icetana AI Boosts ARR 36% with New SoftBank and Millennium Deals

Steady Growth Amid Strategic Expansion

icetana Limited (ASX – ICE), a specialist in self-learning security AI software, has delivered another quarter of consistent growth, reporting a 36% year-on-year increase in annual recurring revenue (ARR) to $2.3 million as of 31 December 2025. This marks a modest 1% rise quarter-on-quarter, reflecting steady momentum in a competitive market.

The company’s total revenue for Q2 FY26 was $593,000, flat compared to the previous quarter but up 35% from the same period last year. Cash receipts from customers surged 67% quarter-on-quarter to $589,000, indicating stronger cash conversion despite ongoing investment in growth.

Expanding Footprint Through Key Partnerships

icetana AI has strategically broadened its reach through new and expanded partnerships. Notably, it signed a non-exclusive distribution agreement with SoftBank Robotics UK Limited, extending coverage to the UAE and Saudi Arabia. This complements existing APAC arrangements and signals the company’s intent to deepen its presence across the Middle East and Asia Pacific regions.

Domestically, icetana secured a significant $376,000 purchase order tied to a 60-month contract with Millennium Services Group, covering Australia and New Zealand. This partnership aligns with the company’s focus on large-scale surveillance networks in retail and public safety sectors, where AI-driven security solutions are increasingly in demand.

Product Innovation and Market Traction

During the quarter, icetana AI rolled out a series of product enhancements aimed at improving the quality and explainability of its AI event detection. These updates include better visual context for security operators, workflow automation tools that integrate with popular communication platforms, and enhanced localisation features such as improved Japanese language support.

Such developments are designed to streamline Security Operations Centre workflows and increase operator confidence, critical factors for adoption in complex environments like shopping centres, transportation hubs, and enterprise infrastructure.

Financial Position and Outlook

On the financial front, icetana AI reduced its net operating cash outflow to $519,000 in Q2 FY26, down from $1.1 million in the prior quarter. The company ended the period with $2.2 million in cash, providing a buffer as it continues to invest in sales, marketing, and product development.

However, uncertainty remains around the $1.7 million Middle East safe city project, which has been delayed with no clear timeline for realisation. This project’s status will be a key watchpoint for investors assessing near-term revenue prospects.

CEO Kevin Brown expressed optimism about the company’s trajectory, highlighting the importance of strategic partnerships and the growing demand for AI security solutions in the APAC region. The successful proof-of-concept with a major Australian mall operator further underscores icetana’s potential to capture domestic market share.