FortifAI Cuts Costs, Raises $3.63M, and Eyes AI-Driven Growth
FortifAI Limited reports steady revenue, significant cost reductions, and a strengthened balance sheet with $3 million cash and no debt. The company advances its AI Lab initiative while expanding its project pipeline and board expertise.
- Consistent revenue from existing projects with new contracts lined up
- 30% reduction in operating costs and 45% cut in staff expenses
- Successful $3.63 million capital raise via entitlement offer and placement
- Board refreshed with strategic appointments including new Chair Shannon Robinson
- AI Lab progressing to boost efficiency and identify growth opportunities
Steady Revenue Amid Strategic Restructuring
FortifAI Limited (ASX, FTI), formerly Mighty Kingdom Limited, has delivered a solid quarterly performance for Q4 FY25, maintaining consistent revenue streams from its existing projects. Despite a significant reduction in team size, the company has managed to sustain project delivery capabilities, including a new contract scheduled with Spin Master, signaling ongoing client confidence.
Alongside revenue stability, FortifAI has aggressively pursued cost efficiencies, achieving a 30% reduction in operating expenses and a 45% cut in staff costs compared to the previous quarter. These savings stem from a comprehensive business review and restructuring, which included one-off redundancy costs but set the stage for improved operational leverage moving forward.
Strengthened Financial Position and Capital Raising
The company closed the quarter with a robust cash balance of $3 million and zero debt, bolstered by a successful capital raising campaign. FortifAI raised approximately $3.63 million through a combination of an entitlement offer and an oversubscribed placement, providing a solid runway into calendar year 2026. This financial cushion supports ongoing cash preservation efforts and strategic investments.
FortifAI also completed a share capital consolidation and rebranded itself with a new ASX code “FTI,” reflecting its renewed focus and strategic direction.
Leadership Refresh and AI-Driven Growth Ambitions
The board has been strengthened with the appointments of Shannon Robinson as Chair and Scott Cole as a non-executive Director and Finance Director, bringing fresh strategic oversight. Additionally, Dylan Miklashek was appointed Studio Director to oversee project delivery and operational efficiency.
Central to FortifAI’s growth strategy is its AI Lab initiative, which aims to enhance operational efficiency and unlock new business opportunities through advanced AI tools and data analytics. The company has engaged external consultants to accelerate this transformation, positioning itself to capitalize on complementary technology projects and expand its market footprint.
Outlook
Following a period of consolidation and disciplined expenditure, FortifAI is poised for a more efficient and profitable FY26. The company’s focus on leveraging AI capabilities and expanding its project pipeline could drive future revenue growth, while its strengthened balance sheet provides a buffer against market uncertainties.
Bottom Line?
FortifAI’s disciplined restructuring and AI focus set the stage for a pivotal year ahead as it seeks to convert efficiency gains into sustainable growth.
Questions in the middle?
- How quickly will cost savings translate into positive operating cash flow?
- What new revenue streams might emerge from the AI Lab’s initiatives?
- How will recent board changes influence strategic direction and execution?
