How Vection Technologies Is Scaling AI Kiosks with a $0.5M Follow-On Order

Expanding AI Kiosk Footprint

Vection Technologies Ltd (ASX – VR1) has announced a significant follow-on purchase order valued at approximately $0.5 million from its long-term partner, KIOSK Embedded Systems (KISE). This order builds on the AI kiosk portfolio expansion revealed in November 2024 and highlights Vection’s growing traction in the enterprise technology space, particularly within Central Europe’s hospitality sector.

The order comprises 50 third-generation Wallmount KIOSK units, with delivery scheduled by the end of 2026. These kiosks leverage Vection’s IntegratedXR platform, which combines physical hardware with extended reality (XR) software and AI-powered features to create immersive, data-driven environments for enterprise clients.

Recurring Revenue and Customer Loyalty

Notably, about 60% of the order’s value is classified as annual recurring revenue (ARR), stemming from prior deployments. This underscores the strength of Vection’s customer relationships and the stickiness of its technology solutions. The ability to convert initial deployments into steady, recurring income streams is a positive sign for the company’s financial stability and growth prospects.

Since the partnership began in 2021, Vection and KISE have extended their agreements annually, reflecting a deepening collaboration and expanding operational scope. The follow-on order confirms that Vection’s AI kiosks are gaining increasing acceptance and demand, particularly in hospitality settings where interactive and intelligent kiosks can enhance customer engagement and operational efficiency.

Financial Outlook and Market Implications

Revenue from this order is expected to be recognised progressively, with approximately $200,000 booked in the 2026 financial year and the remaining $300,000 in the first half of 2027. This phased recognition aligns with delivery and implementation milestones, providing a clear revenue pipeline for Vection over the next 18 months.

Managing Director Gianmarco Biagi emphasised the significance of this follow-on order, stating it demonstrates the successful execution of prior agreements and the recurring nature of Vection’s IntegratedXR and AI-enabled solutions. The expansion of this partnership highlights Vection’s ability to scale enterprise deployments sustainably across multiple fiscal years.

With its growing footprint in Central Europe and a focus on sectors like hospitality, Vection is positioning itself as a reliable provider of cutting-edge XR and AI technology solutions. This order not only reinforces its market presence but also signals confidence from established partners in its product offerings.