Harris Technology’s refurbished boom signals FY26 profit inflection

Harris Technology Group (ASX: HT8) is on the cusp of a return to profitability, with surging demand for refurbished technology driving a material turnaround in its financial performance through FY26.

In its March quarter update, the Company reported $4.6 million in revenue, underpinned by consistent momentum in its refurbished division, where monthly sales exceeded $0.7 million throughout the period. The result builds on a strong first half, during which Harris generated $0.7 million in positive operating cash flow – marking a notable shift from prior years of losses.

The refurbished segment has emerged as the cornerstone of the Company’s recovery. Harris is now processing and selling more than 2,000 refurbished units each month across a broad mix of laptops, PCs, tablets, servers and accessories. Importantly, management has flagged capacity to scale this to 3,000 units per month, providing a clear runway for further revenue growth without a commensurate rise in fixed costs.

Gross margins for the March quarter came in at 31.6%, despite some dilution from post-Christmas clearance of legacy IT stock. Underlying margins within the refurbished segment remain structurally higher than those of new technology sales, reflecting both lower input costs and increasing pricing power as demand strengthens.

That demand has been shaped by a combination of macroeconomic pressure and shifting consumer behaviour. As cost-of-living constraints continue to weigh on households, refurbished devices have gained traction as a credible, lower-cost alternative to new products. At the same time, growing awareness of eWaste and sustainability has elevated the appeal of extending the lifecycle of existing hardware.

For Harris Technology, the timing of this structural shift has been critical. After several lean years impacted by subdued retail spending and margin compression in new IT products, the Company has repositioned its business model towards higher-yielding refurbished inventory. This pivot has been supported by improved supplier relationships, enabling greater purchasing power and more consistent access to pre-owned stock.

Inventory levels rose to $3.7 million at the end of March, up from $3.0 million in the December quarter, reflecting an intentional increase in stock acquisition. The Company deployed $3.5 million into inventory during the quarter, targeting assets with faster turnover and stronger margin profiles.

Liquidity remains stable, with $2.3 million in cash on hand and a further $1.3 million available through undrawn finance facilities. 

CEO Garrison Huang said the sustained growth in refurbished sales highlights a broader market shift rather than a short-term trend.

“Demand for refurbished tech is not slowing, and is in fact increasing as macroeconomic conditions highlight the value for cost-conscious customers,” Huang said.

With year-to-date trading pointing towards a return to profitability after a $958,000 loss in FY25, Harris Technology has flagged that if current momentum in refurbished sales continues, FY26 may mark their transition from recovery to sustainable profit growth.