Beonic Limited has locked in a $7.3 million contract for its North African Airport Project following a successful proof of concept, while reporting improved gross margins and positive cash flow in Q1 FY26. The company also completed a $4.3 million capital raise to support growth and innovation.
- Secured $7.3m first phase contract for North African Airport Project
- Q1 FY26 gross margin improved to 78.3%, EBITDA profitability at 18.9%
- Raised $4.3m via convertible notes to refinance debt and fund growth
- New contracts and renewals worth $5.6m across US, APAC, and EMEA
- Faced $328k ARR loss from US market contractions, impacting Q2 outlook
North African Airport Project Milestone
Beonic Limited has marked a significant milestone by securing the first major phase of its North African Airport Project, valued at $7.3 million over 30 months. This follows the successful delivery and approval of a proof of concept completed in September 2025. The project involves deploying Passenger Flow Management solutions across seven airports, positioning Beonic as a key player in AI-driven airport IoT solutions in the region.
Financial Performance Highlights
The company reported a strong start to FY26 with a gross margin of 78.3% for Q1, up from 77.3% in FY25, reflecting ongoing efforts to enhance profitability. EBITDA profitability stood at 18.9%, accompanied by a positive net cash inflow from operations of $80,000 despite one-off costs related to cost-cutting measures. Recurring revenue held steady at $4.3 million, with annualised recurring revenue (ARR) at $17 million, though slightly down compared to the previous year.
Capital Raise and Strategic Investment
During the quarter, Beonic successfully raised $4.27 million through the issuance of convertible notes, anchored by its largest shareholder, Thorney Investment Group, alongside support from the Board and management. The capital raise aims to refinance existing debt maturing in January 2026, accelerate the company’s product roadmap, including the launch of a new AI-based CCTV product in North America, and fund the rollout of the North African contract. Shareholder approval for the convertible notes is pending at the upcoming AGM in November 2025.
Contract Wins and Renewals Across Regions
Beonic expanded its footprint with $2.5 million in new contract wins and $3.1 million in renewals during the quarter. Notable new contracts include multi-year agreements with Dulles International Airport and Ronald Reagan Washington National Airport in the US, as well as hardware upgrades across APAC clients such as GPT, TK Maxx, and World Square. Renewals from major retail and infrastructure clients in APAC and EMEA, including QIC Properties and Autostrade, underscore the company’s strong market position.
Challenges and Outlook
Beonic faced a $328,000 ARR reduction due to budget cuts and churn from two US-based customers, with the revenue impact expected in Q2 FY26. Despite this, the company remains focused on sustaining margin improvements, maintaining profitable EBITDA, and driving growth through a qualified $42 million sales pipeline. Operational initiatives continue to optimise costs and enhance product adoption, aiming to solidify Beonic’s status as a global leader in airport and retail IoT solutions.
Bottom Line?
Beonic’s strong start to FY26 and strategic capital raise set the stage for growth, but upcoming US market impacts and shareholder approvals will be key to watch.
Questions in the middle?
- How will the US market ARR contraction affect Beonic’s revenue in Q2 and beyond?
- Will shareholder approval for the convertible notes proceed smoothly at the November AGM?
- How quickly can Beonic scale the North African Airport Project’s second phase and convert its $42 million pipeline?