1HFY26 Results
Released
Released
Announcement PDF
AI-Media Technologies Limited (AI-Media) | ABN 12 122 058 708| ACN 012 205 8708
Suite 3.02, 9 Help Street, Chatswood NSW 2067 | PO Box 784, Chatswood NSW 2057
P +61 2 8870 7700 | F +61 2 8870 7788 | E investorrelations@ai-media.tv| W AI-Media Investor Center
aitl0001_2000374_186.docx
ASX Announcement 26 February 2026
Recurring Revenue Scaling Rapidly
Sydney, Australia, 26 February 2026: AI-Media Technologies Limited (‘AI-Media’,
‘AIM’ or the ‘Company’) (ASX: AIM), a global provider of AI-driven captioning,
transcription and translation infrastructure, presents its financial results for the half
year ending 31 December 2025 (1H26).
Highlights
• Annual Recurring Revenue (ARR*) increased 80% on the prior
corresponding period (pcp) to $30.0M (pcp: $16.7M)
• ARR gross margin was 84%
• FY26 ARR growth guidance upgraded to >50% (previously 35%)
• Withdrawal of FY29 CEO aspirational EBITDA and revenue targets
• Total revenue of $29.8M (down 6% pcp), reflecting business model
transformation including:
o Transition of legacy Services operations
o Launch of next-generation AI encoders under Hardware-as-a-Service
(HaaS) model from April 2026
• Group gross margin increased to 70% (pcp: 67%)
• EBITDA of ($1.7M), reflecting continued product investment, including
$1.3M non-cash share-based payments and $2.6M of pre-revenue R&D
and product investment
• Cash balance of $16.7M at 31 December 2025
Financial and Operating Performance
Total revenue for 1H26 was $29.8 million, a 6% decrease on the pcp. The reduction
primarily reflects the short-term impact of two strategic initiatives expected to
strengthen the Company’s earnings profile over time:
1. Transition from legacy Services to technology, consistent with the
Company’s transition toward a recurring revenue model.
2. Lower capital sales of end-of-life encoder hardware ahead of next-
generation releases, scheduled for launch at the NAB Show in April 2026.
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ARR increased 80% to a $30.0M run-rate at December 2025, driven by continued
global adoption of the LEXI automated captioning platform across broadcast,
government and enterprise markets.
Group gross margin increased to 70%, driven by revenue mix shift toward higher-
margin recurring revenue. The continued shift toward recurring revenue is
improving revenue visibility and earnings durability.
Cash G&A expenditure decreased by 12% ($1.1M). Sales and Marketing expenses
increased by 3% with a 38% increase in Product and R&D, of which $2.6M was
invested in pre-revenue next-generation encoder and AI-driven LEXI products and
was fully expensed.
EBITDA of ($1.7M), reflecting continued product investment, including $1.3M non-
cash share-based payments and $2.6M of pre-revenue R&D and product
investment
Cash balance as at 31 December 2025 was $16.7M.
Next-generation AI-native encoder launch (HaaS model)
From April 2026, AIM will deploy its next-generation AI-native encoders under a
Hardware-as-a-Service model. This is the first major hardware release upgrade in a
decade, with a similar lifespan expected for these new models.
The HaaS model aligns hardware monetisation with the Company’s recurring
revenue architecture, increasing revenue visibility and lifetime value per
deployment. AIM’s strong balance sheet and absence of debt support this
transition.
AIM’s existing SaaS model is delivered through LEXI subscriptions. The HaaS
initiative converts encoder hardware revenue from an upfront transactional model
into recurring subscription revenue aligned with LEXI usage, and encouraging a
faster replacement cycle.
Under the HaaS model:
• Encoder revenue will increasingly be recognised over subscription terms
• ARR per deployment is expected to increase
• Revenue volatility from transactional hardware sales will reduce
• Customer capital outlay is lowered, supporting faster and broader
adoption of the new models, including replacement of old units
• AIM has 8,000 encoders in the field with 5,000 over 3 years old
The two encoders will focus on LEXI Text and LEXI Voice applications respectively.
Over time, the Company expects HaaS to increase the proportion of recurring
revenue and expand lifetime value per customer deployment.
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Withdrawal of FY29 CEO aspirational targets – focus on ARR guidance
In February 2024, the Company outlined aspirational FY29 revenue and EBITDA
targets based on the business model and revenue mix prevailing at that time,
including transactional hardware sales and legacy Services operations.
Since then, AIM has:
• Transitioned its legacy Services business
• Accelerated growth of its LEXI SaaS platform
• Repositioned encoder monetisation to a HaaS subscription model
These initiatives materially alter the timing and composition of revenue
recognition, increase recurring revenue intensity, and change the primary drivers
of long-term value creation.
Given the structural evolution of the business model and the accelerating pace of
change in AI-driven markets, the Board has determined to formally withdraw the
previously stated FY29 aspirational revenue and EBITDA targets.
The Company’s strategic ambition to scale revenue and expand EBITDA over the
medium term remains unchanged.
Going forward, the Company will focus on the following key metrics when
disclosing historical financial performance::
• Annual Recurring Revenue (ARR) growth
• ARR gross margin
• Recurring revenue mix
• Sustainable EBITDA expansion
Consistent with its approach when announcing its FY25 results and FY26 ARR
growth guidance, the Board intends to provide guidance with respect to expected
ARR growth for a financial year when announcing the results of the prior financial
year. The Board does not intend to disclose aspirational targets in relation to any
metrics.
ARR is considered the most relevant leading indicator of long-term earnings
durability under the Company’s subscription-led model. Lifetime value per
deployment is increasing as revenue is recognised over longer periods. As
recurring revenue increases and the installed base scales, fixed platform costs are
leveraged across a larger contracted revenue base, supporting expanding
operating margins over time.
Strategic Priorities
AIM’s growth continues to be driven by:
1. Product Expansion – Increased penetration within existing customers and
monetisation of new offerings, including LEXI Encoders, LEXI Voice, LEXI AI
and LEXI Recorded
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2. Geographic Expansion – Scaling North American success into Europe and
Asia, supported by accessibility regulation and multilingual demand.
3. Segment Expansion – Continued growth across Enterprise, Education and
Government sectors, including parliamentary and congressional institutions.
FY26 Outlook
Following the strong 1H26 performance, AIM is upgrading FY26 ARR growth
guidance from 35% to >50%.
AIM Co-Founder and CEO Tony Abrahams said:
“ARR growth of 80% reflects continued adoption of the LEXI platform globally.
With the launch of Hardware-as-a-Service, we are increasing recurring revenue
intensity within our existing SaaS model and further aligning encoder deployment
with long-term subscription revenue.
Our focus remains on scaling ARR, expanding margins, and converting platform
adoption into durable long-term earnings growth”
Webinar details
Event: AI-Media Technologies 1H26 Results Webinar
Presenters: Tony Abrahams (CEO & Co-Founder) and Jason Singh (CFO)
Date / time: 10:00am (AEDST), Thursday, 26 February 2026
Registration
link:
https://investorrelations.ai-media.tv/webinars/8r6nor-ai-media-
asx-aim-1hfy26-results-webinar
Investors will be able to use the Q&A function during the webinar, or can submit
their questions ahead of the webinar to melanie@nwrcommunications.com.au
A replay will be available on the AIM Investor Centre.
This announcement has been approved for release by the Board.
Further Information
AI-Media Technologies
Lisa Jones
Company Secretary
investorrelations@ai-media.tv
NWR Communications
Melanie Singh
Investor Relations
melanie@nwrcommunications.com.au
About AI-Media
AI-Media (ASX: AIM) is a global leader in AI-powered voice translation, captioning,
and language orchestration infrastructure. The LEXI Suite and global encoder
network deliver real-time multilingual intelligence—trusted worldwide to
modernize workflows, enhance communication, and scale the shift from text to
spoken AI.
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For more information visit the AI-Media website.
*ARR = contracted recurring subscription revenue, annualised at period end and
excludes transactional one-off revenue
ARR guidance and forward-looking statements
The stated ARR guidance in this announcement is based on AI-Media’s expected performance over the stated
period and on assumptions regarding global and domestic economic conditions. It is subject to known and
unknown risks, uncertainties and other factors that may cause actual results to differ materially from this
guidance.
Investors are cautioned not to place undue reliance on this guidance. In particular, AI-Media does not guarantee
any specific financial outcome or performance.
A number of key variables that may have a significant impact on this guidance have been identified, including
but not limited to:
Key variables include:
• customer adoption rates of LEXI products and services
• the timing and scale of installed base conversion to Hardware-as-a-Service (HaaS)
• the pace of new customer acquisition and expansion within existing accounts
• pricing, contract duration and renewal rates across subscription offerings
• product development timelines and successful deployment of next-generation encoders
• general economic conditions, foreign exchange movements and market demand for accessibility and
language services
This announcement contains forward-looking statements, including statements regarding forecasts, estimates,
assumptions, expectations and the future performance of AI-Media.
Words such as “likely”, “expect”, “aim”, “should”, “could”, “may”, “anticipate”, “predict”, “believe”, “plan” and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements, opinions and estimates are based on the Board’s good-faith assumptions
regarding future financial, market, operational and other relevant conditions affecting AI-Media’s business. There
can be no assurance that these assumptions will prove to be correct.
Forward-looking statements are subject to change without notice. Statements regarding market and industry
trends are based on current conditions and may change over time.
Forward-looking statements are provided as a general guide only and should not be relied upon as an indication
or guarantee of future performance. They involve known and unknown risks, uncertainties and other factors that
may cause actual results, performance or achievements of AI-Media to differ materially from those expressed or
implied.
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