Unith’s Cost Cuts and Funding Raise Questions on Sustainability of Growth

Financial Momentum and Strategic Funding

Unith Ltd (ASX, UNT) has reported a solid 17% increase in cash receipts for the second quarter of FY26, reaching $1.43 million, up from $1.23 million in the same period last year. The half-year cash receipts also rose by 24% to $3 million, reflecting growing market traction for the company’s AI-driven digital human solutions.

Supporting this growth, Unith secured a $1 million unsecured strategic facility in December 2025, enhancing its liquidity and providing financial flexibility to accelerate platform execution and growth initiatives. This facility is intended to underpin working capital needs and near-term operational priorities as the company scales its enterprise deployments.

Operational Advances and New Contracts

On the operational front, Unith successfully launched the alpha phase of its Streaming Avatars technology, which delivers a significant performance boost with approximately 90% faster response times. This innovation promises more natural, real-time conversational experiences, a key differentiator in the competitive AI avatar space.

The company also expanded its commercial footprint, securing new contracts with Persona Entertainment and renewing engagements with the Alliance for Public Health, extending its reach across Eastern Europe and Central Asia. Notably, Unith deepened its presence in the pharmaceutical sector by completing due diligence with a major client and onboarding a second strategic pharmaceutical customer, positioning itself for future growth in healthcare applications.

Strategic Partnerships and Market Expansion

Unith’s strategic partnerships continue to broaden its distribution and use cases. Collaborations with Relait and Platform5ive enhance investor relations and technology services, while ongoing discussions with development agencies aim to scale project delivery without expanding headcount.

The company’s B2C division is also advancing, with platform developments to support credit card payments including Apple Pay and Google Pay, targeting a commercial launch in Q3. This expansion is expected to open new geographies and attract higher-value customers, particularly in the United States and Australia.

Enterprise Readiness and Cost Efficiency

Progress towards ISO 27001 certification remains on track, with a positive internal audit completed and an external audit scheduled for February 2026. Achieving this certification will bolster Unith’s enterprise credentials and support broader adoption of its platform.

Cost management is also evident, with the company making its final payment on the Amsterdam office lease, set to cease by March 2026, resulting in an annual cost saving of approximately $430,000. This move aligns with Unith’s focus on operational efficiency as it scales.

Looking Ahead

Unith’s management remains focused on converting its growing pipeline of strategic opportunities into scalable, recurring revenue streams. The combination of innovative technology launches, expanding commercial contracts, and strengthened financial position sets the stage for continued momentum in the evolving AI and digital human market.