Tracking Market Conditions

Case Study: Close the Loop’s FY25 Loss Highlights the Danger of Chasing Volume Over Value in ITAD

Case Background Close the Loop Limited (ASX: CLG) is an Australia-headquartered circular economy company with operations across North America and Europe, and services extending into New Zealand. Its Resource Recovery division is central to its IT asset disposition (ITAD) and consumables recycling business. The company expanded into North America in April 2023 through the acquisitions […] Continue reading below.
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Case Background

Close the Loop Limited (ASX: CLG) is an Australia-headquartered circular economy company with operations across North America and Europe, and services extending into New Zealand. Its Resource Recovery division is central to its IT asset disposition (ITAD) and consumables recycling business. The company expanded into North America in April 2023 through the acquisitions of ISP Tek Services and Captive Trade Corp.

The Challenge

FY25 results revealed a sharp downturn:

  • Revenue fell by 6.7%.
  • Gross profit contracted by 26.1%.
  • A pre-tax loss of AU $20.1 million replaced the prior year’s profit.

Management attributed the downturn to an “unfavorable product mix” in its North American ITAD operations. This was likely the result of a higher intake of low-value assets. The company also reported a software virus in April 2025, which disrupted processing and reduced sales, though it was deemed non-recurring.

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Author: David Daoud | Principal Analyst

David Daoud has researched the mainstream IT hardware market since 1996 and expanded into hardware disposition research in 2003. He has spearheaded the creation of IDC’s GRADE certification. Since then, David has been providing consulting and expert advice to companies looking to establish best practice in their IT equipment decommissioning and helped leading ITAD service providers assess demand, understand competition, and forecast what’s to come. David is currently the Principal Analyst at Compliance Standards, which focuses entirely on the end-of-life of IT equipment. He can be reached at 508-981-6937 or at ddaoud@compliance-standards.com
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