Refurbished tech gives Harris Technology a second life

Harris Technology has found a higher-margin growth engine in an unlikely place: the market for second-hand laptops, computers and other electronic equipment, as cost-conscious Australians increasingly trade new-for-new for value.

Harris Technology Group (ASX: HT8) has delivered what management describes as an inflection point, with a sharp rise in refurbished technology sales helping the online retailer return to EBITDA profitability and generate positive operating cash flow.

Revenue rose 24.1% to $17.2 million in FY26, while EBITDA swung from a $570K loss to a $320K profit. Operating cash flow was also positive at $1.09 million, compared with an outflow of $530K a year earlier.

But the headline numbers only tell part of the story. The more significant change is occurring underneath them.

Refurbished technology revenue almost doubled, rising 90.2% to $8.54 million and making the category Harris Technology’s largest source of sales. By June, monthly refurbished revenue had reached about $970K, compared with approximately $530K in July 2025.

The economics are proving particularly attractive. The refurbished division generated a 38.8% gross margin, well ahead of the company’s traditional IT and consumer electronics business.

That shift in sales mix helped drive a $0.9 million improvement in EBITDA during the year.

“FY26 represents an important inflection point for us, having successfully transitioned our business into the Refurbished category, with its revenue increasing by more than 90% and the Group returning to EBITDA profitability and positive operating cash flow,” said Harris Technology CEO, Garrison Huang.

“The performance of the Refurbished division demonstrates the strength of the platform we have built across sourcing, supplier relationships, refurbishment and online distribution. As the business has scaled, our supply chain and sales channels have become increasingly self-sustaining, creating opportunities to grow both vertically into additional supply chain capabilities and horizontally across more product categories.

For Harris Technology, the opportunity comes as Australian consumers become increasingly reluctant to pay full price for new technology.

The proposition is relatively simple. A refurbished laptop or desktop can provide much of the functionality of a new device at a significantly lower price, while giving consumers access to established brands and higher specifications than they might otherwise afford.

That equation becomes particularly compelling when household budgets are under pressure.

The market is also benefiting from a generational change in attitudes towards buying pre-owned technology. Consumers are increasingly familiar with the concept of refurbished devices, while the growth of online marketplaces has made it easier to compare prices, product grades and warranties.

Sustainability is another tailwind. Extending the useful life of computers, tablets and networking equipment can reduce electronic waste and the resources required to manufacture replacement devices. For consumers, however, the immediate attraction remains value.

Harris Technology is betting that this is more than a cyclical response to cost-of-living pressures.

Over the past 18 months, the company has expanded its sourcing capabilities, strengthened relationships with refurbishment partners and broadened its product range across laptops, PCs, tablets, servers, monitors, routers and accessories.

Its online distribution network is another advantage, with products sold through Harris Technology’s own website and a broad collection of major marketplaces.

The Company says the next phase will involve both vertical expansion across the supply chain and horizontal expansion into additional product categories.

The challenge will be maintaining product availability, refurbishment quality and customer trust as the business scales. Unlike selling new technology, refurbished products can vary considerably in condition and specifications, making the customer experience particularly important.

Harris Technology is therefore investing in purchasing, delivery, unboxing and loyalty initiatives as it seeks to establish itself as a trusted destination for refurbished technology.

“The next stage is about leveraging this foundation to establish Harris Technology as Australia’s leading and most trusted ReCommerce retailer,” added Huang.

“Consumers are increasingly seeking value without compromising on quality, and our objective is to make Harris Technology the destination they trust, delighting customers at every stage of the sales cycle.”

For investors, the attraction is becoming clearer. Refurbished technology is not simply producing more sales; it is changing the profitability profile of the Company.