practice, we're not providing specific FY27 guidance at this stage. In line with previous years, we continue to expect a sales peak in the months of May and June, and earnings skewed to the second half.

While the year ahead will be shaped by global supply conditions, broader economic confidence, and customer procurement cycles, we have started the year strongly. We have a growing market, excellent support from our vendor partners, momentum generated by AI, and a clear strategy to continuing deliver consistent earnings growth for our shareholders, in line with our long-term strategy.

As a leader in the Australian IT industry, there's no better place to be. Thank you, and we'll now open for Q&A.

Thanks, and good morning, Brad and Cherie. Congrats on a good result and some nice operating leverage.

Thanks, Nick.

Thank you.

No worries. I've got more, but I'll just ask one, then I'll jump back in the queue.

My main question is just trying to understand the materiality of your cost growth plans, your investment into services, particularly in FY20 FY27. Obviously in FY26, your staff costs grew about 2%, and your ICR trended lower.

Is that kind of the way we should think about your investment in the business going forward, particularly in the context of that Data#3 AI Practice and the 24/7 SOC? Is that sort of BAU, or might you be lifting your investment, your expenses a bit more in FY27?

Any direction would be great. Thanks.

No worries. Thanks for the question, Nick.

I guess there's a few pieces to that. As Brad outlined, there are a number of different key initiatives investments that we are planning for FY27.

The majority of them are investments in people and billable headcount. There's also a little bit of sort of tooling and a physical presence that we need to take out for the SOC, for example.

However, for the most part, it's billable headcount. Most of those investments should have an almost immediate return once employed and once we start scaling up those various investments.

The two that will likely take a little bit more time to ramp up are the sovereign SOC and the AI Practice, where we might need to bring in some headcount ahead of generating gross profit off that investment. Overall, we expect, depending on timing of bringing those resources into the business and ramping up those investments, we expect staff costs to increase by up to 10% next year.

As I said, most of those investments should be fully recoverable in the same financial period. However, with the SOC and the AI Practice, we could have up to about a $2 million impact on net profitability next year.

That all being said, I would expect the operating leverage to sort of maintain for next year while we ramp up those investments and get to generating a full return in FY28.

Thank you. I'll jump back in the queue.

Thanks, Nick.

Hey, good morning, Brad and Cherie. Hope all is well.

Just a few for me. Could I just quickly follow up on the previous question just before, just to make sure I got that right.

Did you say, Cherie, for FY27, the employee costs up about 10% year-on-year? Did you say from those other specific initiatives around the SOC and the AI, were you saying in the other opex line a $2 million higher incremental in 27 in the other opex for that?

No, your first point, correct. Staff costs up up to 10%, depending on timing.

My comment was around the net impact on the bottom line of all of those investments that would be in that 10% number already would be around $2 million, again, depending on timing. Okay.

Okay. Can I ask a question about the infrastructure gross profit?

There's a slide in there that says that some Cisco rebates were shifted to the infrastructure segment and that, if I'm reading it right, contributed to the gross profit dollars for infrastructure. Brad, can you maybe just elaborate on that point and potentially quantify what that GP dollar number is from the benefit of shifting those Cisco rebates into infrastructure?

Absolutely, Apurva. Thanks for the question.

At the beginning of the year, we in our February results, we discussed the changes in the Cisco programs, and part of that was Cisco really reducing incentives on maintenance business and the renewals, and literally moving them over to new products and premium products. We've seen about $4 million in that shift, if you like, in rebates from maintenance over to IS product sales, if that makes sense.

Okay. If you want to sort of compare a like-for-like performance for infrastructure and services equally as well, in theory we could take off a $4 million benefit there for infrastructure GP, sort of, and add it on to services to make it like-for-like?

Yeah. That would be fair.

Just noting when we're looking forward to FY27 that trend will likely continue.

So A full year benefit as well for 27? Just

the transition of rebates between services and infrastructure, the trend will likely remain for next year just in terms of FY27 growth numbers. This year is obviously the transition year, and then next year will return to more normal levels of growth.

Okay. I'll finish my Q&A just with actually that one question on the infrastructure again.

When we think about the outlook then for infrastructure into 27, if I just look at Cisco's results, right, they've had a really strong last six months, their product segments seeing an acceleration in growth, and if you look in consensus estimates for Cisco, analysts have a further acceleration in the next quarter. Should we be thinking of Data#3 in a similar light?

You've had a good year with infrastructure, but should we potentially see some sort of acceleration in the next six months, given that Cisco's a key vendor, we can see what's happening with them, we've got AI coming through arguably still early stage? Just yeah, keen to see your thoughts on infrastructure GP growth into FY27.

Yes, we expect further continued growth in our Cisco business. Being Cisco's number one partner in Australia, we're perfectly placed to leverage further growth within the existing customers as Cisco bring new products on board, as well as continued market share.

In exactly the same way that we align some of the Microsoft results, and I think Cisco just released last week, we do expect some good growth there, Apurva.

That infrastructure segment, right, it grew 19% in gross

Sorry for interrupting.

Hi, guys. How you doing?

Can you hear me okay?

Hi, yes. We can.

Perfect. Just on obviously this year you generated quite a lot of operating leverage, calling out pretty significant staff acceleration, albeit saying most of that is going to be billable.

If we put aside the $2 million investment in those two key initiatives, do you expect to generate operating leverage again in 27?

Look, I think at the moment, best guess is that the ICR will maintain on FY26 levels. That being said, it is our intention to continue building operating leverage through automation and the adoption of AI.

That won't stand still, but it will depend how much of that is offset by the more material investments that we're planning on moving forward with in FY27. I think a best guess would be to maintain for next year, which is a pretty good result given the level of investments that we are planning on.

The operating leverage we've achieved has enabled us to invest a little bit more next year without impacting too significantly on net profitability, so that would be a really good outcome.

Okay. Effectively, you're kind of loosely guiding to low double-digit gross profit dollar growth?

Actually no, we don't provide guidance, but

If you're thinking the ICR is going to be broadly flat, first

point. Look, we would like to given that we don't have the headwinds of the Microsoft incentive program changes next year and provided we can ensure that the majority of investments generate a return in that first year, then we should return gross profit growth to more historical average levels.

Fair enough. All right.

Thanks.

Thank you.

Hi, Brad and Cherie. Thanks for taking my questions.

Just firstly from me on the Software Solutions line. Are we right to be thinking about that business now going forward with the Microsoft incentive changes largely washed through as sort of a maybe a low single-digit gross profit growth business, GDP plus, perhaps?

Was that low single-digit or

That's right, low single-digit gross profit growth.

We delivered almost 8 8% growth this year with those changes impacting on the numbers, we would expect gross profit growth to improve on this year.

That's low double-digit then next year?

Look, we won't get specific, but it should return to, again, more historical average growth levels.

Great. Then just one more from me, just on sort of the behavior you're seeing from some of your Enterprise Agreement partners.

Have you seen any material change in the discussions you've had this year relative to last year on some of those incentives from the likes of Microsoft?

The changes in the programs, James?

Yeah. In your preliminary discussions, at least.

Oh, they've been similar since it was the Jan Jan 2025, those major changes that they made. They're often still tweaking little pieces here and there across all their programs, but nothing material like they did 18 months 12, 18 months ago.

Right. You're not expecting any material changes in the outlook from what you can see at the moment from other

No. We're not expecting it, but you never know what Microsoft does.

No, we're not expecting that, James.

Awesome. Thanks, guys.

Good morning, guys. Thanks for taking my question.

Just the first one in terms of the shifting rebates. Just wondering, are there any further rebate shifts that we should be aware of for Cisco, maybe outside of Cisco?

Just maybe coming back to the Microsoft program. They've had a few kind of changes to the incentive program for this year or next year.

Just kind of wondering whether there's any other shifts between the GP basis that we should be aware of, and yeah, I've got a follow-up after.

No. Hi, Chenny.

Not really. As I said before, there's always going to be some small changes.

We haven't seen anything significant from Microsoft in that regard. We've got a number of great initiatives with them, but we also have just around other software vendors as well, which is where your question was going.

We do see the vendors tweak their programs from time to time, but nothing material. Sometimes it's in our favor, and other times we need to make some changes around focus, which we're pretty good at doing.

Nothing that we're terribly concerned about from a program change perspective across all our software vendors at this point in time.

Got it. Thanks.

Then just maybe on Managed Services, what drove that downsizing in key accounts? I guess, you mentioned a strong pipeline.

Is this downsizing a one-time reset, if I can put it that way? Do we kind of get back to that double-digit growth in FY27?

The downsizing just specifically related to our on-site Managed Services, and it was really just in one Queensland customer. That's just reducing the amount of augmented staff resources that they have in their own premises.

That was sort of an outlier. We don't expect that to continue.

We've got really good pipeline for both Enterprise and on-site Managed Services into next year. As with Managed Services, it takes quite a bit of effort to make that step change in sales growth.

There's a really long sales pipeline, and your annual revenue, you've obviously got the carryforward annuity revenue from the previous year. You have a little bit of attrition, particularly where customers are consolidating or occasionally they'll make a decision to insource their managed services.

You have to grow the business by far more than any natural attrition that occurs. The 9% was obviously a good result, and that represents a lot of sales activity.

For us to now make that step change, we need to make some investments next year in really driving our sales strategy sort of for all the initiatives that Brad outlined earlier.

Got it. Thanks, guys.

Thank you.

Oh, thanks for round three, guys. I'll keep it very short.

One quick question for Cherie. Have you, Cherie, just got any interest income indication you can give us for FY27 on your current modeling?

Current modeling we've estimated about $11.1 million interest income for FY27, Apoorv, but your guess is as good as mine what happens with cash rate. We've forecast that it'll largely hold for the majority of the financial year with a cut or two in the back end of the FY.

Brilliant. Thank you.

Thank you.

Oh, well, thank you very much. I think we'll leave it there for today.

It's been great to have the opportunity to present some very good results to you with a strong outlook and market. Thank you all for attending, and thank you all for your questions.

Thank you.