AI-Media Technologies has accelerated its transformation into a technology-led business, reporting a 19% increase in technology revenue and launching its AI-powered LEXI Voice product in FY25.
- Technology revenue up 19% to $41.1M, now 63% of total revenue
- Annual Recurring Revenue (ARR) at $17.0M with 86% gross margin
- Underlying EBITDA rises 11% to $4.6M despite $3.5M R&D expenses
- Legacy services revenue deliberately cut by 25%, total revenue down 2%
- LEXI Voice launched in April 2025; LEXI AI development underway for 2026
A Strategic Shift to Technology
AI-Media Technologies Limited has marked FY25 as a pivotal year in its evolution, firmly establishing itself as a technology-driven company. The firm’s technology revenue surged 19% to $41.1 million, now representing 63% of total revenue, a significant milestone from its IPO days when technology products contributed nothing. This shift reflects a deliberate strategy to phase out low-margin legacy services, which were cut by 25%, causing a slight 2% dip in total revenue to $64.9 million.
Strong Financial Foundations Amid Transition
Despite the revenue dip, AI-Media’s gross profit rose 6% to $45.1 million, with gross margins improving from 64% to 69%. Underlying EBITDA climbed 11% to $4.6 million, even after absorbing $3.5 million in research and development expenses related to its LEXI Voice and LEXI AI projects. Operating cash flow also grew robustly by 48% to $5.3 million, underscoring the sustainability of its SaaS-based business model. Deferred revenue nearly doubled, signaling strong forward sales and customer commitment.
Product Innovation and Market Expansion
The launch of LEXI Voice in April 2025 marked a significant product milestone, delivering AI-powered live voice translation with broadcast-grade latency under eight seconds. Meanwhile, development of LEXI AI, a secure generative AI platform integrating real-time outputs, is on track for a 2026 debut. These innovations are expected to drive meaningful revenue growth in the coming years.
Geographically, AI-Media expanded its footprint to 36 countries, adding 23 new markets predominantly across Europe. The company also scaled its US broadcast SaaS business and penetrated government sectors in North America, reflecting a diversified growth approach aligned with emerging regulatory demands.
Looking Ahead, Ambitious Growth Targets
For FY26, AI-Media projects approximately 35% growth in Annual Recurring Revenue to around $23 million. The company plans to accelerate commercialization of LEXI Voice and launch LEXI AI, supported by a 60% increase in product funding. Strategic priorities include deeper product penetration, geographic expansion, and segment differentiation across enterprise, education, and government sectors.
CEO Tony Abrahams highlighted the company’s trajectory towards a $150 million revenue target by FY29, driven by continued innovation and market expansion. The formation of a Product & Technology Committee, co-chaired by experienced US executives, signals a sharpened focus on scaling and commercial execution.
Bottom Line?
AI-Media’s FY25 results confirm its successful pivot to technology, setting the stage for accelerated growth as LEXI AI prepares to enter the market.
Questions in the middle?
- How will the upcoming LEXI AI launch impact revenue and margins in FY27?
- What risks does the reduction in legacy services revenue pose to short-term cash flow?
- Can AI-Media sustain its rapid geographic expansion amid evolving regulatory landscapes?