AITX reported preliminary fiscal 2026 results, showing revenue of $7.75 million, a 26 % year‑over‑year increase, and gross profit of $5.53 million, up 48 % from the prior year. The company’s gross margin expanded to 71 %, compared with 61 % in FY 2025, when revenue was $6.13 million and gross profit $3.74 million.
Operating expenses remained flat at $17.5 million, and the loss from operations improved by $2 million. The improvement reflects disciplined cost management, a higher‑margin device‑rental model, and a balance between increased research and development investment and reductions in general and administrative costs.
Gross margin expansion was driven by a decline in cost of goods sold despite higher revenue, indicating efficient supply‑chain execution and pricing power. Higher recurring rental revenue, largely from the SARA agentic‑AI platform, also contributed to the margin lift.
Management highlighted continued customer adoption of the SARA platform and a 14 % hardware price adjustment effective May 1, 2026. "Certainly, heading into last fiscal year, we expected stronger revenue growth. That said we were able to navigate a particularly turbulent economy while maintaining overall improvements in various financial metrics and keep R&D fully funded. It was an important year in all aspects including how we're positioned for the current fiscal year." – Steve Reinharz, CEO/CTO.
The company also emphasized a strategy centered on long‑term recurring revenue, continued advancement of its SARA platform, and growth in stationary and mobile devices such as RIO, ROSA, AVA, and ROAMEO, while working toward positive operational cash flow. "I continue to see our future strongly rooted in delivery of services connected to SARA and steadily increasing ROAMEO deployments." – Steve Reinharz, CEO/CTO.
Despite the improved operating performance, AITX remains mindful of ongoing liquidity challenges, as reflected in its current ratio and cash position. The 14 % price increase is intended to offset rising component and logistics costs and will begin to impact gross profit in Q3 of fiscal 2027.
Overall, the preliminary results signal a strengthening business model that balances high‑margin recurring revenue with disciplined cost management, positioning AITX for continued growth in the AI‑driven security market.
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