AITX announced on April 30, 2026 that it has secured an order for its RIO 360 autonomous security tower from a major hotel brand. The order marks the company’s first entry into the hospitality sector and represents a new vertical for its recurring rental revenue model.
The RIO 360 tower is a solar‑powered, autonomous platform that monitors exterior areas such as parking lots and entrances. It delivers real‑time detection and response without the need for on‑site power infrastructure, allowing hotels to deploy the system quickly and cost‑effectively.
The initial unit will be installed at a single hotel property, with the hotel brand expressing interest in expanding the deployment to additional units at the same location and to other properties in its portfolio. The order value and the brand name have not been disclosed, and deployment is pending.
AITX’s recurring revenue strategy is built around a “Solutions‑as‑a‑Service” model that can generate 35%–80% cost savings compared with traditional manned security. The hospitality order could accelerate the company’s move toward a larger recurring rental base, complementing its existing contracts in construction, healthcare and logistics.
The company’s recent financial performance underscores the potential impact of the new contract. Q1 FY2025 revenue was $1,182,800, rising to $1,854,837 in Q1 FY2026, a 57% year‑over‑year increase. Preliminary FY2026 results show revenue of $7.75 million, up 26% from the prior year, and a gross margin of roughly 71%, reflecting improved operational leverage.
Management highlighted the significance of the hospitality win. Troy McCanna, Chief Revenue and Chief Security Officer at RAD, said, “This is a meaningful first step for RAD into the hospitality space.” CEO Steve Reinharz added, “Our significant revenue growth is a testament to the growing market demand for our innovative AI‑powered solutions and the combined efforts of our dedicated team. While these numbers are trending in the right direction, I am far from satisfied. We are raising our targets because we believe in pushing our boundaries and setting new benchmarks.” He also noted, “Execution improved meaningfully as the year progressed. We are entering 2026 focused, disciplined, and positioned to translate effort into results.”
The $50 billion U.S. security market size, combined with the growing demand for technology‑enabled security in hospitality, positions AITX to capture a share of a segment that is experiencing labor shortages and rising operating costs. A successful rollout could lead to additional contracts across the hotel brand’s network, further expanding AITX’s recurring revenue stream and strengthening its competitive position in the broader security market.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.