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Rates hit local tech hardest
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Losses driven by a few heavyweights
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2026 outlook still constructive, says broker IG
January has delivered a familiar gut punch for Aussie tech investors.
Once again, the technology sector was the worst performer on the ASX, sliding another 9% for the month after already being belted more than 20% in 2025.
While US tech kept its head above water (with the tech-heavy Nasdaq up about 1% for the month), Australian tech was left wearing the full force of rising rate nerves at home.
One of the triggers was inflation.
The latest CPI print from the Australian Bureau of Statistics (ABS) came in hotter than expected, pushing inflation to 3.8% year-on-year and well above the RBA’s comfort zone.
That pressure became reality on Tuesday, with the RBA lifting the cash rate by 25 basis points, confirming the market’s fears and formally closing the door on near-term rate cuts.
Higher rates mean future cashflows get discounted harder, and tech usually cops it first.
But what’s crucial to know is this wasn’t a broad panic selloff. It was just a handful of heavyweights getting marked down hard as the macro mood shifted.
Three stocks in particular have done the damage: Xero (ASX:XRO), WiseTech Global (ASX:WTC) and Life360 (ASX:360).
Xero is hovering near 52-week lows as investors fret about stock-based compensation and whether its big US bet on Melio can deliver quickly enough.
WiseTech has been dragged lower by regulatory overhangs, with its full multiple suddenly looking less forgiving in a higher rate world.
Life360 has followed other stocks lower despite solid earnings growth under the hood – a reminder that sentiment can swamp fundamentals in the short term.
Tech sector predictions for 2026
Globally, the tech story isn’t falling apart, it’s just changing gear.
Massive AI spending is still flowing, but analysts are warning the pace of growth will slow from last year’s breakneck surge.
That’s forcing investors to get more selective.
And this is where the divergence lies. Wall Street can rely on falling US rates, while local tech is stuck wrestling with sticky inflation and a hawkish central bank.
Looking ahead, broker IG said the bigger tech picture for 2026 is still constructive, just bumpier.
Earnings growth, the broker said, is re-accelerating thanks to AI investment.
Rate cuts in the US should support long-duration assets, and investment is broadening beyond mega caps into other smaller stocks.
ASX tech winners in January
| Code | Name | Price | Month % Change | Market Cap |
|---|---|---|---|---|
| NVQ | Noviqtech Limited | 0.115 | 423% | 25,810,294 |
| HTG | Harvest Tech Grp Ltd | 0.029 | 123% | 25,228,944 |
| IFG | Infocusgroup Hldltd | 0.031 | 121% | 4,864,190 |
| 1TT | Thrive Tribe Tech | 0.002 | 100% | 1,406,723 |
| PHX | Pharmx Technologies | 0.071 | 69% | 42,493,982 |
| DTI | DTI Group Ltd | 0.013 | 44% | 5,831,168 |
| AXE | Archer Materials | 0.315 | 37% | 80,276,809 |
| CF1 | Complii Fintech Ltd | 0.026 | 37% | 14,899,555 |
| VR1 | Vection Technologies | 0.026 | 37% | 34,491,313 |
| ID8 | Identitii Limited | 0.015 | 36% | 11,446,613 |
| DCC | Digitalx Limited | 0.054 | 26% | 46,785,818 |
| SOC | Soco Corporation | 0.115 | 24% | 15,978,061 |
| EIQ | Echoiq Ltd | 0.275 | 22% | 161,843,287 |
| AV1 | Adveritas Ltd | 0.098 | 21% | 77,734,984 |
| 8CO | 8Common Limited | 0.036 | 20% | 8,067,417 |
| OLL | Openlearning | 0.019 | 19% | 8,038,306 |
| JAN | Janison Edu Group | 0.215 | 16% | 55,875,974 |
| TAL | Talius Group Limited | 0.008 | 14% | 20,595,492 |
| DUB | Dubber Corp Ltd | 0.020 | 11% | 41,901,864 |
| ZMM | Zimi Ltd | 0.012 | 9% | 4,514,329 |
| CCR | Credit Clear | 0.348 | 9% | 146,134,342 |
| KYP | Kinatico Ltd | 0.140 | 8% | 60,492,878 |
| 5GN | 5G Networks Limited | 0.150 | 7% | 45,794,376 |
| XPN | Xpon Technologies | 0.015 | 7% | 5,436,622 |
| WRK | Wrkr Ltd | 0.064 | 7% | 110,187,146 |
| RWL | Rubicon Water | 0.335 | 6% | 80,632,858 |
| YOJ | Yojee Limited | 0.095 | 6% | 26,133,089 |
| ERD | Eroad Limited | 0.865 | 4% | 161,892,488 |
| LVE | Love Group Global | 0.140 | 4% | 5,674,784 |
| JCS | Jcurve Solutions | 0.032 | 3% | 10,570,990 |
| XF1 | Xref Limited | 0.210 | 2% | 39,707,486 |
| CML | Connected Minerals | 0.210 | 2% | 8,685,225 |
| FLX | Felix Group | 0.230 | 2% | 47,034,934 |
| VIG | Victor Group Hldgs | 0.054 | 2% | 30,900,240 |
| RKN | Reckon Limited | 0.565 | 1% | 64,011,580 |
Echo IQ surged after the company ticked off the hardest boxes on the road to commercial adoption in the US healthcare system.
During the December quarter, the company completed independent clinical validation of its heart-failure AI software, EchoSolv HF, through the Mayo Clinic Platform’s Validate program.
This is the final clinical hurdle before FDA submission.
The results were solid: the software correctly identified heart failure cases 99.5% of the time, and ruled out non-cases with 91% accuracy across 17,000 echocardiograms.
That validation cleared the way for a formal FDA 510(k) filing, which Echo IQ lodged in mid-December.
During the December quarter, Adslot generated $3.4 million in customer receipts, delivered positive operating cash flow of $0.32 million, and materially cut its cost base.
Salary costs are now running almost $3 million lower on an annualised basis compared to a year ago, while total cash outflows dropped sharply quarter-on-quarter.
Operationally, the story is tightening too.
Its StoreFront product – essentially a self-serve ad shop for publishers – is gaining traction with names like Rakuten Viber and Hearst UK, while discussions with Vox Media are nearing the line.
The rally in satellite communications provider Beam comes down to one big thing: certainty, delivered in cash.
Beam has received a US$9.03 million lump-sum payment that fully resolves the long-running Zoleo divestment and dispute, pulling forward money that was previously due over three years.
The closure also wipes out all future counterparty and legal risk, and leaves Beam with zero ongoing exposure to Zoleo.
Importantly, this cash lands on top of a business that’s already stabilised.
Beam’s remaining operations (focused on satellite communications equipment, airtime services and distribution) generated positive adjusted free cash flow of $0.3 million during the quarter.
Recurring airtime revenue also grew double digits.
XPON posted its second straight quarter of positive operating cash flow, lifting it to $2m, alongside $0.9m in positive EBITDA, while growing revenue and margins at the same time.
Quarterly sales rose 8.3% to $3.42 million, gross margins pushed up to a healthy 70%, and almost all revenue was recurring.
DWG provides self-exclusion and player-protection technology for regulated gambling markets.
The December quarter delivered DWG’s first strongly positive operating cash flow in more than two years.
Net cash inflows came in at $1.1 million after $3m in customer receipts and a $0.7m R&D rebate landed.
That cash allowed the company to fully repay and cancel its $250k liquidity facility, leaving it debt-free and with a strengthened cash balance of $0.9m.
ASX tech losers in January
| Code | Name | Price | Month % Change | Market Cap |
|---|---|---|---|---|
| 1TT | Thrive Tribe Tech | 0.0015 | -96% | $914,192 |
| NVQ | Noviqtech Limited | 0.021 | -82% | $5,898,267 |
| PFM | Platformo Ltd | 0.021 | -81% | $1,993,074 |
| 4DS | 4Ds Memory Limited | 0.011 | -78% | $22,669,886 |
| PRO | Prophecy Internation | 0.14 | -74% | $10,325,411 |
| X2M | X2M Connect Limited | 0.008 | -73% | $8,105,102 |
| SPX | Spenda Limited | 0.0025 | -72% | $13,545,646 |
| NXL | Nuix Limited | 1.795 | -72% | $600,709,652 |
| APX | Appen Limited | 0.8 | -70% | $212,488,511 |
| FCT | Firstwave Cloud Tech | 0.008 | -65% | $16,015,047 |
| NOR | Norwood Systems Ltd. | 0.013 | -61% | $7,357,059 |
| DTZ | Dotz Nano Ltd | 0.04 | -60% | $27,723,964 |
| DWG | Dataworks Group | 0.09 | -59% | $9,274,889 |
| ID8 | Identitii Limited | 0.006 | -57% | $4,991,940 |
| SOC | Soco Corporation | 0.048 | -56% | $6,689,044 |
| KNO | Knosys Limited | 0.021 | -55% | $4,538,913 |
| BRN | Brainchip Ltd | 0.175 | -55% | $394,231,567 |
| ZMM | Zimi Ltd | 0.006 | -54% | $4,537,163 |
| COS | Cosol Limited | 0.495 | -52% | $90,084,454 |
| BGE | Bridgesaaslimited | 0.024 | -52% | $4,796,621 |
| BLG | Bluglass Limited | 0.235 | -51% | $30,733,191 |
| BEO | Beonic Ltd | 0.135 | -51% | $9,153,685 |
| RWL | Rubicon Water | 0.145 | -50% | $34,915,289 |
| ODA | Orcoda Limited | 0.061 | -49% | $11,438,367 |
| AD8 | Audinate Group Ltd | 4.06 | -45% | $342,373,945 |
| AVA | AVA Risk Group Ltd | 0.07 | -45% | $20,353,602 |
| NVX | Novonix Limited | 0.42 | -43% | $352,830,995 |
| CYB | Aucyber Limited | 0.081 | -42% | $16,908,557 |
| AXE | Archer Materials | 0.34 | -41% | $86,647,984 |
| DUB | Dubber Corp Ltd | 0.019 | -41% | $51,264,252 |
| GTK | Gentrack Group Ltd | 7.38 | -36% | $829,891,886 |
| ATA | Atturralimited | 0.695 | -33% | $258,466,278 |
| DXN | DXN Limited | 0.039 | -32% | $12,169,442 |
| DCC | Digitalx Limited | 0.038 | -30% | $56,563,412 |
| AD1 | Adneo Limited | 0.036 | -29% | $13,699,368 |
| VIG | Victor Group Hldgs | 0.041 | -29% | $30,752,488 |
| SPA | Spacetalk Ltd | 0.11 | -29% | $11,520,125 |
| FLX | Felix Group | 0.165 | -28% | $49,252,622 |
| WHK | Whitehawk Limited | 0.008 | -27% | $7,323,377 |
| SMN | Structural Monitor. | 0.35 | -26% | $54,041,767 |
| AI1 | Adisyn Ltd | 0.064 | -26% | $46,440,038 |
| SKO | Serko | 2.61 | -24% | $325,941,067 |
| TZL | TZ Limited | 0.045 | -24% | $13,394,885 |
| 5GN | 5G Networks Limited | 0.13 | -24% | $35,113,489 |
| XF1 | Xref Limited | 0.165 | -23% | $36,314,811 |
| IRI | Integrated Research | 0.35 | -22% | $63,207,131 |
| XPN | Xpon Technologies | 0.011 | -21% | $5,393,920 |
| IOD | Iodm Limited | 0.13 | -21% | $82,505,719 |
| RDY | Readytech Holdings | 2.45 | -21% | $302,732,062 |
| CCR | Credit Clear | 0.27 | -21% | $129,237,683 |
| VGL | Vista Group Int Ltd | 2.27 | -20% | $542,154,045 |
| VNL | Vinyl Group Ltd | 0.085 | -19% | $117,649,373 |
| HTG | Harvest Tech Grp Ltd | 0.018 | -18% | $19,471,023 |
| IFG | Infocusgroup Hldltd | 0.017 | -15% | $8,305,662 |
| EXT | Excite Technology | 0.0085 | -15% | $17,689,455 |
| SEN | Senetas Corporation | 2.39 | -11% | $39,619,960 |
| PKY | Pathkey.Ai Ltd | 0.016 | -11% | $5,225,966 |
| GTI | Gratifii | 0.08 | -10% | $30,760,529 |
| CML | Connected Minerals | 0.18 | -10% | $7,444,478 |
| PIL | Peppermint Inv Ltd | 0.0045 | -10% | $11,290,593 |
| ITS | Infotrust Ltd | 0.55 | -10% | $104,596,983 |
| AIM | Ai-Media Technologie | 0.795 | -10% | $166,007,167 |
| TAL | Talius Group Limited | 0.084 | -7% | $28,630,553 |
| AMO | Ambertech Limited | 0.15 | -6% | $14,310,717 |
| RKN | Reckon Limited | 0.57 | -5% | $64,578,054 |
| HSN | Hansen Technologies | 5.28 | -1% | $1,078,321,886 |
Originally published as ASX January Tech Winners: Sector was ASX’s weakest link, but 2026 looks ‘constructive’
