Ava Risk Group Posts 5% Revenue Growth and $2.1M EBITDA Turnaround
Ava Risk Group reported a 5% revenue increase to $31.7 million in FY2025, achieving a significant turnaround to $2.1 million underlying EBITDA. The company expanded its Aura Ai-X technology into new sectors and regions despite some order delays.
- 5% revenue growth to $31.7 million driven by Detect segment
- Underlying EBITDA improves by $3 million to $2.1 million
- Aura Ai-X technology deployed on Telstra subsea cable
- Sales order intake declines due to delayed Detect orders
- Illuminate segment records $5.6 million goodwill impairment
Solid Revenue Growth Amid Strategic Expansion
Ava Risk Group has reported a 5% increase in group revenue for the financial year ended June 30, 2025, reaching $31.7 million. This growth was primarily driven by the Detect segment, which saw a 17% rise thanks to the fulfilment of a significant backlog from the previous year. The company’s CEO, Mal Maginnis, highlighted the expansion into critical sectors such as sovereign border protection, airport perimeter detection, and transportation, underscoring Ava’s growing footprint in global security technology.
EBITDA Turnaround Reflects Operational Efficiency
Underlying EBITDA swung from a loss of $0.9 million in FY2024 to a positive $2.1 million in FY2025, reflecting improved margins and cost efficiencies. This turnaround is notable given the company’s stable cost base following prior investments in technology and commercial capabilities. Despite this progress, the company faced some headwinds with delayed orders in the second half, pushing expected revenues into the first half of FY2026.
Aura Ai-X Technology Breaks New Ground
A standout achievement was the deployment of Ava’s Aura Ai-X fibre optic sensing technology on a Telstra subsea cable. This milestone opens new avenues in telecommunications infrastructure monitoring and signals potential for further international contracts. The company is also developing shorter perimeter deployment solutions, broadening Aura Ai-X’s applicability beyond traditional security markets.
Mixed Segment Performance and Goodwill Impairment
While Detect thrived, the Access segment experienced a 26% revenue decline due to the absence of repeat orders from key partner dormakaba. Management remains focused on revitalising growth in this segment through strengthened partnerships in Europe and the U.S. Meanwhile, the Illuminate segment’s revenue held steady but incurred a $5.6 million goodwill impairment, reflecting a cautious outlook despite its complementary role to Detect and ongoing efforts to explore new market opportunities.
Outlook, Building on a Strong Foundation
Looking ahead, Ava Risk Group aims to increase sales order intake, grow its backlog including recurring revenues, and maintain gross margins between 60% and 65%. The company plans to continue targeted technology investments to sustain its market leadership. With a robust sales pipeline across Eastern Europe, the Middle East, and Asia, and a stable cost structure, Ava is positioning itself for improved growth and profitability in FY2026.
Bottom Line?
Ava Risk Group’s FY2025 results mark a pivotal step towards sustained growth, but order timing and segment challenges warrant close watch.
Questions in the middle?
- How will Ava accelerate delayed Detect orders to meet FY2026 growth targets?
- What strategies will revive growth in the Access segment amid partner dependency?
- Can the Illuminate segment overcome its impairment and contribute meaningfully to future revenues?
