RocketBoots Faces Execution Risks Despite Major Retail Contract Win

Transformational Contract Secures Revenue Growth

RocketBoots Limited (ASX, ROC), an AI software company focused on retail and banking sectors, announced a landmark contract worth approximately A$9.1 million in annual recurring revenue. The five-year agreement with a tier-one multinational retailer will see RocketBoots deploy its AI-driven loss prevention platform across about 40% of the customer’s global store network. This deal, won through a competitive tender, validates RocketBoots’ technology and positions the company to increase its recurring revenue tenfold.

The rollout is scheduled to commence in late Q1 2026, focusing initially on self-checkout loss prevention, a critical pain point for retailers facing rising shrinkage costs worldwide. This contract marks a significant milestone in RocketBoots’ international expansion strategy, highlighting its ability to compete with global providers.

Capital Raise Supports Growth Ambitions

To fund this expansion and technology enhancement, RocketBoots successfully completed a placement raising A$7.025 million from new and existing sophisticated and institutional investors. The placement shares were issued at a 16.1% discount to the recent volume-weighted average price, reflecting strong investor confidence. Funds will be directed towards scaling the global team, rolling out the new contract, and transforming the company’s technology architecture to improve margins.

As of 31 December 2025, A$1 million of the placement proceeds had been received, with the balance collected in January 2026. This capital injection ensures RocketBoots is well-capitalised to execute on immediate growth opportunities and sustain operations.

Expanding Customer Base and Sales Pipeline

Beyond the retail contract, RocketBoots also converted a retail banking trial into a rollout contract, initially covering less than 10% of the bank’s sites with potential for broader adoption. The company’s sales pipeline remains robust, with 14 advanced-stage customers representing approximately 17,000 sites and 27 early-stage prospects covering 32,000 sites globally. Several advanced pipeline customers are progressing through trials and integration phases, signaling potential for further significant contract wins.

RocketBoots’ AI platform addresses critical industry challenges such as retail shrinkage, which exceeds US$100 billion annually, and the operational complexities introduced by self-checkout expansion. By delivering measurable return on investment through loss prevention and workforce optimisation, RocketBoots is tapping into a large and growing global market.

Financial Position and Outlook

The company reported a cash balance of A$1.1 million at the end of December 2025, with cash inflows from customer contracts and trial activations partially offset by operating and cloud conversion costs. Payments to related parties amounted to A$82,000 for director fees and salaries. RocketBoots expects to maintain current operating cash flows and has sufficient funding to meet its business objectives, supported by the recent capital raise.

With a strengthened balance sheet, a transformational contract in hand, and a growing pipeline, RocketBoots is poised to accelerate its international footprint and technology leadership in AI-powered retail and banking solutions.