Refurbished tech pivot gathers momentum as Harris Technology’s margins expand and cash flow turns positive

After several challenging years for Australian retailers grappling with cost-of-living pressures and post-COVID inflation, eCommerce company Harris Technology (ASX: HT8) is emerging with renewed momentum, driven by the rapid scaling of its refurbished tech division.

For the quarter ended 31 December 2025, The online retailer generated $4.4 million in sales revenue, up 16% on the September quarter. Reflecting the improving margins that have been targeted by the Company, the revenue generated $0.7 million in operating cash flow having been around the breakeven mark for the previous 9 months. 

The result marks an important inflection point for the business as it executes a deliberate shift away from lower-margin new IT products towards refurbished technology.

Refurbished tech sales exceeded $0.5 million in each month of the quarter. Increased buying power, enabled by higher volumes and stronger supplier relationships, has allowed Harris Technology to secure inventory at more favourable prices, supporting both sales growth and margin expansion.

While the December quarter is traditionally buoyed by seasonal demand around Black Friday, Cyber Monday, Christmas and Boxing Day, the standout performance of refurbished products highlighted a structural shift in consumer behaviour. Cost-conscious customers are increasingly opting for refurbished devices that offer compelling value relative to new alternatives.

A catalyst during the period was the launch of refurbished Apple product sales, with supply secured in the September quarter. Refurbished MacBooks and iPads saw strong demand, supported by low inventory hold times, as the Company works to grow its revenue contribution from the globally recognised and sought after Apple brand.

Margins and cash flow point to profitability pathway

As refurbished products account for a greater share of revenue, gross margins across the Company (new IT, refurbished & household products) continue to trend higher. 

Harris Technology recorded a gross margin of 37.2% across the half year ended 31 December 2025 (H1 FY26), up from 35.7% in H2 FY25 and 34.9% in H1 FY25.

The Company closed the quarter with $2.3 million in cash and a further $1.2 million undrawn on its finance facility, following the decision not to renew a $5 million lending facility which it had never drawn down in the past 18 months. 

CEO Garrison Huang said refurbished sales had “taken another leap forward”, with rising volumes translating directly into cash generation and improved purchasing power.

“As sales continued to rise and contribute to $0.7M positive operating cash flow for the quarter, we have been able to purchase greater volumes of used tech where consistently low inventory hold times illustrate more growth opportunities for Harris Technology and our profitability,” said Huang.