How Ava Risk Group Plans 20%+ Growth Backed by $85M Pipeline and Tech Edge

FY2025 Performance Sets Foundation

Ava Risk Group has delivered a steady 5% revenue growth in FY2025, reaching $31.7 million, with a notable turnaround in earnings before interest, tax, depreciation, and amortisation (EBITDA) to $2.1 million from a $0.9 million loss the previous year. This improvement reflects strong gross margins around 60-65% and a lean cost structure following prior investments in technology and commercial capabilities.

The growth was primarily driven by the Detect segment, which manufactures advanced fibre optic sensing systems, achieving a 15-17% revenue increase. This segment's flagship product, Aura Ai-X, has expanded its footprint beyond traditional perimeter security into telecommunications, exemplified by a successful deployment on a Telstra subsea cable.

Robust Sales Pipeline and Backlog

Entering FY2026, Ava Risk Group holds a sales order backlog of $6.4 million, including $2.6 million in annual recurring revenue, underscoring the company's shift towards subscription-based models. The sales pipeline is particularly strong, with opportunities valued at approximately A$85 million expected to close in FY2026, excluding telecommunications sector orders.

This pipeline is geographically diversified across APAC, the Americas, Europe, and the Middle East, and spans key sectors such as sovereign border protection, airports, oil and gas, and rail infrastructure. Strategic partnerships with industry leaders like Telstra, UGL, Siemens, and dormakaba are instrumental in expanding market reach and driving growth.

Technology Leadership and Market Expansion

Ava’s technology suite is organized into three complementary segments – Detect, Access, and Illuminate. The Detect segment’s Aura Ai-X platform continues to innovate with new variants tailored for shorter perimeters, buried applications, and telecommunications, supported by advanced deep learning capabilities and safety certifications.

The Access segment, despite a 26% revenue decline due to timing of orders, remains strategically important through its global partnership with dormakaba, focusing on biometric and high-security access control solutions. Illuminate is gaining traction with wireless LoRa connectivity and integration with Detect solutions, although it recorded a $5.6 million impairment reflecting a cautious outlook.

Outlook and Growth Drivers for FY2026

Looking ahead, Ava Risk Group targets over 20% revenue growth in FY2026, with EBITDA margins expected to expand into double digits. The company plans to leverage its stable cost base, growing recurring revenue streams, and a strong sales pipeline to accelerate growth. Key catalysts include deeper penetration of Aura Ai-X in priority sectors, volume growth through dormakaba’s distribution network, and expanded sales momentum for Illuminate products.

Recent orders in sovereign border protection, transportation infrastructure, and telecommunications underscore the company’s ability to secure high-value contracts. The company’s cash flow positive status and $5.6 million cash balance provide a solid financial foundation to support ongoing investments and global expansion.