Harvest Forecasts 50% EBITDA Loss Reduction in FY25, NEON Launch Next Year
Harvest Technology Group reports it is one year ahead of its 3-Year Pathway to Profit plan, forecasting a significant reduction in EBITDA loss for FY25 and unveiling plans for its AI-powered NEON platform launch in 1H26.
- Over 50% reduction in EBITDA loss forecasted for FY25
- NEON edge AI platform launch planned for first half of 2026
- Revenue growth driven by recurring software licensing and bundled solutions
- Expanded go-to-market focus on Marine, Defence, and Industrial sectors
- Dual listing on Frankfurt Stock Exchange to broaden investor access
Accelerated Path to Profitability
Harvest Technology Group Limited (ASX – HTG) has delivered a promising update on its ambitious 3-Year Pathway to Profit strategy, revealing it is tracking a full year ahead of schedule. The company forecasts a greater than 50% reduction in EBITDA loss for the financial year 2025 compared to 2024, driven by streamlined operations, improved margin capture, and significant operating expense reductions.
This accelerated progress marks a pivotal milestone for Harvest as it moves closer to sustainable profitability, with the company expecting to achieve positive EBITDA by mid-2026, well ahead of its original timeline.
Innovating with NEON – The Next Frontier
NEON builds on Harvest’s existing leadership in ultra-low bandwidth livestreaming and remote operations technology, offering customers a scalable, secure, and intelligent solution that leverages AI to triage data at the edge, reducing resource demands by over 90%. This innovation is expected to open new revenue streams and broaden the company’s addressable market.
Strategic Market Expansion and Revenue Model
Harvest is intensifying its focus on recurring revenue through software licensing and bundled solution offerings, which combine hardware and software into streamlined packages to accelerate customer onboarding and revenue recognition. The company’s go-to-market model has been enhanced to target key sectors such as Marine, Defence, and Industrial, where demand for secure, real-time video, audio, and data transmission is growing rapidly.
Partnerships with European and North American resellers, including TPC and Pulsar Beyond, have expanded Harvest’s sales pipeline threefold since late 2024. The company’s dual listing on the Frankfurt Stock Exchange (FSE – HTE) further supports its global investor reach, liquidity, and visibility, complementing ongoing roadshows across Asia Pacific and Europe.
Operational Scalability and Market Position
Harvest has right-sized its operations to scale globally, aligning with megatrends in energy and defence sectors that demand resilient, secure communications in remote and contested environments. Its proprietary Nodestream protocol offers military-grade encryption and survivable communications, setting it apart in a competitive landscape.
With a growing pipeline and increasing interest from global defence integrators, Harvest is well positioned to capitalize on expanding applications of satellite communications and autonomous systems. The company’s focus on reducing operating costs while maximizing gross margins; 90% for software, over 40% for hardware, and above 80% for bundled solutions; underpins its pathway to profitability.
Risks and Forward Outlook
Despite the positive momentum, Harvest acknowledges risks inherent in its early-stage development, including execution delays, technology development challenges, regulatory compliance, and funding needs. The company’s ability to sustain growth and profitability will depend on managing these risks effectively while continuing to innovate and expand its market footprint.
Investor communications are being ramped up, with regular updates via LinkedIn and media coverage planned alongside institutional roadshows, reflecting Harvest’s commitment to transparency and engagement as it advances toward its profit goals.
Bottom Line?
Harvest’s accelerated progress and NEON launch set the stage for a transformative year, but execution risks remain critical to watch.
Questions in the middle?
- How will the NEON platform impact Harvest’s competitive positioning and revenue mix?
- Can Harvest sustain its accelerated EBITDA improvement amid market and technology risks?
- What is the potential scale and timing of recurring revenue growth from bundled solutions?
