Senetas builds cash war chest and doubles down on sovereign cybersecurity

• Senetas sold off Votiro, grew cash reserves and is now focused purely on its profitable core encryption business
• With $11.6m in cash and no debt, the company has dry powder for growth whilst planning to hand $2m back to shareholders
• Certifications in APAC and expansion plans in Brazil, South Korea and Japan show how sovereign cybersecurity is turning into a global growth story

Special Report: Senetas Corporation has emerged from FY25 with a big war chest and a focused growth strategy built around sovereign cybersecurity – the growing global desire for custom cybersecurity solutions tailored to each individual organisation, government or region.

The Melbourne-based specialist in network encryption and encrypted file sharing has spent the past year reshaping itself, with the sale of its Votiro subsidiary in early 2025.

That move left the company with $11.6 million in cash, an indirect investment in Menlo Securities Inc. currently valued at more than $17.5m, and a clear focus on its profitable core encryption business.

Senetas (ASX:SEN) CEO Andrew Wilson called FY25 a transformative year that had put Senetas on the front foot with its biggest-ever sales pipeline and a solid base to build from.

“We’ve finished the year with a strong cash position, no debt and the largest sales pipeline in our history. That gives us the flexibility to return capital to shareholders while also chasing growth opportunities in key markets,” he said.

“Whilst it’s incredibly difficult in our industry to predict exactly when the opportunities will come to fruition, our focus for the next 12 months is clear: turning that pipeline into revenue, expanding our sovereign encryption capabilities and building on the momentum that positions us exceptionally well for FY2026 and beyond.”

Revenue for the year came in at $19.3m with an underlying operating profit before tax of $3.4m. Gross margins pushed up to 87% thanks to a strong product mix centred on its high-assurance encryption technology.

With that financial strength, the board has already flagged a $2m plan to return capital to shareholders and a share consolidation for approval at the upcoming November AGM.

Beyond the numbers, Senetas is positioning itself in a market that’s heating up thanks to geopolitical forces.

Around the world, governments and critical industries are reacting to a more uncertain security environment by demanding more control over the algorithms and systems that protect their supply chains and most sensitive data.

That push for “sovereign” solutions is creating fresh opportunities in regions from Asia to the Middle East and South America, and Senetas’ tech is designed to slot straight in – providing them with encryption technology that can be quickly customised to their needs, giving them assurance that no other jurisdiction will have oversight or special access privileges.

It’s a story that quietly plays out in the background of major digital infrastructure initiatives from governments and private organisations.

As more data centres are built, particularly as AI usage places voracious demand on existing computer infrastructure, more traffic is flowing across networks and countries are putting a premium on keeping their information under their own lock and key.

Senetas, with decades of experience and a global distribution deal through Thales, aims to be the go-to provider of high-grade, sovereign-ready encryption that can give them peace of mind that what gets sent to and from a sovereign AI can be kept secure.

Looking ahead to FY2026, the company is carrying its biggest-ever sales pipeline and is chasing growth in markets where sovereign cybersecurity has moved from an expensive luxury to a must-have.

With a sizable war chest and a proven track record in its field, Senetas is well placed to cement its place as a global provider of sovereign cybersecurity technology for decades to come.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.