ASX Penny Stock, Rebounding with Strong Upside Potential
BSA Limited (ASX: BSA)
BSA Limited (ASX: BSA) surged 16.67% on Friday after investors reacted to its 13 February update that a Director has acquired 421,000 fully paid ordinary shares through an on- market transaction for about $95,497 which signalled internal confidence.
The company currently has a market capitalisation of $21.08 million and in its quarterly report for the period ended 31 December 2025, BSA reported Q2 FY2026 revenue of $5.3 million and EBITDA of $0.9 million which resulted in an EBITDA margin of 16.4%.
Revenue declined compared to the prior corresponding period due to the expiry of major contracts such as nbn, Bluecurrent and Intellihub which reduced top line contribution.
Despite this, strict cost control and margin discipline supported profitability which shows the benefits of the restructuring strategy.
Year-to-date FY26 EBITDA reached $4.7 million which was partly supported by non-recurring transition out payments from the expired nbn contract.
The company completed a major restructuring exercise which reduced staff numbers from around 150 in June 2025 to about 40 by December 2025 and lowered the cost base.
The Foxtel platform delivered positive results while wireless projects such as Waveconn and the NSW Telco Authority contract progressed well which supports future revenue certainty.
Although management noted there remains a risk of second half losses, improved margins, a stronger balance sheet and clear insider buying appear to have restored investor confidence which drove the sharp share price rally.
The stock price has now surged an impressive 86.67% over the past one month and investors should closely watch the company’s next strategic and operational moves to assess whether this momentum can be sustained.
(Source: Company Announcements)
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