Ai-Media Technologies reported a 2.1% revenue decline to $64.86 million in FY25, driven by a strategic shift to technology sales and a 25% drop in services revenue. Despite a higher net loss, underlying EBITDA rose 11%, reflecting progress in its SaaS transformation and global expansion.
- FY25 revenue down 2.1% to $64.86 million
- Technology revenue up 19%, services revenue down 25%
- Net loss after tax increased 24.7% to $1.67 million
- Underlying EBITDA improved 11% to $4.61 million excluding restructuring costs
- Strong cash position of $14.7 million with no external debt
Strategic Shift Drives Revenue Mix Change
Ai-Media Technologies Limited (ASX – AIM) has released its FY25 financial results, revealing a nuanced picture of transformation amid market challenges. Total revenue declined slightly by 2.1% to $64.86 million, primarily reflecting a deliberate pivot from legacy human-driven services to higher-margin technology sales. Technology revenue, encompassing hardware and SaaS offerings, rose 19% to $41.1 million, now representing over 63% of total revenue, up from 52% the previous year. Conversely, services revenue fell 25%, underscoring the company’s strategic realignment.
Profitability Impacted by Restructuring but Underlying EBITDA Grows
Despite the revenue mix improvement, Ai-Media reported a net loss after tax of $1.67 million, a 24.7% increase from FY24’s $1.34 million loss. This was influenced by one-off restructuring costs of $1.3 million related to a substantial cost base realignment aimed at enhancing long-term efficiency. Excluding these non-recurring expenses, underlying EBITDA rose 11% to $4.61 million, signaling operational progress and improved profitability from the technology-driven business model.
Global Expansion and Product Innovation Accelerate Growth
The company’s CEO, Anthony Abrahams, highlighted FY25 as a pivotal year marked by geographic expansion and product innovation. Ai-Media successfully deployed its proprietary encoder network across 23 new countries, including 17 in Europe, positioning the company to capitalize on regulatory tailwinds such as the European Accessibility Act. The launch of LEXI Voice, an AI-powered live voice translation product, and ongoing development of LEXI AI, a secure generative AI captioning solution, underpin the company’s growth ambitions in broadcast, government, and enterprise sectors globally.
Robust Balance Sheet Supports Strategic Ambitions
Financially, Ai-Media maintains a strong balance sheet with cash reserves increasing to $14.7 million from $10.9 million in the prior year and no external debt. The company’s net assets remain stable at $75.3 million. This liquidity provides a solid foundation to fund ongoing product development, market expansion, and strategic initiatives. The Board remains confident in achieving its long-term targets of $150 million in revenue and $60 million EBITDA by FY29, driven by continued SaaS adoption and international growth.
Governance and Risk Management
Ai-Media’s governance framework has been strengthened with new board appointments bringing deep technology and finance expertise. The company is advancing its cybersecurity posture, targeting SOC 2 Type II and ISO 27001 certifications in FY26 to address evolving data protection and privacy regulations. Management acknowledges macroeconomic and competitive risks but emphasizes diversified customer base and disciplined cost control as key mitigants.
Outlook
Looking ahead, Ai-Media plans to accelerate commercial rollout of LEXI Voice in North America, expand further into EMEA and Asia-Pacific markets, and enter Latin America. The company’s SaaS transition is expected to drive revenue growth with technology sales targeted to grow 35% annually at gross margins exceeding 80%. While the near-term loss widened, the underlying operational momentum and strategic investments position Ai-Media for sustainable, high-margin growth in the evolving AI-powered media accessibility market.
Bottom Line?
Ai-Media’s FY25 results underscore a challenging but promising SaaS transition, with technology revenue gains and product innovation setting the stage for future growth.
Questions in the middle?
- How quickly will LEXI Voice and LEXI AI contribute to revenue growth in FY26 and beyond?
- What are the expected cost savings and efficiency gains from the recent restructuring?
- How will macroeconomic and foreign exchange risks impact Ai-Media’s international expansion plans?